SAP SCM stands for Supply Chain Management application of the SAP environment. SAP AG, the German software giant, is known for its vast number of business-related applications that have transformed the way companies are able to plan and operate. SAP was founded in 1972 and began as an enterprise resource planning software solutions company. They cater to all industry sectors and companies of varying sizes.

What is Supply Chain Management?

SCM refers to the flow of goods and services. This could be the storage and transport of raw materials, or some sort of inventory, or even fully finished products. It has been defined as constituting planning, design, control, and execution and monitoring of the numerous supply chain activities.

SAP SCM has been created for the management of supply chain processes within an organization. It aids in the planning, networking and the execution of all activates related to supply chain in an organization.

Here are some of the key features of SAP SCM.

  • It helps all the parties in the supply chain, from suppliers, manufacturer, retailers, business partners and customers connect with each other, allowing them to manage the process effectively with ample communication.
  • It helps with the optimizations of end-to-end procedure, such as a procure to pay process.
  • SAP SCM is a comprehensive software, with Supply Chain networking, planning, and coordination, and execution all integrated together.
  • Several other planning applications such as the Advanced Planning and Optimization, also known as APO, are present for integration with a number of other SAP execution software. In fact, SCM is just a small part of the bigger APO.
  • By using supply chain processes in environments that are distributed, and can also enforce contractual compliance with supplier and supply side requirements.
  • SAP SCM has an excellent forecasting feature that will help you analyze the results of all the processes that have put into place. This can give you an excellent idea of what to expect, and what has changed with the new implementations.
  • Transportation planning and vehicle scheduling is another key feature that helps make logistics very easy.
  • Supply network planning allows the creation of feasible plans for the production, distribution, procurement and the replenishment of inventory and any other commodity. Inventory management is critical for supply chain management and SCM helps you out immensely in that field.

Being well-versed in SCM is incredibly useful for project managers and anyone overseeing a project. Monitoring all the elements is a genuinely massive task, and the aid of any form of software will prove to be a godsend.

Several project opportunities exist. Almost any large company will have some sort of supply chain management in place. With a SAP SCM specialist, they can streamline these processes and ensure maximum efficiency. In India, several positions require practical experience with SAP SCM to qualify for the job. In the United States, technical expertise in SAP is held in high regard, and numerous opportunities are present. Tutorials from websites such as Stechies will also allow you to get the necessary expertise that companies want. Soon, you too will have the chance to be working on a project that requires SAP SCM!