- Supply Chain Management
- Execution & Integration
Supply Chain Excellence (SCX) for Procurement
Optimize your supply chain with advanced MRP and procurement for SAP
Supply Chain Excellence (SCX) for Procurement is designed to enhance the efficiency of material requirements planning (MRP) and supply chain management within SAP environments. Its core purpose is to streamline and improve the management of production, procurement, and inventory processes by providing advanced functionalities and detailed information that extend beyond standard SAP MRP transactions like MD04 (Stock/Requirements List) and MD05 (MRP List).
Key features
Material overview & detailed analysis
Access consolidated MRP and stock/requirements lists, with a single row per material for quick reference and a clear, comprehensive view of your material planning. Up to 21 period columns can be included in the layout, showing summarized period values like requirements, receipts, and available quanitites.
Purchase order management
The dashboard allows for the creation, management, and tracking of purchase orders, including detailed information about each order and its status. The system also checks for minimum purchase order values and quantities to optimize procurement and avoid unnecessary costs associated with small orders.
Detailed Bill of Materials (BOM) management
Our solution supports multi-level BOM explosions, allowing users to see all components required for a finished product across multiple levels of production. The BOM explosion can be conducted across different plants, providing a holistic view of material requirements throughout the organization.
Where-used list
The where-used list feature shows where each component is used within the BOM structure, identifying all parent assemblies that require a specific part.This helps users understand the impact of changes in component availability or specifications on higher-level assemblies. Detailed information about each usage instance, including quantities, locations, and dependencies is also included. Similar to BOM explosion, the where-used list can also be analyzed across different plants.
Vendor information and management
Detailed vendor information is readily available, including quantities, prices, contact information, and historical purchase data. The system can indicate if multiple vendors are available for a material.
Optimal supply recommendations
The system identifies and displays all valid sources of supply for purchase requisitions, taking into account planned delivery times and prices. The most cost-effective source is highlighted, facilitating optimal procurement decisions.
Advanced planning & simulation
Simulate different scenarios to predict how changes in production, procurement, and inventory levels will affect overall operations. Analyze the impact of changes such as new orders, transfers between plants, or adjustments in production schedules. The simulation results are displayed in an easy-to-understand horizontal view, similar to the MD04 transaction but enhanced for better visualization.
Exception handling & alerts
Proactively manage potential supply chain issues with weighted customer-specific exception messages and an integrated alert system that keeps you informed in real-time. Improve response times and reduce the risk of stockouts or overstocking.
History tracking
Track historical changes and comments for various documents (e.g., purchase orders, production orders), providing a comprehensive audit trail and supporting better decision-making.
Key benefits
Cost savings
Identify cost-effective suppliers and optimize inventory levels to minimize carrying costs and avoid stockouts.
Enhanced decision-making
Make better, data-driven decisions with comprehensive analysis, detailed reporting, and advanced visualization tools.
Proactive management
Stay ahead of potential issues with real-time alerts and exception handling, ensuring a responsive and agile supply chain.
Use cases
Material Requirements Planning (MRP)
Managing seasonal demand fluctuations
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CPG and food and beverage companies often face significant demand fluctuations due to seasonal changes, such as holiday spikes or summer seasonality. For example, a beverage company might see a sharp increase in soft drink demand during summer. With SCX for Procurement, you can manage these fluctuations effectively by accessing detailed MRP lists and consumption graphics. Utilize historical data to forecast demand accurately and adjust your procurement and production plans accordingly. This results in improved inventory management, reduced stockouts during peak periods, and minimized excess inventory during off-peak times, ensuring your products are always available when customers need them most.
Component shortages in manufacturing
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A food processing company might experience a shortage of a key ingredient, such as sugar, disrupting production schedules. SCX for Procurement addresses this by offering BOM explosion and missing parts check features. Identify potential shortages early and take corrective actions such as expediting orders or finding alternative suppliers. This leads to reduced production delays and ensures that production lines continue running smoothly, preventing costly downtimes and maintaining product availability.
Procurement and Inventory Management
Streamlining procurement processes
- Disjointed procurement processes can delay raw material purchases, impacting production schedules. A pharmaceutical company, for example, may face delays in acquiring active ingredients due to complex procurement procedures. SCX for Procurement streamlines these processes by consolidating procurement transactions into a single dashboard. Manage purchase requisitions and orders efficiently with the system's optimial supply recommendations, which identify the most cost-effective suppliers. Benefit from faster procurement processes, reduced procurement costs, and improved supplier management, ensuring that production schedules are met without delays.
Reducing inventory carrying costs
- High inventory carrying costs can strain budgets, particularly in industries with perishable goods like food and beverage. A dairy company might need to balance having enough stock to meet demand without overstocking perishable items. Use SCX for Procurement to perform detailed inventory analysis and adjust inventory levels based on accurate demand forecasts. This helps lower inventory carrying costs, reduce waste due to spoilage, and optimize stock levels, ensuring that the right amount of inventory is available at all times.
Sales and Distribution
Enhancing order fulfillment
- Timely order fulfillment is crucial for maintaining high customer satisfaction, especially in the fast-moving consumer goods (FMCG) sector. For example, a snack food company needs to fulfill large orders from major retailers promptly. SCX for Procurement allows you to manage sales orders, deliveries, and schedule lines efficiently, with real-time data on stock availability and production status. This leads to improved order fulfillment rates, higher customer satisfaction, and better inventory management, ensuring that retailers receive their orders on time and in full.
Managing sales promotions
- Frequent sales promotions require adequate stock levels to meet increased demand. For instance, a beverage company running a summer promotion needs to ensure enough stock is available to meet the surge in demand. With SCX for Procurement, you can forecast the impact of promotions on demand and adjust inventory and procurement plans accordingly. This ensures effective management of sales promotions, reduces the risk of stockouts, and maximizes sales opportunities, enabling you to capitalize fully on promotional activities.
Production Planning
Optimizing production schedules
- Fluctuating demand and limited resources can make optimizing production schedules challenging, especially for manufacturers with multiple product lines. An automotive parts manufacturer, for instance, needs to balance production schedules for various components. SCX for Procurement offers advanced planning and simulation features that allow you to create and evaluate different production scenarios. Optimize your schedules to meet demand while efficiently utilizing available resources, leading to improved production efficiency, reduced downtime, and better resource allocation.
Managing production bottlenecks
- Production bottlenecks can cause delays and increase costs. For example, a textile manufacturer might encounter bottlenecks in dyeing processes, affecting overall production timelines. SCX for Procurement's bottleneck planning and simulation tools help you identify and analyze bottlenecks in your production process. By simulating different scenarios, you can find optimal solutions to mitigate these bottlenecks, resulting in reduced production delays, lower costs, and smoother production workflows.
Schedule your live demo today
Discover how SCX for Procurement can optimize your supply chain and procurement processes within SAP. Schedule a personalized demo with our expert team to explore our solution's full capabilities and see how it can benefit your business.
- See SCX for Procurement in action: Get a comprehensive walkthrough of our key features and functionalities tailored to your specific needs.
- Ask the experts: Have your questions answered by our knowledgeable team and learn how SCX for Procurement can address your unique challenges.
- Tailored recommendations: Receive personalized insights and recommendations based on your business requirements and goals.
Contact us to schedule your demo
- Email: usa@ifm.com
- Phone: +1 (470) 909-4011
- Schedule online: Submit the form below