Question

What are the four main functions within SAP’s supply chain software?

Short answer

The four main functions within SAP’s supply chain software are supply chain planning, supply chain execution, supply chain collaboration, and supply chain coordination.

Step-by-step solution

SAP’s supply chain software

SAP’s supply chain software in the last two decades, a considerable number of Fortune 500 organizations have used enterprise resource planning (ERP) software. Companies have benefited from reacting to supply chain issues that would not have been feasible without ERP software because of the shared database and real-time processing. SAP, a German firm, is the global leader in ERP software.

Four main functions within SAP’s supply chain software

The four main functions within SAP’s supply chain software are given below:

1. Supply chain planning: The process of forecasting demand and preparing resources and components to meet that need, as well as manufacturing, marketing, distribution, and sales, is known as supply chain planning. It guarantees that all aspects of the company, from materials procurement to operation scheduling to shipping and delivery, are in sync.

2. Supply chain execution: The flow of tasks involved in the supply chain, such as order fulfillment, procurement, warehousing, and transportation, is referred to as supply chain execution (SCE). Supply chain management (SCM) may be divided into three stages: planning, execution, and shipment.

3. Supply chain collaboration: Both partners in supply chain collaboration activities should utilize the same performance-management system.

4. Supply chain coordination: Companies may avoid the mismatched incentives that sabotage so many cooperation attempts by developing similar measurements and objectives and cooperatively assessing success. The goal of supply chain coordination is to improve the supply chain.