Usage of business costs at SNP optimizer

Companies in Metal, Chemical, FMCG, Automotive, Food & Drink, Electronic & High technology and Pharmaceutical industries have to be competitive in all their processes. Companies manage their enterprises with the methodology of Supply chain management. Supply chain planning and optimization is one of the important component in supply chain management. The object of supply planning and optimization tools is to make correct decisions with the help of new technologies. APO is the supply chain planning software tool of SAP to reach decisions at strategic and detailed levels of planning. The SNP optimizer is the module that focuses on optimization of supply chain planning.

The SNP optimizer assists companies to make decision through the following examples by using business costs:

  • Create a production plan at optimal plant with consideration of all alternative sources of supplies
  • Create a plan with selection of optimal work centre 
  • Create the most profitable transportation plan from alternative transportation options
  • Create the cheapest procurement plan from alternative procurements
  • Create stock with optimum volume at correct locations

The SNP optimizer considers constraints of planning during a planning run. Business costs are used to make planning decisions through the SNP optimizer. Business costs are very important to get the desired SNP results. Customers are able to use the cost they need. For example, production cost affects the production plan. If procurement cost is used, the procurement plan is affected through the procurement cost but, the plan is made considering both costs.  The decision of which costing to use is defined for the customer based on necessity of supply chain model. Customers need a cost report that is related to their plan. 

There are tools to provide a cost report from optimizer. This tool solves the following technical issues:

  • Transparency of SNP optimizer
  • Calculated planned cost of products 
  • Supply chain plan influences on product costing  

All companies plan based on their supply chain planning and optimization needs but technology changes from time to time. We provide supply planning tools that are suitable for companies using an integrated system such as SAP. Our modules are compatible with SAP technology but we can provide integration with other systems based on customer requirements. Tools are developed based on supply chain planning methodology therefore it is adaptable to use with different systems and technologies. 

Components of APO

Supply Chain Management(SCM)

Many companies are wrestling with supply chain problems like poor forecast quality, excess inventory, low customer service levels or lack of good finite production plans. The SAP approach for SCM contains several solutions. The planning solutions of SAP are provided with Advanced Planning and Scheduling-APO. SAP APO offers a complete set of planning solutions, from the strategic planning to the operational planning level.  

The solution highlights include:                                                                                    

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SNP Cost Report

The most critical part of the SNP optimization implementations are SNP cost. The quality of the SNP optimizer is directly affected by costs. The SNP optimizer considers several types of costs such as:

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Advantage of master data tool at supply chain

Master data is one of the most important data for companies to work with in Supply Chain Planning (such as product, Bill of Material, customer etc.). Master data problems are the weak spot of all SNP optimizer projects. That can cause unfeasibility or unexpected erroneous solutions. There are two main complications with master data management;

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