SAP Business ByDesign is a comprehensive enterprise resource planning (ERP) solution that offers robust planning capabilities. In this article, we will explore key aspects of planning in SAP Business ByDesign, including fulfillment types, safety stock, minimum order quantity, lead times, and internal fulfillment. We will also discuss how satellite warehouses or stores can be effectively replenished by a central warehouse.
Fulfillment Types :
SAP Business ByDesign allows businesses to define different fulfillment types to meet their specific requirements. These fulfillment types can include make-to-stock, make-to-order, or engineer-to-order. Make-to-stock is suitable for products with predictable demand, while make-to-order and engineer-to-order are ideal for customized or complex products. By selecting the appropriate fulfillment type, businesses can streamline their planning processes and ensure efficient order fulfillment.
Safety Stock and Minimum Order Quantity:
To handle fluctuations in demand and avoid stockouts, SAP Business ByDesign enables businesses to set up safety stock levels. Safety stock acts as a buffer to cover unexpected demand variability. Additionally, minimum order quantity (MOQ) can be defined to optimize procurement and production processes. By establishing appropriate safety stock levels and MOQs, businesses can minimize inventory carrying costs while ensuring customer satisfaction.
Lead Times:
Accurate lead time management is critical for effective planning in SAP Business ByDesign. Lead time refers to the time taken from when an order is placed until it is fulfilled. By defining lead times for various operations, such as procurement, production, and transportation, businesses can ensure realistic delivery commitments to customers. SAP Business ByDesign allows for the configuration of lead times based on historical data, supplier performance, and internal processing times.
Internal Fulfillment:
In SAP Business ByDesign, internal fulfillment involves replenishing satellite warehouses or stores from a central warehouse. This setup enables businesses to distribute inventory strategically and optimize stock levels across multiple locations. Through the system's integrated planning and execution capabilities, businesses can automate the replenishment process based on predefined triggers, such as minimum stock levels or demand forecasts. This centralized approach helps streamline operations, reduce excess inventory, and enhance customer service.
Effective planning in SAP Business ByDesign requires careful consideration of fulfillment types, safety stock, minimum order quantity, lead times, and internal fulfillment strategies. By leveraging these features, businesses can optimize their supply chain and enhance overall operational efficiency.