SAP Automotive for Suppliers

Transcription

1 SAP Automotive for Chapter Suppliers 2 SAP Automotive for Suppliers As competition intensifies, business processes are no longer confined to individual companies. Manufacturers and suppliers are focusing on key areas and forming closer alliances. As a supplier, you are an essential element in the supply chain. In today s environment, you must be flexible and respond quickly to the manufacturers JIT demand. This forces your company to constantly optimize its overall logistics operations. You need to provide a transparent flow of information, which includes subcontractors, and ranges from the manufacturer s delivery order to the delivery of goods at the customer site. SAP Automotive is a fully integrated solution that allows you to plan, control, and monitor the logistic business operations throughout your company. SAP Automotive supports the complete logistic chain from the production order through EDItransmitted sales orders to production planning and control. SAP Automotive covers, for instance, the specific technical and business aspects involved in processing a scheduling agreement. Materials can be procured through delivery schedules or JIT schedules using EDI or by fax. In the R/3 System, the logistic quantity movements are automatically reflected in the value movements of Financial Accounting and Controlling. This creates a current and uniform operational database. Moreover, it allows you to optimize business processes, recognize market changes early, and take appropriate operational decisions. Introduction Fig. 2-1: Supply Chain Synchronization 2-1

2 2 SAP Automotive for Suppliers Electronic Document Exchange Between Business Partners Using EDI EDI Standards In the R/3 System, EDI technology is built into the application design. This makes EDI functions simple and easy to use. The R/3 System generates a generic interface format called IDOC that allows you to communicate with your business partners using different EDI standards (VDA, Odette, ANSI X.12, or Edifact). Numerous certified EDI subsystems are available to convert IDOCs to EDI structures. Business Workflow and EDI Fig. 2-2: EDI Messages/Forms Besides providing EDI functions, the SAP Business Workflow component allows you to streamline your operation by electronically processing incoming and outgoing documents. In this context, processing incoming documents offers the highest savings potential. The R/3 System receives the documents through EDI. It determines their content and data elements (for example, supplier or amount). It either posts them directly or uses an automatic workflow function to transfer them to a specific person for further processing. This allows you to check whether changes in release quantities are within specified limits and to immediately notify the person in charge whenever these limits are exceeded. EDI and the SAP Business Workflow application component offer the following benefits: Faster processing and processing of sales orders Greater customer satisfaction because orders are processed efficiently Flexible response to changes requested by customers Increased productivity and profitability providing a competitive edge 2-2

3 SAP Automotive for Suppliers 2 Here is a list of important SAP Automotive functions: Specific agreements under the overall contract including conditions and duration Cumulative quantities for receipts, withdrawals, and releases Definition of manufacturers packaging requirements Definition of design changes Display of production, material, and delivery releases Update of release history with analyses in graphic and table form Draft and corrected bills of sale Automatic change of fiscal year Functions Efficient Management of Scheduling Agreements The general contract agreements you have with your customers regarding anticipated total quantities to be supplied within a period are all covered by SAP Automotive. This release supports both automatic and manual planning of delivery and JIT schedules. Future releases will also support deliveries based on specific production requirements. Fig. 2-3: General Supplier Diagram 2-3

4 2 SAP Automotive for Suppliers The R/3 System allows you to reconcile delivery schedules (FDS) or JIT delivery schedules (JIT DS) received through forecast EDI with the planned materials requirements which were entered as part of sales planning. At the same time, sales and production processes are initiated since there is close interaction with Materials Management and Production Planning. To ensure that required materials arrive in a timely manner, the system automatically generates scheduling agreements in sales and sends them directly to your subcontractors either through EDI or by fax. Materials required in production are provided as needed for individual production runs and are based on different manufacturing strategies (lot, batch, or make-to-order). Schedule Lines Fig. 2-4: Comparison Between Two Scheduling Agreements You can manage multiple release generations as well as detailed release histories. The system displays release and delivery quantities, including scheduled dates, as cumulative quantities so that permanent changes to quantities ordered and dates are clearly visible. The change status is entered into the scheduling agreement based on a cumulative quantity or a date. In addition, SAP Automotive supports the automatic change of fiscal year in planning releases, as well as draft and corrected delivery notes. 2-4

5 SAP Automotive for Suppliers 2 Fig. 2-5: Call History EDI Management Functions for outside service providers can be displayed in the R/3 System. They can be integrated into sales operations by exchanging delivery notes, bills of sale, and other material through EDI. The R/3 System automatically plans customer delivery schedules received through EDI. Line items are supplied as they become due. Using the Business Workflow function, the people in charge are notified through so that they can immediately initiate appropriate follow-up measures. Upon receipt of EDI delivery notes by fax or through EDI, the R/3 System generates an EDI withdrawal regarding the scheduling agreement. The cumulative withdrawal quantity is increased automatically. Outside Service Providers Optimized Procurement After the required parts quantities have been determined by the Requirements Planning component, they are automatically passed to Purchasing as purchase requisitions. Alternatively, you can include the required quantities directly as schedule lines into the scheduling agreement for the supplier. In this case, you can use the functions of the procurement scheduling agreement as you would those of a customer scheduling agreement. Procurement 2-5

6 2 SAP Automotive for Suppliers Flexible Manufacturing Options For assemblies or parts that are manufactured in house, the R/3 System provides the following options, which can be used in combination or separately: Production Production by lot size Order lots are scheduled based on the job shop production principle and are manufactured as specified in production orders. Make-to-stock production Production lines are controlled by installment plans and regulated by a simplified feedback and cost accounting method using run schedules. This method is easier to implement than production by lot size, making it better suited for mass production. Make-to-order production The R/3 System also supports make-to-order production requests for a single sales order. This is done through sales order inventories or cost inputs at the sales order level. Pulse-Controlled Procurement and Production Using Electronic Kanban Electronic Kanban Electronic Kanban is fully integrated into the R/3 System. It provides you with flexible tools as standard components that allow you to create customized Kanban solutions in a combined Kanban environment. The module is based on selfregulating, closed-loop systems that control short- and medium-term production. They ensure the replenishment of materials in correct quantities at the right time and place. Fig. 2-6: Kanban Procurement Types 2-6

7 SAP Automotive for Suppliers 2 Processing Kanban functions in the R/3 System is simple and transparent. These functions involve production-related processes that separate production from administration. Production can control the manufacturing process and material procurement independently with a minimum of posting steps. Individual functions (such as initiating replenishments and goods receipt) are kept lean and are supported by barcode. Benefit from Efficient Shipping Procedures Based on scheduling agreements, the R/3 System automatically determines shipping quantities and dates, as well as packaging including packaging suggestions by specific manufacturers. As the schedule lines in a scheduling agreement become due, the system transfers them to a delivery due list. The required picking and packaging activities can then be executed. Shipping Fig. 2-7: Shipping Process The Message Control function effectively handles scheduling agreements. This function includes all required outputs for delivery notes, goods receipt/issue slips, and forwarding orders/bills of lading. Then the system processes standard outputs, upstream EDI servers and R/3 applications perform customer-specific tests. 2-7

8 2 SAP Automotive for Suppliers Invoicing Using the Evaluated Receipt Settlement The R/3 System supports the evaluated receipt settlement (ERS) with a credit note or clearing entry. Fig. 2-8: Evaluated Receipt Settlement ERS Analyses Evaluated Receipt Settlement Immediately after receiving an ERS from the manufacturer, the R/3 System looks for the related deliveries and invoices. It automatically compares the amounts in the ERS with those in the corresponding invoices. It immediately reports discrepancies to the person in charge through the R/3 Workflow component so that the necessary manual corrections can be made. Detailed Analyses of Operational Data Using the R/3 Information System The Information System provides you with meaningful data at various summarization levels. This data allows your company to recognize market changes and to make appropriate strategic and operational decisions. The R/3 System s standard evaluations allow you to analyze important key figures, such as sales and inventories, directly from the operational applications. In addition, you can create flexible analyses for specific issues that concern you. The data gathered is graphically represented for each list generated. As a result, even complex analysis results are easy to understand. You can plan the key figures based on statistical data. 2-8

9 SAP Automotive for Suppliers 2 Fig. 2-9: Information System with Early Warning Functions The Logistics Information System contains an early warning system that allows you to identify the weak points within logistics so that you can recognize potential errors early. The early warning system permits you to search for out-of-range situations. You define these ranges using threshold values. Some examples include: Materials or customers with sales exceeding $10,000 Trends (materials or customers with negative sales or throughput time trends) Plan/actual comparisons (customers placing less than 80% of the anticipated orders) In the standard analyses the out-of-range situations appear in color. Early Warning System 2-9

10 2 SAP Automotive for Suppliers Recognize Production with R/3 Production Controlling Production Management The Production Information System allows you to effectively monitor delivery times and delivery reliability using key figures for order throughput time, schedule variances, or capacity utilization. You can call up standard analyses at various levels. These include work scheduler or MRP controller groups, assembly location/line and product. This enables you to analyze schedule variances at any level of detail and take appropriate measures in your organization. Optimize Your Inventory with R/3 Inventory Management Inventory Management Inventory Management permits a detailed analysis (using several key figures) of the inward and outward movements in your plant and storage locations. Key figures include inventory turnover, dead stock, stock value, and number of inward movements. A diagram of inward and outward movements illustrates the inventory development over time. This allows you to draw important conclusions regarding the effect of inward movements, whether inward and outward movements are synchronized, and whether the tied-up capital is used efficiently. Synchronized Product Development Fig. 2-10: The Synchronized Product Development Process 2-10

11 SAP Automotive for Suppliers 2 Engineering change management can be accomplished through direct CAD and Product Data Management (PDM) integration. PDM systems keep track of the masses of data and information required to design, manufacture or build, and then support and maintain products. Product Data Management is a general extension of techniques commonly known as: Engineering data management Document management Product information management Technical data management Technical information management Image management PDM integrates and manages processes, applications, and information that define products across multiple systems and media. The profitability of products depends on orderly and efficient development, fabrication, and distribution. PDM systems help achieve these goals. The SAP Product Data Management component allows you to create a flexible product development environment and manage product-related data across the entire life cycle of the product. PDM provides you with the ability to control product data from all parts of your company s logistic process. It integrates design and engineering into the entire process, completing the supply chain loop from point of design to point of consumption. Data is exchanged between the PDM system and the ERP system using application link enabling (ALE). PDM is an independent Business Component of the SAP Business Framework architecture, which allows you to quickly deploy business functionality (or components), as it becomes available without disrupting your existing R/3 environment. Product Development Develop Highly Effective Sales Strategies Using R/3 Sales Controlling The Sales Information System helps you to collect, summarize, and report sales data. Along with displays of daily sales activities, you have access to: Periodic reports on orders received and at hand ABC analyses Plan/actual comparisons Ranking lists Sales Management 2-11