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Logistics Engineering Introduction to SCM – SAP APO EIN 5346 Logistics Engineering Fall, 2015

Logistics Engineering Introduction to SCM – SAP APO EIN 5346 Logistics Engineering Fall, 2015. Objective. Gain hands-on experience with SAP APO ( APO - Advanced Planner & Optimizer) - Supply chain management concepts - SCM master configuration - SCM integration, data transfer

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Logistics Engineering Introduction to SCM – SAP APO EIN 5346 Logistics Engineering Fall, 2015

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  1. Logistics EngineeringIntroduction to SCM – SAP APOEIN 5346 Logistics EngineeringFall, 2015

  2. Objective Gain hands-on experience with SAP APO (APO - Advanced Planner & Optimizer) - Supply chain management concepts - SCM master configuration - SCM integration, data transfer - Supply network planning and optimization 2. Gain hands-on experience with Magaya (Magaya - A software for logistics industry) - Basic activities in Warehouse set up and operations - Shipments by air - Shipments by ocean - Wholesaler management (Process PO & Sales orders) http://www.magaya.com/en-us/Solutions

  3. Multiple facility SCM • Integrated planning for the entire supply chain network • Multiple plants and distribution centers • Multiple vendors • Multiple customers • Multiple transportation options SCM Scope

  4. Related ERP Modules and activities • Materials Management (MM) • Production Planning (PP) • Sales and Operations Planning (SOP) • Forecasting • Master Scheduling • Capacity Requirements Planning ERP Operations related to SCM

  5. SAP ERP (Enterprise Resources Planning): • Holds master data for materials, plants, customers, vendors, purchasing information records • Holds transactional data (e.g., sales orders, planned orders) • Is where SCM plans get executed • SAP SCM (Supply Chain Management): • Is where “advanced planning” happens • Imports master and transactional data from ERP • Sends plans back to ERP for execution ERP SCM Core Interface (CIF) ERP & SCM Basics (SAP View) (APO)

  6. Customer Vendor Plant Distribution center Supply Network in SAP SCM (Domestic)

  7. Supply Network in SAP SCM (International)

  8. VMI: vendor managed inventory Common Supply Chain Processes

  9. Each node may consist of a production system of its own • Links in the network represent a business relationshipbetween two nodes • e.g. transportation of a product between two nodes • Number of levels in a supply chain varies and depends on the complexity of the product Characteristics of the SC Network

  10. Multiple Products, each with possibly different Bills of Material and multiple configurations • Multiple Suppliers for raw materials, parts or subassemblies • Multiple Subcontractors • Multiple Plants possibly containing a wide variety of equipments • Multiple Warehouses • Distribution centers, local, regional and factory warehouses • Different means of Transportation (air, sea, rail, FTL, LTL) either leased, owned or contracted • Different information systems and communication channels • People with various skills at all levels of the organization Characteristics of the SC Network FTL – Full Truck Load LTL – Less than Truck Load

  11. Costs • Production and purchasing costs • Setup or changeover costs • Transportation and handling costs • Hiring and firing costs • Overtime costs • Inventory costs • Promotional and advertising costs • Renting and leasing costs • Subcontracting costs • Overhead • Capital investments and depreciation • Taxes and duties • Revenue • Customer is the only source of revenue • From sale of products, spare parts, materials or service Example of Costs and Revenues in the Supply Chain

  12. Productivity constraints • Equipment capacity constraints • Labour availability • Technological constraints • Inventory constraints • Purchasing, manufacturing and distribution lead times • Demand uncertainties and seasonalities • Service requirements • Budget • Regulations and other constraints Example of Constraints

  13. Hierarchical planning - a three level management framework: • Strategic or long-term planning • Tactical planning (or management control) for mid-term planning • Operational planning for short term planning • Results of one each level are considered as an inputs to the lower level planning • Effective implementation and control of the plans requires: • An execution layer • Feedback loops at all levels Hierarchical Planning * R.N. Anthony, Planning and Control Systems: A Framework for Analysis, Cambridge. Mass., 1965

  14. Material programs • Supplier selection • Cooperation • Plant location • Production systems- Subcontractors • Physical distribution structure- Transportation strategy • Product program- Strategic sales planning Long term • - Personnel training • - Contracts • - Material Requirements Planning • - Master production Scheduling • - Capacity planning • - Distribution planning • - Mid-term sales planning Mid term • - Personnel scheduling-- Material ordering • - lot-sizing- operations scheduling- shop floor control - Warehouse replenishment- Transportation planning • - Mid-term sales planning Hierarchical Planning Framework Short term EXECUTION Flow of goods Information Feedback

  15. Differentiating Factors by Planning Levels

  16. Introduction to SCM and SAP APO SAP Implementation

  17. SAP Business Suite SAP NetWeaver SAP PLM SAP ERP Central Component (ECC) SAP SRM SAP CRM SAP SCM SCM – Supply Chain Management SRM – Supplier Management CRM – Customer Relationship Management PLM – Product Lifecycle Management

  18. Basic Components of SAP SCM SAPECCERP SAP SCM(includes SAP BW) Core Interface (CIF) (APO) • Demand Planning • Supply Network Planning and optimization • Production Planning with capacity considerations • ATP (Available-To-Promise) • CTP (Capable-To-Promise) • Detailed Scheduling • Deployment • Transportation planning • Vehicle routing and scheduling • Mater data • Materials • Locations • Partner • Plants • Info records • Transactional data • Customer orders • Production orders • Purchasing orders • Execution Planning with SAP ERP & SCM

  19. SAPECC 1 Core Interface SAPSCM SAPECC 2 (APO) - Planning may be done centrally SAPECC n Planning at Supply Chain Level - Each SAP ECC component covers one or more locations In the network

  20. Tasks • Identify sources for finished products • Plan and consider safety levels in any location • Distribute production over plants • Choose production resources in plants • Explode bill of materials in plants • Identify sources for supply of raw materials and components • Outputs • Purchase requisitions • Stock transport • Planned production orders Supply Planning Tasks and Output for SCM

  21. The latest SAP GUI release posted on SAP @CSU, Chico web server http://worker.cob.csuchico.edu User = sap; Password = sapgui4me. This GUI works on Windows 7 and 8 systems. SAP Access through SAPGUI SAPGUI Download

  22. SAPGUI Download Instruction

  23. SAP SCM ERP Server: BRISTOL Client: 420 Userid: gbi-051 to gbi-074 Initial password: SAP4US SAP SCM APO Server: RIGA Client: 420 Userid: gbi-051 to gbi-074 Initial password: SAP4US SAP SCM ERP/APO server, Clients, Userid, Password

  24. SAPGUI Setup SAP ERP

  25. SAPGUI Setup SAP SCM

  26. Teams

  27. Exercises: (Due date 11/28/2015) (Access SAP SCM ERP server: Bristol, client 420) 1. Overview of Global Bike International (GBI) company. 2. Change data in ERP to prepare for SCM 1) Distribution centers 2) Material types 3) Assign transportation zone to customers 3. Add & change data to prepare for SCM 1) Create production version for materials in ERP - Define distribution key - Create production version

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