SAP Simple Logistics Supply Chain Planning - SAP Simple Logistics

What is SAP Simple Logistics - Supply Chain Planning?

There are several steps involved in Supply Chain Management Process where few are handled by S/4 HANA system and others by SCM component. Both SCM system and SAP S/4 HANA are integrated for planning and the integration is done by Core Interface.

SCM components perform the below processes −

  • Demand Planning (DP)
  • Supply Network Planning (SNP)
  • Production Planning and Detailed Scheduling (PP/DS)
  • Global Available-to-Promise (ATP) Check
  • Transport Planning/Vehicle Scheduling (TP/VS)

Demand Planning

Here, the planning is based on estimating the demands for future. The demand planning can be for particular regions, customers, organizations and so on. Based on the plans for future, we can create value based plans and quantity based plans.

Using system characteristics the planning levels are defined. The demand planning data is stored in key value pairs.

Making use of time characteristics, data can be viewed, planned, stored. Using BW extractors the historical data is imported to SAP NetWeaver BW system of SCM.

Below are the different mathematical methods used in analyzing historical data.

  • Moving average

  • Constant model

  • Trend model

  • Seasonal model

  • Exponential smoothing

Historical data is analyzed using constant models for products which keeps changing with time.

Seasonal models come into picture in Demand Planning like ice creams, candles and more based on requirement.

demand_planning (1)

We can observe the demand planning process flow from above. Sales Order is used as basis for generating historical data and after analyzing it to future demand, Planned Independent Requirement (PIR) is released.

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