Supply Network Planning
What is SNP?
SAP Advanced Planning and Optimization (APO) is a set of supply chain planning tools that includes a fully integrated array of solutions that can be used to effectively plan and execute your company’s supply chain processes. The tool was built to help organizations achieve high consistency in their internal processes, such as order generation, production planning, scheduling and sequencing, pricing, and shipping. APO is able to retrieve client demand information in real-time from retailers, which is then used to design triggers for demand. These triggers are very complex in nature and take into consideration variables such as production cycles and schedules for raw material delivery. This helps companies better forecast the amount and mix required to meet the client’s future demands.
Demand Planning (DP)
Supply Network Planning (SNP)
Production Planning and Detailed Scheduling (PP/DS)
Global Available to Promise (GATP)
Supply Network Planning (SNP) combines purchasing, manufacturing, transportation, and distribution. This makes it possible to make comprehensive, global tactical planning decisions, based on a single consistent model. SNP plans the flow of products through the supply chain using advanced optimization techniques, which includes constraints and penalties. As a result of this, it is possible to make effective purchasing, production, and distribution decisions. Additionally, SNP also lowers order fulfillment times and inventory levels and improves customer service.
SNP starts out with a demand plan and ends up creating a short to medium plan for fulfilling estimated sales volumes. SNP includes both quantities that need to be produced or procured and quantities that need to be shipped between two locations, such as from the distribution center to the client or the plant to the distribution center. Before making a recommendation, SNP compares all logistical activities with the available capacity on hand.
Benefits
SAP IBP enables companies to optimize their strategic value. It allows for innovative strategies uniquely positioned to empower supply chains.
Decreased order fulfillment times
Lower inventory levels and costs
Improved coordination between purchasing (procurement), production (planning), and machines
Streamlined planning processes, including raw materials, product packaging, and delivery
Dominion Advantage
Our team is comprised of supply chain experts who have been associated with the definition and design of SAP’s Advanced Planning and Optimization (APO) since its inception. With Dominion’s industry expertise, deep product knowledge and close SAP Collaboration, we are able to help companies increase the usability of SAP APO for improved visibility into planning information. We foresee changing market dynamics and help APO customers adapt to this market by switching to SAP’s new demand-driven strategy.