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What is Supply Chain Management (SCM)?

The supply chain includes all activities related to the planning and executing of supply, production, and distribution management. Managing this supply chain effectively can increase business flexibility and create bottom-line value. Therefore, SCM can provide competitive advantage in today’s networked economy.

SAP SCM Overview TODAY’S SEQUENTIAL SUPPLY CHAIN

SAP Transforms

ADAPTIVE SUPPLY CHAIN NETWORK

SAP SCM – Where does it fit SAP Business Suite

Maintenance & Quality Purchase Order Management

SAP SRM

SAP ERP Financials Human Resources Corporate Services Operations Inventory & Production

Sales Order & Distribution Management

SAP PLM

SAP SCM

SAP NetWeaver

SAP CRM

The Complete SCM Solution- Features Measure

Private Exchanges

Partner

Dyn. Supply Chain Cooperation

Vendor

Plan Demand Planning (DP)

Source

Supply Network Planning (SNP)

Make

Supplier Relationship Management

(SRM) Scheduling agreement release

Production Planning/ Detailed Scheduling

(PP/DS)

Deliver Availability Check

(ATP) Transportation Planning

(TP/VS)

Dyn. Supply Chain Cooperation

Supply Chain Performance Management

Customer

Private Exchanges

Partner

Monitor

Supply Chain Event Management

Supply Chain Planning: Why do companies need it? Balance & optimize supply and demand Customers

Suppliers

SUPPLY

Plants

DEMAND

Storage Locations

SAP SCM Supply Chain Planning Solution

SAP Advanced Planning and Optimization (SAP APO) planning capabilities: 

Supply network planning

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Demand planning

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Supply chain network design

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Collaborative planning processes (demand and supply)

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Production planning

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Transportation planning

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Global available to promise (Global ATP)

s comprehensive

SAP Supply Chain Management - Business Benefits

SAP SCM can help you transform a traditional linear supply chain into an adaptive network with the following benefits: Faster response to changes in supply and demand – With increased visibility into the supply chain and adaptive supply chain networks, you can be more responsive. You can sense and respond quickly to changes and quickly capitalize on new opportunities. Increased customer satisfaction – By offering a common information framework that s communication and collaboration, SAP SCM enables you to better adapt to and meet customer demands. Compliance with regulatory requirements – You can track and monitor compliance in areas such as environment, health, and safety. Improved cash flow – Information transparency and real-time business intelligence can lead to shorter cash-to-cash cycle times. Reduced inventory levels and increased inventory turns across the network can lower overall costs. Higher margins – With SAP SCM, you can lower operational expenses with more timely planning for procurement, manufacturing, and transportation. Better order, product, and execution tracking can lead to improvements in performance and quality – and lower costs. You can also improve margins through better coordination with business partners. Greater synchronization with business priorities – Tight connections with trading partners keep your supply chain aligned with current business strategies and priorities, improving your organization's overall performance and achievement of goals.