Industry specific

[Former Member]

Hie Experts,

I want to know how supply chain managment is done in Food Industry considering various modules.

What are the key points to consider?

Thanks N Regards

Bijal

[Former Member · Accepted solution]

Hello

What do want to know about foods industry? We have implemented APO consisting of DP, SNP and TPVS in foods industry. If you be very specific on your requriement, i would be able to do my best.

Regards

Nav

[Former Member · Accepted solution]

Hie..

Thanks for ur reply,

I wish to know, wat is the diff between DP for Food Items and DP for some goods like Cars..

Since Food Industry will have to consider shelf life n all in SNP ...

please explain me one case if possible

Regards,

Bijal

[srinivas_krishnamoorthy · Accepted solution]

Food Items -- have steady demand and has daily level forecasting dynamics. The items are usually replenished at a retailer based on the stock consumed. Food items are not stockable but is peridhable.Forecasting would typically be done at a finished item level or the final sold product.

Cars --- are a mix of MTO and MTS (made to order and stock) and is forecasted more at a weekly/monthly level since the product lasts long. The items are not planned in replenishment mode. Cars are not perishables but are stockables. Forecasting will be done at variant level since stocking happens upto a variant level.

Shelf-life can only be considered in Optimizer and not in CTM/Heuristics. You can do some pseudo modeling of shelf life in CTM by using maximum earliness to demand parameter in Demand tab of location product. One would have to actually model this and understand the plans to make sure it is working correctly. SNP is designed for medium term planning and not for hourly planning. PPDS works well at a plant level hourly planning.

[srinivas_krishnamoorthy]

I have been briefly involved in Food Industry specific implementation though it was on Oracle Supply Chain suite. However I can relate this to how it should have been implemented in SAP. Two very crucial things that strike my mind:

1. Daily level Forecasting (explore F&R)

2. Shelf-life planning (explore CTM/Optimizer)

However since the context was like perishables such as cut fruits/frozen it may be different from the context of say slihgtly more stockable items such as cookies.

In the former context DP and PPDS take more relevance and in the latter SNP also can be used. In food industry as I said, aggregate planning is done differently than normal situations. forecasting is also more in terms of replenishment planning.