The mySAP SCM is one of the mySAP Business Suite solutions to manage Supply Chain Management in an efficient and effective way which improves the supply chain planning and execution. In this blog, we present the high level role of APO Supply Network Planning (SNP). The SAP APO SNP integrates purchasing, manufacturing, distribution, and transportation so that comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of a single, global consistent model.
SAP APO SNP is cross plant planning of the supply and network.
SAP APO SNP (Supply Network Planning) uses advanced optimization techniques, based on constraints and penalties, to plan product flow along the supply chain. The result is optimal purchasing, production, and distribution decisions; reduced order fulfillment times and inventory levels; and improved customer service.
SAP APO SNP plan determines short to medium term plan. SNP helps to plan critical components that use bottleneck resources. You can only plan the effects of bottlenecks on the entire supply chain using SNP. The smallest unit used for scheduling in SNP is 1 day. Simulation functionality assists to create and compare alternative plans. Transportation lanes are important master data in SNP which control the material flow along the supply chain.
In SNP, there are planning methods like CTM (Capable To Match), Optimization and heuristics etc. After applying appropriate planning methods in SNP and if we feel planning is feasible, then it is further sent to SAP PPDS for time continuous planning i.e. up to minutes and seconds.
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By Sreedhar Babu (on behalf of SAP Consulting Team)
SAP :: Streamlined
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