In the high competition logistics network efficiency is not simply a requirement that leads to success. It is a necessary condition for survival of an enterprise. Using a solution “Logistics Network Management” has already helped many businesses improve their logistics business processes and operations. In fact, this solution is the only integrated solution that enables companies to adapt the processes in the supply chain to the ever-changing competitive environment.
SAP “Logistics Network Management” solution is the only solution in its class, providing a complete set of features to create adaptive supply chains. These features can be divided into four blocks:
Planning – A solution allows to model a complex logistical network through the planning capabilities which include: logistics network design, planning, supply and marketing, production planning and scheduling transportation.
Implementation – A solution combines in single process operations of planning, validation, logistics and integrates operating systems as part of materials management, production execution, order confirmation, transportation and warehouse management. The solution is supplemented with an innovative radio frequency identification (RFID) technology.
Coordination – A solution allows you to monitor and analyse the processes within and outside of the company with the help of logistics network event and performance management.
Joint Activities with Business Partners – A solution allows you to share information, identify common goals in the logistics network and reach them through collaborative planning, forecasting and replenishment (CPFR), vendor-managed inventory (VMI) and subcontractor-managed inventory (SMI).
“Logistics Network Management” solution allows reducing costs through:
- reduction of inventory across the supply chains and increase the turnover of the company stock;
- productivity increase through effective management of special situations and enhancement in transparency of logistics network;
- reducing resource costs arising from the need to support heterogeneous systems.
“Logistics Network Management” solution implementation opens new opportunities for profit through:
- customer service level improvement and reducing the number of cases with stock-outs;
- implementation of a global verification system of availability and stability of production and the availability of alternative replacement opportunities;
- increasing the availability of information and a more rapid response to unexpected changes in demand.
“Logistics Network Management” solution helps to speed up the return on investment through:
- Reducing capital costs through more efficient planning of production and distribution;
- reducing investments in stocks by increasing inventory turnover in production and storage facilities;
- The increased percentage of orders execution and increase in the profitability of products.
In addition, “Logistics Network Management” solution implies scaling possibilities with the enterprise growth needs, allowing to maximize the efficiency of enterprise investment in technology.