1.What do you understand by Supply Chain Management process?
SAP Supply Chain Management is one of the key module in SAP ERP and controls Production Planning, business forecasting and demand planning, and helps the organization to manage their supply chain process in a dynamic environment.
2.What are the different stake holders in Supply chain process?
SAP SCM process helps suppliers, customers, manufacturer, business partners and retailers to connect with each other to manage supply chain process effectively and efficiently.
3.Which different applications that you have used as part of Supply Chain Process?
The primary applications are SAP General Areas, SAP Supply Network Collaboration SNC, SAP Extended Warehouse Management EWM, Advanced Planning and Optimization (APO), Forecasting and Replenishment FRE and SAP Transportation Management TM.
4.As per functionality what are the different components under SAP SCM process?
To perform demand planning and forecasting, you can link to Customer Relationship Management CRM to get data related to customer campaigns, etc.
Supply Network Planning SNP
To view organization as a network of locations and to check stock projections and stock keeping criteria. Calculations in SNP drive dependent requirements down to supplying locations production and receiving stores.
Production Planning and Detailed Scheduling
This is to check the dependent requirements from locations within the supply network, passed down from SNP. This is linked with Material Requirement Planning MRP in Production Planning, which determines the inbound material required to complete a production order.
5.What is difference between Supply Chain Collaboration and Supply chain Coordination?
This is used to help in making collaborative forecasts and agreements.
This component in Supply Chain is used to coordinate the exchange of data and information between different business units.
6.What are the key benefits of using Supply Chain process in an organization?
Organizations can achieve following benefits in a distributed environment −
- To reduce accounts receivable collections with better visibility into the AR process, aging and extension of credit, and help to reduce day’s sales outstanding using SCM process.
- To effectively manage forecasting and handling sudden changes in demand and supply process.
- To effectively use Net Fixed assets NFA like plants and equipment.
- To meet customer demands, you can smartly plan and manage Supply chain Management process in an organization.
- Proper inventory optimization, order fulfillment and shipping of the goods.
- Distribution of the key information to all the stake holders spread across the network.
- Improved communication and collaboration between different business lines to manage demand and supply process in an organization.
- To improve production efficiency and reduction in production quality issues and hence reduce cost of goods sold.
- To reduce transportation duties and taxes, and increase rebates and incentives. It also helps to reduce transportation errors.
7.Explain demand planning and management process you have handled as part of Supply Chain?
Demand management is used to forecast, manage and plan the demands of goods and has defined set of processes and capabilities to produce goods. This component is used to improve the demand planning by utilizing promotions.
Based on historical sales data, you can handle demand for every store, product from different customers and hence you can see customer responses as per change in pricing policies, and profit for a particular product in the organization.
You use demand models to predict consumers’ reaction with price change. As per organization goals like – increase profit, revenue, etc. you can define selling strategies for the products.
8.What is PIR Planned Independent Requirement?
Demand management is performed by Planned Independent requirement PIR. Planned Independent requirement provides input for production planning. A PIR contains one planned quantity of product and one date for material or a Planned Quantity is split over a span of time period.
9.What is MTS and MTO Planning strategy under Supply Chain?
Make to Stock Planning strategy (MTS)
This is planning strategy where stock is produced without sales order. It is used to meet customer demands in future.
Make to Order planning strategy (MTO)
In this planning strategy, finish products are not produced until you receive sales order from a customer. For MRP run, you only consider Sales order.
In MTO strategy, you only produce sales order stock and products are delivered as per sales orders from specific customer.
10.What is Planning strategy you select to perform MTS and MTO?
When you use Planning strategy 10, only PIR quantity is considered for MRP run and sales order are completely ignored. In this PIR requirement type LSF and is reduced when you deliver stock to customer.
When you use Planning strategy 40, for MRP run maximum of 2 PIR and Sales order can be considered and PIR is reduced when enter the Sales order. PIR requirement type is VSF in this case.
You use Planning strategy 20 for make to order MTO process and planning strategy 25 is used to produce product variants when there is request for variant products from customer.