| It is an undeniable fact that SAP gains more and | | | | forecasting. Forecasting is one of core sub-modules, |
| more customers such as big US and global | | | | and Planning is based on sophisticated planned data |
| Corporations and government. | | | | which is forecast data. The name SCM (Supply |
| SAP's greatest opportunity probably lies beyond | | | | Chain Management) is also used interchangeably to |
| Microsoft or IBM or Oracle. SAP AG is a global | | | | refer APO component. However, please remember |
| software company headquartered in Walldorf, | | | | that SCM itself is a generic term and discipline that is |
| Germany. SAP simply stands for Systems | | | | taught at major university or institution. DP |
| Applications and Products in Data Processing. It will | | | | (Demand Planning, i.e. Forecasting) and SNP (Supply |
| be highly worthwhile to go over the essential | | | | Network Planning) are major sub-modules of APO |
| components of SAP System as more and more | | | | SCM. It is interesting to note that as the SAP gains |
| companies are moving toward using ERP package | | | | more popularity among companies, SAP is currently |
| such as SAP rather than relying on traditional in-house | | | | adding Industry-unique modules called SPP (Service |
| development of Corporate Application Systems. | | | | Part Planning) with cooperation of major US Auto |
| First, there is R/3 or ERD or ECC. The name of this | | | | Industry (Ford) and CAT-Logistics. |
| component has been evolved, but the essential | | | | Third piece is CRM (Customer Relation |
| function of system component has not changed | | | | Management). This component is most likely |
| much. ERP stands for Enterprise Resource Planning | | | | corresponding to Traditional Customer Order |
| Software product SAP AG. | | | | Processing System. Customers can place orders, |
| This component has its own several sub-modules | | | | and orders are processed by CRM. Customer data |
| such as MM (Material Management), SD (Sales | | | | and Order data and material data are keys to |
| Distributions), FI/CO (Financial and Costing and Billing), | | | | manage this component. |
| PM (Plant Maintenance/Production Planning), WM | | | | There are also many layers/tools that are interfaced |
| (Warehouse Management) and HR (Human Resource | | | | with above three components. For instance, ICH |
| Management). It has Workbench environment | | | | (Inventory Collaboration Hub), EWM (Extended |
| where staff can develop customized program using | | | | Warehouse Management under SCM), XI (Exchange |
| ABAP programming and database tables to support | | | | Infrastructure), BI (Business Intelligence) and EP |
| companies' own internal business processing. Each | | | | (Enterprise Portal) could be those. SAP connects |
| sub modules support many screens/transactions and | | | | above three components using CIF (Core InterFace |
| reporting transactions to easily keep track of | | | | between ECC and SCM) and CRM Middleware |
| inventory, orders, movement of goods. Either | | | | (between ECC and CRM) to enhance data integrity |
| Business customers or traditional IT staff can | | | | and connectivity. |
| relatively merge together to design and develop | | | | Author attended several SAP classes in MM, SCM and |
| various business processes. ECC (Enterprise Central | | | | Customizations provided by SAP AG. There are still |
| Component) is recent name for R/3 or ERD. Even | | | | strong demands for SAP system and classes, and it |
| huge company can be sufficiently supported by this | | | | is hoped that more affordable training classes and |
| one component. | | | | materials will be available by other training agencies |
| Second component is called APO (Advanced Planning | | | | very soon. It is noted that there are |
| & Optimization). This component is all about | | | | also hands-on training site which provides CBT and |
| planning using demand data and the power of | | | | self study. |