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SAP SCM module is one of the key modules of SAP ERP (Enterprise Resource Planning) software. SCM stands for Supply Chain Management (SCM). SCM is the management of the flow of goods or services required for the delivery of a product to its end customer. The flow begins from the sourcing of raw materials till the final product is delivered. This module integrates the supply chain operations with the organization’s business processes. The organization plans the requirement of raw materials and capacity that is needed to deliver the customer’s product requirements by using the SAP SCM module.
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.
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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 course offered by Henry Harvin Education.
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
SAP Supply Chain Management (SCM) module is one of the top applications from SAP. It enables organizations to stay resilient and productive by optimizing their supply chains. The module also ensures that the organizations are agile by enabling them to change their supply chain processes dynamically.
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 environment
- Run fast and efficient logistics and supply chain processes
- Improve asset performance and reliability to operate in a energy-efficient manner
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:
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.
Due to the implementation of 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.
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.
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:
- Advanced Planning and Optimization (SAP APO)
- Forecasting & Replenishment (SAP F&R)
- Event Management (SAP EM)
- Supply Network Collaboration (SAP SNC)
- Extended Warehouse Management (SAP EWM)
Advanced Planning and Optimization (SAP APO)
SAP APO offers fully integrated solutions for the planning and execution of supply chain management. It lies at the core of the supply chain link. It includes planning and optimization functions for different business processes such as Demand Planning, Supply Demand Balancing, detailed scheduling in Production Planning, and Transportation management.
This component consists of the following sub-components:
- Demand Planning – Generate forecast and market research for products
- Supply Network Planning – Create plans for procurement, production, distribution and replenishment
- Production Planning and Detailed Scheduling – Plan in detail for manufacturing
- Global Availability – Replenish and deliver on time
- 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:
- Demand forecast – Enables causal-based forecast
- Replenishment calculation – Identify replenishment levels and plan for synchronizing stores and distribution centers
- Inventory optimization – Manage inventory considering supplier restrictions, safety stock etc.
- Order Proposal management – Consolidate orders, review and release.
- 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 Product 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 sharing of information related to the 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 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 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
Material flow relates to the movement of materials or goods from the supplier to the manufacturer and finally to the customer. Return of goods from customers is also considered as material flow.
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.
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 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 SAP SCM module are:
- Ability to forecast and meet demands of customers
- Improved supply chain visibility to suppliers, manufacturers, vendors, and customers
- Optimized inventory management and logistics
- Reduced quality issues and less wastage
- Increased compliance across the supplier network
Learning SAP SCM Module
SAP SCM module is an important application for businesses that want to optimize their supply chain processes. Businesses can reduce costs, minimize wastage and production cycle times. In order to fully utilize the features and benefits of SAP SCM, organizations prefer to hire candidates who have the right knowledge and skillsets.
Hence if you intend to become a sought-after SAP SCM professional, it is important to get effectively trained in SAP SCM module. There are many training institutes that offer SAP SCM module training. The blog here lists Henry Harvin Education’s SAP SCM course as the best value-added course available.
However, please keep in mind that enrolling in SAP SCM training course alone will not guarantee you a job. The course helps you to understand the concepts and builds expertise in this area. You will also need to participate in internships and have practical experience in projects. Certification will greatly increase your chances of recruitment.
Henry Harvin SAP SCM course
Henry Harvin’s SAP SCM course is one of the top courses for training in SAP SCM module. This training is designed by industry experts to help candidates master the important concepts and tools in SAP SCM. The course material is prepared using the latest knowledge and practices used in the industry. Henry Harvin is affiliated with top organizations like the American Association of EFL, UKAF, Project Management Institute (PMI) among others.
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 SAP SCM course.
Key Benefits of SAP SCM course
Following are some of the key benefits of the Henry Harvin SAP SCM module training course:
- Gain complete knowledge of SAP SCM modules like Business Forecasting, Product Planning and Demand Planning.
- Learn how Supply Chain processes can be effectively managed in organization
- Participate in projects in SAP SCM module
- Avail of internship opportunities to gain practical experience
- Receive Live Online training of 32 Hours worth of interactive sessions
- Attend unlimited batches with different instructors for next one year
- Get assistance from industry experts for scheduling and clearing the certificate requirements of SAP Exams
- Access E-Learning material, bootcamps and hackathons
- Receive support 24 x 7 and unlimited sessions with ERP Academy trainers
- Enhance your resume with assistance from experts and improve 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 industry
- Henry Harvin’s SAP SCM module course certificate 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 as installments (EMI). For more information on fees, check the course page here.
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:
The course is also available online in addition to 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:
- Earn the certification from Henry Harvin, a Government of India recognized and award-winning institute
- Get SAP Exam assistance for registration and clearing certificate requirement
- Become eligible for thousands of best remuneration jobs in the SAP domain
- Distinguish your profile from your colleagues to get that extra edge and get promoted in your existing job.
- 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:
- Financial Analysis and Controlling – SAP FICO course
- Material Management – SAP MM course
- Production Planning – SAP PP course
- Customer Relationship Management – SAP CRM course
- Business Warehouse – SAP BW course
These additional courses will help you to gain competency in the related SAP modules. This can help you in your quest to become SAP Professional. Hence, you will see why Henry Harvin’s course is one of the best SAP SCM Module course.
In today’s competitive business environment, businesses always need to improve their supply chain process efficiency to reduce costs and increase profitability. In addition to this, customer satisfaction with delivery and replenishment has become very important. This is due to the tremendous reach of social media where a single dissatisfied post can be amplified and cause loss to the business brand value.
SAP SCM module helps to transform the supply chain processes of the business into an automated and effective system. It has become an important asset in any organization. This is reflected in the large demand for SAP SCM professionals with lucrative remunerations.
Get trained in this module by taking the SAP SCM course and embark on an exciting journey towards becoming a certified SAP professional!
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Frequently Asked Questions (FAQ)
Q1. What is SAP SCM?
Ans.SAP SCM (Supply Chain Management) module is one of the key modules of SAP ERP (Enterprise Resource Planning) software. By using the SAP SCM module, the organization can plan the requirement of raw materials and capacity that is needed to deliver the customer’s product requirements in an efficient way.
Q2. What are the key features of SAP SCM module?
Ans.The key features of the SAP SCM module are:
1. Integrate supply chain processes to improve business agility, streamline logistics, reduce costs, eliminate wastage and improve overall efficiency
2. Connect suppliers, manufacturers, partners, and customers reliably with real-time information flow
Q3. How do organizations benefit from using SAP SCM?
Ans.SAP SCM module implementation benefits an organization to optimize its supply chain processes and increase agility. The important benefits are:
1. Ability to forecast and meet the demands of customers
2. Improved supply chain visibility to suppliers, manufacturers, vendors, and customers
3. Reduced quality issues and less wastage
4. Increased compliance across the supplier network
Q4. How can I learn SAP SCM module?
Ans.There are many training institutes that offer SAP SCM module training. However, it was found that Henry Harvin Education offers the best value-added SAP SCM course. Henry Harvin’s SAP SCM course is one of the top courses for training in SAP SCM module.
Q5. What are the career prospects after learning SAP SCM?
Ans.SAP SCM module is an important application for businesses that want to optimize their supply chain processes and improve overall efficiency. Hence there is high demand for SAP SCM professionals. This is also reflected in the high remunerations offered by organizations for these professionals. You can benefit from these opportunities in terms of a new job or promotion in your existing job.
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