SAP SCM provides features and functions that enable supply chain execution processes, including order fulfillment, procurement, transportation, warehousing, and manufacturing.

Order Fulfillment

With SAP SCM, you can manage order fulfillment activities, including:

• Sales order processing – Fulfill a contract or purchase order with a specific product configuration and quantity – or a given service at a specific time.
• Billing – Handle the entire billing process, from the creation and cancellation of invoices through the transfer of billing information to the accounting department.

Procurement

SAP SCM supports end-to-end procurement, including processes for:

• Strategic sourcing – Identify and evaluate vendors based on historical performance and other data. Create long-term sourcing plans that align with financial and marketing strategies.
• Purchase order processing – Convert demand, such as purchase requisitions and e-shopping carts, into purchase orders or delivery schedules for a scheduling agreement.
• Invoicing – Receive, enter, and check vendor invoices for correctness in terms of content, price, and computation.

Transportation

With SAP SCM, you can manage key transportation processes, including:

• Transportation planning – Optimize shipments, assign carriers to shipments, and tender shipments to assigned carriers.
• Transportation execution – Select carriers, calculate freight costs, settle shipment costs, and print documents. Use denied-party and embargo lists when shipping internationally.
• Freight costing – Calculate and settle freight costs based on actual shipments and current rates, and use this information to verify invoices.

Warehousing

With SAP SCM, you can manage warehouse activities, including:

• Inbound processing and receipt confirmation – Receive and process externally procured goods into your warehouse with a single radio-frequency scan.
• Outbound processing – Use RFID technology to manage all the steps of the goods issue, including distribution and proof-of-delivery activities.
• Cross docking – Direct inbound goods from receipt to issue without interim storage. Minimize duplicate goods movements, optimize the flow of goods, and shorten routes within the warehouse.
• Warehousing and storage management – Optimize internal movements and storage of goods within a warehouse.
• Physical inventory – Plan and execute physical inventory or cycle counts.

Manufacturing

SAP SCM supports all production processes, including engineer-to-order, configure-to-order, make-to-order, and make-to-stock manufacturing. The solution enables both:

• Production planning and detailed scheduling – Optimize schedules for machine, labor, and overall capacity utilization, factoring in customer delivery dates, material availability, and real-time manufacturing conditions.
• Manufacturing operations – Capture production information from the shop floor to support production control and costing processes.