SAP SCM: Applications and Modeling for Supply Chain Management empowers you to capitalize on the sophistication of SAP APO. This book provides clear advice on the inevitable, critical decisions that can lead to project success or failure and shows you, wherever you are on the supply chain management staff buyer, planner, ground controller or analyst to fully exploit the agility SAP APO offers.

DANIEL C. WOOD is a senior business system analyst for
supply chain management at Intel Corporation; he also serves as an
adjunct faculty in the Department of Information Systems at Arizona
State University's W.P. Carey School of Business.

"This should be required reading for any company moving from ERP to an advanced SCM solution. Dan covers the different aspects of SCM and how they fit together. He also explains why you should keep the model simple and not try to model everything in the supply chain. The '98% solution' is good enough."
—Steve Blair CPIM, Senior System Analyst in a Fortune-500 high tech company

"This excellent, resourceful step-by-step guide is a must-have book for SAP pro-fessionals. The book is not only wide-ranging, but comprehensive on specific SCM topics with something to offer all types of SAP role groups including project managers, executives, developers, consultants, and end-users."
—Srini Uppala, SCM Consultant

". . .Dan has dealt comprehensively with supply chain planning and execution components to enrich and elevate the knowledge base for both starters and matured analysts . . .The executive lessons chapter in this book guides decision makers on how to approach product implementation and leverage the best ROI returns to the corporations successfully."
—Srinivas Gudipati, Senior Manager, SAP Supply chain Practice, SEAL Consulting Inc.

The decision to adopt SAP SCM as the software engine that powers the supply chain is a critical strategic commitment that is too expensive and far-reaching to be left to chance–—supply chain execution is at stake. SAP SCM: Applications and Modeling for Supply Chain Management will empower professionals to capitalize on the sophistication of SAP APO. This book provides clear advice on the inevitable, critical decisions that can lead to project success or failure and teaches supply chain management staff including buyers, planners, ground controllers, and analysts to fully exploit the agility SAP APO offers.

Preface ix

Acknowledgments xiii

Table of Abbreviations xv

Part 1 Cultural Background: The Business and Technical
Context for SCM 1

1 How to Use This Book: APO as a Mind Map 3

One Book, Many Curriculums: Custom Recommendations for Reading
Order 5

Included and Excluded: Scope of this Text 6

2 SCM Architecture 11

Enterprise Landscape for Planning in SCM 11

SCM Applications and Components 14

Simulating the Supply Chain 20

APO Tools for Users 22

3 Supply Chain Landscape 34

Supply Chain Landscape 34

Planning Supply Chain Disciplines 40

Supply Chain Data Pipelines 47

Integrated, Wall-to-Outside-the-Wall Supply Chain Solution
49

4 Advice to the Executive Considering SAP APO and SCM
50

Six Short Executive Lessons in ERP 51

Profile of an SAP SCM Project with a High Likelihood of Success
59

Part 2 Stocks and Bases: Master Data SCM 61

5 Supply Chain Management Master Data 63

Locations and Calendars 63

Products 70

Resources and Work Centers 84

Production Process Models and Run Time Objects 96

Transportation Lanes 108

External Procurement Relationships 111

Quota Arrangements 116

Models and Planning Versions 119

Transactional Data 124

Master Data Recipes 127

6 Analytical Master Data: BW Primer Part I 131

SCM versus ''Analytical'' Master Data
131

Star Schema 133

BW, APO, and Analytical Data Objects 135

BW in the SCM Data Mart 138

Setting Up Analytical Master Data 138

7 Core Interface 146

When R/3 Is Not the Transactional Data Management System 147

Using R/3 with APO 147

Basic Integration Model Configuration 148

Part 3 Entrees: APO Planning Modules 161

8 APO User Interfaces and the PP/DS Module 163

General APO User Interfaces 164

PP/DS Context 202

PP/DS Master Data and CIF 205

Using PP/DS 208

Configuring PP/DS 214

Detailed Scheduling and PP/DS User Interfaces 222

9 Demand Planning Module 230

DP Master Data and CIF 231

Using DP 232

Configuring DP 235

Univariate Forecast 240

Demand Planning Configuration Recipe 250

10 Supply Network Planning 251

SNP Master Data and CIF 253

Using SNP 254

Configuring SNP 257

SNP Configuration Recipe 271

Part 4 Beyond Planning: Analytics, Collaboration, and Keys
for Success 273

11 BW Primer Part II 275

Not Just a Data Warehouse: Reengineering ERP 275

Using BEx 278

BW Enterprise and BW Data Mart 281

Profile of a Full-Powered APO Deployment 282

12 Inventory Collaboration Hub and APO Collaboration
285

B2B Context of ICH and Collaboration 285

ICH Master Data 289

Using ICH and APO Collaboration 290

ICH Data Pipelines 294

13 The Lucky Chapter: Of Boats and Software--Four Keys
to Unlocking SCM 296

''Keys'': To Neuter a Cliche 297

It's Only a Key If You Know It's a Key 298

The Keys 299

What Would You Pay For Wal-Mart's or UPS's Supply
Chain? 310

Index 313