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SAP Supply Chain Management

SAP Supply Chain Management - SAP SCM is intended for automation and control of all enterprise supply stages, as well as for monitoring goods distribution at the enterprise.

SAP Supply Chain Management is focused on the following basic areas: production, supplies, location, stocks, transportation and information.

Advantages of SAP SCM:

  • Stock turnover;
  • Increasing productivity due to efficient management of specific situations and enhancing transparency of the logistic network;
  • Reducing resource expenses caused by the need for support of heterogeneous systems;
  • Increasing the level of client service and reducing the number of stock deficit situations;
  • Implementing a global system of checking availability and ensuring stable presence of products and possibilities of alternative substitution;
  • Increasing information availability and more prompt reaction to unexpected demand changes;
  • Reducing capital costs due to more efficient production and distribution planning;
  • Reducing investments into stocks by increasing stock turnover at production and in warehouses;
  • Increasing the factor of order execution in percent and increasing product profitability.

What does implementation of SAP SCM give?

According to data of AMR Research and Forrester Research, implementation of SCM allows companies to get such competitive advantages as reduction of cost and order handling time (by 20-40%), reduction of purchase costs (by 5-15%), reduction of time of entrance to the market (by 15-30%), reduction of stock reserves (by 20-40%), reduction of production costs (by 5-15%), profit increase by 5-15%.

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