Dear readers, have you ever heard about collaborative planning in Supply Chain? Probably a while ago. Isn’t it?
This is the life of Supply Chain concepts being handled by software editors and major actors like magazines and institutes. Once the fashion effect is gone, no noise anymore like if this is an unconsciously dead concern. Forgive them, they need to permanently renew, to capture our attentions.
I could mentioned plenty of those that make the news, even breaking, for couple months and suddenly disappear from radar receiver.
Collaborative is one of those. I remember in 2000 when everyone was talking of market place, collaborative, VMI, CMI, portal, etc… Does this mean today this concern is outdated? Does this mean enterprises all adopted collaborative process and perform as best in class? Unfortunately not! Way not! A lot is still to be done.
Likewise other topics from that group, let’s discuss this in about 4000 characters thru this article.
In normal Supply chain planning, the company performs processes that help to anticipate replenishment and production to the best of economical parameters as well as social ones (sometimes). They do carry forecast and demand planning to better see what is coming. Unfortunately like Churchill used to say, there are the little lies, the big lies and there are the statistics. In other words no chance to handle future with certainty. All is likelihood. Does this suits companies? Of course not!
Anyway, to cope with this, the Supply chain gurus invented a few good processes like safety stock, optimization, lean manufacturing, just in time and many more. Idea is to optimize internal assets whereas increasing customer satisfaction.
Then came the 80s when IT could propose more and more capabilities in transferring data pear to pear. Then, email then WEB made it obvious to Supply Chain gurus that sharing information between receivers and producers in the Supply Chain network would bring a new layer of visibility. No room for doubt, crystal ball would not be anymore the only anticipation media.
In fact collaborative allows exchanging data and provide visibility between both ends, the demand and the producing. Why forecasting demand when your customer can provide you with its internal requirement, months in advance. As a counterpart the producer brings a better service level to the collaborative customer. Good deal, isn’t it?
This is all about collaborative planning. Of course there are many scenario, many solutions, and many constraints.
So what about SAP? Many ways of doing. Hum seems to be a “déjà vu”. SAP follows the requirements using available technology, then finally design a consistent solution. For collaborative history has gone over 6 solutions covering the topic.
Initial solution. SAP-ECC-PP flexible planning. Outdated now
APO solution with VMI. Partial solution for only customer scenario. Very flexible however not a complete solution. Based on file exchange (IDOC XML). CMI needs to be designed specifically, IDOC exist. Recommended for intra-group relations like headquarter and branches or dedicated distributors
Still APO solution for a light collaboration model based on internet screen sharing. Weak, complex and not robust. Possibly for a very small secured community. Better providing a Terminal server access and limited planning book instead.
Still in APO, forecast collab. Probably a customer project that become a solution. Nice process around the sharing of forecast, with integrated control of data before inclusion in company cubes.
SNC solution. Formerly known as ICH. Covers in full the VMI, CMI and also the internet collab. Originally designed for Colgate Company, it is nowadays the solution to first consider. Unfortunately, this is a different application, no reuse of APO skills. A lot of implementation with supplier scenario whereas customer scenario fights with specialised legacy application. Few consultant only.
Want to start? Want to comment?