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SAP Labs Hungary

Supply Chain Management

SAP Labs Hungary is a key driver in expanding the capabilities of SAP SCM to power tomorrows adaptive business networks for customers, business partners and their customers.

The SAP Supply Chain Management (SAP SCM) application is the only complete supply chain management application that empowers companies to adapt their supply chain processes to an ever-changing competitive environment. SAP SCM transforms traditional supply chains from linear, sequential processes into an adaptive supply chain network in which communities of customer-centric, demand-driven companies share knowledge, intelligently adapt to changing market conditions, and proactively respond to shorter, less-predictable life cycles. SAP SCM offers companies not only planning and execution software to manage enterprise operations, but also visibility and collaboration technology to extend those operations beyond corporate boundaries. The result is measurable improvements through cost reductions, service-level increases, and productivity gains, ultimately leading to stronger profit margins.

SAP SCM offers the following key capabilities: Supply Chain Planning and Collaboration, Supply Chain Execution, and Supply Chain Visibility Design and Analytics. SAP Labs Hungary is involved in developing several applications within SAP SCM.

Supply Chain Planning and Collaboration

SAP SCM helps companies model their existing supply chain; set goals; as well as forecast, optimize, and schedule time, materials, and other resources. Supply chain planning functions enable companies to maximize return on assets and to ensure a profitable match of supply and demand.

The Supply Chain Planning and Collaboration key capability of SAP SCM includes several functions and areas. SAP Labs Hungary is responsible for the following: Demand and Supply Planning, Transportation planning and Global ATP.

  • Demand and Supply Planning is a supply chain planning function that enables decision makers within companies to perform strategic, tactical, and operational planning.
    • Demand planning and forecasting lets companies forecast and plan anticipated demand for products or product characteristics.
    • Safety stock planning enables them to assign optimal safety stock stock kept on hand to satisfy unexpected demand and target stock levels in all inventories in the supply network.
    • Supply network planning integrates purchasing, manufacturing, distribution, and transportation plans into an overall supply picture, thus enabling companies to simulate and implement comprehensive tactical planning and sourcing decisions based on a single, globally consistent model.
    • Distribution planning allows planners to determine the best short-term strategy to allocate available supply to meet demand and to replenish stocking locations.
    • Supply network collaboration improves visibility into supply and demand so that companies can work with partners to reduce inventory buffers, increase the velocity of raw materials and finished goods through the pipeline, improve customer service, and increase revenues.
  • Transportation lets transportation managers can consolidate orders and optimize shipments across the company to maximize the return on their transportation dollars. Companies can share information and combine orders directly with carriers and forwarders over the Internet, enabling them to integrate business partners into their processes and maintain control of plans.
    • Transportation planning enables companies to optimize shipments, assign carriers to shipments, and tender shipments to assigned carriers.
    • Transportation execution lets large, distributed enterprises consolidate orders and optimize shipments from a centralized location or from distributed business units. Transportation managers can select carriers, calculate freight costs, settle shipment costs, and print documents.
    • Freight costing allows companies to calculate and settle freight costs based on actual shipments and current freight rates. They can use this information to verify invoices sent from carriers or from self-billing transportation service providers.
  • Global ATP: Companies operating worldwide are forced to globalize available information in order to conduct business efficiently. This means that information has to be made available across system boundaries as quickly as possible to provide optimized decision support. Global ATP can be used in heterogeneous system landscapes to provide required information as quickly as possible. Advanced planning features provide an excellent foundation for sales operation and execution: product availability at different levels, production capacities modeled with accuracy on-demand, determination of possible alternatives (make, ship or buy).


Companies can manage warehouse activities, including inbound and outbound processing, facility management and storage, physical inventory, and cross docking, both planned and opportunistic. They can take advantage of new data collection technologies, such as radio frequency identification (RFID) and voice, and new workload balancing tools to make processes more efficient.

Supply Network Collaboration (SNC)

Supply Network Collaboration covers all planning processes with direct interaction and data exchange with customers and suppliers. SNC is one of the core capabilities of Adaptive Supply Chain Networks. Through SNC, buyers and sellers can simultaneously eliminate inefficiencies in their supply chains by synchronizing the information flow with suppliers and customers. On the supplier collaboration side, SNC includes upstream business processes like Supplier-Managed-Inventory, Order Collaboration for discrete orders, releases and subcontracting orders. On the customer collaboration side, downstream business processes like Responsive Replenishment are managed by SNC.

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