SAP SCM – Features, Functions, Modules List

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In SAP Enterprise Resource Planning, the Supply Chain Management module is vital. It refers to moving products and services from point A to point B in a company. The process starts with the procurement of raw materials and continues until the finished goods are delivered. This section unifies the company’s business procedures with its supply chain operations. Using the SAP SCM module, the organization plans the necessary raw material and capacity requirements to meet the product requirements of its customers.

There is an increasing demand for SAP SCM professionals who are able to implement this module. You can learn about the fundamentals of this module from many training courses offered by reputed organizations like Henry Harvin, SAP Training, and others. SAP SCM training provides a large number of career opportunities to many aspirants looking for an exciting future in this area.

Let’s explore this important SAP SCM module in detail to understand its functions, features, and benefits to an organization. Also, read about one of the top SAP SCM courses offered by Henry Harvin Education.

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SAP Supply Chain Management (SCM) Overview

SAP SCM module is an SAP-integrated supply chain software to increase the agility of businesses so that they can respond quickly to changing market demands. The important processes in a supply chain are:

• Sourcing of materials and their procurement
• Planning of supply chain
• Transporting of required materials
• Storage and distribution
• Services (in case of after-sales service, repair, upgrades, etc.)

Using the above processes, an organization is able to manage demand forecasting, supplier management, production planning, logistics, and distribution. In some cases, it also enables the repair or return of defective products.

SAP SCM module is able to implement all the above-mentioned processes. It enables organizations to plan and execute the movement of raw materials and goods within the supply chain networks. SAP SCM greatly improves the overall efficiency of the supply chain logistics of the organization. It also assists in enforcing contract compliance by automating workflow processes. These workflows can include external suppliers also and hence create an integrated view in a distributed environment.

Features of SAP SCM Module

Among SAP’s most prominent features is its Supply Chain Management module. Through supply chain optimization, it helps firms remain resilient and productive. In addition to making businesses more nimble, the module lets companies dynamically alter their supply chain procedures.

Business Drivers

As described by SAP on their SCM page, the business drivers for the SAP SCM module are:

• Design sustainable and recyclable products by creating an end-to-end system of connected systems, people, and processes
• Manufacture with minimal waste and impact to the environment
• Run fast and efficient logistics and supply chain processes
• Improve asset performance and reliability to operate in an energy-efficient manner

Key Features

The key features of the SAP Supply Chain Management (SAP SCM) module are:

• Integrate supply chain processes to improve business agility, streamline logistics, reduce costs, eliminate wastage, and improve overall efficiency
• Connect suppliers, manufacturers, partners, and customers reliably with real-time information flow
• Accelerate and optimize the procure-to-pay process in an end-to-end manner
• Manage forecasting and demand planning effectively
• Implement supply chain execution decisions in real time to minimize delays thereby reducing losses
• Enforce contract compliance for the supplier-side requirements
• Reduce transportation costs and manage incentives and rebates
• Improve overall efficiency of delivering products to customers by reducing costs and quality issues

Functions of SAP SCM Module

SAP SCM module consists of the following 4 functions. These functions help achieve supply chain process optimization. It is this optimization that results in reducing business costs and improving overall customer satisfaction. These four main functions are:

1. Collaboration

SAP SCM module enables collaboration between suppliers, manufacturers and customers in real-time. This helps to align the supply/demand parameters and also optimize inventory. The collaboration ensures that customers are well-informed of the entire process and hence are able to plan their deliveries. This results in overall customer satisfaction.

2. Planning

Due to the implementation of the SAP SCM module, there will be a vast amount of data available in the system related to supply chain processes. This data is utilized to prepare operational plans within the system. This will help in improving the raw material flow and efficiency of resource procurement as well as its usage. The planning can be done as per business decisions at various levels like strategic, tactical, or operational.

3. Coordination

There are many stakeholders in a supply chain process. It is essential to coordinate the flow of data between the different business units represented by these stakeholders. SAP Event Management (SAP EM) achieves coordination within the SAP SCM module. Events are generated due to the execution of business processes across the organization. These events are available to all business units. The events provide metrics and reporting data across the supply chain network.

4. Execution

Supply chain execution focuses on the day-to-day operations as per the supply chain planning. It deals with activities such as inventory tracking, order capture, order execution, and scheduling delivery. If there are any issues during execution like a change in order demand or an issue in the chain, the plan may be modified in this function.

List of SAP SCM modules

The SAP Supply Chain Management ( SAP SCM module) consists of many sub-modules that provide all the functionality described above. The main modules are:

1. Advanced Planning and Optimization (SAP APO)
2. Forecasting & Replenishment (SAP F&R)
3. Event Management (SAP EM)
4. Supply Network Collaboration (SAP SNC)
5. Extended Warehouse Management (SAP EWM)

Advanced Planning and Optimization (SAP APO)

SAP APO provides supply chain management planning and execution with integrated solutions. This link is central to the supply chain. Demand Planning, Supply Demand Balancing, Transportation management, and detailed scheduling in Production Planning are all part of the planning and optimization functions included in it.

This component consists of the following sub-components:

1. Demand Planning – Generate forecast and market research for products
2. Supply Network Planning – Create plans for procurement, production, distribution and replenishment 
3. Production Planning and Detailed Scheduling – Plan in detail for manufacturing
4. Global Availability – Replenish and deliver on time
5. Transportation planning and Vehicle scheduling – Plan and schedule transportation routes

Forecasting and Replenishment (SAP F&R)

This component enables planning and executing strategies for optimizing inventories with the supply chain. This will result in lower overall inventory levels and therefore associated costs.

This component provides the following capabilities:

1. Demand forecast – Enables causal-based forecast
2. Replenishment calculation – Identify replenishment levels and plan for synchronizing stores and distribution centers
3. Inventory optimization – Manage inventory considering supplier restrictions, safety stock, etc.
4. Order Proposal management – Consolidate orders, review, and release.
5. Business analytics – Generate reports on Forecasting quality, inventory evolution, and out-of-stock reports

Event Management (SAP EM)

SAP Event Management component enables information exchange between supply chain stakeholders in the form of events. The events are generated during planning and execution activities. Different business units can monitor these events and analyze them against their plans. Monitoring of the events and generation of alerts based on event processing allows business units to react quickly in case of issues. Thus Event Management (EM) component provides visibility of the entire supply chain process to its constituents.

SAP EM module enables you to:

• Monitor and evaluate business processes by checking for events that occurred or did not occur. For e.g. Goods issued event, Product manufactured event, or missing event for Products delivered, etc.
• Check for events to notify stakeholders or take corrective actions. For e.g. notify the supplier and business process owner on delay of raw material delivery. Also, trigger a new process for handling the delay.

Supply Network Collaboration (SAP SNC)

This component is used for collaborating with suppliers on a shared platform. It allows the sharing of information related to demand, inventory, capacity, and other parameters. Supply Network Collaboration is based on the principle that real benefits of supply chain management are realized only when there is integration between the participating enterprises. 

Supply Network Collaboration (SNC) includes a large number of workflows that assist in improving collaboration. Some examples of these workflows are:

• Demand forecast for replenishment planning
• Advanced Shipping Notifications (ASN’s)
• Purchase Orders / Replenishment Orders
• Scheduling agreements
• Work Orders to track the progress of production

Extended Warehouse Management (SAP EWM)

The Extended Warehouse Management component provides solutions to move goods between warehouses efficiently. This helps in effective inventory control and management. The system supports automated and scheduled processing for such movement of goods. The primary functions of this component are:

• Orchestrate the movement of goods
• Manage warehouse storage intelligently
• Automate warehouse management processes
• End-to-end process optimization

Difference between SAP SCM and SAP Materials Management (MM)

SAP ERP suite consists of another module called SAP MM (Materials Management) that seems to have similar functions in areas of logistics and managing goods in a supply chain. It is therefore important to understand the difference between SAP MM and SAP SCM modules.

SAP MM Flows

SAP MM is a core function that drives logistics and corresponding supply chain operations. Primarily it deals with processes around the acquisition, movement, and storage of goods. SAP MM consists of 3 basic flows:

1. Material flow

A material flow diagram shows the progression of raw materials, finished products, and their intermediaries from supplier to producer and consumer. Another kind of material flow is the return of products from consumers.

2. Information flow

Information flow relates to the transmitting of orders and updating of the status of deliveries and returns. It enables real-time updating of these statuses. Thus it can provide a real-time view of the information to suppliers and customers.

3. Financial flow

Financial flow enables the management of financial documents related to material movement. It results in the appropriate credit and debit entries of the material value as it moves between different entities and business units.

Key Differences

From the above description, it can be seen that SAP MM is different from SAP SCM. SAP SCM is the “master” or top-level process and SAP MM is a core sub-component. It manages the end-to-end supply chain processes including forecasting, planning, collaboration, and logistics. On the other hand, SAP MM handles the logistics functions in an overall SAP SCM system.

Learn more about the SAP MM module by taking the Henry Harvin SAP MM course.

Benefits of SAP SCM Module

SAP Supply Chain Management (SCM) implementation is beneficial for business organizations to improve their process efficiency and customer satisfaction. Some important benefits of using the SAP SCM module are:

1. Ability to forecast and meet the demands of customers
2. Improved supply chain visibility to suppliers, manufacturers, vendors, and customers
3. Optimized inventory management and logistics
4. Reduced quality issues and less waste
5. Increased compliance across the supplier network

Learning SAP SCM Module

Companies serious about supply chain optimization should install the SAP SCM module. Businesses have the opportunity to cut costs, decrease wastage, and shorten manufacturing cycle times. Companies seek professionals with the necessary expertise to maximize SAP SCM’s capabilities and benefits. 

Consequently, thorough training in the SAP SCM module is essential to become a highly sought-after SAP SCM specialist. Training for the SAP SCM module is available from various educational institutions. According to this blog, the most value-added training currently available is the SAP SCM course offered by Henry Harvin Education.

On the other hand, remember that taking the SAP SCM course is no assurance that you will get hired. You will learn and understand the topics in this field through this course. Gaining hands-on experience through internships and other practical tasks is also required. Your chances of being hired will skyrocket when you get your certification.

Henry Harvin SAP SCM course

You can find Henry Harvin’s instruction among the best SAP SCM training classes. This course will help you learn the fundamentals of SAP SCM, which professionals develop. The most recent industry information and practices keep all course materials current. 

Project Management Institute, UKAF, and the American Association of Foreign Language Teachers are just a few of Henry Harvin’s affiliations with prominent groups.

The trainers at Henry Harvin Education for the SAP SCM course are highly experienced industry experts holding 15+ years of working experience. These domain experts have already delivered more than 350 lectures on the SAP SCM module. They have also conducted 100+ keynote sessions for the SAP SCM course.

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Key Benefits of SAP SCM Course

Following are some of the key benefits of the Henry Harvin SAP SCM module training course:

1. Gain complete knowledge of SAP SCM modules like Business Forecasting, Product Planning, and Demand Planning.
2. Learn how Supply Chain processes can be effectively managed in organization
3. Participate in projects in the SAP SCM module
4. Avail of internship opportunities to gain practical experience
5. Receive Live Online training of 32 Hours worth of interactive sessions
6. Attend unlimited batches with different instructors for the next year
7. Get assistance from industry experts for scheduling and clearing the certificate requirements of SAP Exams
8. Access E-Learning material, boot camps, and hackathons
9. Receive support 24 x 7 and unlimited sessions with ERP Academy trainers
10. Enhance your resume with assistance from experts and improve your chances of getting short-listed

Henry Harvin Value Additions

In addition to all the benefits mentioned above, you will also be entitled to the following value additions:

• Automatic Gold membership for 1 year that will get you all E-Learnings, course material, and case studies access
• Training module with 32 hours of learning, 50 hours of E-Learning material access, and additional sessions of 24 hours to refresh topics
• Hiring opportunities with international brands like Google, Amazon, JP Morgan, and other top brands in the industry
• Henry Harvin’s SAP SCM module course certificate is trusted by industry leaders like IBM, HP, Accenture, and others
• Internship options with Henry Harvin  and partner firms
• Complimentary learning modules for Resume writing and Interview skills

SAP SCM Module Course Fees

The fees for the SAP SCM course for Self-Paced learning are INR 26550 /-

The Live Online Classroom course (preferred) fees are INR 29500 /-. Here you get everything that is provided in the Self-Paced Learning course in addition to benefits like a flexible schedule, 1-year Gold membership, and weekly boot camp sessions. You can opt for the option to pay these fees in installments (EMI). For more information on fees, check the course page here.

Training Locations

Henry Harvin SAP SCM course is available in many cities across India. Below are a few important cities where you can opt for this course:

• Mumbai
• Pune
• Bangalore
• Chennai
• Delhi
• Gurgaon
• Kolkata

The course is also available online in addition to the above locations. Multiple batches are available for this course. Get more details about the locations for this course here

What are the benefits of this course to you?

You will have a rewarding career if you take the SAP SCM course. Check out the following reasons how this will benefit you:

1. Earn the certification from Henry Harvin, a Government of India-recognized and  award-winning institute
2. Get SAP Exam assistance for registration and clearing certificate requirement
3. Become eligible for thousands of best remuneration jobs in the SAP domain
4. Distinguish your profile from your colleagues to get that extra edge and get promoted in your existing job.
5. Get started on other SAP modules and become a top-notch SAP Professional

Additional SAP courses from Henry Harvin

In addition to the SAP SCM course, Henry Harvin also provides the following specialized SAP courses:

1. Financial Analysis and Controlling – SAP FICO course
2. Material Management – SAP MM course
3. Production Planning – SAP PP course
4. Customer Relationship Management – SAP CRM course
5. Business Warehouse – SAP BW course

You will acquire proficiency in the relevant SAP modules by completing these supplementary courses. This will assist you in your endeavor to obtain the SAP Professional certification. Consequently, the course taught by Henry Harvin is among the top SAP SCM Module courses, as will be evident.

 

 summary

In the current competitive business landscape, organizations are perpetually compelled to enhance the efficacy of their supply chain operations to curtail expenses and augment profitability. Furthermore, the significance of customer contentment regarding delivery and replenishment has escalated substantially. This is because of the immense reach of social media, where even a solitary negative post can be magnified and depreciate the company’s brand value. 

 

The SAP SCM module facilitates the organizational conversion of its supply chain operations into a streamlined and automated system. It has evolved into a critical resource for any organization. This is evidenced by the substantial demand for highly compensated SAP SCM specialists. 

 

Obtain this module’s training by enrolling in the SAP SCM course, which will set you on an exhilarating path to SAP professional certification.

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