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 Replenishment Planning

Use

A customer can source out the replenishment planning to his or her supplier. The supplier is then responsible for planning and thereafter carrying out the replenishment to the customer (vendor-managed inventory). The supplier can execute replenishment planning in SAP Supply Network Collaboration (SAP SNC). The supplier uses replenishment planning to determine the quantities of products that he or she has to deliver in every period of the planning period from his or her ship-from location to a particular customer location, to cover the demands at the customer location on time in the required quantities. The supplier executes the replenishment planning based on the data that the customer sends to SAP SNC (such as stocks, demands, or sales data).

One result of the replenishment planning by the supplier are the planned receipts . This key figure represents, for every period, the quantity of a customer location product that the supplier wants to deliver to the customer up until the end of the period. The most important key figure for evaluating the replenishment situation is the projected stock . This key figure provides information about the demand/stock balance for a customer location product in a period. It represents the product quantity that, according to the planning, is available at the end of every period at the customer location. The projected stock considers the current stock on hand and various demands and receipts. (You can configure which demands and receipts the projected stock considers.) The supplier must plan the planned receipts in such a way that the projected stock represents the replenishment requests of the customer.

Example Example

In the Supplier Managed Inventory business scenario, the supplier must determine the planned receipts in such a way that the projected stock always lies between the minimum and maximum stock levels agreed upon between the customer and the supplier. In the Responsive Replenishment business scenario, the planned receipts and stock must cover the demands and safety stock as accurately and as timely as possible.

End of the example.

Integration

The planned receipts are not yet firm and are only visible in SAP SNC. For the processes in the back-end system of the customer or supplier to be able to build upon this planning, the supplier can create the following firm order documents for the planned receipts following the replenishment planning in SAP SNC:

When the supplier publishes a replenishment order in SAP SNC, SAP SNC sends the replenishment order to the supplier back-end system (optional) and to the customer back-end system. Based on the replenishment order, a purchase order is created in the customer back-end system, and a sales order is created in the supplier back-end system. These orders are the binding basis for finalizing the replenishment process in the back-end systems (for example, for the goods issue and for the goods receipt). For replenishment planning in SAP SNC, the replenishment order represents a firm receipt at the customer location. Special key figures represent the total quantity from replenishment orders in a period.

  • ASNs

    The supplier can send an ASN to the customer back-end system to inform the customer about a pending delivery. Depending on whether the supplier uses replenishments orders or not, the supplier creates the ASN for the replenishment order or directly for the planned receipt. The In-Transit Quantity key figure represents the total quantity from ASNs in a period.

The customer back-end system can send goods receipt information to SAP SNC. SAP SNC updates the open and received quantities in the documents as well as the key figures that are derived from these documents. The replenishment planning can take this into account accordingly.

Whether or not you want to combine the replenishment planning with these order documents depends on your business process. Different replenishment variants are possible (for example, replenishment planning with or without replenishment orders, with or without ASNs). You can configure replenishment planning in such a way that the projected stock considers ASNs and replenishment orders as receipts.

Note Note

There is no firm link between the demand of a particular period and a particular firm receipt (replenishment order or ASN) that the supplier has created to cover the demand of this period. The replenishment planning of SAP SNC always considers a firm receipt as a receipt for the period that includes the delivery date of the firm receipt.

If the supplier reschedules the delivery date/time of a firm receipt, moving it to a later period, replenishment planning takes the firm receipt into account for this later period. Due to the postponement of the firm receipt, the projected stock of the initial period can fall to or below a critical value. Replenishment planning reacts to this situation by increasing the planned receipt for the initial period. A replenishment order or an ASN that the supplier creates for the initial period can ultimately result in an overdelivery.

End of the note.

Features

Configuration of Replenishment Planning

Replenishment planning is a period-oriented planning that is based on different key figures (time series data). The key figures represent different aggregated demands or receipts for each period. Depending on your replenishment variant, you can configure which key figures (demands, receipts, and stocks) the system considers in the projected stock (on the customer location product - supplier level). You can also configure how the system calculates the raw net demand of a period (the difference between the target stock and the projected stock). You can choose between two different replenishment methods here (reorder-point-controlled replenishment, which keeps the stock at the customer between a minimum and target stock level, or lot-for-lot coverage of the net demand).

Example Example

If you use ASNs, you can take into account the in-transit quantity in the projected stock. The system aggregates replenishment order quantities and saves them as firm receipts, which you can likewise take into account in the projected stock. If you plan with product substitution, you include the demands and receipts from product substitution orders in the projected stock.

In the Responsive Replenishment business scenario, you can execute a separate replenishment planning for baseline and promotion demands. You therefore use different profiles for the projected stock for the baseline and promotion planning.

End of the example.
Background Planning and Interactive Planning

The supplier can plan manually on the Web UI or automatically in the background. Whether the supplier uses manual planning or background planning depends on the scenario. Even if the supplier uses background planning by default, he or she also uses replenishment monitors on the Web UI, to gain an overview of the planning situation and possible planning problems and to solve these problems with manual planning.

For background planning, the supplier uses the Planning Service Manager and special planning services for SAP SNC. The planning services are also available on the Web UI for interactive planning. It is also possible to start background planning runs in the Planning Service Manager on the Web UI.

Example Example

In the RR scenario, the supplier executes replenishment planning daily in the background. The supplier only uses the replenishment monitor to process exceptions.

In the SMI scenario, the supplier plans manually on the Web UI.

End of the example.
Planning Services

The central planning service for replenishment planning is the replenishment service . It is configurable and enables you to plan using different replenishment methods (for example, keep stocks between the minimum and maximum stock level, cover demands and safety stock accurately and in timely manner). In the replenishment service, dynamic sourcing is also available. Dynamic sourcing can select ship-from locations and means of transport according to various rules and build transport loads accordingly.

Depending on the replenishment variant, you use further planning services in addition to the replenishment service. These include the following:

  • Deployment

    This planning service creates, from the planned receipts that the supplier has created manually or using the replenishment service, planned receipts that consider the availability situation in the ship-from locations of the supplier. This service is only relevant for the Responsive Replenishment business scenario. You can only use this service in an SCM server installation, since the service calls the deployment from Supply Network Planning in SAP Advanced Planning and Optimization (SAP APO).

  • Creation of Replenishment Orders

    Two planning services are available for creating replenishment orders directly from planned receipts. Both services create replenishment orders, and one service also publishes them automatically.

  • Transport Load Building (TLB)

    The supplier can use the TLB service to be able to load means of transport according to certain rules. The TLB service groups together planned receipts to TLB shipments, to which one or several replenishment orders belong. (The TLB service therefore creates replenishment orders automatically). This service is only relevant for the Responsive Replenishment business scenario.

Replenishment Monitors

Several replenishment monitors are available for interactive planning on the Web UI that support the various standard replenishment variants. A replenishment monitor contains the key figures, planning services, and functions that are relevant for the respective replenishment variant. The customer and supplier can get a quick overview of the demand and stock situation of selected products at the customer location and of critical situations regarding the projected stock. The supplier uses the replenishment monitor for interactive planning: He or she analyzes the planning situation and solves any critical problems, for example by manually processing the planned receipts. The customer can monitor the planning progress and conduct simulative planning in the replenishment monitor. The following replenishment monitors are available:

  • SMI Monitor

    This replenishment monitor supports a replenishment planning that keeps the projected stock between a minimum stock level and a maximum stock level. You do not use replenishment orders, but ASNs instead.

  • Min/Max Replenishment Monitor

    This replenishment monitor supports a replenishment planning that keeps the projected stock between a minimum stock level and a maximum stock level. You use replenishment orders and ASNs.

  • Responsive Replenishment Monitor

    This replenishment monitor supports a replenishment planning that covers the demand and the safety stock as accurately and as timely as possible. You use replenishment orders and ASNs.

Data Used

Depending on the replenishment variant, replenishment planning uses the following data:

  • Demand data that the customer sends from his or her back-end system to SAP SNC

  • Stock data that the customer sends from his or her back-end system to SAP SNC

  • Baseline and promotion demands that SAP SNC forecasting has released for replenishment planning

The customer must regularly update the data in SAP SNC to enable the supplier to conduct a realistic replenishment planning.

Example Example

The customer uses XML messages of type ProductActivityNotification to transfer demand and stock data to SAP SNC. If the customer uses an SAP back-end system, he or she can use a special report to transfer the data. For more information, see Example: Message Flow for Supplier Managed Inventory and Transfer of Demands and Stocks to SAP SNC (SMI, RP, DR) .

End of the example.
Data Management

The replenishment monitors manage and process key figures (such as demands and receipts) and stocks at the customer location-product-supplier level, and in the case of the Responsive Replenishment business scenario, on the promotion ID level as well. The system uses the following applications for the different objects (key figures, order documents, and stocks):

  • Time Series Data Management (TSDM)

    SAP SNC uses the time series type INVM1.

  • Order Document Management (ODM) for order documents

    This is relevant for planned replenishment orders, product substitution orders, replenishment orders, and ASNs.

  • Logistics Inventory Management Engine (LIME) for stocks

Alerts and Alert Notification

SAP SNC compares the projected stock and the actual stock on hand with the minimum and maximum stock levels of the customer location product agreed upon between the customer and the supplier. If these stock thresholds are violated, SAP SNC generates replenishment planning alerts .

If you are using alert notifications , the supplier only has to call the replenishment monitor when an exceptional situation occurs that requires his or her intervention. You can specify specifically to the user that SAP SNC informs a user automatically (for example, by e-mail or fax) if an alert has occurred that is relevant for him or her.

If you want to rate the supplier on the basis of alerts, you can use alert-based rating .

Activities

You call the replenishment monitors in the Web application menu under Replenishment .