SAP Supplier Network Collaboration


SAP SNC offers a variety of features to help integrate your supply chain through your organization in to your suppliers… We have highlighted a few commonly used areas of SNC that drive business value in to your supply network.

Supplier Managed Inventory

Supplier Managed Inventory enables your company’s suppliers to perform inventory replenishment planning and execution. The suppliers use gross demand (dependent requirements) and current stock balance to calculate replenishment plans based on min/max logic to generate planned receipts and subsequently create advanced shipping notifications.

You can use this business process to shift net replenishment planning and execution from you to your suppliers. Your company send gross demand and inventory information to SAP SNC, where suppliers can use this information to calculate a replenishment plan based on minimum-maximum inventory level logic. The suppliers enter planned receipts in SAP SNC and can view the projected stock situation. The suppliers subsequently convert the planned receipts into advanced shipping notifications (ASN) at time of shipment.

The ASN is sent back to the SAP ERP backend system as an indication of a supplier commitment to deliver goods.

SAP ERP system automatically creates an inbound delivery document and updates the corresponding scheduling agreement based on the ASN received from SAP SNC.

To complete the process, SAP ERP sends the goods receipt information to SAP SNC where the ASN and the inventory data are then updated providing visibility of the status for the supplier.

Benefits

  • Delegates responsibility for replenishment planning of purchased components and raw materials to suppliers
  • Reduces communication of customer requirements through automation
  • Increases planning horizons for suppliers
  • Increases data consistency reduces potential errors

Release Processing

Release Processing allows for a more accurate execution between your company and its suppliers by collaborating directly on scheduling agreement release updates. SAP SNC informs your company’s suppliers about scheduling agreement release updates and allows your company’s suppliers to enter free-text notes, print and download scheduling agreement release updates.

Release processing allows procurement based on scheduling agreements between you and your supplier. Release updates for scheduling agreements are typically generated when a new forecast delivery schedule is created in your back end of SAP ERP. SAP SNC informs your suppliers about the updates and allows them to enter free-text notes and to print and download release updates for scheduling agreements.

With the update, you send a new scheduling agreement release to SAP SNC. The supplier delivers on the basis of the new release. You and the supplier can view the details of delivery progress.

At the time of shipment, suppliers create advanced shipment notifications (ASN) in SAP SNC. Based on the ASN received from SAP SNC, your instance of SAP ERP creates an inbound delivery document and updates the scheduling agreement.

To complete the process, goods receipts are posted in SAP ERP and send to SAP SNC, where the ASN and release are updated, providing visibility of the status to the supplier.

Benefits

  • Improves shipping accuracy
  • Increases cash-flow through reduced inventory and faster order cycle times while increasing service levels
  • Enhances visibility through the supply network to anticipate supply delays and respond to demand changes

Purchase Order Processing

Purchase Order Processing allows for a more accurate execution between your company and its suppliers by collaborating directly on purchase orders. SAP SNC informs your company’s suppliers about purchase orders created and changed in your SAP ERP back-end system and allows the suppliers to confirm quantities and dates, enter free-text notes, print and download purchase orders.

  • You can use this business process to send purchase orders (PO) to a supplier by using the Web-based UI of SAP SNC or by exchanging a file containing a list of POs. POs are typically generated as a result of a material requirements planning in SAP ERP or are created manually.
  • Suppliers select and view POs, enter free-text notes, and print or download POs. Suppliers enter confirmations indicating the date and quantity that they can commit to. SAP SNC forwards the new or changed POs to a supplier.
  • At the time of shipment, suppliers create advanced shipment notifications (ASN) in SAP SNC. Based on the ASN received from SAP SNC, your instance of SAP ERP creates an inbound delivery document and updates the PO.
  • To complete the process, goods receipts are posted in SAP ERP and send to SAP SNC, where the ASN and purchase order are updated, providing visibility of the status to the supplier.

Benefits

  • Increases accuracy in order promising
  • Improves shipping accuracy
  • Increases cash-flow through reduced inventory and faster order cycle times while increasing service levels
  • Enhances visibility through the supply network to anticipate supply delays and respond to demand changes
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