SAP ERP for Supply Chain Management: Modules and Benefits

 


All the activities that turn raw material into a finished product and then hand it to the customer is what the supply chain management is supposed to do. It can include sourcing, designing, production, warehousing, shipping, and distribution. Improving efficiency, quality, productivity, and customer satisfaction is the main goal of the supply chain management. 

What is SAP Supply Chain Management? 

SAP SCM is SAP integrated software that helps in increasing business and responding to the change in market demands. With SCM in place, the overall effectiveness can be increased. Many industry sectors such as food and beverage, pharmaceutical, automotive, machineries, industrial Equipements need supply chain to make their work easier and with SAP SCM, processes are easier to manage.    

Working of Supply Chain Management: 

To ensure seamless delivery experience let’s understand in steps the working of SCM: 

  1. Product transportation  

  1. Collaboration and communication 

  1. On-time delivery 

  1. After-delivery service 

  1. Finance 

  2.   

SAP Supply Chain Management Helpful Modules for SMBs: 

Planning and Optimization: The module helps in planning and executing the supply chain management and contains functions that are related to planning and optimization like demand planning, production planning and scheduling, supply network planning, supply network planning, transportation planning, etc. 

Forecasting: This module helps in maintaining inventories in line with supply chain and contains components like demand forecast, order management, business analytics, and more.  

Event Management: This module helps in exchanging information between supply chain stakeholders in the form of events. The entire process is based on keeping track of events and evaluating them. 

Supply Network Collaboration: The SAP Supply Network collaboration or the SNC is a useful component which includes a large number of workflows including purchase order, forecasting, work orders, scheduling agreements, and more.    

After supply chain, another thing that larger companies are heading towards in today’s environment is the digital supply chain. Let’s get a quick jest of it: 

Digital Supply Chain:  

A supply chain with web-enabled capabilities as its foundation is known as a digital supply chain. A lot of supply chains combine IT-enabled and paper-based procedures. The digital supply chain's ultimate objective is to make things possible for improvement in efficiencies, waste elimination, and profit maximization. To help planning and execution for higher level of performance, a digital supply chain helps mechanisms that can track real-time inventory levels, consumer interactions with items, carrier locations, and equipment.  

Steps to implement SAP ERP in supply chain management: 

Step 1: Understand your requirements and prepare a brief of which ERP you wish to implement 

Step 2: Find Suppliers that are like yours in terms of company size 

Step 3: Understand the complete implementation process and have a clear conversation  

Step 4: Decide and make the final decision. 

Lastly let’s look into how SAP ERP SCM prove to be beneficial for SMBs: 

SAP SCM is the best way you will know for creating reports that can be synchronized on crucial business factors.  

Provides better performance efficiency as the ERP helps in eliminating repetitive tasks and reducing manual data entries. 

An ERP system that is customizable, has easy integration, and is simple for the employees to use and is accessible via mobile devices is always a good choice to adapt.   

All the SCM data of the company is easily secured with SAP ERP system.   

Looking for the right choice of ERP to manage your huge supply chains? 

Contact SoftCore Solutions; the trusted SAP B1 partner in Bangalore for the best expert solutions and services.

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