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Logistics Planning

Logistics Planning. SAP Best Practices. Purpose, Benefits, and Key Process Steps. Purpose

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Logistics Planning

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  1. Logistics Planning SAP Best Practices

  2. Purpose, Benefits, and Key Process Steps • Purpose • The purpose of logistics planning is to make sure that future demand can be satisfied by your company’s available resources and to point out situations where demand cannot be met in time or in the desired quantities. • Benefits • Seamless Integration in complete planning cycle • CO-PA  SOP  LTP  Demand Planning • Key Process Steps • Sales and Operation Planning • Long Term Planning

  3. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Strategic Planner

  4. Detailed Process Description • Logistics Planning • This process sometimes is called ‘Sales and Operations Planning’. The process usually takes place in a simulative mode and at an aggregated (usually product group rather than end-item) level. Once a feasible production plan is found that satisfies demand it can be used as the basis for operational production planning (MRP and Detailed Capacity Scheduling). • The Best Practice scenarios in this section cover the following planning workflow: • Planning/forecasting of future demand • Aggregated production planning including capacity check in order to check at product group level if demand can be satisfied (using the SOP functionality) • Transfer of results to Long Term Planning (using the LTP module) to enable simulation of material requirements, based on the production plan(s) • Planning takes place in separate (simulative) planning versions within LTP • Review and adjustments of planned requirements as needed • Once the simulated requirements are accepted, the demand (independent requirements) is then transferred to active demand management for detailed MRP and Production Planning / Scheduling in the active version.

  5. No Yes Process Flow Diagram Logistics Planning Event Operational Production Planning & Control (Production scenarios) Periodic Sales and Operations Meeting Revenue Planner Sales Qty Budget and Transfer to SOP (with CO-PA), Revenue Planning (172) Sales Quantity forecast (179) Strategic Planner • SOP Verification • Demand Verification (Check Sales Plan) • Create Rough-Cut Production Plan Transfer Rough Cut Production Plan to Inactive Demand Management Create LTP Planning Scenario Execute LTP MRP Evaluate Capacity Planning Operative Production Data Acceptable Plan Copy to Active Demand Management CO-PA = Profitability Analysis, SOP = Sales and Operations Planning, LTP = Long Term Planning, MRP = Material Requirements Planning

  6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision

  7. Level 1 00001P001 Products A Plant 1000 Level 2 00001P000100000001 Products A.01 (MTO) 00001P000100000002 Products A.02 (MTS) 00001P000100000003 PartsA.03 Plant 1000 Material*: F226 F100-M1 F1000-P1 Material*: F126 F29 Material*: H11 S23 S25 • * Not all materials used are assigned to sample product groups CO-PA SOP Interface Product Hierarchy Level 3 Product GroupLevel 2 Appendix Master Data Used

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