APO Supply Network Planning

SNP Overview

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Increase Customer Responsiveness at Least Cost

ManufacturingManufacturing DistributionDistributionSupplierSupplier

INFORMATION FLOW

Retail OutletRetail Outlet ConsumerConsumer

Supply Chain OptimizationSupply Chain Optimization

CASH FLOW

Transfer Transfer Transfer Transfer

The Supply Chain: Original Supply to Final Consumption

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To be competitive, increase revenues and market share and be profitable

Companies need to …….

Have the right product at the right place at the right time

Improve replenishment cycle time

Improve Return on Inventory investment

Increase utilization of capacity/resources

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APO

Stands for Advanced Planning and Optimization

It’s intent is to enhance global planning capabilities supported through advanced heuristics and optimization algorithms

An Advanced Global Planning Tool

Not an Execution System

A Tool to control the entire Supply Chain

A Package focussed on Constraints (Material, Capacities)

A Tool capable to replace some current OLTP Functionality

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APO Product Map

Monitor

Strategic

Tactical

Operational

Scheduling

Supply Chain Cockpit

Network Design

Supply Network Planning

Purchasing

WorkBench

Production

Planning

&

Detailed

Scheduling

Distribution

Planning

&

Deployment

Transportation

Planning

&

Vehicle

Scheduling

Demand

Planning

SELLBUY MAKE MOVE

Collab.

Planning

STORE

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R/3

Transaction DATA

Initial Transfer

Incremental transfer

APO

Transaction DATA

Transaction Data Transmission

The transaction data is transferred from SAP R/3 to APO in the beginning. Subsequently, the Transport and Production orders are transferred from SNP to SAP R/3 after each run, and data such as inventory status is passed regularly from SAP R/3 to APO

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OLTPOLTP

APO Application Architecture

APOAPO

GlobalATP

GlobalATP

DeploymentDeployment

OLAP

HistoricalData

External Data

(e.g. POs

KeyPerform.

Indicators

OLAP

HistoricalData

External Data

(e.g. POs

KeyPerform.

Indicators

Demand PlanningDemand Planning

SalesOrders

ManufacturingExecution

updates

InventoryMovements

ProductionPlanning anddetailedScheduling

SupplyNetworkPlanning

SupplyNetworkPlanning

TLBTLBTP/VSTP/VS

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APO Platforms

Operating Systems

Windows NT

HP UX

IBM AIX

Sun Solaris

Compaq True64 Unix,

Siemens Reliant Unix

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APO Platforms

Data Bases

Oracle

SQL-Server

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Client Concept

Similar to R/3

One APO client to n R/3 clients

Live cache‘ applications on client

– SNP

– PP/DS

– TP/VS

– ATP

BW Basis for Demand Planning

– Not on client

– Needs to be organized via dedicated infocubes

APO

DB

liveCache

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A planning approach to create Tactical Plans and Sourcing Decisions that takes the complete supply network into consideration

DeploymentDeployment TransportTransportLoad BuilderLoad Builder

Supply Network Planning

Meet Forecast and Actual Demand by:

– Optimal use of Manufacturing, Distribution and Transportation Resources

– Consider all constraints in the supply chain

What is Supply Network Planning ?

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SNP Overview

SNP ensures the optimal Use of Manufacturing, Distribution, and Transportation Resources to meet Forecasts and actual Demand while considering all Constraints in the Supply Chain

SNP plans Production, Procurement and Transportation throughout the entire Supply Network using Optimizing and Heuristic Approaches

Configurable Profiles determine on how the System generates Supply and Demand within Short, Mid and Long-term Planning

SNP offers three competitive Algorithms: CTM, SNP Optimizer and SNP Heuristics

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SNP Business Applications:

Inventory planning and deployment taking into account logistics and sales variability.

High level capacity planning and macro global scheming to aid with capital equipment decision making based on sales runs.

Visibility for planning with confidence. System provides cost- trend analysis for control on manufacturing expansion, Out-sourcing, 3rd party supply, etc.

Support system for modeling what if scenarios that would impact the bottom line.

Stores, DCs and VMI stock leveling with ability to build transport loads with predetermined constraints

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Beyond Traditional “DRP”

Supplier WH

ManufacurerDC

Customer DC

Production Process Model

Manufacturer Plant

Supplier Plant

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APO Planning Functionality Sequence

Supply Network Planning (SNP)

Demand Planning (DP)

Production Planning (PP)

Detailed Production Scheduling (DPS)

Deployment

Planning HorizonPlanning Horizon

Transport Load Builder (TLB)

Transportation Planning and VehicleScheduling (TPVS)

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Forecast

Supply Network Pl.

Demand Planning

Production PlanningDetailed Scheduling

Transport Load Builder

RecommendedTransportOrders

Deployment

TransportOrders

PlannedOrders

Confirmed Transport Orders

SNP Process

Transportation Planning& Vehicle Scheduling

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CustomerDemands

DistributionCenters

Plants

Transport Order Planned Order

Suppliers

Purchase Order

Data Objects: Distribution Network

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SNP Planning Functionality

Supply Network Planning Strategies

– Heuristics

– Optimization

– Capable to Match

Deployment

– Faire share, push rules and deploy to order

– Optimization

Transport Load Builder

– Leveling in transport loading

SNP

Deploy-ment

TLB

PP/DS

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SNP Strategies

SNP Heuristics: repair-based planning

– Quota arrangements

– Production capacity check

– Capacity leveling

SNP Optimization: cost-based optimization

– Selection of best production site

– Optimization of production, transportation, and inv. costs

– Mixed Integer Linear Programming

– Metaheuristics

– Feasible solutions

– Calculation of quota arrangements

Capable to Match: supply to demand match

– Matches supply to available demand via production and transportation capacity check

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New Orleans

Montreal

Chicago

Winnipeg

Calgary

CustomerPhiladelphia

Montreal

SAPCO

Deployment

Fair share

– Proportional

– Target fulfillment

– Deploy to order

Push deployment

Pull-push deployment

– Demand fence

– Supply fence

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Transport Load Builder

Plan for loading of transportation vehicles

– Maximum range of coverage

– Minimum/maximum load weight

– Maximum volume

– ATP check

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Vendor Managed Inventory

MANUFACTURER RETAILER

Plant Warehouse DistributionCenter

SNP

Inventory(integrated)

Forecast(integrated)

Sales order

Inventory(EDI 852)

Forecast(EDI 830)

Order (EDI 855)

VMI

APO

R/3,Legacy

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Planning Area AdministrationPlanning Area Administration

Planning Method Determination & Profile Settings

Planning Method Determination & Profile Settings

Supply NetworkPlanning Run

Supply NetworkPlanning Run

Transport Load Building

Transport Load Building

Deployment RunDeployment Run

Conversion intoPP/DS orders

Conversion intoPP/DS orders

PP/DS PlanningPP/DS Planning

Release of SNPPlan to DP

Release of SNPPlan to DP

Interactive PlanningInteractive Planning

APO Master Data Setup

Model/Version Creation

Supply Chain Model Setup

Release of Demand Plan to SNP

Simulation

Management by Exception

SNP Process Flow

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Direct Links

Casting Supply

Steel Supply

Interplant Handle Transport

POWERTASTIC, Co. Scenario

Mfg Plant IRaleigh, NCER_TD_PRA

Mfg Plant IIChicago, ILER_TD_PCH

VMI CustomerER_TD_VHOHouston, TX

DC IINewark, NJER_TD_DNE

DC ILos Angeles, CA

ER_TD_DLO

Vendor ITampa, FL

ER_TD_VTABattery, Motor

Vendor IISan FranciscoER_TD_VSF

Battery,Chuck

Vendor IIIPhoenix, AZ ER_TD_VPH

Steel

Vendor IVPortland, ORER_TD_VPO

Polypropylene

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Current BOM

HandleER_TD_SHA

Consumer MotorER_TD_SMQ

Consumer BatteryER_TD_SBA

BitsER_TD_SBI

ChuckER_TD_SCH

PolypropyleneER_TD_RPQ

SteelER_TD_RST

Manufactured ManufacturedProcured Procured Procured

Procured Procured

Level I

Level II

Auto Screwdriver

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Manufacturing Layout

*Not that manufacturing plant in Chicago does not have a casting operation, casting requirements are sourced from Raleigh

Shipping

Assembly

InjectionMolding

Casting

Raw Mat Warehouse

Manufacturing Layout

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THANK YOU