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SCM is starting to get widely used in the globalization era in the late 1 sass. In the 1 sass companies began to outsource manufacturing and distribution. This new step created need for manufacturing and distribution networks with many supply chains. (Hag, Cummings, Encumbered, Painlessness, Donovan 2006) One of the major features of the SCM Software from SAP is that it can quickly help a company to adapt in changes in supply and demand. There are newly plopped tools to measure and report data and to provide a framework for good decision making in managerial accounting.
One of the tools I find very attractive is the Manufacturing and Supply Planning. This feature can forecast demand and accelerate production planning and the scheduling process. What company stakeholders typically provide input? What is the role of the financial staff? The Brasses Company, with headquarters in SAA Paulo, Brazil is producing Chemicals, with 6750 employees and $27. 7 billion revenue. The SAP software for SCM managed to optimize the supply chain processes and also increased sales forecast accuracy.
The result was a 90% reduction of inefficiency-related logistics costs and 53 million value generated in the first year after implementation of the software. (SAP, 2013) Because there are many factors in a supply chain a problem in one of them could negatively influence the whole chain. If there is an unexpected event, it can have negative effects on the company. A new trend suddenly appearing in the demand can delay production and produce extra costs. One solution is to get information from more sources and paste them to the software. (Kohlrabi, Amanda 2006) There is software for smaller business called SAP BUSINESS ONE.
This software is scaled to Enterprise Resources planning, analytics and databases for small businesses. SAP Enterprise on the other hand, provides all the complex and flexible solutions for large companies. SAP BUSINESS ONE comes with significantly lowers costs to introduce and to educate staff in a company. The total cost of ownership is significantly lower than the corresponding implementation of SAP Enterprise. (SAP, 201 3) The company DANDIES, from Denmark and the industry of consumer products improved heir supply chain efficiency across the organization. They managed to increase forecast accuracy with the SAP CRM software.
On a 6-month timescale, the implementation of the software across 69 sites in 21 countries increased supply chain efficiency resulting in cost optimization and enhancing customer service. (SAP, 2013) The global brand Freezer Group from Italian also used SAP software to enhance and reduce the cost of planning improvements. The company managed to shorten the job chains for demand and supply network planning. The benefits of these solutions are clearly dated.