SCM Processes and SAP APO Modules

The focus of this book is the SCM processes within a company. Though the possibilities of collaboration with customers and suppliers and the according processes are mentioned as well, the focus is on the SCM within a company, because to our experience in this area there is still the biggest potential for most companies. From a company’s point of view a supply chain usually consists of customers, distribution centres (DCs), plants and suppliers. There might be several levels for distribution (e.g. regional and local DCs) or several levels of production, if one plant produces the input material for another plant. Another characteristic of a supply chain is whether sourcing alternatives exist. Multiple sourcing is common for suppliers, and in many cases alternatives exist for production and distribution as well. Common variants in the distribution are direct shipments from the plant to the customer (instead from the local DC) depending on the order size. The most common supply chain processes cover the areas demand planning, order fulfilment (sales, transportation planning), distribution (distribution planning, replenishment, VMI), production (production planning, detailed scheduling, production execution) and external procurement (purchasing, subcontracting).