Mill Products > Supply Chain Planning > Profitability Driven Supply Chain Planning

Profitability Driven Supply Chain Planning

Configuration Scenario

 

Key Performance Indicators

  • Capacity Utilization
  • Demand, Supply Planning Costs
  • Forecast Accuracy

    • Partner Opportunities

  • Partner Opportunities in Mill Products

    • See also

  • Scenario and Process Components List
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    You use this business scenario to effectively integrate processes from Demand Planning (DP), Supply Network Planning (SNP), Order Fulfillment, and Production Planning and Detailed Scheduling (PP/DS). The scenario shows how the results of the sales and operations planning process control the order fulfillment and production planning processes. A new supply chain model can help to maximize profitability and provide the correct level of customer service to a specific customer.

    Business Goals & Objectives


    Increasing Revenue

    Efficient sales planning and management

    Lowering Working Capital

    Reduce out-of-stock situation

    Managing Fixed Assets & Resources

    Improve capacity utilization
    Improve throughput

    Reducing Operating Costs & Increasing Efficiency

    Reduce order processing costs

     

    Business Processes
    Demand PlanningSAP Component or Feature Available

    Toolbox with flexible interactive planning possibilities, to create a demand plan on any level of detail. Promotion Planning capabilities are included. Different forecasting algorithms and flexible macros, to carry out any kind of calculation or check, are offered as well as collaboration possibilities.

    This process is supported by the following SAP and/or partner offerings

  • SAP Demand and Supply Planning for Mill Products

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    Supply Network PlanningSAP Component or Feature Available
    Supply Network Planning integrates purchasing, production, distribution (of demands), and transportation so that comprehensive mid-term to long-term tactical planning and sourcing decisions can be simulated and performed on the basis of a single, global consistent model. Within Multilevel Demand and Supply Matching the CTM planning algorithm is used to perform a finite, priority-based, quota arrangement-based and order-oriented planning of the supply chain. The SNP Optimizer performs a finite, cost-based, and bucket oriented planning of the supply chain. By using SNP heuristics a infinite quota arrangement or priority-based and bucket oriented planning of the supply chain is performed.

    This process is supported by the following SAP and/or partner offerings

  • SAP Demand and Supply Planning for Mill Products

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    Availability CheckSAP Component or Feature Available
    You can use this business process in heterogeneous system landscapes to provide real time required information as quickly as possible. The availability check represents an online search that ensures that your company can provide the requested product at the requested time in the quantity requested by the customer. The availability check can automate business decisions from simplistic to complex rule definitions on how to best service your customers. It helps companies provide better customer service by increasing and meeting fulfillment expectations, can increase revenue by selling what you have and reduce overall operating expenses and increase efficiencies

    This process is supported by the following SAP and/or partner offerings

  • SAP Demand and Supply Planning for Mill Products
  • SAP ERP

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    Production Scheduling with Capacity ReservationsSAP Component or Feature Available

    You use this business process to model capacity reservations on resources. It is possible to reserve capacity for up to three different dimensions (characteristics) on a single resource. For example you can reserve capacity for certain customers on a resource, and in addition, capacity for a sales region and for certain account directors as well. In this case, the selected characteristics are customer, sales region and account director.

    Additionally, you can maintain a release date to prevent reserved capacity from remaining unused. This date specifies when the unused reserved capacity can be freed for reassignment to other dimensions.

    Capacity reservations help shorten delivery times to strategic customers by reserving capacity for them. During a CTP check capacity reservations are checked and a realistic delivery date can be returned to the customer.

    This process is supported by the following SAP and/or partner offerings

  • SAP Extended Manufacturing for Mill Products

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    SAP Product Available Partner Product Available SAP Product Available with Future Releases Partner Product Available with Future Releases Future Focus