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Backorder Processing with SAP R/3 vs. SAP APO Global Available-to-Promise

Backorder Processing with SAP R/3 vs. SAP APO Global Available-to-Promise. Patti Kimler Product Manager PTU Applications SAP Labs, LLC. What We’ll Cover …. What is Backorder Processing and what should it do? SAP APO’s Backorder Processing R/3’s Backorder Processing

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Backorder Processing with SAP R/3 vs. SAP APO Global Available-to-Promise

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  1. Backorder Processing with SAP R/3 vs. SAP APO Global Available-to-Promise Patti Kimler Product Manager PTU Applications SAP Labs, LLC

  2. What We’ll Cover … • What is Backorder Processing and what should it do? • SAP APO’s Backorder Processing • R/3’s Backorder Processing • Let’s look at them both now – SAP APO vs. R/3 • The gaps – Where R/3 falls short • What’s new in Global Available-to-Promise and coming up soon • Key takeaways

  3. What We’ll Cover … • What is Backorder Processing and what should it do? • SAP APO’s Backorder Processing • R/3’s Backorder Processing • Let’s look at them both now – SAP APO vs. R/3 • The gaps – Where R/3 falls short • What’s new in Global Available-to-Promise and coming up soon • Key takeaways

  4. Backorder Processing (BOP) – the Basics • When is an order a backorder? • When a schedule line doesn’t have a confirmed quantity • What should a backorder processing solution do? • Simulate results • Lend visibility to the situation • Run in a reasonable amount of time • Allow selection of orders based on business requirements • Allocate product in a prioritized way • Allow results to be sorted in a meaningful way • Note that both solutions — R/3 and SAP APO — can satisfy all these items, to some extent

  5. What We’ll Cover … • What is Backorder Processing and what should it do? • SAP APO’s Backorder Processing • R/3’s Backorder Processing • Let’s look at them both now – SAP APO vs. R/3 • The gaps – Where R/3 falls short • What’s new in Global Available-to-Promise and coming up soon • Key takeaways

  6. Prerequisites • ATP check for orders in question must be set to take place in APO • R/3, mySAP ERP, or SAP CRM as an order management system • What does that mean?! • Typically, in the setup of Global Available-to-Promise (gATP), you specify (once) in the SAP APO Core Interface (CIF) that you want your ATP customizing settings transferred from R/3 (or mySAP ERP) to SAP APO • Then, in another integration model of the CIF, you must have selected the ATP check switch for the materials you have specified in that integration model

  7. Core Interface Settings – Integration Models

  8. mySAP ERP • Real-time business • Powered by SAP NetWeaver • Enterprise Services Architecture SAP R/3 • Standardized business processes • Client-server • Distributed processing SAP R/2 • Real-time • Integration • International • Mainframe mySAP Business Suite mySAP PLM mySAP CRM mySAP SRM mySAP ERP R/2 mySAP SCM R/3 SAP NetWeaver 1972 1979 . . . 1992 2000 2003 mySAP ERP and mySAP Business Suite Evolution Revolution

  9. SAP Enterprise Portal Supply Chain Event Monitoring SCEM Business Information Warehouse & SEM SRM Design Buy mySAP Business Suite TPVS EWM SPP RR PLM SCM CRM mySAP ERP Make Move Sell Service • Strategy- Product Innovation • Value Based Initiatives • < Time to Market • > Product Quality $ • > Life Cycle Product $ • > Collaboration • ROI • < 20% Development $ • < 21% Scrap & Rework • < 7% Manufacturing $ • < 20% Warranty • Strategy- SRM, Global Visibility • Value Based Initiatives • < Supplier Consolidation • < Material Consolidation • < Maverick Spending • > Collaboration • ROI • < 5-15% Material Cost • > Productivity 20-30% • Strategy- Operational Excellence • Value Based Initiatives • < Inventory • > Customer Service • > Global Resource Mgmt. • > Operational Efficiency • ROI • < 10-30% Inventory • > Rev.-Customer Service • < Planning Cycles- Days • Strategy- Customer Intimacy • Value Based Initiatives • > Revenue • > Market Share • > Profitability • > Customer Satisfaction • ROI • > 2-3% Market share- AMR • > Margins-5%>25%- Bain • > Selling Efficiency-$10>1 • > Customer Satisfaction

  10. Where SAP APO Fits in SAP SCM • SAP Advanced Planning and Optimization(SAP APO 4.1) • SAP Inventory Collaboration Hub (SAP ICH 4.1) • SAP Event Management (SAP EM 4.1) • SAP NetWeaver (Web AS, BW, …) (SAP NetWeaver ‘04)

  11. Default SAP SCM release • SAP APO 2.0 • Collaborative Planning • Collaborative scenarios • SAP APO available in mySAP.com mySAP SCM • ASCN vision announced • SAP is market leader in Q2 • Strategic partnership with MIT Auto ID Center • SAP SCM 4.0 • SAP APO 4.0 • SAP ICH 4.0 • SAP EM 4.0 • SAP NetWeaver integration • RFID pilots for Metro Store and P&G • SAP APO 1.1 • SAP enters APS market with stand-alone solution • Decentralized warehouse mgmt. system • mySAP SCM • SAP APO 3.0 SCM Content Workplace • SAP LES R/3 4.6 C • Transportation Planning • Radio frequency • SAP SCM 4.1 • SAP APO 4.1 • SAP ICH 4.1 • SAP EM 4.1 • SAP NetWeaver Integration • RFID-enabled SCM • mySAP SCM • SAP APO 3.1 Industry Release • Supply Chain Event Management 1.1 • CRM SCMintegration SAP SCM releasein ramp-up since June 2004 Evolution of SAP SCM Functionality • SAP SCOPE • Initiative • MRP II for Planning • SAP R/3 MM/PP • Transportation Mgmt. • Warehouse Mgmt. • Partnership with ILOG 1997 1998 1999 2000 2001 2002 2003 2004

  12. Global ATP – The Technical Perspective

  13. Key Capabilities • Multiple Operating Modes • Batch • Interactive • Simulative • Filter • Sorter • Support for Product Allocations

  14. Batch Backorder Processing • 2 modes: • Direct update of batch backorder processing • BOP runs and immediately updates the results to the database without an intermediate step • Batch backorder processing with postprocessing • BOP runs, saves the results to a buffer, and protects the assigned quantities with temporary quantity assignments • The results can be updated or rejected. If rejected, the temporary quantity assignments are deleted

  15. Interactive Backorder Processing • Similar to batch backorder processing with postprocessing, except for the addition of a pre-configured worklist • It can be accessed directly from the menu structure within SAP APO, or used as a postprocessing function of Batch backorder processing • Filters and sorts are available to both operating modes

  16. Interactive Backorder Processing – With a Worklist

  17. Interactive Backorder Processing – Without a Worklist

  18. Simulative Backorder Processing • No temporary quantity assignments are written to liveCache • No orders are updated in R/3 • The results can be viewed in a log but cannot be updated interactively • The results can be saved in the buffer or deleted

  19. Filter Plus a Userexit!

  20. Sorter Plus a Userexit!

  21. Product Allocations and Backorder Processing • As of SAP SCM release 4.1 (currently in Phase II Ramp-Up), product allocations may be checked as part of backorder processing • In prior releases, product allocations are neither checked nor updated • Also as part of release 4.1, if product allocations are checked by BOP, a new icon will display on the results screen telling you that this occurred

  22. What We’ll Cover … • What is Backorder Processing and what should it do? • SAP APO’s Backorder Processing • R/3’s Backorder Processing • Let’s look at them both now – SAP APO vs. R/3 • The gaps – Where R/3 falls short • What’s new in Global Available-to-Promise and coming up soon • Key takeaways

  23. Prerequisites • ATP check must be set to occur in R/3 • What does that mean?! • You’re using R/3 and not APO for ATP checks

  24. The Selection Screen Selection Sort

  25. The Results

  26. What We’ll Cover … • What is Backorder Processing and what should it do? • SAP APO’s Backorder Processing • R/3’s Backorder Processing • Let’s look at them both now – SAP APO vs. R/3 • The gaps – Where R/3 falls short • What’s new in Global Available-to-Promise and coming up soon • Key takeaways

  27. APO Redistribution flag Redistribution for each basic method Filter has 28 fields plus userexit Sorter has 25 fields plus userexit Able to confirm new results with old prior to database commit R/3 and mySAP ERP No redistribution flag – releases all orders’ assigned quantities, then rechecks them if they didn’t have a check before No redistribution Fixed filter with <10 fields Fixed sorter Changes are committed to database with no comparison Comparison

  28. APO Schedule line check available for all documents Date configuration – material availability or goods Issue Possible to preserve the lesser quantity that has been agreed upon without giving more Possible to improve and not degrade confirmations R/3 and mySAP ERP Schedule line checks for stock transport orders only Date configuration – No option (material availability date is used) R/3 and mySAP ERP do not differentiate between confirmed quantity and requested quantity No opportunity to preserve what was done previously Comparison (cont.)

  29. What We’ll Cover … • What is Backorder Processing and what should it do? • SAP APO’s Backorder Processing • R/3’s Backorder Processing • Let’s look at them both now – SAP APO vs. R/3 • The gaps – Where R/3 falls short • What’s new in Global Available-to-Promise and coming up soon • Key takeaways

  30. The Highlights • R/3 and mySAP ERP have limited sort and filter fields • With no user exits available to expand the selection • R/3 and mySAP ERP are not as flexible as mySAP SCM • Dates aren’t configurable • Operating modes are selectable • Schedule line checks are limited to one document type • No way to preserve previous check • Orders are opened, quantities are released, check is redone • No new development taking place

  31. What We’ll Cover … • What is Backorder Processing and what should it do? • SAP APO’s Backorder Processing • R/3’s Backorder Processing • Let’s look at them both now – SAP APO vs. R/3 • The gaps – Where R/3 falls short • What’s new in Global Available-to-Promise and coming up soon • Key takeaways

  32. SCM 4.1 – gATP Developments • Better support for time zones • Usability of ATP • Configurable rules-based ATP results screen • Usability of Backorder Processing • Enhanced usability • Better icons to explain what occurred • Correct and reject individual orders • Improved links from the results display • Product Allocations • Link to TP/VS added in 4.0

  33. But SCM 5.0 Is Coming, and … ... It’s HUGE!(my boss said I should keep saying that, to get everyone ready for it)

  34. gATP Highlights in SCM 5.0 • Temporary facility closure • A hurricane just hit my Florida distribution center • Alternate locations to use when a primary facility is closed • Ship out of Texas and Georgia instead • Maximum numbers of substitutions in RBA • Locations and location products, not products • Consolidation • I’d like to take all these orders sourced from different locations and consolidate them at this single location before I ship them to the customer • Drop ships/Third party • I’d like the vendor to deliver this to the customer

  35. gATP Highlights in SCM 5.0 – More! • RBA in Stock Transport Orders (not location, just product substitution) • The product you requested is not available, substitute another • Reassignment of order confirmations • I’d like to borrow from Peter to pay Paul, automatically, not manually, based on criteria that I specify • Event-driven backorder processing • I’ve just gotten stock in and I want to allocate it to a group of high-priority orders that are waiting for it • This is not a complete list

  36. Event-Driven Backorder Processing?! • Uses something new called the Order Due List, which is also used by reassignment of order confirmations • Uses Workflow • Allows an event, like a stock receipt or a return order, to trigger a run of BOP against the Order Due List • The Order Due List will contain your highest priority, unconfirmed orders • Brilliant!

  37. How to Decide? • If R/3 or mySAP ERP’s ATP functionality just isn’t enough of a solution anymore, consider the APO gATP solution in mySAP SCM. However, don’t wait for SCM 5.0! (Remember, it’s HUGE) • Prioritize what you need and figure out what release it’s in • SCM release notes are posted on http://help.sap.com/ • How many APO releases back are you? • If you’re on APO 3.0 or 3.1, consider upgrading now to at least 4.0, if not 4.1 • Why? Chances are there’s a lot in 5.0 that you’ll want to roll-out, and it’ll be a smaller bite if you’re not tackling all the interim releases before you can get to 5.0 • Also, 4.0 and 4.1 are smaller releases from a gATP perspective (Remember, 5.0 is HUGE)

  38. What We’ll Cover … • What is Backorder Processing and what should it do? • SAP APO’s Backorder Processing • R/3’s Backorder Processing • Let’s look at them both now – SAP APO vs. R/3 • The gaps – Where R/3 falls short • What’s new in Global Available-to-Promise and coming up soon • Key takeaways

  39. Key Takeaways • The BOP program you use is dependent on the system in which your ATP check takes place • APO’s Backorder Processing has more Sort and Filter options than R/3 or mySAP ERP, with user exits to add even more fields • APO’s BOP is scalable – no need to do a full run every time • With any BOP solution, force it to do what you really need it to do. Use variants, etc., to tailor your BOP runs • If R/3’s ATP solution just isn’t a solution for you, and you’ve already got all or part of mySAP SCM in place (i.e. APO DP), consider implementing gATP and attaining the benefit of the BOP program, among other things • Never assume that the product as it is today is the product that you’ll be using tomorrow. New enhancements and opportunities are always right around the corner • It is possible to implement BOP without an ATP check in the order, and there are successful implementations that have done it!

  40. Your Turn! Questions?

  41. To Contact the Speaker Patti KimlerProduct Manager SCM PTU Applications SAP Labs, LLC M 386-334-4756 HO 386-960-5257 patricia.kimler@sap.com

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