SAP SCM which is the acronym for SAP Supply Chain Management is one of the core modules in the SAPenterprise tool. SAP SCM covers all the areas of SAP production planning, SAP business forecasting, and SAP demand planning. It manages and controls the flow of products and information across the organizations that it is used in.
SAP SCM allows the business organizations to carry out effective planning and execution of organizational logistics that is within the supply network and to carry out proper management of workflow. SAP SCM allows for planning, collaboration, coordination and execution of the entire supply chain network. SAP SCM offers a much broader functionality for enabling adaptive supply chain networks and to be used seamlessly together with both SAP and non-SAP software.
SAP SCM describes the active management of the entire supply chain of the organization from the supplier to the customer. SAP SCM supports its customers with various solutions that integrate decisions and information from the whole supply chain into an automated, seamless, and optimized information infrastructure. It provides organizations with a framework for integrating business strategic decision support, planning and simulation, data warehousing, forecasting and execution systems in a closed-loop together with core enterprise financial, logistics and human resource software applications.
There are may feature of SAP SCM and some of them are:
1. SAP SCM helps the organization to manage its supply chain process in a very dynamic environment.
2. The SAP SCM software helps customers, suppliers, business partners, manufacturers, and retailers to connect with each other to manage the supply chain process efficiently and effectively.
3. SAP SCM helps organizations to move up very fast and optimize their end-to-end procure-to-pay process.
4. SCM allows a business organization to integrate its processes and to ensure compliance of their agreement across both the supplier-side and consumer-side, by using the supply chain processes in a distributed environment.
5. SAP SCM is a comprehensive software that is used to cover the core processes which are; Supply chain planning, Supply Chain networking, Supply Chain Coordination, and Supply chain execution.
6. SAP SCM includes several distinct planning software applications that are related to Advanced Planning and Optimization APO, and for integration with other execution applications of SAP.
There are many benefits of studying SAP SCM and some of them are:
1. SAP SCM helps to reduce accounts receivable collections with better visibility within the AR process.
2. SAP SCM helps to effectively manage the forecasting and handling of sudden changes in the demand and supply process.
3. SAP SCM helps to effectively use various Net Fixed assets with NFA like plants and equipment.
4. To satisfy several customer demands, you can smartly adapt and manage the SAP Supply Chain Management process in your organization to meet the needs.
5. SAP SCM helps with the distribution of the important and essential information to all the stakeholders in an organization that is spread across the network.
6. SAP SCM helps to improve collaboration and communication across different business lines to manage the demand and supply processes in an organization.
7. SAP SCM helps to improve production efficiency and reduction in the issues of production quality and therefore reduce the cost of goods sold.
8. Learning SAP SCM provides Job Opportunity and Career Advancement.
9. Learning SAP SCM provides Entrepreneurship Opportunity and Consultancy
SAP SCM is made up of the following components:
1. SC Collaboration − This is used to help in making collaborative forecasts and agreements.
2. SC Planning − This is used to generate the operational plans as per current and relevant data in the system.
3. SC coordination − This component in Supply Chain is used to coordinate the exchange of data and information between different business units.
4. SC Execution − This is used to ensure that you execute the supply chain plans in the best possible manner to get the desired result.
Based on actual functionality, you can further divide SAP SCM into three parts −
1. Forecasting: To perform demand planning and forecasting, you can link to Customer Relationship Management CRM to get data related to customer campaigns, etc.
2. Supply Network Planning (SNP): To view the organization as a network of locations and to check stock projections and stock-keeping criteria. Math Calculations in SNP drive dependent needs down to providing locations production and receiving stores.
3. Production Planning and Detailed Scheduling: This is in other to verify the dependent needs from locations within the supply network, given down from SNP.
The following points are to be considered when doing an SAP SCM Integration:
1. To transfer master and transaction data from the ERP system to the SCM system, you need to define an integration model. An integration model specifies which data objects from the ERP system are to be transferred from total objects available.
2. You can create the integration model for master data like- BOM, routing, campaign management details, uplift quantity. Integration is also required to move data from SAP SCM system to ERM modules- like CRM to move sales quantity data, etc.
SAP SCM - Introduction
SAP SCM - Overview
SAP SCM - Components
SAP SCM - Benefits
SAP SCM - Demand Management
SAP SCM - Creating PIR
SAP SCM - Planned Order Creation
SAP SCM - Goods Issue
SAP SCM - Integration
SAP SCM - Integration Models
SAP SCM - Master Data
SAP SCM - Resources
SAP SCM - Transfer Changed BOMs
SAP SCM - Models and Versions
SAP SCM - Applications
SAP SCM - Extended Warehouse
SAP SCM - Exams And Certification
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