Supply Chain Management (SCM) Planning in SAP


The production planning cockpit "PPC" as a supply chain management tool for SAP enables multi-level planning across all levels of the supply chain. This ensures material availability, adheres to production restrictions and achieves a high level of planning quality.

SCM planning features:

The supply chain covers all steps, from purchasing, manufacturing, production and assembly of components to delivery to the customer. Special cases such as subcontracting, production in different plants, stock transfers and WIP (Work in Process) are also taken into account.

Supply Chain Management software (SCM) maps the entire supply chain in the system and provides helpful and supporting features for all areas.

SCM Planning focuses on the planning aspect when considering supply chains. Although planning refers to the future, it must of course always take into account the current situation in the supply chain such as stocks, confirmations, WIP, actual production times and so on.

Specifically, an SCM planning tool combines data from procurement to manufacturing to delivery as well as possible service/maintenance across all levels of the supply chain.

Pegging is a decisive factor here, as it creates links between the various levels of the supply chain - even outside a sales order scenario (make-to-order, MTO), in make-to-stock production (MTS). Combinations of both scenarios (MTO, MTS) are also possible and supported.

The following are some of the main differences between SCM tools and simpler planning software products:

  • Planning across the entire supply chain (also known as multi-level planning) which can include as planning components all factors of the supply chain from purchasing to delivery.
  • A combination of the following components:
    • Ensuring material and product availability throughout the entire supply chain
    • Planning against restrictions (especially against limited resources in production) in the supply chain
    • Planning against rules in the supply chain, which guarantees a high planning quality in addition to compliance with the restrictions (e.g. low set-up times, short storage times, use of the most efficient resources)

ITeanova's production planning cockpit "PPC" as a SCM planning tool in SAP

ITeanova's production planning cockpit contains all the essential components of a SCM planning tool. It has proven itself in demanding supply chain scenarios and always focuses on the entire processes involved for manufacturing and delivering products.

The most important SCM planning features:

  • Display and planning of multi-level production as a combination of in-house and external production (entire supply chain)
  • Mapping of numerous restrictions with an adjustable rule set and easy expandability across all levels of the supply chain
  • Possibility of taking material availability into account in all planning algorithms
  • Flexible cockpit for displaying comprehensive plans across the entire supply chain according to various aspects
    • Aggregated data (such as capacity totals, penalty cost overview, alert monitor)
    • Detailed data views (e.g. all operations or orders per resource or resource group)
    • Mapping of supply chains using a hierarchical representation
    • Dashboard with flexible key figures
  • Optimisation heuristics according to various criteria across all levels of the supply chain
  • Building SCM "What-If scenarios" with simulated master and transaction data
  • SCM planning algorithms based on simulated scenarios
  • Comparison of different simulations across all stages of the supply chain

In a supply chain, problems can occur at various points, as can be seen in the two images below. The production planning cockpit "PPC" offers transparency across the entire supply chain to enable early detection of these problems and also the necessary means for the planner to correct them. Employees from different areas see the same data, aggregated into different views as required. This means that not only does the planner see all available information that is needed to work with, but also for example the salesperson sees the information that is relevant.