SAP launched a new version of its
supply chain management solution to help companies further evolve
traditional, linear supply chains into flexible and dynamic networks of
supply chain partners. The latest version of mySAP Supply Chain
Management (mySAP SCM) offers new industry-specific functionality;
strengthens demand-driven fulfillment networks; links service and
product supply chains; and further enables companies to create an
adaptive supply chain network. Companies using the new capabilities can
increase their supply network productivity and profitability by
identifying and capitalizing on sudden changes in supply and demand.
Many companies have begun to recognize that the after-sales market now
represents a significant revenue
opportunity. A critical element
to serving this market is to collaborate with business partners by
synchronizing and integrating a company’s service supply chain with its
product supply chain. mySAP SCM achieves this through service parts
planning and execution capabilities that leverage SAP NetWeaver to
deliver a solution that is integrated by design—not stitched together
after-the-fact, as is common in competitive solutions. The new
capabilities enable end-to-end business process integration in complex
and distributed environments, resulting in higher flexibility,
visibility and adaptability to business changes. The benefits of this
approach include higher forecast accuracy and performance for all parts,
including those with irregular demand patterns. This in turn results in
reduced inventory levels, improved working capital and customer service
levels and lower operating costs.
SAP customer Caterpillar Logistics Services is currently in the process
of implementing the latest release of mySAP SCM with the goals of
increasing the adaptability of its service supply chain and enabling its
network to intelligently replenish and produce based on actual demand.
“We chose to collaborate with SAP in the development of mySAP SCM in
order to provide our customers with a comprehensive systems offering
capable of delivering competitive solutions in the marketplace,” said
Mary Bell, chairman and president, Caterpillar Logistics Services, Inc.
“We are confident that mySAP SCM will support us in optimizing the
logistics performance of many of our current and future clients. The
mySAP SCM offering, combined with Cat Logistics’ processes and logistics
professionals, will position us to continue providing global logistics
excellence well into the future.”
“SAP is a leader in software ramp-up processes and deployment,” said
Lora Cecere, research director, AMR Research. “Customers that take
advantage of this early adoption program will get closer access to the
SAP development team, creating a system that distinguishes them from
competitors.”
The latest version of mySAP SCM offers new industry-specific
functionality, including new forecasting and replenishment for retail
operations. This functionality enables retailers to strike a balance
between increased customer service levels and overall lower merchandise
inventory. Enhanced capabilities help retailers replenish products with
long lead times, handle seasonal products and introduce new products
with short product life cycles using historical information on similar
products to forecast demand.
Companies in the apparel and footwear industry can take advantage of new
supply chain planning and collaboration capabilities to help retailers
plan seasonal products using seasonal views and to source and replenish
these products over a global network of factories or vendors at the
store, style, size or color level.
By leveraging the SAP NetWeaver platform, mySAP SCM can integrate with a
company’s existing technology infrastructure and provide visibility
across the business network. In addition, the SAP NetWeaver platform
allows companies to create composite applications on top of mySAP SCM
and across other SAP and non-SAP solutions to evolve and maximize the
performance of company-specific business processes.
“To respond swiftly to shifts in customer demand, market opportunity or
external threat, supply chain networks must be flexible and dynamic,”
said Harald Stuckert, senior vice president and general manager,
Extended Supply Chain Solutions, SAP AG. “The latest release of mySAP
SCM makes the vision of adaptive supply chain networks a reality.
Intelligently, these networks can sense and respond to changes in market
conditions and to internal supply of products and services to help
companies operate more efficiently and, ultimately, more profitably.”
