Sap For Supply Chain Management: Presented By-Preeta Hate

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SAP FOR SUPPLY CHAIN

MANAGEMENT

Presented by-
Preeta Hate
SUPPLY CHAIN
A supply chain is a 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.
What does a supply chain do??

“Supply Chain Management encompasses the planning


and management of all activities involved in sourcing and
procurement, conversion, and all logistics management
activities.”
If the information entered into a demand forecasting
application is not accurate, then you will get an inaccurate
forecast. Similarly, if employees bypass the supply chain
systems and try to manage things manually (using the fax
machine or spreadsheets), then even the most expensive
systems will provide an incomplete picture of what is
happening in a company's supply chain.
ENTERPRISE ARCHITECTURE
An enterprise architecture (EA) is a conceptual tool that assists
organizations with the understanding of their own structure and the
way they work. It provides a map of the enterprise and is a route
planner for business and technology change.
Normally it takes the form of a comprehensive set of cohesive
models that describe the structure and the functions of an enterprise.
Important uses of it are in systematic IT planning and architecting
and in enhanced decision making.
The individual models in an EA are arranged in a logical manner
and this provides an ever-increasing level of detail about the
enterprise, including:
Its objectives and goals.
Its processes and organization.
Its systems and data.
The technology used.
Difference between ERP architecture and legacy systems

The new ERP system was brought in to replace


existing Legacy databases. These databases had
evolved over a 20-year period guided by the needs of
the institution, yet were rapidly becoming obsolete.
Many challenges occurred while trying to regain
functionality during transition to the new system.
Key components of EA
Manufacturing.
Supply Chain Management.
Financials.
Projects management.
Human Resources.
Customer Relationship Management (CRM) 
How has ERP facilitated
supply chain functions?
Supply chain is an important process that includes
the controlling and deciding the direction of
resource movement in an organization. It also
includes all other sub process involved in
coordinating them.
The concept of supply chain and its management is
not a new one. However ERP has helped to reduce
their inaccuracies and increased the performance of
"the chain /plan of action".
Some of the issues concerning for supply chain management
Manages change
Identify mistakes
Set metrics
Assistance and results
SAP Business Suite
Enables enterprises to execute and optimize business and
IT strategies.
Enables to perform essential, industry-specific and
business-support processes with modular solutions that are
designed to work with other SAP and non-SAP software.
To develop practices for greater differentiation in business
processes.
SAP FOR SUPPLY CHAIN
MANAGEMENT
Enables planning, execution, collaboration and
coordination of the entire supply network
SAP SCM is part of the SAP Business Suite.
SAP SCM helps to transform a linear, sequential supply
chain into a responsive supply network.
Communities of customer-centric, demand-driven
companies share knowledge, intelligently adapt to
changing market conditions, and proactively respond to
shorter, less predictable life cycles.
SAP SCM provides broad functionality for enabling
responsive supply networks and integrates seamlessly
with both SAP and non-SAP software.
The application helps in Planning, Execution and Collaboration:
Planning:
SAP SCM models existing supply chain, set goals and forecast,
optimize and schedule time, materials, and other resources with
these planning activities like:
Safety stock planning
Supply network planning
Strategic supply chain design
Planning Benefits-
Increases demand accuracy and order fulfillment satisfaction
levels.
Reduce inventory levels and increased inventory turns across the
network.
Increase profitability and productivity.
Integrate sales and operations planning process.
Execution:
SAP SCM enables to carry out supply chain planning and
generate high efficiency at lowest possible cost.
Respond to demand through a responsive supply network
in which distribution, transportation, and logistics are
integrated.
Features include:
Order fulfillment
Procurement
Transportation
Warehousing
Manufacturing
Execution Benefits:
Improved order, production, and execution tracking with
RFID-enabled processes.
Seamless integration and global visibility of different
transportation process steps and higher transparency.
Improved warehouse efficiency and extend real-time
visibility and control of warehouse operations.
Reduced costs of goods sold throughout your company.
Collaboration:
SAP Supply Network Collaboration, included in SAP
SCM, helps to connect and collaborate with:
Suppliers – Give them easy and seamless access to
supply chain information to facilitate your ability to
synchronize supply with demand.
Customers – Provide broad capabilities for
replenishment, including min/max-based vendor
managed inventory (VMI) and transport load
building.
Contract manufacturers – Provide easy, seamless
access to supply chain information by extending
visibility and collaborative processes to their
manufacturing processes.
Collaboration:
SAP Supply Network Collaboration, included in SAP
SCM, helps to connect and collaborate with:
Suppliers – Give them easy and seamless access to supply
chain information to facilitate your ability to synchronize
supply with demand.
Customers – Provide broad capabilities for replenishment,
including min/max-based vendor managed inventory
(VMI) and transport load building.
Contract manufacturers – Provide easy, seamless access to
supply chain information by extending visibility and
collaborative processes to their manufacturing processes.
Thank You

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