Tempe, AZ March 18, 2002 German enterprise software megaprovider SAP has added industry-specific functionality to its mySAP Supply Chain Management solution, targeting customers in the high tech, automotive, chemical, pharmaceutical, consumer packaged goods, oil and gas, and mill products industries.
The new capabilities of mySAP SCM combine existing generic planning tools with expanded industry-specific functionality for supply chain planning levels ranging from strategic to tactical to operational, according to the provider.
SAP's verticalization of its SCM offering follows the industry trend toward more customized solutions, said Karen Peterson, vice president and research director at technology consultancy Gartner. "Supply chain applications continue to evolve from generic, one-size-fits-all solutions to today's vertically tailored solutions that can help companies more rapidly meet the unique challenges of today's ever changing, global marketplace," said Peterson.
As a result, Peterson continued, "today's solutions allow enterprises to achieve quicker time to benefit and reduced implementation risk by incorporating industry-specific functionality to meet the unique needs of complex vertical markets, recognizing that managing the supply chain in, for example, the automotive industry is very different than it is for a mill products manufacturer."
SAP's own description of the new industry-specific features include:
High Tech: Capable to match (CTM) with descriptive characteristics enables multi-tier supply network models with demand prioritization. Multi-level available to promise (ATP) determines material availability at a component and finished goods level across global operations taking substitution choices into account. Multi-level allocation enables revenue optimization in complex scenarios, important in new product introductions. In the area of supplier network collaboration, inbound scheduling agreements enhance visibility in both directions and collaboration to improve exception-based planning.
Automotive: Multi-line model mix planning enables planning for high-volume configurable products on the same line or line network. Rapid planning matrix with activities increases responsiveness to changes in demand while optimizing labor resources. Real time backflush and supply to line enhance inventory visibility and utilization and enable lean manufacturing processes. In the area of supplier network collaboration, inbound scheduling agreements enhance visibility in both directions and collaboration to improve exception-based planning.
Mill Products: Multi-mode order planning optimizes utilization stock on hand by optimizing initial cuts and allocating remnant and offcut material to demand. Characteristic-based ATP provides dynamic inventory matching for finished and semi-finished goods. Block scheduling incorporates industry best practices to increase planning velocity and efficiency.
Chemicals: Sales order-oriented planning avoids unnecessary stock build up by optimizing short-term planning. Extended campaign planning expands planning horizons to improve production and asset utilization.
Pharmaceuticals: Enhanced safety stock planning reduces safety stock levels while managing forecasting and supplier problems (like delivery shortfalls). Extended campaign planning expands the planning horizon to improve production and asset utilization.
Oil & Gas: A critical stock levels feature enhances visibility to tank levels and improves inventory management, asset utilization, and fill rates. Extended vehicle master data improves accuracy of bulk movements. Enhanced SAP APO/SAP TSW integration improves visibility of stock levels, matching, and demand/forecasting.
CPG: Promotion planning integration links demand chain information to supply chain planning. Multi-level ATP checks determines material availability at component and finished goods levels across locations, with substitution choices. Characteristics-based ATP allows matching of finished goods level to requested demand to better utilize stock on hand. Supplier network collaboration enhances visibility in both directions and collaboration to improve exception-based planning.