SAP ERP for Supply Chain Management: Ultimate Guide of Modules, Benefits, and

Features

Table Of Content

 What is SAP Supply Chain Management?

 How Does Supply Chain Management Work

 What is a Digital Supply Chain?

 SAP Supply Chain Optimization to Meet Your Needs

 Benefits of SAP ERP in Supply Chains Management

 Key Features of SAP Supply Chain Management

 List of SAP SCM Modules

 Improving Your Organization's Performance Using SAP SCM

 How to Implement SAP ERP in the Supply Chain Management

 Why Silver Touch for SAP ERP Supply Chain Management?

 Conclusion: SAP Supply Chain Management

 FAQS About SAP Supply Chain Management

A rising number of software packages are available that can aid businesses in maximizing

the efficiency of the supply chain. Among them, SAP ERP software leads the way and is

preferably the first choice of supply chain management companies.

Supply chain and ERP are both a part of several corporate processes, and their integration

can boost business outcomes. The blog will talk about the Role of SAP ERP software in

Supply Chain Management in detail along with benefits, features, and various other crucial

knowledge.

What is SAP Supply Chain Management?

SAP SCM is a Supply chain software with SAP integration that helps businesses to be more

responsive to shifting consumer expectations. It enables businesses to manage workflows

and carry out logistics inside supplier networks. Overall effectiveness can be greatly

increased, and network logistics can be productively streamlined with SAP Business

One SCM.

All types of production operations, from small-scale food production to large-scale machinery

production, can benefit from supply chain management. These SCM processes are simple to

manage and can be applied in any sector.

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SAP supply chain is divided into three types of flows, Such as

 Product Flow

 Information Flow

 Finance Flow
How Does Supply Chain Management Work

Efficient supply chain management is essential for every industry sector. It covers all the

aspects related to orders, inventory, and sales while ensuring seamless product delivery.

Let's go through the way supply chain management works.

Product Transportation: Product transportation will serve as the primary foundation for the

SCM model's structure. The CSM model controls the prompt delivery of goods and the

timely transfer of goods from one unit to the other.

Collaboration and Communication: CSM plays a significant role in ensuring that

information is shared and communicated acceptably. Therefore, making the collaboration

among different departments and individuals smooth.

On-Time Delivery: SCM models ensure that the product is delivered on schedule from the

time of order until it is received by the final customer.

After-Delivery Service: After delivery, SCM also includes performance and quality checks

to guarantee the long-term success of the product.

Finance: In addition, supply chain management supervises stakeholders' or organizations'

financial systems as well. SCM includes billing, accounts payable, and inventory

management.

What is a Digital Supply Chain?

A digital supply chain makes use of cutting-edge technology to help each member make

informed choices about the sources of materials they require, the demand for their goods,

and all of the relationships between them.

Planning processes, asset management, logistics planning, transportation and procurement,

and order fulfillment are examples of legacy supply chain management systems that must

first be fully integrated. However, to effectively digitize a supply chain, it is also necessary to

mine data from those operations and instrument the machinery that allows them to generate

the required data.

SAP Supply Chain Optimization to Meet Your Needs

Companies are given essential capabilities and optimization choices by SAP Supply Chain

Management. You might be able to use customized code to improve operations in the

following areas to satisfy your business needs:

 Material monitoring

With an app that gives you complete supply chain monitoring, you can optimize material

tracking right from procurement to consumption.

Mobile-Native Capabilities

Your team will be able to move or transfer goods between warehouses or to other places

thanks to a personalized app, that have tons of customization options. With this software,

you can also reap the benefits of the mobile-native capabilities of the devices used by your

teams, such as the camera, barcode scanner, and GPS, to record crucial information and

offer real-time visibility into stock or finished goods.

Inventory Management

Your team will be able to access information and collect data using mobile devices as soon

as any movement occurs in your supply chain. You can set customization for specific

departments and get quick alerts.

Material Master

The capacity to generate and edit a material master in SAP can be improved with the native

app, creating a single, real-time point of truth, saving time, and putting the most crucial

information in front of decision-makers.

Benefits of SAP ERP in Supply Chains Management

SAP ERP software can manage all the processes related to supply chain management

effectively. High customizability and easy integration ability of the SAP ERP solution offer

many benefits to companies. Here we mention some of its key benefits-

 A Better Way to Manage Data

With ERP, employees across the company are able to examine shared data without having

to manually keep records. By doing this, it is possible to create synchronized reports on

crucial business factors.

Redesign Performance Efficiency

The ERP system eliminates repetitive tasks and drastically minimizes the need for manual

data entry, which boosts user productivity and lessens the risk of inaccurate data that could

lead to expensive business mistakes. The implementation of the ERP system will also

improve daily business operations by streamlining corporate procedures, making it easier

and more efficient for enterprises to collect information regardless of where they are located.

A Highly Customizable Solution

Each business receives a system that is specifically designed for them because their needs

are all different. It considers operational and departmental requirements. ERP systems are

simple, adaptive, and versatile. This suggests that it is easy enough for any employee to

use. Since the system is accessible via mobile devices, it is adaptive. As a result, the

program is accessible to both employees and management from virtually anywhere.

The Assurance of Security

The company's IT systems are more securely implemented thanks to ERP SCM. Core

company data will be sufficiently protected against information theft and unauthorized

access as well as against data security threats. All other options incorporate various access

or authorization levels. However, to avoid any failure, the data is centralized, and the

backups are scheduled periodically. Data security is significantly higher when it is copied to

other places when using cloud solutions.

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Easy Integration with Other Systems

By including consumers and suppliers as part of the value chain, the ERP concept expands

beyond the bounds of business. As a result, the business develops into a significant partner

that can gain a competitive edge by actively participating in the design and development of

new products that improve their experience. With regard to customers, ERP enables you to

obtain more information of a good specification, allowing you to modify manufacturing orders

and purchase what you need.

Key Features of SAP Supply Chain Management

SAP Supply Chain Management solution has all the components and sub-modules for

managing the entire supply chain efficiently. It has many features that are dedicated to

inventory and supply chain. Here are some of the top features-

Cloud Deployment

Deploy it as a cloud-based or on-premises solution, with capabilities including document

management, backups, and ongoing updates that don't require downtime. Encourage

communication among team members and stakeholders by sharing documents and

information quickly.

Predictive Analytics

Add integrated business planning features that make use of AI and in-depth analysis to

maintain supply chains informed of the ever-changing industry. Utilize predictive features to

keep supply networks ahead of demand while achieving profitability targets.

Transportation Management
Make use of a number of transportation management modules to speed up shipping.

Transfer produced deliveries, refunds, and purchase orders to the module for improved

planning and optimization. Utilize special scheduling tools to plan deliveries and drivers in

order to keep shipments flowing on time.

Integration Management

Integrate supply chain data and production analytics into one system for manufacturing

execution. supports interfaces with IoT Technology and the control of product quality and

compliance.

Delivery and Logistics Features

With the use of effective logistics technologies, you may streamline procedures connected to

yard management, warehousing, and transportation. Streamline the effectiveness of order

fulfillment overall. Track and trace goods as they pass between locations and enter and exit

the warehouse.

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List of SAP SCM Modules

 Advanced Planning and Optimization

It aims at facilitating users to plan and execute supply chain management. It remains at the

core of your supply chain link and includes functions related to planning and optimization.

SAP APO consists of the following sub-components-

 Demand Planning for generating forecasts and researching the market for products

 Production Planning and Detailed Scheduling to enable users to plan in detail

 Supply Network Planning for making plans for procurement, production, and distribution

 Transportation Planning for scheduling different transportation routes

 Global Availability for ensuring replenishment and delivery of products on time

Forecasting & Replenishment

This component enables users to plan and execute strategies for optimizing inventories in

line with the supply chain. It results in reduced overall inventory levels and thereby reducing

associated costs. Here are the key capabilities of this important component-

 Demand Forecast for the causal-based forecast

 Replenishment Calculation for identifying replenishment levels and synchronized planning

 Order Proposal Management for consolidating review and release of orders

 Business Analytics for generating reports on forecasting and inventory evolution

 Inventory Optimization for managing inventory according to supplier restrictions and safety stock

Event Management

It is useful for exchanging information between supply chain stakeholders in the form of

events. Here, events are generated during the activities of planning and execution. SAP EM

component offers visibility of the entire supply chain process to users. Here are its main

benefits-

Monitoring and evaluating various business processes by checking for events that took place

or did not take place. For example, a missing event for product delivery and goods issued

events. It assists you to notify stakeholders in the case of missing events or if there is a

necessity to take corrective actions.

Supply Network Collaboration

The SAP SNC component is useful for collaborating with suppliers. You can share

information related to the demand, inventory, and other related parameters on a shared

platform using this component. SAP SNC component includes a large number of workflows

including-

 Demand Forecast

 Purchase/Replenishment Orders

 Advanced Shipping Notifications (ASNs)

 Work Orders

 Scheduling Agreements
Improving Your Organization's Performance Using SAP SCM

Give your staff the necessary training so they will have the knowledge and skillsets to

effectively utilize SAP SCM's potential. To maximize the value of your SAP SCM effort, SAP

provides training along with its certification for the software to develop:

 Develop internal skill sets to support your company's digital transformation.

 Ensure that the project fits with your strategic objectives.

 Increased satisfaction and involvement of the workforce.

 Quicker solution implementation.

 Increase user productivity and simplify the execution of business processes.

Your business operations may vary if you use SAP SCM to optimize your supply chain

process. Your organization's supply chain activities can be managed successfully and

efficiently with the help of functions like production scheduling, business forecasting, and

demand planning.

How to Implement SAP ERP in the Supply Chain Management

It might be difficult to research, source, and integrate new ERP software. Therefore, we walk

you through the procedure from decision-making to execution so you can start enhancing

your company with SAP SCM:

Prepare a Brief

Perhaps the most crucial step in putting new software into use is deciding what you want

from your ERP. You won't be able to produce the appropriate package if the brief is

incorrect. Therefore, it's imperative that you devote enough attention to this section. All

business functions' present demands must be evaluated, and you should also plan for

upcoming requirements.

Find Suppliers

Start by finding businesses that offer the ERP software you require. The results you're

looking for can be found online with a quick search, however, you'll probably get a very long

list. Consequently, to further reduce the field, you might only want to include those that are

local to you or those that serve businesses similar to yours in size. Do a background check

and shortlist the ones that are in the industry for a really long time and have better case

studies, after-sales support options, etc.

Have a Conversation
The third step in the selection process usually includes the first meeting when you can get to

know one another better and share your requirements. Additionally, you'll want to get a

complete presentation of the program and get to know the individuals who will manage and

carry out your project.

Make the Decision

It's finally time for you to decide. There are many things to think about, but in the end, you

want a professional that spends the time to comprehend your firm and how it runs. A

thorough understanding of your business is essential in order for the proper supplier to assist

you in creating the ideal ERP software for your requirements. Get a free consultation and

quoted price for setting up or managing SAP SCM for your company.
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Why Silver Touch for SAP ERP Supply Chain Management?

It is impossible to overestimate the value of SAP ERP in the supply management industry.

The supply chain of a business is its lifeblood. An SAP ERP system is needed for supply

chain management operations in order to create a single, cohesive platform and yield

superior results.

Therefore, Silver Touch offers industries the best experts and services to help businesses

adopt this crucial ERP in their systems successfully. We help companies with compliance,

shipment planning and transportation, freight audits, warehousing, and whatnot. Contact us

here to learn more about how Silver Touch can benefit your company or arrange a

demonstration of our products.

Conclusion: SAP Supply Chain Management

Businesses that can withstand supply chain interruptions with clear conditions, planning, and

forecasting abilities are always one hand ahead of the competitors that lack them in the

current environment of demand outstripping supply. Your business-specific custom code

added to the SAP supply chain process flow can give you the opportunity to seize more

deals, supply your operation with the components and materials it requires, and satisfy client

demands.