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SCM help

former_member588853
Active Contributor
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hi,

Can anyone explain inn brief what is SCM, DP, SNP etc..

I search in forums but couldnt understand the correct meaning..

If explained in real sceanrio will be more helpful

rewards for the best thread..

regards,

nazeer

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Answers (3)

Answers (3)

former_member588853
Active Contributor
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ana

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SCM - Supply Chain Management not from a domain perspective but from SAP application is a suite of application components related to supply chain functions. The primary application component of SAP SCM is APO (Advanced Planning and Optimisation) of which you have modules like Demand Planning (DP), Supply Network Planning (SNP), Production Planning Detailed Scheduling (PPDS), Global Available to Promise (GATP), Transportation Planning Vehicle Scheduling (TPVS). The other application components of SAP SCM are ICH - Inventory Collaboration Hub used for Supplier and Customer Collaboration (Web-based), EWM - Enhanced Warehouse Management, SPP - Service Parts Planning specifically for spares or service parts industry, F&R - Forecast and Replenishment specifically for the Retail industry.

Oh in terms of a business scenario - any company will do Sales & Operations Planning which will involve Demand Management. It will comprise of generation of Statistical Forecast based on historical Sales information, collection of demand from sales force, review the demand at different aggregate levels and finally arriving at a consensus forecast. Moreover Promotions can be modeled and accounted for in the demand plan. For short life cycle products, life cycle planning features are also quite helpful. This in a nutshell are the functional capabilities of APO DP.

Next step after generation of demand would be plan for the receipts to match these demand. This is done in APO-SNP where you can model the complete supply chain including your customers, distribution centres, manufacturing plants all the way to your vendors. So the demand forecast are at the customer locations. As you run SNP planning (Heuristics, Optimiser or Capable-to-Match engines/algorithms) the demand is transferred from to the Distribution Centers, netted against any stock and expected receipts and then offset to the Manufacturing Plant based on the lead time. At the manufacturing plant SNP can create Planned Orders for inhouse manufacture of the products which in turn will create the dependent component requirements. The dependent components can be manufactured in house (and planned orders created for them) or externally procured from vendors (purchase requisitions created) - all these planning proposals can be created in SNP. Then on the reverse Deployment and Transport Load Builder functionalities can be used for planning actual replenishments.

This may not be good enough for an interview (depending on the requirement) but is a good starting point.

Thanks,

Somnath

Former Member
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DP : APO Demand Planning (DP) is used to create a forecast of market demand for your company's products. This component allows you to take into consideration the many different causal factors that affect demand. The result of APO Demand Planning is the demand plan.

Demand Planning is a powerful and flexible tool that supports the demand planning process in your company. User-specific planning layouts and interactive planning books enable you to integrate people from different departments, and even different companies, into the forecasting process. Using the DP library of statistical forecasting and advanced macro techniques you can create forecasts based on demand history as well as any number of causal factors, carry out predefined and self-defined tests on forecast models and forecast results, and adopt a consensus-based approach to reconcile the demand plans of different departments. To add marketing intelligence and make management adjustments, you use promotions and forecast overrides. The seamless integration with APO Supply Network Planning supports an efficient S&OP process.

SNP: APO Supply Network Planning (SNP) integrates purchasing, manufacturing, distribution, and transportation so that comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of a single, global consistent model. Supply Network Planning uses advanced optimization techniques, based on constraints and penalties, to plan product flow along the supply chain. The result is optimal purchasing, production, and distribution decisions; reduced order fulfillment times and inventory levels; and improved customer service.

Starting from a demand plan, Supply Network Planning determines a permissible short- to medium-term plan for fulfilling the estimated sales volumes. This plan covers both the quantities that must be transported between two locations (for example, distribution center to customer or production plant to distribution center), and the quantities to be produced and procured. When making a recommendation, Supply Network Planning compares all logistical activities to the available capacity.