STP358: Order Forecast Monitor in SNC · SAP software enables a better Supplier experience. It...

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03-Apr-2017

STP358: Order Forecast Monitor in SNC

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This course provide you with an overview of Supply Network Collaboration (SNC) and then describes how to use Order Forecast Monitor (OFM) in SNC.

After completing this course, you will be able to:

Describe the collaborative nature of supply chain and Supplier management process.

Explain how you can work more closely with 3M using SNC.

List the benefits of SNC.

Log on to SNC.

Describe the steps to view the 3M demand and provide planned receipts as information on the ability to fulfill 3M’s planned demand.

Describe the steps that 3M takes to monitor planned receipts.

Course Introduction

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Supply Network Collaboration

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After completing this module, you will be able to:

Explain which business processes integrate with your 3M work using SNC.

Log on to SNC.

Module Objectives

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3M implemented SAP as its Enterprise Resource Planning (ERP) system to support end-to-end processes.

SAP software enables a better Supplier experience. It links business processes, people, and information with one global, seamlessly-integrated platform of standardized business processes.

As part of this implementation, 3M Sourcing Operations uses SAP SNC as a tool to improve communications and productivity for both 3M and our key Suppliers.

You access the SNC portal through 3M Supplier Direct.

Introduction to Supply Network Collaboration

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3M wants:

More data sharing with our key Suppliers.

Key Suppliers to take greater responsibility and act proactively to work as a Business Partner.

SNC is a web-based component within the SAP Supply Chain Management suite that:

Supports collaboration between Suppliers and Customers. 3M primarily uses SNC with Suppliers who do not utilize operational transactions or share data electronically.

Improves process efficiency. SNC helps both 3M and our Suppliers save on cost and time.

Introduction to Supply Network Collaboration (continued)

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SNC OverviewSNC offers a web-based platform for real-time collaboration with internal and external business partners.

Note: 3M’s implementation of Supplier Collaboration with SNC includes: Purchase Orders

(POs) Scheduling

Agreement (SA) Releases

Advance Shipping Notifications (ASNs)

Invoicing Order Forecast

Monitoring (OFM) Supplier Managed

Inventory (SMI) Kanban

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Suppliers collaborate with 3M for the following processes:

SNC Strategies

SNC

Purchase Order Collaboration

Advance Shipping

Notification

DemandCollaboration

Release Process Collaboration

Subcontracting Collaboration

InvoiceCollaboration

Kanban

Supplier-Managed Inventory

Collaboration

InventoryCollaboration

Supply Network Inventory

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Keeps 3M and Suppliers updated about PO fulfillment and Delivery Schedules for the POs.

Enables the Suppliers to respond to requirements quickly and accurately.

Facilitates accurate and real-time execution between 3M and our Suppliers—keeps the Supplier updated about:

Scheduling Agreements (SAs)

Delivery Schedules

Cumulative received quantities

Any exceptions

SNC Strategies (continued)

SNC Purchase Order Collaboration

SNC Release Process Collaboration

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By using the Order Forecast Monitor (OFM) in SNC, Demand Collaboration is enabled between 3M’s and Suppliers’ planning data.

It compares the data in a one-window environment.

Deviations between 3M's plan and the Supplier's plan are shown as absolute numbers, percentages, and color codes.

OFM provides alerts to all parties so they can quickly adapt planning and delivery capacity to mitigate critical situations.

Allows Suppliers to provide 3M with the details of a shipment through SNC in advance of, or at the time of, the actual shipment.

Communicates shipment information, vehicle details, transporter, and contact details to 3M in real time.


SNC Demand Collaboration

Advance Shipping Notification (ASN)

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Enables adoption of different inventory management strategies for a smoother flow of inventory from a Supplier to the shop floor. This includes providing 3rd-Party Provider Logistics (3PL), which stores Supplier inventory, with the capability to send the ASN data to 3M for the Supplier.

The benefits of Inventory Collaboration are:

Quick replenishment of supply

Help with planning multiple deliveries over the planning horizon

Higher demand visibility


SNC Inventory Collaboration

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Allows 3M to release POs for Subcontractors in SAP and communicate them to the Subcontractors through SNC.

This process:

Keeps 3M and Subcontractors updated about PO fulfillment and Delivery Schedules.

Enables the Subcontractors to respond to requirements quickly and accurately.

Complements subcontracting collaboration.

Supports Customers, Subcontractors, and Suppliers of the first level and up (suppliers of the Supplier), and other partners in monitoring stock levels and requirements for products at selected locations in the supply chain.



Supply Network Inventory

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Enables a Supplier to create invoices for goods the Supplier provided to 3M.

Allows gross requirements planning and execution to be managed by a company’s Suppliers. The Customer (3M) no longer needs to perform MRP planning.

Allows 3M Suppliers to review Purchase Orders and create Advance Shipping Notices.


Invoice Collaboration

Supplier Managed Inventory (SMI)

Kanban

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Using SNC, Suppliers can:

Access 3M PO, Subcontracting PO, Scheduling Agreement, Delivery Schedule, and Release data.

Provide 3M with PO confirmation, Delivery Schedule acknowledgements, and ASN data, either online or by using a file upload process.

Access and download 3M planning, demand, and forecast data.

Upload planned production data.

Create and publish invoices and view invoice payment statuses.

Working with SNC

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Access the 3M Supplier Direct Global Landing area by going to 3M.com/supplierdirect in your web browser.

Under Select Your 3M Supplier Direct Location, select your location from the list.

Log in to SNC

http://3m.com/supplierdirect

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On the selected location’s 3M Supplier Direct Home page, click Please Sign In(or the person icon) in the upper right on the Supplier Direct website.

Log in to SNC (continued)

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On the Enterprise Network Login window, enter your Username and Passwordand click Login.


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Under the Quick Links section on the right of the page, click the 3M ERP link to access SNC.

Note: You can also find the 3M ERP link on the Source to Pay Transactionspage under the Suppliers tab.


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The ERP Portal opens in a new browser window.

Under the Supplier tab, then Supplier Network Communication tab, the default Alert Monitor page displays.


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The key points covered in this module are:

3M provides Suppliers with a web tool called Supply Network Collaboration (SNC).

You access SNC using 3M Supplier Direct Portal.

Suppliers collaborate with 3M for these processes:

Purchase Order Collaboration

Release Process Collaboration

Demand Collaboration using OFM

Advance Shipping Notification

Inventory Collaboration


Invoice Collaboration

Module Summary

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Order Forecast Monitor in SNC

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After completing this module, you will be able to:

Explain the Order Forecast Monitor business process performed by 3M and a Supplier.

Describe how to view the 3M demand.

Enter and save Supplier-planned receipts.

Describe how 3M monitors Supplier-planned receipts.

Module Objectives

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The Order Forecast Monitor (OFM) business process is used to collaborate with Suppliers during planning.

OFM enables 3M and Supplier-planning data to be compared in a one-screen environment, where deviations between 3M's demand and the Supplier's receipts are shown as absolute numbers and percentages with color codes. OFM provides alerts to all parties so they can quickly adapt planning and delivery capacity to mitigate critical situations.

Order Forecast Monitor Overview

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SNC Supplier Processor activities in OFM include:

Check for new 3M demand in the Alert Monitor.

Review the 3M demand in:

Order Forecast Details – Product View

Order Forecast Details

Enter and save Supplier-planned receipts in:



Upload Supplier-planned receipts into OFM using:

Download Center

Upload Center

High Level OFM Process

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High Level OFM Process (continued)

Check for new demand

(Supplier)

Review demand

(Supplier)

Enter receipts

into OFM(Supplier)

Upload receipts

into OFM(Supplier)

Review planned receipts

(3M)

Check for discrepancies

in demand and receipts

(3M)

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SNC 3M Planner Processor activities in OFM include:

Identifying major discrepancies in demand versus receipts on the Alert Monitor.

Reviewing the summary of discrepancies in demand versus receipts on the Order Forecast Overview window.

Review the Supplier-planned receipts in:



High Level OFM Process (continued)

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Once alerted through e-mail about the new planned demand, the SNC Supplier Processor logs on to the SNC web browser and navigates to the Alert Monitor window. The SNC Supplier Processor checks the New Forecast Data alerts that display in the Alert Type section.

Check for New 3M Demand in the Alert Monitor

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After checking for New Forecast Data alerts, the SNC Supplier Processor reviews the new 3M demand on the Order Forecast Details –Product View window.

Review 3M Demand in Order Forecast Details

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Key Figures display at the bottom of the window with Time Bucket columns representing the planning horizon.

There is flexibility on how the Time Buckets are defined. Combinations of years, months, weeks, and days can be used to represent the columns. The combinations can be saved as profiles.

The default Time Bucket profile is a twelve-month display horizon, with the first three weeks in daily buckets, the first four months in weekly buckets, and the rest in monthly buckets.

Note that Key Figures displayed are in the base Unit of Measure, which may not necessarily be the same as the ordering Unit of Measure.

Review 3M Demand in Order Forecast Details (continued)

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On the Order Forecast Details – Product View window, the SNC Supplier Processor has visibility of four Key Figures:

1. Customer Planned Requirements: Signifies the planned 3M requirements.

2. Customer Firm Requirements: Signifies actual 3M demand placed on the Supplier.

3. Supplier Planned Receipts: Represents the Supplier’s commitment to 3M’s planned requirements.

4. Supplier Firm Receipts: Represents the Supplier’s response to 3M’s firm requirements. This is done as part of the PO or release confirmation process.


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The SNC Supplier Processor also checks the four calculated Key Figures. Calculated Key Figures represent the absolute and percentage difference between planned demand and receipts and firm demand and receipts:

1. Difference in Planned Receipts / Planned Requirements (%)

2. Difference in Planned Receipts / Planned Requirements (absolute)

3. Difference in Firm Receipts / Firm Requirements (%)

4. Difference in Firm Receipts / Firm Requirements (absolute)


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SNC calculates the four Key Figures and color codes of the two percentage difference Key Figures on the basis of the fixed tolerances. The SNC Supplier Processor can check the percentage discrepancies between requirements based on the color codes as follows:

Blue: 3M or Supplier data is missing.

Red: Difference exceeds the defined tolerance (+10%, -5%).

Orange: Difference is within the defined tolerance (+10%, -5%).

Green: There is no deviation between 3M and Supplier’s data.


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The SNC Supplier Processor can also check the In Transit Key Figure. The Supplier’s In Transit signifies the sum of quantities on their way to 3M, based on Advance Shipping Notices received from Enterprise Central Component (ECC).


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While reviewing the two requirements, the SNC Supplier Processor can also utilize the Graphic tab of the Order Forecast Details – Product View window to check the Key Figures.


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Detailed instructions on reviewing 3M demand on the Order Forecast Details – Product View window can be found on the Supply Network Collaboration Training site.

Step-by-Step Instructions

http://3m.com/suppliertraining

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Enter and Save Supplier Planned Receipts


(Supplier)

Review demand

(Supplier)

Enter receipts

into OFM(Supplier)

Upload receipts

into OFM(Supplier)


(3M)



(3M)

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The Supplier has the capability to enter and save Supplier-planned receipts. This enables 3M to understand the Supplier’s ability to fulfill future 3M demand. This is done by monitoring the following Key Figures:

Difference in planned receipts / Planned requirements (%)

Difference in planned receipts / Planned requirements (absolute)

The Supplier can maintain these in one of the following ways:

Manually maintain planned receipts in the Overview – In Transit Information – Multi Sourcing Mode grid arrangement on the Order Forecast Details –Product View window.

Download OFM data in an Excel file using SNC’s download center and upload the updated Excel file back into SNC. This automatically loads the data into OFM.

Enter and Save Supplier Planned Receipts (continued)

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Supplier-planned receipts are entered directly into OFM using the Overview –In Transit Information – Multi Sourcing Mode grid arrangement. Once the Supplier has switched to this grid, a second editable Supplier Planned Receipts Key Figure is added.


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The same process is used on the Order Forecast Details window. In this window, however, Supplier-planned receipts can be keyed in on multiple location products.


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Detailed instructions entering and saving Supplier-planned receipts can be found on the Supply Network Collaboration Training site.



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Upload Supplier Planned Receipts into OFM


(Supplier)

Review demand

(Supplier)

Enter receipts

into OFM(Supplier)

Upload receipts

into OFM(Supplier)


(3M)



(3M)

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To upload Planned Receipts into SNC, navigate to the Download Center (External User) window.

Upload Supplier Planned Receipts into OFM (continued)

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Prior to downloading an OFM file to Excel using the Download Center, a download profile must be created by performing the following steps:

1. Choose Partner

2. Choose Profile Type

3. Specify Selection Criteria

4. Define Periodicity

5. Initiate File Generation


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To upload Planned Receipts into SNC, download an OFM file.


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To upload Planned Receipts into SNC, update the OFM file and save the file as a comma-delimited (CSV) file (not Excel).


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To upload Planned Receipts into SNC, navigate to the Upload Center (External User) window.


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Prior to uploading an OFM file into SNC using the Upload Center, a upload profile must be created by setting these fields:

1. Profile Name

2. Object Type = Order Forecast Collaboration

3. Customer = CORP_3M

File to Upload can be set, but the file name is fixed. It is easier to leave blank.


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To upload Planned Receipts into SNC, upload the Supplier plan into OFM using the Upload button.


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To upload Planned Receipts into SNC, verify if Planned Receipts were uploaded correctly by viewing them on the Order Forecast Details –Product View window.


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Detailed instructions downloading, updating, and uploading Supplier-planned receipts in OFM can be found on the Supply Network Collaboration Training site.



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Checking for Discrepancies in Planned Demand and Receipts


(Supplier)

Review demand

(Supplier)

Enter receipts

into OFM(Supplier)

Upload receipts

into OFM(Supplier)


(3M)



(3M)

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Both 3M and the Supplier receive an alert if the Supplier has entered planned receipts into SNC that differ by more than 5% from planned 3M demand. This alert is received by e-mail notification and Order Forecast Alert in the Alert Monitor.

Checking for Discrepancies in Planned Demand and Receipts (continued)

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Review Supplier Planned Receipts in OFM


(Supplier)

Review demand

(Supplier)

Enter receipts

into OFM(Supplier)

Upload receipts

into OFM(Supplier)


(3M)



(3M)

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After checking for Order Forecast alerts, the SNC 3M Planning Processor reviews the Supplier Planned Receipt Key Figures and corresponding color codes on the Order Forecast Details – Product View window.

Review Supplier Planned Receipts in OFM (continued)

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In addition, both 3M and the Supplier can review a summary of discrepancies in demand versus receipts in the Order Forecast Overview. 3M Planners can define queries to refine the list of location products on the window, since data for all Suppliers in OFM is displayed.


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Time Buckets such as TB1 and TB2 are relative because location products can have different sets of buckets based on how the Time Bucket Profile has been set. Color coding in the cells follows the same logic as Order Forecast Details.


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The key points covered in this module are:

OFM business process performed by 3M and a Supplier.

Viewing 3M demand.

Entering and saving Supplier-planned receipts.

How to monitor Supplier-planned receipts.

Module Summary

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The key points covered in this course are:

The Alert Monitor is used by the Supplier to identify new 3M demand.

The Order Forecast Details and Order Forecast Details – Product View windows are used by the Supplier to view 3M’s planned demand for key materials and provide planned receipts to fulfill that demand.

Suppliers can provide planned receipts to SNC by keying them directly into the OFM window or through file upload using the SNC Upload Center.

The Alert Monitor is used to notify both 3M Planners and Suppliers of any major discrepancies in 3M demand and Supplier-planned receipts. 3M Planners also use the OFM windows to review planned receipts the Suppliers have provided.

Using a combination of days, weeks, and months, the Time Buckets Profile is used to define the level of granularity for viewing the Key Figures.

Conclusion

STP358: Order Forecast Monitor in SNC · SAP software enables a better Supplier experience. It...

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