SAP SCM - the Digitization of Logistics

SAP SCM: Support for complex and efficient logistics processes

Customer requirements are becoming more individual, logistics chains more complex due to the relocation of production to workbench countries. This increases the volume of data even if production remains constant. The coordination effort within the logistics chain between suppliers, logistics companies and recipients is increasing. SAP SCM provides a remedy here through transparency for the parties involved. Ideal processes can be calculated with algorithms. Information from logistics is made available to suppliers, service personnel and recipients. GAMBIT takes over the training for your employees in logistics and your service teams so that they can use SAP SCM in their daily business for efficient processes.

SAP SCM: Planning and Implementation

SAP SCM is able to calculate an optimized process for the delivery of a specific product. You can compare the result with the current procedure and estimate the potential for improvement in terms of service quality and costs incurred. In order to bring ideal and reality closer together, GAMBIT is at your side as an experienced partner and consultant.

SAP SCM: Transparency across the entire supply chain

An obvious and convincing solution: If warehouse, shipping department, transport company and consignee receive the data from the same database, there is no need to adapt different systems to each other. The data preparation has no different point of view, the dialogue partners talk about the solution instead of about interpretations of deviating information. GAMBIT will be happy to show you how easily and conveniently the appropriate information from SAP SCM can be sent to the individual partners inside and outside your company or made available for inspection.

SAP SCM - Supply Chain Management

The supply chain = supply chain refers to the path of the goods within the company from production planning to the customer. Customers have online access to different suppliers and can choose where they want to buy. With identical goods and comparable prices, the experience with the supplier becomes more and more important for the customer. A decisive feature here is the ability to deliver, the speed of delivery and the adherence to delivery dates, such as directly to the assembly line for further processing.

SAP SCM supports faster, more efficient delivery after the order has been received. At the same time, SAP SCM optimizes inventory management and the warehouse. Storage costs can be saved, storage locations can be better used, the number of required goods results from the usual turnover speed.

With SAP SCM, for example, it remains transparent for customer service where the ordered goods are within the delivery process. The financial transactions relating to the delivered goods are also visible.

The customer within the supply chain may also be another company receiving raw materials or semi-finished products or products finished as wholesalers. Where appropriate, SAP SCM can track the path of a product from the manufacturer, country importer, wholesaler, retailer to the end customer. Such a seamlessly traceable route of goods from the source can be desirable for luxury articles such as high-quality watches or precious metals in bar form in order to largely rule out the imponderability of counterfeiting.

SAP SCM - Processes and Functions

SAP SCM is divided into two types of applications: the first includes planning options and has a forecasting character, while the second can be used for operational life business.

In planning, it is calculated how an order could be served and optimally executed until delivery. The applications, on the other hand, which execute the functions of the actual transaction, control and monitor the status of the goods to be delivered,including payment modalities.

The data concerning the delivery status of the ordered goods can not only be viewed by employees of your company, but can also be exchanged with vendors and recipients. This eliminates the need for queries in the service area, for example. Through close agreements between suppliers and customers, goods can be delivered on demand and also procured or produced beforehand exactly for this use.

SAP SCM Components

SAP SCM can be grouped into three components: Planning, Execution, and Coordination. This division follows the actual chronological sequence: the best possible execution is calculated using logarithms in supply chain planning. In Supply Chain Execution the processes are implemented and in Supply Chain Coordination the process can be viewed and assessed.

However, these three components have one thing in common: each of these three components contains the requirements and the possibilities to further optimize the processes.

supply chain planning

With the approach of Supply Chain Planning you are approaching a business ideal: To have that in stock of goods and to be able to deliver what is directly taken away from you by your customers - and if possible no longer. Planning that pursues this goal has a positive effect on the storage space and on the investment level of the purchased raw materials, semi-finished products or articles.

With Supply Chain Planning, you can create appropriate forecasts so that ideal quantities and deadlines can be calculated for procurement, warehousing and delivery: The ability to deliver is to be ensured, the storage space is to be used optimally at the same time.

An essential element is sales planning, because the buyer determines the market. Inventory Controlling reports how many goods are currently available. This results in production planning for a specific period.

supply chain execution

Supply Chain Execution: Goods in motion. This is about controlling the processes. In contrast to planning, actual goods are physically moved. Where a deviation from the ideal in planning results in fine-tuning, ailments in the supply chain execution may have an effect on the customer up to a late delivery date.

Here, the flow of goods from goods receipt through storage to dispatch and delivery is visible to customers - and can also be controlled. Synergy effects can be recognized and used, details in the logistical process can be improved. The processes of logistical movements within and outside your company are initiated and documented with Supply Chain Execution.

If required, Customer Service can provide information on the current status of shipping without having to access an external system. The documentation of the origin of a delivery can be easily created because comprehensive data is already in your system.

supply chain coordination

Supply Chain Coordination consists of two parts: Supply Chain Event Management (SCEM) and Supply Chain Performance Management (SCPM). Supply Chain Event Management is event-driven. The events within the supply chain can be viewed by different roles. A classic example is the message to the package recipient "Your package will arrive tomorrow between 11 and 13 o'clock."

In Supply Chain Performance Management, execution is measured. An interesting query could be: How quickly did the parcel arrive with which parcel service?

In the event of unexpected events such as a delay in delivery due to a strike, Supply Chain Coordination offers the opportunity to inform the customer of the expected delay.

SAP ERP Central Component (ECC) represents a central part of the SAP Business Suite and, with the modules Sales & Distribution, Production Planning, Warehouse Management and Logistics Execution, also contains solutions for the logistics chain, but on a larger scale.

SAP EWM Extended Warehouse Management is a supplement to SAP SCM. This module focuses on the management of warehouse processes themselves up to the needs of large logistics centers. SAP APO Advanced Planner & Optimizer is also a specialized module and can capture the demand even deeper and thus specify the underlying values for procurement and warehouse. APO only processes planning-relevant data.

GAMBIT is happy to advise you which software solution fits to an optimization of your supply chain and which advantages are connected with the different solution approaches. In coordination with your IT department, we also implement the software in your existing architecture and, in coordination with your specialist department, integrate existing data in the new environment.