SUPPLY CHAINPLANNING WITHmySAP™ SUPPLYCHAIN MANAGEMENTTHE POWER OF PLANNING FOR CHANGE

In the New Economy, product life cycles are short, demand canshift overnight, and customers expect customized products –and the key to delivering is a fast-moving, responsive supplychain.

Today's supply chains are being called on to provideunprecedented levels of flexibility. Your company must findways to react to changing market requirements. To maintaincustomer satisfaction without carrying lots of inventory. Towork with suppliers to change plans quickly. And to get newproducts to market faster and more efficiently than ever before.

To accomplish all that, you need to move beyond thesequential, linear relationships of the traditional supply chainand take advantage of e-business tools to adopt a networked,dynamic approach. Otherwise, you run the risk of being stuck

SAP Solution Brief

mySAP Supply Chain

Management enables

companies to perform

advanced supply chain

planning. Supply chain

partners can have simul-

taneous visibility into

demand, inventory and

capacity information

from across the supply

chain--and from the

strategic, tactical and

operational planning lev-

els. As a result, partners

can collaborate to syn-

chronize activities,

respond quickly to

changes, and reduce

time-to-market.

with obsolete inventory, and losing customers to competitorsthat can configure and deliver products with greater speed andaccuracy.

SUPPLY CHAIN PLANNING FOR THE NEW, NEW

ECONOMY

With mySAP™ Supply Chain Management (mySAP™ SCM),SAP® offers a comprehensive solution that gives supply chainpartners simultaneous visibility into supplier and customerallocations, inventory levels, orders, forecasts, production plans,and key performance indicators. mySAP SCM delivers informa-tion from all along the supply chain – from the strategic, tacti-cal and operational planning levels – to help you create aresponsive, flexible supply chain.

mySAP SCM supports five key planning areas: SSuuppppllyy cchhaaiinn ddeessiiggnn• The solution identifies and selects locations and optimizes the

supply chain network while taking demand and cost struc-tures into account. You can also evaluate and control existingsupply chain networks to isolate and strengthen weak links.

DDeemmaanndd aanndd ssuuppppllyy ppllaannnniinngg • Demand planning capabilities enable supply chain partners to

forecast and plan demand in consideration of historicaldemand data, causal factors, marketing events, market intelli-gence, and sales objectives. Supply planning capabilities allowmanufacturers to develop an overall supply plan that takesinto account all procurement, production, distribution, andtransportation requirements.

DDiirreecctt pprrooccuurreemmeenntt• mySAP SCM monitors the replenishment of production

materials and streamlines procurement processes withInternet purchasing functions. The solution includes auto-mated source determination and replenishment, and it canjuggle multiple suppliers. It also allows manufacturers to postdemand on an electronic marketplace in order to receiveoffers from various suppliers.

PPrroodduuccttiioonn ppllaannnniinngg• Production planning and detailed scheduling features support

both discrete and process manufacturing. The combination ofa constraint-based approach and optimization techniquesmeans that optimized plans and schedules are created in con-sideration of resource, material, and dependency constraintsto meet deadlines.

GGlloobbaall oorrddeerr pprroommiissiinngg • Product-configuration capabilities allow you to mass-cus-

tomize products and check availability online at multiplelinks in the supply chain. The global available-to-promise fea-ture lets you locate finished products, components, andplanned capacities to fill orders.

Unlike many supply chain solutions, mySAP SCM offers: • An integrated, holistic approach that encompasses all plan-

ning levels, planning models, and manufacturing methods• An end-to-end solution for planning highly configured prod-

ucts from computers to automobiles, including characteris-tics-based forecasting, planning, scheduling, and available-to-promise

• Out-of-the-box optimization for specific industries, includingmultilevel supply and demand matching functions for dis-crete manufacturers (especially in the high-tech industry),campaign optimization for process manufacturers, and fea-ture-based optimization for automotive companies

• A "plug-and-optimize" capability that makes it easy to inte-grate your own customized optimization techniques

And mySAP SCM gives planners the ability to accommodateglobal demand swings and regional specifications. That meansthat you can manage your supply chain on a truly global basis.

ADAPTIVE, COLLABORATIVE PLANNING PAYS OFF

With mySAP SCM, you can take advantage of collaborativeplanning in a network that connects your suppliers' suppliers toyour customers' customers. You and your supply chainpartners enjoy increased:FFlleexxiibbiilliittyy• Respond swiftly to changes in market requirements and inte-

grate supply chain partners and adjust business processesquickly and flexibly.

VViissiibbiilliittyy• Provide supply chain partners with insight into demand,

inventory, and capacity information across the extended sup-ply chain network.

OOppttiimmiizzaattiioonn• Create optimal plans and operational schedules based on busi-

ness objectives. CCoollllaabboorraattiioonn • Synchronize supply chain activities internally and externally

with plan- and order-driven, real-time execution of supplychain activities.

With mySAP SCM, your supply chain can react more quickly tochanging market requirements. And that reduces costs by low-ering your inventory levels, making better use of your assets,and reducing cycle times. It improves customer service becauseyou have better order fulfillment and more on-time and com-plete orders. And it can increase sales by shortening time-to-market and by more closely matching supply and demand. Nowthat's a payoff.

TO GET STARTED....

With mySAP SCM, partners up and down your supply chaincan work together to meet the changing demands of customersand markets.

To learn more about how mySAP SCM can help your company,visit our Web site at wwwwww..ssaapp..ccoomm//ssccmm

THE mySAP.COM E-BUSINESS PLATFORM

To remain both competitive and profitable in the new Interneteconomy, successful companies must be able to work togetherand openly across traditional enterprise boundaries, collaborat-ing in virtual global networks. With mySAP.com, SAP integratesits extensive business and industry expertise into a comprehen-sive platform of e-business solutions, services, and technology.By integrating mySAP.com with their business strategy, companiesgain lasting competitive advantage, adding significant value andmaximizing ROI.

The mySAP.com e-business platform is a family of solutions andservices that empowers organizations and individuals to collab-orate successfully – anywhere, anytime. The business solutionsprovided by mySAP.com enable any organization, regardless ofsize, to run its business more efficiently and productively, andto gain significant competitive advantage in the new, NewEconomy. mySAP.com is based on an open, flexible, collaborativeservices architecture that supports both SAP and non-SAPsystems.

mySAP.com creates value by allowing quick response to newbusiness opportunities and by reducing costs, enabling compa-nies to collaborate, integrate, and empower themselves for business success in the new, New Economy – you know, the profitable one.

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THE BEST-RUN E-BUSINESSES RUN SAP

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