SAP Supply Chain Management Offers Comprehensive Solutions

2007-03-08 10:33:40

( Computers )



In recent years, supply chain management systems have become widely discussed issues on top managements’ agenda. The subject has grown to such importance that many universities now offer supply chain management mba programs.

One essential precondition for the implementation of supply chain management solutions are powerful information systems. As your company feels the need to integrate your supply chain management systems, demand for automated supply chain management solutions will increase.

SAP supply chain management applications are some of the most comprehensive supply chain management (SCM) initiatives in the industry. The SCM concept goes beyond the internal business functions involved in the flow of materials and information from the raw material to the delivery of finished product.

SCM covers the network of interconnected businesses involved in providing product and service packages that end-users require. You would thus think of SCM as the management of relations and integrated business processes across the supply chain that produces products, services and information that add value for the customer.

The SAP supply chain management package, a natural outgrowth of the company's enterprise resource planning systems, has three main components: an advanced planner and optimizer (APO) system, a business-to-business procurement system, and a logistics execution system. SAP has also added supply chain management solutions under mySAP supply chain management headers, with components for business information warehouse, materials management, production planning, and sales and distribution.

The SAP supply chain management advanced planner and optimizer system provides functions for intra- and inter-company planning of the supply chain, and for scheduling and monitoring the associated processes. It has several modules, using a shared database, which improves your demand-forecasting capability, production planning efficiency, and transportation resource optimization.

The logistics execution system enables fast and accurate flow of goods through the supply chain, while you can use the business-to-business software to procure goods and services via the Internet.


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