Scenario Name SAP Best Practices Baseline (country) or SAP Best ... - PowerPoint 11 by DTAvkE99

VIEWS: 0 PAGES: 27

									Demand-driven Procurement



SAP Best Practices for Retail (US)




SAP Best Practices
Scenario Overview – 1


      Purpose and Benefits:
         Purpose
              This scenario begins with the required planning steps. The forecasting processes and different
               consumption-based MRP procedures. The supply source determination schema in SAP R/3 is
               then outlined in brief and the various options explained. The Purchase Order process shows
               you how to work with the Planning Workbench. Order optimizing comprises quantity
               optimizing, investment buying, load building and goods receipt capacity check. The last
               section shows you how vendor evaluations can be used to optimize goods procurement.

         Benefits
              Alongside article-specific inventory management, the SAP R/3 System provides an accurate
               data basis for using the comprehensive range of requirements planning methods. The main
               task in requirements planning is to monitor stocks and, in particular, generate automatic order
               proposals for purchasing.
              With the planning workbench, extensive functionalities for order optimization and vendor
               evaluation you can handle the whole process for demand-driven procurement.

         Key process flows covered
              Requirement Planning
              Planning Run
              Supply Source Determination
              Contract Processing
              Planning Workbench
              Order Optimizing
              Purchase Order Monitoring
              Vendor Evaluation
Scenario Overview – 2


        SAP Applications Required:
          Required
               SAP EHP3 for SAP ERP 6.0

          Company roles involved in process flows
               Retail Non-Seasonal Purchaser
               Retail Non-Seasonal Purchaser – Power User
               Retail Non-Seasonal Purchase – Manager
               Retail Replenishment Planner
               Retail Replenishment Planner – Power User
               Retail Masterdata Manager
               Retail Warehouse Clerk
Process Flow Diagram
Requirement Planning
    Event



                                                                                                                                               Unload
                                                                                                                                              Materials
                                                                                                                                                from
                                                                                                                                               Truck


                                    MRP Procedure
    Retail Non-Seasonal Purchaser




                                       Automatic
                                     reorder point
                                        planning



                                    MRP Procedure
                                     Time-phased
                                       planning


                                    MRP Procedure              Carry out the
                                     Time-phased                 individual
                                     planning with             Forecast from
                                     reorder point               the article
                                       planning                    master




                                    MRP Procedure
                                    Forecast-based
                                       planning
Replenishment




                                                                                          Optional:
                                                                                        Planning File
                                                Alternative:
   Planner




                                                                          Optional:                       Optional:        Convert the
                                               Carry out the
    Retail




                                                                        Reprocess the                   Evaluating the       Purch.
                                                 individual               Forecast                        Planning       Requisition to a
                                               Forecast from               results                         Results       Purchase Order
                                                 the menu                                Carry out
                                                                                        Single-Item,
                                                                                        Single-Level
                                                                                          Planning
Power U
Purch.–
R. Non-
 Seas.




                                                                                                                                             Enter goods
                                                                                                                                              receipt for
                                                                                                                                            purchase order
Process Flow Diagram
Supply Source Determination

                                                                          Unload
  Ev-
  ent



                                                                         Materials
                                                                           from
                                                                          Truck

                                                                                                                            Create
                                                                                                                           Purchase
  Retail Replenish.




                      Supply Source:     Maintain                                                     Release Order       Requisition
                       Source List      Source List                                                  for the Contract   (Assign Supply
                                                                                                                            Source)
      Planner




                                                         Automatic
                                                       Conversion of
                                                       the Purchase
                                                      Requisition to a
                                                      Purchase Order
Retail Non-
Seas. Pur.
 Power U.




                                                                                     Goods receipt
                                                                                        in DC
Retail Non-
Purchaser
  Seas.




                                                            Create
                      Supply Source:      Create       Purchase Order
                       Purchase Info     Purchase       with reference
                          Record        Requisition          to P.
                                                         Requisition
Planner Power
Retail Replen.
    User




                      Create Contract
Process Flow Diagram
Purchase Order Process and Vendor Evaluation
Mngr
RNS.




                                                                                                                         Executing an
Pur.




                                                               Comparison of                  Ranking List               Evaluation of
                                                                Evaluations                                             the Art./Merch.
                                                                                                                             Cat.

                                                    Plan                                                                             Order                                                 Convert
                          Create                 Workbench:                                                                                                      Order
  Retail Replenish.




                      Purchase Order               Online                         Order                                           Optimizing:                Optimizing:                  Purchase
                        via eCATT               Requirements                   Cancellation                                       Investment                Load Building:              Requisition to
                                                  Planning                                                                        Buying Run                   Carry out               Purchase Order
                                                                                                                                                             Single-Level,
      Planner




                                                                                                                                                              Single Item
                                                                                                                                                               Planning

                                                                                                                                  Alternative:
                                                                           Order Release                                           Simulate                                             Manual Load
                                                                                                                                  Investment                                             Building
                                                                                                                                  Buying Run
Retail Non-
Seas. Pur.
 Power U.




                                                                                                                                                                             Goods receipt
                                                                                                                                                                                in DC
Retail Non-
Purchaser




                      eCATT for        Maintaining the             Vendor                                                                     Order
  Seas.




                       Vendor             Vendor                  Evaluation                               Create                           Optimizing:
                      Evaluation         Evaluation               Automatic                            Purchase Order                      Goods receipt
                                          Manually               Reevaluation                                                             capacitiy check
Planner Power
Retail Replen.
    User




                                                                                   Return on                    Investment
                                                                                  Investment                       Buying                                                              Automatic Load
                                                                                                                  Analysis                                                                Building
Requirements Planning
Objectives




       Automation of the procurement process on site level



             Inventory monitoring of a site



                 Central + distributed application
Requirements Planning: Forecasting Model


                                        Selection


                           Manual model selection with additional
        Manua                                                                     Automatic
                                      automatic test
        l

                              T: Test for trend                            Automatic
   Constant model
   Trend models               S: Test for season                           Model selection
   Seasonal models            A: Test for trend
   Seasonal trend models         and season

                Models                                                  Parameters



                                                                    Basic value


                                                                    Basic value
                                                                    Trend value


                                                                    Basic value
                                                                    Season indices
Requirements Planning: Overview



                                  RP type


                                  Forecast
            Articles              indicator      ?
            Articles



                                                             Purchase
                                                             Requisition


                                                             Item 10
 Consumption           Forecast                              Item 20
    values
                                              Requirements
  10/2000    987
  11/2000   1000                              Planning
  12/2000   1251
                                                             Purchase Order


                                                             Item 10
                                                             Item 20
Forecast Applications


                                       Forecast Application




         Reorder Point
         Reorder Point                    Forecast-Based                   Time-Phased
           Planning
           Planning                          Planning                        Planning

                                    The forecast values are     The forecast values are
                                     copied as requirements       copied as requirements.
                                     and replace the reorder     The planning run is only
   Calculation of the reorder     point.                         carried out on predefined
    point and the safety          Calculation of the reorder     dates.
    stock by the forecast.         point and the safety          Time-Phased planning can
                                   stock by the forecast.           be applied in combination
                                                                    with Reorder Point
                                                                    planning.
Source Determination
Purchase Order: Supply Source Determination

                                                                              PReq
                                                                                           Purch . requisition
                                                       1                      Vendor ??




                                                                   ?
                                                                               Art. 3214   WITHOUT
                                                                               20 5110
                                                                               Art.pc
                                   Quota arrangement                           15 pc       supply source
                                   60%                       40%
                                                             40%
                                                       ?
                                                                               Article PCS-04-MRP201
                                                                               for VZ01 50 ea

                   2    Source list      Source list




                   3

                                   Article
                                   Article
                                                                                                  Purch . order
                                                                                                  Vendor PCS-V201
                            Supply source ind .                                                    Art. 3214   20 ea
                                                                                                   Art. 5110   15 ea

   • Find external source of
     supply only                         4       Outline agreements                                     MIT
                                                  Purch info records
                                                          .                    Supply
   • Find internal source of                                                                  ?
     supply only                                      Regular vendor           region
   • Find internal supply source
     first , then external
   • Find external supply source
                                                 Stock transfer deliv -
     first , then internal                       ery schedules            5                Vendor PCS-V201
                                                   Supplying sites                         Vendor R3001
Order Processing
Planning Workbench



 Manual planning
 Select worklist
    - Site
                               Start variant
    - Vendor

 Material selection
    - Stock planner
    - Merchandise category

 Default data                Internet services
                                                 General settings
     - Item category
     - Account assignment
 category
                                                 - Hide processed worklist

 Control data                                    - Expand levels with one
                                WWW
     - Sort algorithms                             element

 Application settings                            - Display symbols
     - Display

 Worklist settings              e-mail
     - Sequence
Planning Workbench: Manual Planning


    Planning workbench with integrated manual planning
         Worklist personalization
         Simple display navigation in tree format
         Display of additional information, for example, site or vendor
          master data
         Direct access to the Internet or mail system
         Worklist view personalization



    Manual planning
         Display of consumption and/or forecast data
         Use of restriction profiles
       Automatically    generated purchase requisitions
Order Optimizing
Quantity Optimizing: Rounding Profiles


   Dynamic Rounding Profiles

                                     0 No rounding
             Dynamic profile         1 Round up to a multiple of the order
                                       units/sales units
         •   Rounding method         2 Round up to order/sales/logistical units of
                                       measure
                                     3 Round up to order/sales/logistical units of
                                       measure, or log. unit of measure, zero qty for
                                       order units only
         •   Rounding rule


                                       AUn                % Up % Down
                                       CAR                 70.0  10.0
                                       LAY                 80.0  10.0
                                       PAL                 90.0  10.0



         •   Unit of measure group
                                     Check the permitted units of measure
                                     used by vendors or recipients
Investment Buying: Purpose


     Investment buying is a method of determing procurement
       proposals that take account of future price increases, and are
       to be covered by external procurement


     The aim of Investment buying is to purchase articles
           in suitable quantities
           in good time
           as cheaply as possible
           taking account of various influencing factors
Investment Buying: Overview


Purchase price
                          Select condition changes               Open
 conditions
                                                                 PO quantities
                                                                                      Stock on-hand
                           Select relevant articles
                               (Info Record)
                                                                                          ROI Parameters
                               Simulate
                               purchase price
        Purchase price
        higher than                                                                          Forecast
        future price
                               Calculate ROI

          Actual ROI
                                                                  Log of items             Investment
          is lower than         Calculate                          Protokoll
          required ROI                                            found relevant to          Buying
                                order quantity                    Purchasing                 Analysis


                                Purchase -            Purchase
                                requisitions          orders

          Worklist
Load Building



 Definition


   Load building is a process used to group together purchase
   orders and other requirements, while taking account of
   procurement restrictions, and thereby reduce procurement
   costs.
Load Building Overview



                   Req. Planning        Investment buying                  Promotion
                                            process                        orders

                                                             .
                                                   Purch. Req. ... ...
                                                      Purch. reqReq. ...
                                                         Purch. . .                                    other
                                                                                                       order
                                                                                                      processes
Without existing
                           Purchase requisitions                            Purchase orders
requirement
elements
                                                                                   Purch. order ...
                                                                                   Lieferant 326
                                                                                Purch. Order...
                               Automatic                                        Vendor    326

                         load building process


                         Simulation list process


                        Manual load building
                                                                               EDI to vendor
Goods receipt capacity check


Up to now, there was no check for sufficient capacity for the delivery date of a
planned delivery in the goods receipt area of a warehouse. If the goods are delivered
to a warehouse door that does not have any free capacity, there can be a bottleneck
in the goods receipt area of a warehouse. At the same time, another warehouse door
might have enough capacity.

Advantages for the retailer and vendor:
   Taking the goods receipt capacity into account prevents potential bottlenecks.

   The vendor's delivery date planning utilizes the capacity of the retailer's goods

    receipt areas.

   The vendor can schedule the deliveries better since the planned time window for

    inbound deliveries is binding.
Vendor Evaluation
Functions in Vendor Evaluation


                      Regular vendor
                            for
                        Article 1            ?

          Vendor A       Vendor B                      Vendor C




                           Quality audits




                      Vendor Evaluation




                                            Vendor C
Automatic Subcriteria: Overview




           Main Criteria     Subcriteria
           Price             Price level
                             Price development
           Quality           GR inspection
                             Complaints
                             Audit
           Delivery          On-time delivery
                             Quantity reliability
                             Shipping instructions
                             Confirmation
           Service
Analyses for Vendor Evaluation


                                             HIT LIST
                                 General Vendor Evaluation
                                          Total         Price
                                                        Preis     Qual .       Dlvy.
                                                                               Lief .    Service
                       Vendor    B            90            92        90        93            85
                       Vendor    A            84            75        92        88            81
                       Vendor    C            81            90        76        74            84

                        Analysis for Article/ Merchandise category
                                 Vendor Evaluation Evaluation
                                          Total         Price
                                                        Preis     Qual .       Dlvy .
                                                                               Lief      Service
                       Vendor        A        88            81        93        92            86
                       Vendor        C        81            90        76        74            84

                                   Evaluation Comparison
             General Vendor Evaluation                                         Evaluation for Article 1
                    Total     Price
                              Preis      Qual .    Dlvy .
                                                   Lief     Service    Total            Price
                                                                                        Preis      Qual .   Dlvy.   Service
  Vendor A             84       75       92        88            81        88            81        93       92        86

								
To top