PROACTively Integrate Your Supply Chain Players Using SAP APO
- by Dmitriy Mindich, Senior Associate, PricewaterhouseCoopers, LLC
- November 25, 2009
Learn how to enhance an SAP Advanced Planning & Optimization (SAP APO) supply chain platform with EDI 852 information.
PROACT, the EDI 852 transaction in SAP Advanced Planning & Optimization, is designed to help companies integrate the different players within their supply chains. This transaction facilitates incorporation of customer forecast and inventory within a supply chain planning system and thus helps to accelerate adoption of the Vendor-Managed Inventory (VMI)/Collaborative Planning Forecast and Replenishment (CPFR) processes within your landscape.
Most supply chain solutions are implemented using a company’s own sales order history, shipment history, inventory levels, and any other transactional data that resides in the company’s own ERP systems. However, recent supply chain trends recommend closer collaboration with supply chain partners. This idea gave rise to Vendor-Managed Inventory (VMI) and Collaborative Planning Forecast and Replenishment (CPFR) business processes that were first introduced in the retail industry, but gained wider support in other industries as well.
At the core, these processes require tighter collaboration among the different supply chain participants by sharing core information. For example, the CPFR process supposes sharing of customer forecasts with its suppliers, while the VMI process supposes sharing current customer’s inventory levels with its suppliers. The EDI 852/ PROACT transaction is widely used in the industry to support CPFR and VMI processes.
CPFR/VMI processes facilitate generation of a more accurate demand plan. You can enable and activate various configurations of the EDI 852 transaction in the PROACT IDoc, thus easily enhancing a supply chain planning solution with CPFR or VMI processes. Furthermore, you can use the sample Legacy System Migration Workbench (LSMW) program I provide to test and validate the use of the PROACT IDoc inside a supply chain.
Would you like to see this full item?