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Supp ly Netw ork Plann ingc on SAP APO

Josep Ramon Bonamusa,SAP Iberia

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SAP 2007 / SNP Overview, Dr. Gerald Heisig, 2

APO Supply Ne t w ork Planning (SNP)

Beneficios ClaveFunciones

Mayor visibilidad sobre toda lacadena de suministro

Optimizacin del aprovisionamientoy utilizacin de capacidades

Tiempos menores para elcumplimiento de ordenes

Reduccin de los niveles deinventario

Nivel de servicio al cliente mejorado

Integra compras, manufacturing,distribucin y transporte

Considera restricciones ypenalizaciones para planificar el flujode productos a traves de la cadena desuministro

Permite la planificacin con diversosniveles de detalle (planificacinagregada)

Algoritmos heuristicos, basados enreglas o optimizacin

Algoritmos para la planificacinavanzada de stocks de seguridad

Calcula las cantidades a producir y entregar a los centros para cubrirlas demandas de los clientes y mantener los niveles de servicio.service levels.

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APO DP: Improves the forecast quality and

planning accuracy

APO SNP: Improves visibility across your global

supply chain and lowers inventory

APO PP/DS: Supports you in creating optimizedproduction plans

APO gATP: Allows state-of-the-art sales order

confirmation planning processes

APO TP/VS: Optimizes transportation loads and

minimizes transportation costs

APO Alert Monitor: Powerful exception message

system integrated in all APO planning modules

Global Available-to-Promise

Demand Planning

Supply Network Planning

Production Planning &Detailed Scheduling

Advanced Planning & Optimization

AlertMonitor

Transportation Planning &Vehicle Scheduling

Com o esta est ruc t urado APO?

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Supply Chain Ex ec ut ion & Supply ChainPlanning

DatosMaestros

Global Available-to-Promise

Demand Planning

Supply Network Planning

Production Planning &Detailed Scheduling

SAP APO

AlertMonitor

Supply Chain Planning

Material Management (MM)

Sales & Distribution Planning(SD)

ERP

CIF

Supply Chain Execution

Production Planning (PP)

DatosTransactionales

(real-time)

Locations

Products

Resources

BoM & Routings

Master Data

Transactional Data(real-time)

Stock

Production Orders

Confirmation

Goods Receipt

Purchase Orders

Sales Order

(ERP to APO)

Transactional Data(real-time)

Planned Orders

Stock Transfer Orders

Order Conversion

Sales Order confirmation

(APO to ERP)

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El c i c lo de p lan i f icac in en SNP

Sense&

Respond

Release SNP plan to PP/DSor execution system to

perform detailed planning

Release Forecasts from DPto SNP (incl. forecast

consumption)Perform SNP planning run(Heuristic, Optimization,

Capable-To-Match)

Perform Deployment/TLB runto create the short-term

distribution plan

Check of planning results inInteractive Planning Table

and Alert Monitor to resolveremaining issues

Transfer results to executionsystem

.. . Para t oda la supp ly c hain... Planes basados en c ostes o reg las

... Plani f ic ac in a m edio plazo

.. . Basado en rest r ic c iones.. . Basado en ex c epc iones

1

3

4

56

7

Safety Stock

Planning

2

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Creacin de planes viables de compra, produccin y distribucinpara toda la supply chain

Visibilidad sobre toda la supply chain

Niveles de inventario optimizados mientras se cumplen losniveles de servicio requeridos

Planificacin de requerimientos de materiales y capacidades enun solo proceso

Algoritmos en base a heuristicas-, reglas- o costes para crearplanes viables o optimizados de acuerdo a las reglas y logicas delnegocio

Planificacin basada en excepciones mediante alertas paraidentificar y resolver situaciones de sobrecarga de recursos,caducidades o pedidos retrasados

.

Benef ic ios de SAP APO SNP

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In terac t ive SNP Planning Book: SNP Plan (I )

Navigation onproducts and

locations

Selection of planning bookand data view

Interactive Planning Grid- Overall planning situation- Drill-Down options- SNP Heuristic and Optimizer- Deployment Heuristic and Optimizer

Pre-defined Selections

for an SNP planner

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In terac t ive SNP Planning Book: SNP Plan (I I ) Ex c ept ion based Planning

SNP planner can alternatively also drill-down from the alert

monitor to the application to solve the issue.

Alerts for SupplyShortages

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Vist a de Capac idades

Navigation onresources

Alerts for resource load

Visualization ofresource overload

Planned productionorders on resource

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Algor i t m o: SNP Heur is t ic a

Local DC

30%

70%

40%

60%

SNP Heuristic is a heuristic without considering constraints inthe supply network.

SNP Heuristic does the sourcing based on quota arrangementsand priorities.

As additional planning step, Capacity Levelling can be

performed in order to resolve capacity overloads.

Planned StockTransfers

Planned Production

Orders

Planned Purchase

Requisitions

Demands

Demands

100%100%

Plant

DC

Supplier

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Algor i t m o: Capable-To-Mat c h (CTM)

Local DC CTM planning uses a constraint-based heuristic planningapproach for the cross-supply-chain checks of capacities aswell as material availability.

CTM considers predefined supply categories and demandpriorities.

Planned Stock Transfers-> Transportation and Handling Capacities

-> Quota Arrangements and Procurement Priority

Planned Production Orders

-> Production Capacities

-> Priority of PPM/PDS

Planned Purchase Requisitions

-> Procurement Priorities

Demands

-> Priority Classes

Demands

-> Priority Classes

Prio 2

Prio 1Prio 1

Prio 1

Prio 2Prio 1

Plant

DC

Supplier

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Algor i t m o: SNP Opt im izador

Local DC

$

SNP Optimization is a cost-based optimization considering allcapacity constraints and material availability in the supplynetwork.

SNP Optimization determines the optimal solution based onpredefined costs for supply alternatives and demands.

Planned Stock Transfers-> Transportation and Handling Capacities

-> Transportation Cost

Planned Production Orders

-> Production Capacities

-> Production Costs

Planned Purchase Requisitions

-> Procurement Costs

Demands

-> Cost for

- non deliveries

- late deliveries$

$

$

$$

Plant

DC

Supplier

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Algor i t m o: SNP Opt im izer - Per f i les

CostProfile

Status ofOptimizer Run

Solution Processand Costs

ImportantMessages

OptimizerProfile

Activation of

Constraints

Usage ofLot Sizes

Consideration ofSafety Stock

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Dist r ibut ion Planning: Deployment and TransportLoad Bui lder

Deployment determines the best short-termsolution to allocate available supply to meetdemand and to replenish stocking locations.

Deployment confirms or changes the supplynetwork plan depending and creates aoptimized plan for stock transfers

The rules-based Deployment Heuristicdistributes the products according toquotations and priorities.

The Deployment Optimizer distributes theproducts according to cost while also

considering specific rules.

Supply

Supply

Stock

Stock

Stock

Demand

The Transport Load Builder (TLB)groups deployment results for singleproducts (i.e. confirmed stocktransport purchase requisitions) tomulti product stock transport orders.

The TLB considers factors likevolume, weight or number of pallets tofill transport vehicles optimal.

Plant

DC

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Feat ure: Safet y St oc k Planning

Uncertainty of supply Uncertainty of demand

DC

Plant

Use safety stock to safeguard the supply chain against negative effects ofuncertain influencing factors like:

Errors in predicting customer demand

Disruptions in production

Fluctuations in transportation times Satisfy unexpected demands caused by these factors using an extra amount

of material, intermediate products or end products.

Usage of Advanced Safety Stock Planning methods in APO SNP todetermine optimal amount of safety stock for all location-products in thesupply chain based on service levels while considering demand and supplyuncertainties.

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Feat ure: Aggregat ed Planning

Aggregated Planning allows users to perform a SNP run on an aggregated level, bydefining hierarchies for products, locations and production resources to be taken intoaccount by the SNP heuristic, SNP optimizer, and CTM (Capable to Match)

A disaggregating logic is available to ensure that plans are consistent at all levels ofaggregation

The User Interface offers extended drilldown options for displaying the planningresults

Benefits

Larger supply chain models can be planned

Performance improvements by calculation on aggregation levels

Simplified planning process

Master data for aggregatedplanning can be transferredvia CIF from an SAP AFS(Apparel and FootwearSolution) to SAP APO

SAP AFS CIF SAP APO

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Feat ure: Shelf L i fe in SNP

Enable manufacturers to consider shelf life in the distribution of perishable goodssuch as food or pharmaceutical products

Offer companies the possibility to consider shelf life issues with regard to specificproducts or demands in the supply chain

Enable planners to ensure that products have a certain shelf life at their demanddate

Enable planners to visualize and alert on shelf life data across the supply chain

Demand A

Demand B

Demand C

Demand D

Stock

Pegging

Shelf life periodMaturat ion

period

Propagate shelf life data of demands (e.g.sales orders) across the supply chain

Generate alerts for goods that will expire or forshelf life mismatches between demands andstocks

Integrate shelf life data of purchase requisitionto SAP ERP and use shelf life data for furtherprocesses in ERP (purchase order, batchdetermination for delivery creation)

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Feature: Subcont ract ing in SNP

Subcontractor Plant

Components

Finished Good

In a subcontracting scenario the plant provides the subcontracting components to athird party, called the subcontractor. The subcontractor assembles the componentsand returns the finished product. Enable outsourcing of manufacturing facilities to a third party Consider subcontracting scheduling agreements as external procurementrelationships Plan the following for the subcontractors (vendor) location:

Ordered finished products Subcontracting components

Give access to information about subcontracting stock at subcontractor locations

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Algunos da t os sobre SAP APO

Primera version SAP APO 1.1 (1998)

Version actual: SAP APO 5.1 (8 version APO) parte de SCM 2007 - en

ramp-up desde Agosto 2007 - mass shipment planificado para Q1/2008

Siguiente versin planificada: SAP APO 7.0 (Inicio del ramp-up: Q4/2008)

Numero de clientes APO : 1800

Service marketplace for SCM: http://service.sap.com/scm

http://help.sap.com/

Informacion

Datos sobre SAP APO
http://service.sap.com/scmhttp://help.sap.com/http://help.sap.com/http://service.sap.com/scm

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SAP SCM Refer enc ias

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Analyst Quot es

SAP Extends Its Vision for Supply Chain Management" 1

As implementations of SAP Advanced Planner and Optimizer

(APO) have increased, APOs strengths (and challenges) have

become apparent.

APO 5.0 is the most mature product in the mySAP SCMportfolio With APO 5.0, SAP has moved the investment towards

innovation and new functionality

Functionally, SAP is a good contender when companies are

considering using SAP APO to power their ATP processes.

1 White, et al., March 20, 2006 (Gartner)

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Para ms in formac in:

Josep Ramon Bonam usa

SAP Iberia

Torre Diagonal MarC/ Josep pla,2 Planta 1308019 Barcelona

T +34 93 483 35 00F +34 93 483 35 01

[email protected]

Experto en SolucionesGestin de la Cadena de Suministro (SCM)
mailto:[email protected]:[email protected]

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