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– SAP Supply Chain Review

Product Snapshot


SAP SCM is part of SAP Business Suite and is built on a service oriented architecture and SAP NetWeaver technology.

Customer Focus

SAP supply chain management can be used by companies of all sizes and supports engineer-to-order, configure-to-order, make-to-order and make-to-stock processes.

Select Customers

Port of Hamburg, The Hershey Company, Panasonic AVC

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About SAP Supply Chain

- SAP Supply ChainSAP SCM is part of the SAP Business Suite which provides organizations with the ability to perform essential supply chain operations. SAP SCM can help companies turn a linear supply chain into a more dynamic supply network. SAP SCM helps companies quickly adapt to changes in their markets and helps companies proactively respond to unpredictable lifecycles. SAP SCM provides a wide array of necessary function and integrates with SAP and non-SAP software, SAP Supply Chain Management helps improve collaboration, planning, execution and coordination across the entire supply chain.

About SAP

SAP is one of the world’s largest business software companies and the third-largest software supplier overall. Founded in 1972 as Systems Applications and Products in Data Processing, SAP has a rich history of innovation and growth that has made them a leader in providing collaborative business solutions for all types of industries – in every major market. The company, headquartered in Walldorf, Germany, employs more than 51,800 people in more than 50 countries and serves more than 76,000 customers in more than 120 countries.

SAP has leveraged their extensive experience to deliver a comprehensive range of solutions such as in to empower every aspect of business operations. SAP has created software solutions like SAP accounting software that can be used by companies of all sizes to use to reduce costs, improve performance and become more agile to respond to changing business needs.

Product Key Features

Planning and Collaboration
Demand Planning and Forecasting
  • Forecast and plan anticipated demand for products by using algorithms for product lifecycle planning and trade promotion planning.

Safety Stock Planning

  • Companies can assign safety stock and target stock levels in all inventories in the supply network.
  • Ensures companies will have the stock needed to meet customer demands.

Supply Network Planning

  • Integrates purchasing, manufacturing, distribution and transportation into and overall supply chain picture.
  • Allows companies to make more informed decisions based on a single, globally consistent model.

Distribution Planning

  • Determines the best short-term strategy to allocate available supply to meet demands and replenish stock in all locations.
  • Company planners can determine which customer demands can be met with current supply.

Supply Network Collaboration

  • Provides companies with collaboration tools to help companies work with partners across the supply chain.
  • Improves visibility into supply and demand, reduce inventory, increase the speed that raw materials and finished goods make it through the pipeline and improve customer service.

Parts Demand Planning

  • Improves the accuracy of forecasts through better modeling of demand quantities, events and their respective deviations.
  • Companies can choose from different forecast models to optimize model parameters to improve forecasting for slow-moving parts or for parts with irregular demand patterns.

Parts Inventory Planning

  • Reduces inventory levels and helps achieve retail service levels by providing more precise demand modeling.
  • Companies can distribute inventory more efficiently within a multi-echelon supply chain.

Parts Supply Planning

  • Reduces inventory in supply chain by improving supplier alignment, increasing automation and creating accurate supply plans.

Parts Distribution Planning

  • Companies can set stock transfers for parts within a service network to help eliminate stock-out situations.

Parts Monitoring

  • Helps companies work with suppliers to collaborate more effectively to handle alerts.

Materials Management

  • By sharing information about inventory and procurement orders, SAP SCM ensures that the materials required for manufacturing are in the right place at the right time.
  • Plan-driven procurement, inventory management and invoicing close the feedback loop between supply and demand while improving fill rates and customer satisfaction through increased replenishment speed, delivery confirmation and invoice accuracy.

Manufacturing Execution

  • SAP SCM supports all production processes, including engineer-to-order, configure-to-order, make-to-order and make-to-stock.
  • It also generates optimized production schedules that take into account real-time material and capacity constraints.
  • By integrating manufacturing with other supply chain processes, SAP SCM enables a rapid, flexible approach to responding to engineering changes and customer requirements.

Order Promising

  • Based on the global available-to-promise (ATP) capability, order promising receives queries from order management or CRM systems and determines when a product is available across a fulfillment network or when it can be built.
  • Also shows how much the product will cost and how long it will take to deliver.
  • Order promising is the critical link between order management/CRM systems and supply chain planning systems, providing a window into product availability.

Transportation Management

  • SAP SCM can help companies plan, consolidate and optimize inbound and outbound shipments while considering real-world constraints, costs and penalties.
  • Companies can also streamline and automate transportation tendering, execution, tracking and settlement processes and ensures international trade and hazardous material handling compliance in transportation processes.

Warehouse Management

  • Warehouse management reconciles open purchase orders with incoming shipments, supports a put-away system that remembers where goods are stored and optimizes employee picking assignments.
  • Warehouse management also supports warehousing tasks such as labeling, kitting and deferred handling.

Visibility, Design and Analytics
Strategic Supply Chain Design

  • With visibility across the entire supply chain network, planners and key decision makers can perform strategic and tactical business planning.
  • Companies test scenarios to determine how the supply chain network can address changes in the market, the business or customer demand.

Supply Chain Analytics

  • SAP SCM enables allows companies to define, select and monitor KPIs to get a comprehensive view of performance across the supply chain.
  • Companies can also use predefined KPIs based on the supply chain operations reference (SCOR) model to monitor sourcing, planning, production, distribution and returns processes.

  • Supports engineer-to-order, configure-to-order, make-to-order and make-to-stock processes
  • Provides companies with complete visibility into all aspects of their supply chain
  • Helps companies better plan their supply chains to operate the most efficient way possible
  • Integrates with both SAP and non-SAP products

SAP Supply Chain Management software can help companies gain control over there entire supply chain process. This includes providing planning tools to help companies realize the utmost efficient supply chain. SAP SCM is flexible enough to work for companies of all sizes.

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