SAP Supply Network Collaboration tool enables seamless information flow and visibility between buyers and suppliers. It can be implemented as a stand-alone package or can be integrated with back end enterprise applications at the customer and supplier end. It can be used in a hosted environment as a joint-use platform for all supply chain partners.
Use of SAP Supply Network Collaboration tool to collaborate with suppliers
The tool communicates customer scheduling agreement releases to suppliers and updates to these agreement releases can be received by means of a web interface. The integration of this release process with back-end systems such as SAP ERP and/or SAP APO immensely aid in forecasting and just-in-time replenishment. Suppliers can create advanced shipment notices (ASN) to notify customers regarding the delivery of their purchases. The tools allows comparison of all previous and current release updates to check for disparities.
With the aid of this tool customers can submit purchase orders as well as Kanban replenishment signals via a web interface. Suppliers can view purchase orders and Kanban process based on their status and respond to orders, confirm shipment dates and quantities, and submit ASNs and shipment confirmations to customer's back-end systems.
The tool complements material requirement planning with dynamic replenishment, a planning comparison process that supports forecasts and supplier production plans. This lets suppliers compare customer forecasts with their own production plans to more effectively match supply with customer demand. The demand monitor allows a comparison of customer forecasts and purchase orders with supplier forecasts and purchase order confirmations. The deviations can be viewed with color-coded thresholds and the planning data can be downloaded into spreadsheet applications.
The tools allows the suppliers to take control of replenishment tasks and thereby simplifies stock replenishment. Customers periodically transmit current inventory data, gross demands, and goods-receipt references from their back-end systems. Suppliers can track this information on inventory monitors. Suppliers can then determine replenishment quantities based on inventories, demand, and minimum or maximum (min/max) stock levels. They can also maintain ASNs to inform customers of planned deliveries.
Suppliers can use ASN packaging functionality to create and print labels containing multilevel packaging-hierarchy data, handling-unit data (such as packaging approaches and materials), and bar-code data. SAP Supply Network Collaboration automatically communicates such data to customer back-end systems within ASN messages, letting customers know what their expected shipments contain. The tool lets automation and management of supplier invoicing, debit, and credit processes. It also gives visibility of payments and invoices via the web or in printed form.
Suppliers and customers can use exceptions – such as new purchase orders, out-of-stock situations, and past-due ASNs – to trigger e-mail or fax notifications. The use of the tool in conjunction with the SAP NetWeaver® Business Intelligence component provides easily customized reporting content related to key performance indicators. The tool also allows navigation to folders within the SAP Product Lifecycle Management application to share files and documents with suppliers.
Use of SAP Supply Network Collaboration tool to collaborate with contract manufacturers
Similar to suppliers. contract manufacturers can view, print, and download purchase-order data to their systems. This data includes lists of the components needed to build the finished product. They can also change – and request changes to – finished-goods quantities, dates, and components, as well as report on how much of each component has been used. Manufacturers can also view other suppliers’ component shipments and orders when those orders are to be delivered to that manufacturer.
The tool provides insight into production demands and actual production at the contract manufacturer’s location. In addition to tracking high-level production progress through milestones, it can project the finished goods date and quantity based on current production progress. Suppliers can also view supplier-owned and -managed stock at customer and supplier locations. The tool automatically calculates and displays projected stock levels based on incoming purchase orders and production orders (which are based on min/max stock levels). Then it alerts customers and suppliers when projected stock levels exceed or fall short of their limits.
Use of SAP Supply Network Collaboration tool to collaborate with customers
Responsive replenishment enables you to leverage state-of-the-art vendor-managed inventory capabilities. These include true demand-driven replenishment based on forecasting, short-term forecasting through replenishment planning, and truckload building with or without promotion management. The tool enables management of inventory at customer locations based on demand and min/max stock balance limits using replenishment orders.
With Web-based collaboration, suppliers and customers can compare forecasts. Suppliers can calculate their forecast based on consumption data, customers transmit their forecasts, and SAP Supply Network Collaboration calculates the difference – triggering exceptions if limits are breached. Workflow mechanisms ensure that a final, consensus-based forecast is reached. Suppliers can integrate this forecast into your overall forecasting process using the SAP Demand Planning application that is part of SAP SCM – or use the forecast within SAP Supply Network Collaboration to ensure replenishment accuracy.