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Regarding SCM

Former Member
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Hi Friends

Can anyone explain about Supply Chain Management?

Thanks In Advance

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

SAP Supply Chain Management

Features & Functions

SAP SCM delivers a complete set of features and functions for building adaptive supply chain networks. The application enables:

Supply chain planning and collaboration u2013 With SAP SCM, you can model your existing supply chain; set goals; and forecast, optimize, and schedule time, materials, and other resources. Supply chain planning functionality enables you to maximize return on assets and ensure a profitable match of supply and demand. In addition, the SAP Sales and Operations Planning application supports an integrated sales and operations planning process, enabling you to establish a single, unified plan that drives business operations.

Supply chain execution u2013 SAP SCM enables you to carry out supply chain planning and generate high efficiency at the lowest possible cost. You can sense and respond to demand through an adaptive supply chain network in which distribution, transportation, and logistics are integrated into real-time planning processes.

Supply chain visibility design and analytics u2013 SAP SCM gives you networkwide visibility across your extended supply chain to perform strategic as well as day-to-day planning. The application also enables collaboration and analytics, so you can monitor and analyze the performance of your extended supply chain using predefined key performance indicators (KPIs).

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 u2013 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 u2013 By offering a common information framework that supports communication and collaboration, SAP SCM enables you to better adapt to and meet customer demands.

Compliance with regulatory requirements u2013 You can track and monitor compliance in areas such as environment, health, and safety.

Improved cash flow u2013 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 u2013 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 u2013 and lower costs. You can also improve margins through better coordination with business partners.

Greater synchronization with business priorities u2013 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.

SAP SCM: Collaboration, Planning, Execution, and Coordination Across The Adaptive Supply Chain Network

You face enormous pressure to reduce costs while increasing innovation and improving customer service and responsiveness. SAP Supply Chain Management (SAP SCM) enables collaboration, planning, execution, and coordination of the entire supply chain network. SAP SCM provides broad functionality for enabling adaptive supply chain networks and integrates seamlessly with both SAP and non-SAP software by excelling in these ways:

Delivers planning and execution functions that are integrated by design

Supports best practices and provides preconfigured software for enabling collaborative business, accelerating implementation, and reducing costs

Recognized by key industry analysts as the market-leading supply chain management application

SAP SCM software has helped the best-run companies in multiple industries to improve their supply network, efficiency, utilization, and responsiveness.

regards,

SAP SD

Answers (2)

Answers (2)

Lakshmipathi
Active Contributor
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Dear Venkata Ramana

Supply chain management (SCM) is the process of planning, implementing and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. Since the process involved is like a chain (continuous link) right from component supplier to making despatching to end customer, we call it as Supply Chain Management

SCM consists of all parties involved directly or indirectly in fulfilling a customer request. The objective of SCM is to be able to have the right products in the right quantities (at the right place) at the right moment at minimal cost.

A supply chain or logistics network is the system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.

A typical supply chain begins with ecological and biological regulation of natural resources, followed by the human extraction of raw material and includes several production links, for instance; component construction, assembly and merging before moving onto several layers of storage facilities of ever decreasing size and ever more remote geographical locations, and finally reaching the consumer.

thanks

G. Lakshmipathi

Shiva_Ram
Active Contributor
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Hi,

The definition of Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.

Regards,