Efficient supply chain operation is more important than ever before. Destabilization of global resources, increased consumer expectations, and skyrocketing inflation mean there’s little margin for error in supply chain management processes. For business leaders, that means now is the time to learn what SAP SCM is, and how it can improve your supply chain processes.

“SAP supply chain management modules allow organizations to build a next-level supply chain management program that enables them to operate more efficiently, more competitively than ever before.”

Rebecca Walsh, Certified SCM Consultant, iT Services 2

Now that we know the potential SAP SCM modules and solutions can provide an organization’s supply chain with, let’s take a look at what it is and what it can do for your business.

What is SAP SCM?

SAP SCM stands for SAP Supply Chain Management and represents the suite of solutions available through SAP for managing, optimizing, and increasing efficiencies in supply chain processes. 

They are designed for use in SAP ERP environments, including SAP ERP, SAP S/4HANA, SAP HANA, and others. However, some SAP SCM solutions can be integrated with non-SAP environments using SAP Integration suite and other API tools.

With SAP SCM solutions, businesses can streamline, optimize, and modernize every critical link of their supply chain, including:

  • Lifecycle management. From ideation to manufacturing, and even disposal, organizations can gain better understanding and control over the entire lifecycle of their products enabling better management of costs and resources.
  • Procurement. Manage the sourcing of materials and services critical to business operations more easily, more efficiently and with greater visibility.
  • Logistics management. Ensure you know exactly where all your goods and materials are at all times and that shipping solutions are meeting customer expectations.
  • Manufacturing processes. Build manufacturing processes that are efficient, cost-effective and lower time-to-revenue for new and existing products.
  • Asset management. Gain total visibility into every aspect of a supply chain with solutions that enable cross-organization collaborations, reduce data silos, and are accessible to every stakeholder.

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SAP SCM can be used in every aspect of an organization’s supply chain management program. However, it’s important to note that SAP SCM does not represent not a singular solution. Rather, it encompasses an entire portfolio of SAP products that are selected based on an organization’s industry, infrastructure, size, and other unique qualities.

For instance, the SAP Transportation Management application is ideal for enterprises that oversee complex shipping operations, such as a fulfillment center or third-party shipping provider.

Each module in the SAP SCM portfolio provides a unique solution for a specific area of the supply chain management process, such as warehouse management, materials procurement, demand forecasting, and others.

For best results, a number of solutions, or SCM modules, should be used in tandem within an SAP environment.

SAP in Supply Chain Management: What It Can Do For Your Business

Future-Ready Your Supply Chain

Building a resilient, agile, and sustainable supply chain is crucial for any business that wants to be highly competitive and meet customer expectations. 

According to a recent report by Gartner, future supply chains need to be able to respond faster to real-time events and be sustainable in order to be a success. The report also states that companies need to be able to manage human labor shortages, which is a current challenge for 60% of supply chain organizations.

SAP SCM modules within the SAP Integrated Business Planning for Supply Chain can be used to address supply chain management challenges and fortify your supply chain for years to come.

Build a Supply Chain Control Tower for Total Visibility

In order to respond to real-time evolutions in your supply chain, you need to have clear visibility into real-time events from a centralized location, or supply chain control tower. With a digital control tower at the helm of your supply chain, you can:

  • Gain total visibility over your supply chain
  • Respond faster to unscheduled changes and disruptions
  • Optimize inventory management processes

SAP has complete solutions that organizations can incorporate into their SAP environment to build a supply chain tower that delivers complete visibility into every corner of the supply chain.

Enable Better Supply Chain and Business Decision Capabilities

SAP SCM empowers businesses with enhanced decision-making capabilities through advanced analytics and real-time data insights.

The Demand Planning module in the SAP Integrated Business Planning portfolio is enabled with AI technology for accurate, advanced predictive analytics capabilities – essential for next-level demand forecasting and efficient inventory management. 

With the SAP Demand Planning Module, businesses can:

  • Use empowered algorithms to generate more accurate forecasts
  • Increase collaboration capabilities and efficiencies to better respond to real-time events
  • Streamline and optimize ordering processes
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Simplify Inventory Resource Management

Streamlining your organization’s inventory processes is crucial for ensuring operational efficiency and customer satisfaction. The SAP SCM module, Inventory Optimization serves to streamline inventory resource management processes with advanced analytics for precise demand forecasting. 

This enables businesses to maintain optimal inventory levels more easily and buffer against supply chain disruptions. Another capability is being able to manage stock levels sufficiently, without decreasing product availability to customers. 

Integrate Automation Processes Into Your Supply Chain

Process automations are essential for meeting efficiency and productivity targets in a post-covid era. When used appropriately they can transform a supply chain into one that is reliable, agile, and bursting with efficiencies. 

SAP has solutions, such as the SAP Build Process Automation (BPA) solution, that can help businesses harness automation process technologies in the supply chain. 

With SAP BPA and other modules your team can:

  • Automate error-prone repetitive tasks
  • Reduce dependency on unreliable human-led labor resources
  • Boost customer satisfaction rates with efficient, personalized customer service experiences
  • Automate key logistics tasks such as truck driver scheduling and gps tracking
  • Enable citizen developers to build automated workflows and operational processes 

Fortify Supply Chain Management in SAP With iT Services 2

SAP is a powerful tool that’s favored by global innovators and household-name brands for cultivating operational excellence. Its elite capability for customization is helping businesses of all sizes and industries meet targets and business objectives in their supply chain, and it can help you too.

For expert advice on how to leverage SAP to make your supply chain more reliable, accurate, and responsive, reach out to iT Services 2. We’re a group of SAP consultants with decades of experience in SAP and we can show you how to get the most from your SAP environment to move your business goals forward.

Contact us to learn more.