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8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 110
SAP Solution Brief
SAP Supply Chain Management
SAP Enterprise Inventory and Service-Level Optimization
Meet Inventory and Service-Level
Goals with Prescribed Activities
from SAPreg Software
BenetsSolutionObjectives Quick Facts
copy 2
0 1 3 S A P A G o r a n S A P a f l i a t e c o
m p a n y A
l l r i g h t s r e s e r v e d
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 210
2 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Objectives
Manage complex supply chains andmeet service commitmentsBy tightening control of corporate inventories you can reduce costs and
improve supply chain performance but you must maintain sucient inventory
to satisfy customer service requirements To strike the right balance you
need enterprise tools that deliver the insight that can help you make smart
decisions and increase supply chain proftability
The SAPreg Enterprise Inventory and Service-
Level Optimization application prescribes activ-
ity that helps you balance protable service
with best inventory levels by providing insight
into the inventory drivers in your multistage
supply chain You can more eectively plan
and manage inventory levels at every stocking
location throughout your global supply chain
The software helps you analyze crucial inputs
and signals model the impact of decisions onglobal inventories and balance inventory levels
By better understanding demand patterns
and supply uncertainties you can determine
the appropriate service levels by item customer
and location
You can use the application with data from
your existing SAP software or you can use it
on a stand-alone basis Whether you optimize
inventory planning for nished products inter-
mediates raw materials or your full supply
chain the application helps you dynamicallylink inventory investment with your customer
service goals
Manage complex supply chains and meet
service commitments
Benets Quick FactsSolution
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 310
3 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Optimize service-level targets basedon proftabilityBeyond ABC segmentation SAP Enterprise
Inventory and Service-Level Optimization can
establish service-level targets that reect the
protability of an item location or customer
You can prioritize inventory investments for the
most protable stock-keeping units (SKUs) and
customers In this way the application helps
you meet global service-level targets whilesimultaneously minimizing inventory cost and
maximizing revenue
This software also oers powerful intuitive ana-
lytics features that help you pinpoint the multi-
ple drivers that aect both inventory costs and
service levels By modeling all relevant drivers
of inventory requirements and lost revenues
ndash such as sales volume demand volatility lead
times and capacity constraints ndash the software
helps you set optimal inventory levels by itemand location The information produced by this
application can help you increase customer
service levels reduce inventory and increase
forecast accuracy so you can maintain precise
inventory levels
Strike the right balance between
customer satisfaction and protabilitySAP software can help
Optimize service-level targets based on
proftability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Solution BenetsObjectives Quick Facts
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 410
4 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Gain insight into customer demandA sales forecast is not a guess By the time
the sales forecast is received by the supply
chain group it is a rm formal requirement
think of your forecast as supply chain march-
ing orders to make a specic product available
for sale in a set quantity place and time period
Knowing the characteristics of that salesforecast compared with actual supply chain
conditions can greatly improve your ability
to meet customer demand For that purpose
SAP Enterprise Inventory and Service-Level
Optimization provides sophisticated demand
intelligence tools By calculating forecast char-
acteristics at a granular level ndash such as item
location and customer ndash the application sup-
ports more accurate rightsizing than traditional
approaches This feature helps you meet
demand while eliminating excess inventory
The SAP software can detect and compensate
for biased forecasting where orders are above
or below logical estimates It also works with
sporadic intermittent and seasonal demand
The application supports multiple-lag forecasts
With sophisticated supply chains the software
can automatically detect which forecast lag to
use based on lead times within the supply chain
It can accommodate periods of missing data
and uses statistical methods to exclude outliers
such as one-o and erroneous events from
error analysis
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Continued on next page
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 510
5 9copy 2013 SAP AG or an SAP aliate company All rights reserved
The applicationrsquos sophisticated functionality
helps you characterize forecast errors and cal-
culate safety stock requirements The software
also considers regular operational variances
when setting safety stock levels
Dashboards provide information on forecast
bias error and intermittency so you can detect
and correct root causes Analysts can use dash-
boards to view demand analytics through histo-
grams averages and drill-downs at the specic
SKU level enabling advanced forecast and
sales analysis
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities Increase service without compromising
protability SAP software helps you
optimize service levels and minimize
inventory costs
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 610
6 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Calculate actual lead times and
lead-time variabilityThe SAP software provides intelligence that
helps you calculate supply variability more
accurately and reduce safety stock without
compromising fulllment
To help determine the appropriate safety
stock for your extended supply chain use the
software to calculate mean lead time lead timevariability mean production schedule attain-
ment and variability based on purchase and
production orders Item- and location-level
granularity helps you make better tactical deci-
sions when setting inventory targets The soft-
ware can also take inputs from areas ndash including
yield schedule attainment losses and late
deliveries ndash so you can better calculate buer
stocks and improve service levels
Analytic dashboards help users see where prob-
lems are occurring in the supply chain Dash-
boards clearly compare lead time errors and
deltas to planned lead times They can also iden-tify the cost of schedule attainment problems
and estimate potential savings from specic
process improvements
The software also compares historical produc-
tion orders with actual production data helping
you meet schedules and adhere to plans
Less is more Trim your inventory levels and reduce
working capital requirements with supplier
intelligence from SAP software
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710
7 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Determine optimal safety stock
quantitiesSAP software helps you ensure that the right
products are at the right place at the right time
By using the software to optimize safety stock
quantities you can drive supply planning maxi-
mize customer service levels and minimize
working capital investments
SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply
chain view enabling you to plan for the entire
supply chain at once The software captures
interactions in multi-echelon supply chains
with high volumes and complexities synchro-
nizing inventory deployment throughout your
extended supply chain By leveraging predic-
tive analytics and advanced rened stochastic
algorithms the software can help you enhance
supply chain visibility
The application accurately accounts for multi-
stage dependencies capacity constraints and
supply and demand variability It optimizes theinventory mix between nished goods raw mate-
rials and location You can also analyze a large
number of inuencing factors including batch
sizes minimum production runs lead time
changes and product cost changes
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you
need to satisfy customers
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810
8 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Balance service with inventory levels
and costsSAP Enterprise Inventory and Service-Level
Optimization helps supply chain organizations
enhance operational targets increase produc-
tivity free up working capital and increase
customer satisfaction and loyalty By provid-
ing detailed insight and the power to perform
what-if analysis the software helps you real-
ize key business benets including bull Increased sales ndash by ne-tuning inventory
and service levels so that goods are available
when and where customers demand them
bull Reduced inventory levels and increased
working capital ndash by gaining insights into
the network and supply chain
bull Decreased production and distribution
costs ndash by reducing safety stock and
improving demand planning
bull Reduced out-of-stock situations and
lower inventory costs ndash through enhanced
supplier intelligence
bull Enhanced customer satisfaction ndash by
consistently meeting your promisedservice-level agreements
bull Improved supply chain proftability ndash by
increasing revenue and reducing inventory
costs
bull Improved planner and organizational
productivity ndash by recommending specic
actions to help achieve goals
Balance service with inventory levels and
costs
BeneftsSolutionObjectives Quick Facts
Lower inventory with improved customer
satisfaction You can realize both goals with
software from SAP
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910
9 9
Summary
To manage your multistage supply chainwhile meeting customer service commitments
you need software that delivers supply and
demand insight The SAPreg Enterprise Inventory
and Service-Level Optimization application
gives you insight recommending the specic
actions needed to balance service with inven-
tory levels and costs Plan and manage inventory
with detailed information that helps you under-
stand demand patterns and supply constraints
Objectives
bull Improve supply chain performance
by tightening inventories
bull Enhance customer service without driving
up costs
bull Optimize inventory planning at every stocking
location and item level
bull Balance inventory investment customer
service and protability
Solution
bull Powerful analytics to model inventory driversand set optimal service-level targets
bull Demand intelligence tools to gain insight into
customer requirements
bull Supplier intelligence features to understand
supply variability
bull Holistic supply chain view that simplies
inventory planning
Benefts
bull Reduced inventory and increased workingcapital through supply chain insights
bull Enhanced customer satisfaction by meeting
service-level agreements
bull Improved supply chain protability through
increased revenue and reduced inventory
costs
Learn more
Call SAP today or visit us at
www54sapcomsolutionlobscmsoftware inventory-managementindexhtml
wwwsapcomQuick FactsBenetsSolutionObjectives
CMP27098 (1309)
copy 2013 SAP AG or an SAP aliate company All rights reserved
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 210
2 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Objectives
Manage complex supply chains andmeet service commitmentsBy tightening control of corporate inventories you can reduce costs and
improve supply chain performance but you must maintain sucient inventory
to satisfy customer service requirements To strike the right balance you
need enterprise tools that deliver the insight that can help you make smart
decisions and increase supply chain proftability
The SAPreg Enterprise Inventory and Service-
Level Optimization application prescribes activ-
ity that helps you balance protable service
with best inventory levels by providing insight
into the inventory drivers in your multistage
supply chain You can more eectively plan
and manage inventory levels at every stocking
location throughout your global supply chain
The software helps you analyze crucial inputs
and signals model the impact of decisions onglobal inventories and balance inventory levels
By better understanding demand patterns
and supply uncertainties you can determine
the appropriate service levels by item customer
and location
You can use the application with data from
your existing SAP software or you can use it
on a stand-alone basis Whether you optimize
inventory planning for nished products inter-
mediates raw materials or your full supply
chain the application helps you dynamicallylink inventory investment with your customer
service goals
Manage complex supply chains and meet
service commitments
Benets Quick FactsSolution
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 310
3 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Optimize service-level targets basedon proftabilityBeyond ABC segmentation SAP Enterprise
Inventory and Service-Level Optimization can
establish service-level targets that reect the
protability of an item location or customer
You can prioritize inventory investments for the
most protable stock-keeping units (SKUs) and
customers In this way the application helps
you meet global service-level targets whilesimultaneously minimizing inventory cost and
maximizing revenue
This software also oers powerful intuitive ana-
lytics features that help you pinpoint the multi-
ple drivers that aect both inventory costs and
service levels By modeling all relevant drivers
of inventory requirements and lost revenues
ndash such as sales volume demand volatility lead
times and capacity constraints ndash the software
helps you set optimal inventory levels by itemand location The information produced by this
application can help you increase customer
service levels reduce inventory and increase
forecast accuracy so you can maintain precise
inventory levels
Strike the right balance between
customer satisfaction and protabilitySAP software can help
Optimize service-level targets based on
proftability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Solution BenetsObjectives Quick Facts
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 410
4 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Gain insight into customer demandA sales forecast is not a guess By the time
the sales forecast is received by the supply
chain group it is a rm formal requirement
think of your forecast as supply chain march-
ing orders to make a specic product available
for sale in a set quantity place and time period
Knowing the characteristics of that salesforecast compared with actual supply chain
conditions can greatly improve your ability
to meet customer demand For that purpose
SAP Enterprise Inventory and Service-Level
Optimization provides sophisticated demand
intelligence tools By calculating forecast char-
acteristics at a granular level ndash such as item
location and customer ndash the application sup-
ports more accurate rightsizing than traditional
approaches This feature helps you meet
demand while eliminating excess inventory
The SAP software can detect and compensate
for biased forecasting where orders are above
or below logical estimates It also works with
sporadic intermittent and seasonal demand
The application supports multiple-lag forecasts
With sophisticated supply chains the software
can automatically detect which forecast lag to
use based on lead times within the supply chain
It can accommodate periods of missing data
and uses statistical methods to exclude outliers
such as one-o and erroneous events from
error analysis
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Continued on next page
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 510
5 9copy 2013 SAP AG or an SAP aliate company All rights reserved
The applicationrsquos sophisticated functionality
helps you characterize forecast errors and cal-
culate safety stock requirements The software
also considers regular operational variances
when setting safety stock levels
Dashboards provide information on forecast
bias error and intermittency so you can detect
and correct root causes Analysts can use dash-
boards to view demand analytics through histo-
grams averages and drill-downs at the specic
SKU level enabling advanced forecast and
sales analysis
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities Increase service without compromising
protability SAP software helps you
optimize service levels and minimize
inventory costs
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 610
6 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Calculate actual lead times and
lead-time variabilityThe SAP software provides intelligence that
helps you calculate supply variability more
accurately and reduce safety stock without
compromising fulllment
To help determine the appropriate safety
stock for your extended supply chain use the
software to calculate mean lead time lead timevariability mean production schedule attain-
ment and variability based on purchase and
production orders Item- and location-level
granularity helps you make better tactical deci-
sions when setting inventory targets The soft-
ware can also take inputs from areas ndash including
yield schedule attainment losses and late
deliveries ndash so you can better calculate buer
stocks and improve service levels
Analytic dashboards help users see where prob-
lems are occurring in the supply chain Dash-
boards clearly compare lead time errors and
deltas to planned lead times They can also iden-tify the cost of schedule attainment problems
and estimate potential savings from specic
process improvements
The software also compares historical produc-
tion orders with actual production data helping
you meet schedules and adhere to plans
Less is more Trim your inventory levels and reduce
working capital requirements with supplier
intelligence from SAP software
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710
7 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Determine optimal safety stock
quantitiesSAP software helps you ensure that the right
products are at the right place at the right time
By using the software to optimize safety stock
quantities you can drive supply planning maxi-
mize customer service levels and minimize
working capital investments
SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply
chain view enabling you to plan for the entire
supply chain at once The software captures
interactions in multi-echelon supply chains
with high volumes and complexities synchro-
nizing inventory deployment throughout your
extended supply chain By leveraging predic-
tive analytics and advanced rened stochastic
algorithms the software can help you enhance
supply chain visibility
The application accurately accounts for multi-
stage dependencies capacity constraints and
supply and demand variability It optimizes theinventory mix between nished goods raw mate-
rials and location You can also analyze a large
number of inuencing factors including batch
sizes minimum production runs lead time
changes and product cost changes
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you
need to satisfy customers
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810
8 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Balance service with inventory levels
and costsSAP Enterprise Inventory and Service-Level
Optimization helps supply chain organizations
enhance operational targets increase produc-
tivity free up working capital and increase
customer satisfaction and loyalty By provid-
ing detailed insight and the power to perform
what-if analysis the software helps you real-
ize key business benets including bull Increased sales ndash by ne-tuning inventory
and service levels so that goods are available
when and where customers demand them
bull Reduced inventory levels and increased
working capital ndash by gaining insights into
the network and supply chain
bull Decreased production and distribution
costs ndash by reducing safety stock and
improving demand planning
bull Reduced out-of-stock situations and
lower inventory costs ndash through enhanced
supplier intelligence
bull Enhanced customer satisfaction ndash by
consistently meeting your promisedservice-level agreements
bull Improved supply chain proftability ndash by
increasing revenue and reducing inventory
costs
bull Improved planner and organizational
productivity ndash by recommending specic
actions to help achieve goals
Balance service with inventory levels and
costs
BeneftsSolutionObjectives Quick Facts
Lower inventory with improved customer
satisfaction You can realize both goals with
software from SAP
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910
9 9
Summary
To manage your multistage supply chainwhile meeting customer service commitments
you need software that delivers supply and
demand insight The SAPreg Enterprise Inventory
and Service-Level Optimization application
gives you insight recommending the specic
actions needed to balance service with inven-
tory levels and costs Plan and manage inventory
with detailed information that helps you under-
stand demand patterns and supply constraints
Objectives
bull Improve supply chain performance
by tightening inventories
bull Enhance customer service without driving
up costs
bull Optimize inventory planning at every stocking
location and item level
bull Balance inventory investment customer
service and protability
Solution
bull Powerful analytics to model inventory driversand set optimal service-level targets
bull Demand intelligence tools to gain insight into
customer requirements
bull Supplier intelligence features to understand
supply variability
bull Holistic supply chain view that simplies
inventory planning
Benefts
bull Reduced inventory and increased workingcapital through supply chain insights
bull Enhanced customer satisfaction by meeting
service-level agreements
bull Improved supply chain protability through
increased revenue and reduced inventory
costs
Learn more
Call SAP today or visit us at
www54sapcomsolutionlobscmsoftware inventory-managementindexhtml
wwwsapcomQuick FactsBenetsSolutionObjectives
CMP27098 (1309)
copy 2013 SAP AG or an SAP aliate company All rights reserved
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 310
3 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Optimize service-level targets basedon proftabilityBeyond ABC segmentation SAP Enterprise
Inventory and Service-Level Optimization can
establish service-level targets that reect the
protability of an item location or customer
You can prioritize inventory investments for the
most protable stock-keeping units (SKUs) and
customers In this way the application helps
you meet global service-level targets whilesimultaneously minimizing inventory cost and
maximizing revenue
This software also oers powerful intuitive ana-
lytics features that help you pinpoint the multi-
ple drivers that aect both inventory costs and
service levels By modeling all relevant drivers
of inventory requirements and lost revenues
ndash such as sales volume demand volatility lead
times and capacity constraints ndash the software
helps you set optimal inventory levels by itemand location The information produced by this
application can help you increase customer
service levels reduce inventory and increase
forecast accuracy so you can maintain precise
inventory levels
Strike the right balance between
customer satisfaction and protabilitySAP software can help
Optimize service-level targets based on
proftability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Solution BenetsObjectives Quick Facts
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 410
4 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Gain insight into customer demandA sales forecast is not a guess By the time
the sales forecast is received by the supply
chain group it is a rm formal requirement
think of your forecast as supply chain march-
ing orders to make a specic product available
for sale in a set quantity place and time period
Knowing the characteristics of that salesforecast compared with actual supply chain
conditions can greatly improve your ability
to meet customer demand For that purpose
SAP Enterprise Inventory and Service-Level
Optimization provides sophisticated demand
intelligence tools By calculating forecast char-
acteristics at a granular level ndash such as item
location and customer ndash the application sup-
ports more accurate rightsizing than traditional
approaches This feature helps you meet
demand while eliminating excess inventory
The SAP software can detect and compensate
for biased forecasting where orders are above
or below logical estimates It also works with
sporadic intermittent and seasonal demand
The application supports multiple-lag forecasts
With sophisticated supply chains the software
can automatically detect which forecast lag to
use based on lead times within the supply chain
It can accommodate periods of missing data
and uses statistical methods to exclude outliers
such as one-o and erroneous events from
error analysis
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Continued on next page
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 510
5 9copy 2013 SAP AG or an SAP aliate company All rights reserved
The applicationrsquos sophisticated functionality
helps you characterize forecast errors and cal-
culate safety stock requirements The software
also considers regular operational variances
when setting safety stock levels
Dashboards provide information on forecast
bias error and intermittency so you can detect
and correct root causes Analysts can use dash-
boards to view demand analytics through histo-
grams averages and drill-downs at the specic
SKU level enabling advanced forecast and
sales analysis
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities Increase service without compromising
protability SAP software helps you
optimize service levels and minimize
inventory costs
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 610
6 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Calculate actual lead times and
lead-time variabilityThe SAP software provides intelligence that
helps you calculate supply variability more
accurately and reduce safety stock without
compromising fulllment
To help determine the appropriate safety
stock for your extended supply chain use the
software to calculate mean lead time lead timevariability mean production schedule attain-
ment and variability based on purchase and
production orders Item- and location-level
granularity helps you make better tactical deci-
sions when setting inventory targets The soft-
ware can also take inputs from areas ndash including
yield schedule attainment losses and late
deliveries ndash so you can better calculate buer
stocks and improve service levels
Analytic dashboards help users see where prob-
lems are occurring in the supply chain Dash-
boards clearly compare lead time errors and
deltas to planned lead times They can also iden-tify the cost of schedule attainment problems
and estimate potential savings from specic
process improvements
The software also compares historical produc-
tion orders with actual production data helping
you meet schedules and adhere to plans
Less is more Trim your inventory levels and reduce
working capital requirements with supplier
intelligence from SAP software
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710
7 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Determine optimal safety stock
quantitiesSAP software helps you ensure that the right
products are at the right place at the right time
By using the software to optimize safety stock
quantities you can drive supply planning maxi-
mize customer service levels and minimize
working capital investments
SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply
chain view enabling you to plan for the entire
supply chain at once The software captures
interactions in multi-echelon supply chains
with high volumes and complexities synchro-
nizing inventory deployment throughout your
extended supply chain By leveraging predic-
tive analytics and advanced rened stochastic
algorithms the software can help you enhance
supply chain visibility
The application accurately accounts for multi-
stage dependencies capacity constraints and
supply and demand variability It optimizes theinventory mix between nished goods raw mate-
rials and location You can also analyze a large
number of inuencing factors including batch
sizes minimum production runs lead time
changes and product cost changes
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you
need to satisfy customers
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810
8 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Balance service with inventory levels
and costsSAP Enterprise Inventory and Service-Level
Optimization helps supply chain organizations
enhance operational targets increase produc-
tivity free up working capital and increase
customer satisfaction and loyalty By provid-
ing detailed insight and the power to perform
what-if analysis the software helps you real-
ize key business benets including bull Increased sales ndash by ne-tuning inventory
and service levels so that goods are available
when and where customers demand them
bull Reduced inventory levels and increased
working capital ndash by gaining insights into
the network and supply chain
bull Decreased production and distribution
costs ndash by reducing safety stock and
improving demand planning
bull Reduced out-of-stock situations and
lower inventory costs ndash through enhanced
supplier intelligence
bull Enhanced customer satisfaction ndash by
consistently meeting your promisedservice-level agreements
bull Improved supply chain proftability ndash by
increasing revenue and reducing inventory
costs
bull Improved planner and organizational
productivity ndash by recommending specic
actions to help achieve goals
Balance service with inventory levels and
costs
BeneftsSolutionObjectives Quick Facts
Lower inventory with improved customer
satisfaction You can realize both goals with
software from SAP
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910
9 9
Summary
To manage your multistage supply chainwhile meeting customer service commitments
you need software that delivers supply and
demand insight The SAPreg Enterprise Inventory
and Service-Level Optimization application
gives you insight recommending the specic
actions needed to balance service with inven-
tory levels and costs Plan and manage inventory
with detailed information that helps you under-
stand demand patterns and supply constraints
Objectives
bull Improve supply chain performance
by tightening inventories
bull Enhance customer service without driving
up costs
bull Optimize inventory planning at every stocking
location and item level
bull Balance inventory investment customer
service and protability
Solution
bull Powerful analytics to model inventory driversand set optimal service-level targets
bull Demand intelligence tools to gain insight into
customer requirements
bull Supplier intelligence features to understand
supply variability
bull Holistic supply chain view that simplies
inventory planning
Benefts
bull Reduced inventory and increased workingcapital through supply chain insights
bull Enhanced customer satisfaction by meeting
service-level agreements
bull Improved supply chain protability through
increased revenue and reduced inventory
costs
Learn more
Call SAP today or visit us at
www54sapcomsolutionlobscmsoftware inventory-managementindexhtml
wwwsapcomQuick FactsBenetsSolutionObjectives
CMP27098 (1309)
copy 2013 SAP AG or an SAP aliate company All rights reserved
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 410
4 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Gain insight into customer demandA sales forecast is not a guess By the time
the sales forecast is received by the supply
chain group it is a rm formal requirement
think of your forecast as supply chain march-
ing orders to make a specic product available
for sale in a set quantity place and time period
Knowing the characteristics of that salesforecast compared with actual supply chain
conditions can greatly improve your ability
to meet customer demand For that purpose
SAP Enterprise Inventory and Service-Level
Optimization provides sophisticated demand
intelligence tools By calculating forecast char-
acteristics at a granular level ndash such as item
location and customer ndash the application sup-
ports more accurate rightsizing than traditional
approaches This feature helps you meet
demand while eliminating excess inventory
The SAP software can detect and compensate
for biased forecasting where orders are above
or below logical estimates It also works with
sporadic intermittent and seasonal demand
The application supports multiple-lag forecasts
With sophisticated supply chains the software
can automatically detect which forecast lag to
use based on lead times within the supply chain
It can accommodate periods of missing data
and uses statistical methods to exclude outliers
such as one-o and erroneous events from
error analysis
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Continued on next page
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 510
5 9copy 2013 SAP AG or an SAP aliate company All rights reserved
The applicationrsquos sophisticated functionality
helps you characterize forecast errors and cal-
culate safety stock requirements The software
also considers regular operational variances
when setting safety stock levels
Dashboards provide information on forecast
bias error and intermittency so you can detect
and correct root causes Analysts can use dash-
boards to view demand analytics through histo-
grams averages and drill-downs at the specic
SKU level enabling advanced forecast and
sales analysis
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities Increase service without compromising
protability SAP software helps you
optimize service levels and minimize
inventory costs
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 610
6 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Calculate actual lead times and
lead-time variabilityThe SAP software provides intelligence that
helps you calculate supply variability more
accurately and reduce safety stock without
compromising fulllment
To help determine the appropriate safety
stock for your extended supply chain use the
software to calculate mean lead time lead timevariability mean production schedule attain-
ment and variability based on purchase and
production orders Item- and location-level
granularity helps you make better tactical deci-
sions when setting inventory targets The soft-
ware can also take inputs from areas ndash including
yield schedule attainment losses and late
deliveries ndash so you can better calculate buer
stocks and improve service levels
Analytic dashboards help users see where prob-
lems are occurring in the supply chain Dash-
boards clearly compare lead time errors and
deltas to planned lead times They can also iden-tify the cost of schedule attainment problems
and estimate potential savings from specic
process improvements
The software also compares historical produc-
tion orders with actual production data helping
you meet schedules and adhere to plans
Less is more Trim your inventory levels and reduce
working capital requirements with supplier
intelligence from SAP software
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710
7 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Determine optimal safety stock
quantitiesSAP software helps you ensure that the right
products are at the right place at the right time
By using the software to optimize safety stock
quantities you can drive supply planning maxi-
mize customer service levels and minimize
working capital investments
SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply
chain view enabling you to plan for the entire
supply chain at once The software captures
interactions in multi-echelon supply chains
with high volumes and complexities synchro-
nizing inventory deployment throughout your
extended supply chain By leveraging predic-
tive analytics and advanced rened stochastic
algorithms the software can help you enhance
supply chain visibility
The application accurately accounts for multi-
stage dependencies capacity constraints and
supply and demand variability It optimizes theinventory mix between nished goods raw mate-
rials and location You can also analyze a large
number of inuencing factors including batch
sizes minimum production runs lead time
changes and product cost changes
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you
need to satisfy customers
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810
8 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Balance service with inventory levels
and costsSAP Enterprise Inventory and Service-Level
Optimization helps supply chain organizations
enhance operational targets increase produc-
tivity free up working capital and increase
customer satisfaction and loyalty By provid-
ing detailed insight and the power to perform
what-if analysis the software helps you real-
ize key business benets including bull Increased sales ndash by ne-tuning inventory
and service levels so that goods are available
when and where customers demand them
bull Reduced inventory levels and increased
working capital ndash by gaining insights into
the network and supply chain
bull Decreased production and distribution
costs ndash by reducing safety stock and
improving demand planning
bull Reduced out-of-stock situations and
lower inventory costs ndash through enhanced
supplier intelligence
bull Enhanced customer satisfaction ndash by
consistently meeting your promisedservice-level agreements
bull Improved supply chain proftability ndash by
increasing revenue and reducing inventory
costs
bull Improved planner and organizational
productivity ndash by recommending specic
actions to help achieve goals
Balance service with inventory levels and
costs
BeneftsSolutionObjectives Quick Facts
Lower inventory with improved customer
satisfaction You can realize both goals with
software from SAP
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910
9 9
Summary
To manage your multistage supply chainwhile meeting customer service commitments
you need software that delivers supply and
demand insight The SAPreg Enterprise Inventory
and Service-Level Optimization application
gives you insight recommending the specic
actions needed to balance service with inven-
tory levels and costs Plan and manage inventory
with detailed information that helps you under-
stand demand patterns and supply constraints
Objectives
bull Improve supply chain performance
by tightening inventories
bull Enhance customer service without driving
up costs
bull Optimize inventory planning at every stocking
location and item level
bull Balance inventory investment customer
service and protability
Solution
bull Powerful analytics to model inventory driversand set optimal service-level targets
bull Demand intelligence tools to gain insight into
customer requirements
bull Supplier intelligence features to understand
supply variability
bull Holistic supply chain view that simplies
inventory planning
Benefts
bull Reduced inventory and increased workingcapital through supply chain insights
bull Enhanced customer satisfaction by meeting
service-level agreements
bull Improved supply chain protability through
increased revenue and reduced inventory
costs
Learn more
Call SAP today or visit us at
www54sapcomsolutionlobscmsoftware inventory-managementindexhtml
wwwsapcomQuick FactsBenetsSolutionObjectives
CMP27098 (1309)
copy 2013 SAP AG or an SAP aliate company All rights reserved
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 510
5 9copy 2013 SAP AG or an SAP aliate company All rights reserved
The applicationrsquos sophisticated functionality
helps you characterize forecast errors and cal-
culate safety stock requirements The software
also considers regular operational variances
when setting safety stock levels
Dashboards provide information on forecast
bias error and intermittency so you can detect
and correct root causes Analysts can use dash-
boards to view demand analytics through histo-
grams averages and drill-downs at the specic
SKU level enabling advanced forecast and
sales analysis
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities Increase service without compromising
protability SAP software helps you
optimize service levels and minimize
inventory costs
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 610
6 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Calculate actual lead times and
lead-time variabilityThe SAP software provides intelligence that
helps you calculate supply variability more
accurately and reduce safety stock without
compromising fulllment
To help determine the appropriate safety
stock for your extended supply chain use the
software to calculate mean lead time lead timevariability mean production schedule attain-
ment and variability based on purchase and
production orders Item- and location-level
granularity helps you make better tactical deci-
sions when setting inventory targets The soft-
ware can also take inputs from areas ndash including
yield schedule attainment losses and late
deliveries ndash so you can better calculate buer
stocks and improve service levels
Analytic dashboards help users see where prob-
lems are occurring in the supply chain Dash-
boards clearly compare lead time errors and
deltas to planned lead times They can also iden-tify the cost of schedule attainment problems
and estimate potential savings from specic
process improvements
The software also compares historical produc-
tion orders with actual production data helping
you meet schedules and adhere to plans
Less is more Trim your inventory levels and reduce
working capital requirements with supplier
intelligence from SAP software
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710
7 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Determine optimal safety stock
quantitiesSAP software helps you ensure that the right
products are at the right place at the right time
By using the software to optimize safety stock
quantities you can drive supply planning maxi-
mize customer service levels and minimize
working capital investments
SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply
chain view enabling you to plan for the entire
supply chain at once The software captures
interactions in multi-echelon supply chains
with high volumes and complexities synchro-
nizing inventory deployment throughout your
extended supply chain By leveraging predic-
tive analytics and advanced rened stochastic
algorithms the software can help you enhance
supply chain visibility
The application accurately accounts for multi-
stage dependencies capacity constraints and
supply and demand variability It optimizes theinventory mix between nished goods raw mate-
rials and location You can also analyze a large
number of inuencing factors including batch
sizes minimum production runs lead time
changes and product cost changes
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you
need to satisfy customers
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810
8 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Balance service with inventory levels
and costsSAP Enterprise Inventory and Service-Level
Optimization helps supply chain organizations
enhance operational targets increase produc-
tivity free up working capital and increase
customer satisfaction and loyalty By provid-
ing detailed insight and the power to perform
what-if analysis the software helps you real-
ize key business benets including bull Increased sales ndash by ne-tuning inventory
and service levels so that goods are available
when and where customers demand them
bull Reduced inventory levels and increased
working capital ndash by gaining insights into
the network and supply chain
bull Decreased production and distribution
costs ndash by reducing safety stock and
improving demand planning
bull Reduced out-of-stock situations and
lower inventory costs ndash through enhanced
supplier intelligence
bull Enhanced customer satisfaction ndash by
consistently meeting your promisedservice-level agreements
bull Improved supply chain proftability ndash by
increasing revenue and reducing inventory
costs
bull Improved planner and organizational
productivity ndash by recommending specic
actions to help achieve goals
Balance service with inventory levels and
costs
BeneftsSolutionObjectives Quick Facts
Lower inventory with improved customer
satisfaction You can realize both goals with
software from SAP
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910
9 9
Summary
To manage your multistage supply chainwhile meeting customer service commitments
you need software that delivers supply and
demand insight The SAPreg Enterprise Inventory
and Service-Level Optimization application
gives you insight recommending the specic
actions needed to balance service with inven-
tory levels and costs Plan and manage inventory
with detailed information that helps you under-
stand demand patterns and supply constraints
Objectives
bull Improve supply chain performance
by tightening inventories
bull Enhance customer service without driving
up costs
bull Optimize inventory planning at every stocking
location and item level
bull Balance inventory investment customer
service and protability
Solution
bull Powerful analytics to model inventory driversand set optimal service-level targets
bull Demand intelligence tools to gain insight into
customer requirements
bull Supplier intelligence features to understand
supply variability
bull Holistic supply chain view that simplies
inventory planning
Benefts
bull Reduced inventory and increased workingcapital through supply chain insights
bull Enhanced customer satisfaction by meeting
service-level agreements
bull Improved supply chain protability through
increased revenue and reduced inventory
costs
Learn more
Call SAP today or visit us at
www54sapcomsolutionlobscmsoftware inventory-managementindexhtml
wwwsapcomQuick FactsBenetsSolutionObjectives
CMP27098 (1309)
copy 2013 SAP AG or an SAP aliate company All rights reserved
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 610
6 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Calculate actual lead times and
lead-time variabilityThe SAP software provides intelligence that
helps you calculate supply variability more
accurately and reduce safety stock without
compromising fulllment
To help determine the appropriate safety
stock for your extended supply chain use the
software to calculate mean lead time lead timevariability mean production schedule attain-
ment and variability based on purchase and
production orders Item- and location-level
granularity helps you make better tactical deci-
sions when setting inventory targets The soft-
ware can also take inputs from areas ndash including
yield schedule attainment losses and late
deliveries ndash so you can better calculate buer
stocks and improve service levels
Analytic dashboards help users see where prob-
lems are occurring in the supply chain Dash-
boards clearly compare lead time errors and
deltas to planned lead times They can also iden-tify the cost of schedule attainment problems
and estimate potential savings from specic
process improvements
The software also compares historical produc-
tion orders with actual production data helping
you meet schedules and adhere to plans
Less is more Trim your inventory levels and reduce
working capital requirements with supplier
intelligence from SAP software
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710
7 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Determine optimal safety stock
quantitiesSAP software helps you ensure that the right
products are at the right place at the right time
By using the software to optimize safety stock
quantities you can drive supply planning maxi-
mize customer service levels and minimize
working capital investments
SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply
chain view enabling you to plan for the entire
supply chain at once The software captures
interactions in multi-echelon supply chains
with high volumes and complexities synchro-
nizing inventory deployment throughout your
extended supply chain By leveraging predic-
tive analytics and advanced rened stochastic
algorithms the software can help you enhance
supply chain visibility
The application accurately accounts for multi-
stage dependencies capacity constraints and
supply and demand variability It optimizes theinventory mix between nished goods raw mate-
rials and location You can also analyze a large
number of inuencing factors including batch
sizes minimum production runs lead time
changes and product cost changes
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you
need to satisfy customers
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810
8 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Balance service with inventory levels
and costsSAP Enterprise Inventory and Service-Level
Optimization helps supply chain organizations
enhance operational targets increase produc-
tivity free up working capital and increase
customer satisfaction and loyalty By provid-
ing detailed insight and the power to perform
what-if analysis the software helps you real-
ize key business benets including bull Increased sales ndash by ne-tuning inventory
and service levels so that goods are available
when and where customers demand them
bull Reduced inventory levels and increased
working capital ndash by gaining insights into
the network and supply chain
bull Decreased production and distribution
costs ndash by reducing safety stock and
improving demand planning
bull Reduced out-of-stock situations and
lower inventory costs ndash through enhanced
supplier intelligence
bull Enhanced customer satisfaction ndash by
consistently meeting your promisedservice-level agreements
bull Improved supply chain proftability ndash by
increasing revenue and reducing inventory
costs
bull Improved planner and organizational
productivity ndash by recommending specic
actions to help achieve goals
Balance service with inventory levels and
costs
BeneftsSolutionObjectives Quick Facts
Lower inventory with improved customer
satisfaction You can realize both goals with
software from SAP
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910
9 9
Summary
To manage your multistage supply chainwhile meeting customer service commitments
you need software that delivers supply and
demand insight The SAPreg Enterprise Inventory
and Service-Level Optimization application
gives you insight recommending the specic
actions needed to balance service with inven-
tory levels and costs Plan and manage inventory
with detailed information that helps you under-
stand demand patterns and supply constraints
Objectives
bull Improve supply chain performance
by tightening inventories
bull Enhance customer service without driving
up costs
bull Optimize inventory planning at every stocking
location and item level
bull Balance inventory investment customer
service and protability
Solution
bull Powerful analytics to model inventory driversand set optimal service-level targets
bull Demand intelligence tools to gain insight into
customer requirements
bull Supplier intelligence features to understand
supply variability
bull Holistic supply chain view that simplies
inventory planning
Benefts
bull Reduced inventory and increased workingcapital through supply chain insights
bull Enhanced customer satisfaction by meeting
service-level agreements
bull Improved supply chain protability through
increased revenue and reduced inventory
costs
Learn more
Call SAP today or visit us at
www54sapcomsolutionlobscmsoftware inventory-managementindexhtml
wwwsapcomQuick FactsBenetsSolutionObjectives
CMP27098 (1309)
copy 2013 SAP AG or an SAP aliate company All rights reserved
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 710
7 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Determine optimal safety stock
quantitiesSAP software helps you ensure that the right
products are at the right place at the right time
By using the software to optimize safety stock
quantities you can drive supply planning maxi-
mize customer service levels and minimize
working capital investments
SAP Enterprise Inventory and Service-LevelOptimization helps you create a holistic supply
chain view enabling you to plan for the entire
supply chain at once The software captures
interactions in multi-echelon supply chains
with high volumes and complexities synchro-
nizing inventory deployment throughout your
extended supply chain By leveraging predic-
tive analytics and advanced rened stochastic
algorithms the software can help you enhance
supply chain visibility
The application accurately accounts for multi-
stage dependencies capacity constraints and
supply and demand variability It optimizes theinventory mix between nished goods raw mate-
rials and location You can also analyze a large
number of inuencing factors including batch
sizes minimum production runs lead time
changes and product cost changes
BenetsSolutionObjectives Quick Facts
Optimize service-level targets based on
protability
Gain insight into customer demand
Calculate actual lead times and
lead-time variability
Determine optimal safety stock
quantities
Hedge your inventory risk at the lowest cost WithSAP software yoursquoll know how much inventory you
need to satisfy customers
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810
8 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Balance service with inventory levels
and costsSAP Enterprise Inventory and Service-Level
Optimization helps supply chain organizations
enhance operational targets increase produc-
tivity free up working capital and increase
customer satisfaction and loyalty By provid-
ing detailed insight and the power to perform
what-if analysis the software helps you real-
ize key business benets including bull Increased sales ndash by ne-tuning inventory
and service levels so that goods are available
when and where customers demand them
bull Reduced inventory levels and increased
working capital ndash by gaining insights into
the network and supply chain
bull Decreased production and distribution
costs ndash by reducing safety stock and
improving demand planning
bull Reduced out-of-stock situations and
lower inventory costs ndash through enhanced
supplier intelligence
bull Enhanced customer satisfaction ndash by
consistently meeting your promisedservice-level agreements
bull Improved supply chain proftability ndash by
increasing revenue and reducing inventory
costs
bull Improved planner and organizational
productivity ndash by recommending specic
actions to help achieve goals
Balance service with inventory levels and
costs
BeneftsSolutionObjectives Quick Facts
Lower inventory with improved customer
satisfaction You can realize both goals with
software from SAP
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910
9 9
Summary
To manage your multistage supply chainwhile meeting customer service commitments
you need software that delivers supply and
demand insight The SAPreg Enterprise Inventory
and Service-Level Optimization application
gives you insight recommending the specic
actions needed to balance service with inven-
tory levels and costs Plan and manage inventory
with detailed information that helps you under-
stand demand patterns and supply constraints
Objectives
bull Improve supply chain performance
by tightening inventories
bull Enhance customer service without driving
up costs
bull Optimize inventory planning at every stocking
location and item level
bull Balance inventory investment customer
service and protability
Solution
bull Powerful analytics to model inventory driversand set optimal service-level targets
bull Demand intelligence tools to gain insight into
customer requirements
bull Supplier intelligence features to understand
supply variability
bull Holistic supply chain view that simplies
inventory planning
Benefts
bull Reduced inventory and increased workingcapital through supply chain insights
bull Enhanced customer satisfaction by meeting
service-level agreements
bull Improved supply chain protability through
increased revenue and reduced inventory
costs
Learn more
Call SAP today or visit us at
www54sapcomsolutionlobscmsoftware inventory-managementindexhtml
wwwsapcomQuick FactsBenetsSolutionObjectives
CMP27098 (1309)
copy 2013 SAP AG or an SAP aliate company All rights reserved
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 810
8 9copy 2013 SAP AG or an SAP aliate company All rights reserved
Balance service with inventory levels
and costsSAP Enterprise Inventory and Service-Level
Optimization helps supply chain organizations
enhance operational targets increase produc-
tivity free up working capital and increase
customer satisfaction and loyalty By provid-
ing detailed insight and the power to perform
what-if analysis the software helps you real-
ize key business benets including bull Increased sales ndash by ne-tuning inventory
and service levels so that goods are available
when and where customers demand them
bull Reduced inventory levels and increased
working capital ndash by gaining insights into
the network and supply chain
bull Decreased production and distribution
costs ndash by reducing safety stock and
improving demand planning
bull Reduced out-of-stock situations and
lower inventory costs ndash through enhanced
supplier intelligence
bull Enhanced customer satisfaction ndash by
consistently meeting your promisedservice-level agreements
bull Improved supply chain proftability ndash by
increasing revenue and reducing inventory
costs
bull Improved planner and organizational
productivity ndash by recommending specic
actions to help achieve goals
Balance service with inventory levels and
costs
BeneftsSolutionObjectives Quick Facts
Lower inventory with improved customer
satisfaction You can realize both goals with
software from SAP
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910
9 9
Summary
To manage your multistage supply chainwhile meeting customer service commitments
you need software that delivers supply and
demand insight The SAPreg Enterprise Inventory
and Service-Level Optimization application
gives you insight recommending the specic
actions needed to balance service with inven-
tory levels and costs Plan and manage inventory
with detailed information that helps you under-
stand demand patterns and supply constraints
Objectives
bull Improve supply chain performance
by tightening inventories
bull Enhance customer service without driving
up costs
bull Optimize inventory planning at every stocking
location and item level
bull Balance inventory investment customer
service and protability
Solution
bull Powerful analytics to model inventory driversand set optimal service-level targets
bull Demand intelligence tools to gain insight into
customer requirements
bull Supplier intelligence features to understand
supply variability
bull Holistic supply chain view that simplies
inventory planning
Benefts
bull Reduced inventory and increased workingcapital through supply chain insights
bull Enhanced customer satisfaction by meeting
service-level agreements
bull Improved supply chain protability through
increased revenue and reduced inventory
costs
Learn more
Call SAP today or visit us at
www54sapcomsolutionlobscmsoftware inventory-managementindexhtml
wwwsapcomQuick FactsBenetsSolutionObjectives
CMP27098 (1309)
copy 2013 SAP AG or an SAP aliate company All rights reserved
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 910
9 9
Summary
To manage your multistage supply chainwhile meeting customer service commitments
you need software that delivers supply and
demand insight The SAPreg Enterprise Inventory
and Service-Level Optimization application
gives you insight recommending the specic
actions needed to balance service with inven-
tory levels and costs Plan and manage inventory
with detailed information that helps you under-
stand demand patterns and supply constraints
Objectives
bull Improve supply chain performance
by tightening inventories
bull Enhance customer service without driving
up costs
bull Optimize inventory planning at every stocking
location and item level
bull Balance inventory investment customer
service and protability
Solution
bull Powerful analytics to model inventory driversand set optimal service-level targets
bull Demand intelligence tools to gain insight into
customer requirements
bull Supplier intelligence features to understand
supply variability
bull Holistic supply chain view that simplies
inventory planning
Benefts
bull Reduced inventory and increased workingcapital through supply chain insights
bull Enhanced customer satisfaction by meeting
service-level agreements
bull Improved supply chain protability through
increased revenue and reduced inventory
costs
Learn more
Call SAP today or visit us at
www54sapcomsolutionlobscmsoftware inventory-managementindexhtml
wwwsapcomQuick FactsBenetsSolutionObjectives
CMP27098 (1309)
copy 2013 SAP AG or an SAP aliate company All rights reserved
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices
8112019 SAP Meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf
httpslidepdfcomreaderfullsap-meet-inventory-and-service-level-goals-with-prescribed-activities-from-sap-softwarepdf 1010
copy 2013 SAP AG or an SAP a liate company All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG
The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
National product specications may vary
These materials are provided by SAP AG and its a liated companies (ldquoSAP Grouprdquo) for informational purposes only without
representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials
The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying
such products and services if any Nothing herein should be construed as constituting an additional warranty
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of
SAP AG in Germany and other countries
Please see httpwwwsapcomcorporate-enlegalcopyrightindexepxtrademark for additional trademark information and notices