Role of Technology in Supply Chain

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  • View profile for Lyall Cresswell

    Transport Exchange Group Ltd, Trustd, CX North America

    3,515 followers

    UK carrier verification currently takes days, or even weeks, to complete. Qualified trucks sit empty while 3PLs pay premiums for overused carriers. Here’s how verification friction wastes capacity, and how to solve this: Historically, freight moved within close partner networks where carriers and 3PLs worked together repeatedly. That model works, but it’s imperfect. Especially as recent years have brought dramatic change: Volatility is standard, costs are unpredictable, and net-zero deadlines are looming. Facing this, 3PLs are searching for more efficient models - and the stakes are high. When a 3PL hands over critical cargo, it entrusts a third party with customer value and reputation. Proper licensing, reliability, and service are essential. A single failure can undo years of relationship-building. To manage this risk, many 3PLs created in-house verification systems: Checking certificates, reviewing compliance, and running processes that take days or weeks. They work, but are expensive, slow, and rarely scalable. Most providers remain tied to small pools of familiar carriers. The result is structural inefficiency. Carriers with capacity drive empty for lack of access, while 3PLs pay premiums to overused carriers. Empty miles rise, flexibility falls, and emissions grow. What began as a safeguard has become an industry-wide constraint. A better model treats trust as infrastructure: Instead of static approvals or one-time checks, verification runs continuously in the background. Carriers onboard instantly, and 3PLs flexibly tap wider networks without manual friction. This architecture relies on ongoing verification, dynamic scoring, and systematic proof over personal referrals. By embedding verification into the ecosystem, trust shifts from bottleneck to enabler of growth. We built Trustd to provide this capability, integrated into the TEG Logistics Technology platform. Trustd automates verification, monitors compliance continuously, and makes reliable capacity accessible at scale. The effect is immediate: Onboarding times fall from weeks to minutes. Carrier pools expand from dozens to thousands. Costs reduce. Emissions decline as networks operate more efficiently. Just as physical infrastructure once unlocked new possibilities, trust infrastructure now powers digital logistics. Adopters will gain efficiency, sustainability, and resilience. Learn how TEG’s trust infrastructure can transform your logistics operations - or stay ahead of the market with our free TEG Price Index: https://lnkd.in/eZTgQHqF

  • View profile for Bartolomé Ferreira
    Bartolomé Ferreira Bartolomé Ferreira is an Influencer

    Building custom software & AI solutions for industry leaders | North America LinkedIn Top Voice | B2B Growth Strategist & Serial Entrepreneur

    28,459 followers

    Still managing documents like it’s 2010? 𝐁𝐢𝐠 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐚𝐫𝐞 𝐛𝐥𝐞𝐞𝐝𝐢𝐧𝐠 𝐦𝐢𝐥𝐥𝐢𝐨𝐧𝐬 𝐛𝐞𝐜𝐚𝐮𝐬𝐞 𝐨𝐟 𝐨𝐮𝐭𝐝𝐚𝐭𝐞𝐝 𝐝𝐨𝐜𝐮𝐦𝐞𝐧𝐭 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭. Emails, PDFs, invoices, contracts... scattered, slow, insecure, impossible to track. The real pains we see every day: • No scalability. • Impossible search. • Security gaps and privacy risks. • Compliance failures (GDPR, HIPAA, CBP…). • Skyrocketing operational costs. • Low user adoption (because clunky systems kill adoption). • Outdated, inconsistent, and risky content — created without validation or alignment to company messaging. How do we fix it? ❌ Not with another document system. ❌ Not with off-the-shelf AI. 🎯 𝐈𝐭 𝐭𝐚𝐤𝐞𝐬 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬-𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜, 𝐝𝐨𝐦𝐚𝐢𝐧-𝐭𝐫𝐚𝐢𝐧𝐞𝐝 𝐀𝐈. What we’re seeing in the real world: • Millions of documents classified and indexed automatically. • Natural language search (“Show me the GDPR contract from 2022”). • Dynamic data protection, spotting risks before they hit. • Automated compliance handling. • AI-generated content aligned with corporate messaging, validated against trusted sources. • Key processes running 25–50% faster. We’re already doing this for logistics, pharma, oil and gas, insurance, and banking leaders. Plain Concepts 🚀 The companies that move first are turning their scattered data into real-time strategic decisions. This isn’t the future. This is happening. Now. Still filing PDFs manually? Your competitor’s AI is already making decisions while you’re still searching for page 12. #GenerativeAI #EnterpriseAI #DigitalTransformation #LIPostingDayApril 

  • View profile for Su Yin Anand

    Strategic & Values Based Leader| Independent Director | Part-Time Lecturer (Sustainability & Digitalisation in Maritime) | Strategy & Transformation | AI Ethics & Governance

    7,026 followers

    Close to 4 months into working in tech, here's my point of view on how using #AI, #GENAI, and #Blockchain can help #maritime benefit commercially, and meet #sustainability targets. The convergence of Artificial Intelligence (AI), Generalized Artificial Intelligence (GENAI), and blockchain presents a compelling vision for the future of the maritime industry, to ensure companies' long-term viability and competitiveness, and the collective pursuit of net-zero emissions. AI and GENAI can be seamlessly integrated into every process, from autonomous navigation and predictive maintenance to optimizing routes and managing fleets. Simultaneously, blockchain technology serves as the secure, transparent, and decentralized backbone, ensuring the integrity of data, facilitating collaborative decision-making, and enabling the tracking of emissions and sustainability efforts. This future-ready organization would leverage AI and GENAI's analytical prowess to optimize vessel operations, reduce fuel consumption, and enhance safety. AI could analyze vast quantities of data in real-time, predicting maintenance needs, minimizing downtime, and adjusting routes for maximum efficiency. GENAI, the next generation of AI, would build on these capabilities, learning from experience and adapting strategies over time for even greater efficiency and effectiveness. Meanwhile, blockchain would provide the secure and transparent ledger necessary for tracking and verifying operations, emissions, and sustainability metrics. Smart contracts could streamline commercial transactions, while blockchain's decentralized nature would ensure the integrity of records and promote trust among stakeholders. Moreover, the integration of these technologies would enable the maritime sector to meet critical sustainability targets. By tracking and reporting emissions on a blockchain, shipowners could demonstrate their commitment to environmental responsibility. Autonomous operations could minimize human error and optimize fuel use, while AI-driven route optimization would reduce overall emissions. These technologies hold the key to unlocking unprecedented operational efficiencies, enhancing safety, and promoting sustainability—all crucial for navigating the complex challenges and opportunities of the 21st century. Embracing AI, GENAI, and blockchain isn't just about keeping up with the times; it's about positioning businesses to deliver superior value to our customers, and contributing to a greener, more efficient maritime industry. How to start on this journey? Take a wholistic view of your technology roadmap in the context of your business strategy. Invest in hiring and growing the right people. Work with the right technology partners. #MaritimeTech #Sustainability #FutureOfShipping #Digitaltrade #Shipping

  • View profile for Derick Snell

    Group Go-To-Market (GTM) Engineer & Growth Marketing Leader | B2B/B2C Maritime SaaS | GTM Agents & Automation, ABX, Paid Media | 3x Founder

    7,852 followers

    Could the 'Who Pays?' question between shipowners and charterers be shipping’s biggest barrier to accelerating energy efficiency? Resolving this barrier isn't just about investment - it's fundamentally about building trust and adopting new commercial frameworks to drive technology adoption. Historically, energy efficiency was often viewed as an uncertain investment. Today, the mindset is shifting, thanks largely to independent performance validation that provides transparent, credible data. This not only reduces perceived risk but also fosters mutual trust. What practical steps can shipowners and charterers take to collaboratively address the 'Who Pays?' question? Here's a checklist: 1. Clarify Investment Responsibilities: Clearly define cost-benefit splits through contractual frameworks. Proven templates are readily available. 2. Establish Neutral Performance Measurement: Validate technologies independently to reduce uncertainty and build mutual confidence. 3. Align Commercial Objectives: Hold open, transparent discussions to align incentives between parties. 4. Prioritise Proven Technologies: Choose technologies with verified performance and measurable ROI to minimise risks. 5. Commit to Continuous Evaluation: Regularly monitor and evaluate technology effectiveness to ensure sustained benefits. 6. Engage a Trusted Third Party: Leverage independent expertise to facilitate smoother negotiations and collaboration. Trust-driven collaboration, underpinned by transparency, enables shipowners and charterers to accelerate progress in energy efficiency and responsible business. In a recent conversation, Nikos Benetis, Technical Director at Greenheart Management, offered a shipowner's perspective on such collaboration: "We always seek early engagement with our charterers on performance improvement opportunities for the concerned assets, clearly defining the available options and co investment possibilities upfront. On some recent projects, charterers have co invested, following independent reviews, sharing the costs and enabling both parties to clearly report better performance/emission data - a clear win-win." What's your perspective - have you encountered the 'Who Pays?' question in your role? Would you add anything to this checklist from your own experience?

  • View profile for Sarah Scudder - ITAM Nerd

    Modern IT Asset Management (ITAM). Unlock profitability by delivering data accuracy, automation, and intelligence across your entire technology ecosystem.

    29,759 followers

    Article I wrote for Forbes: Supply Chain Visibility: Only Possible With Supplier Collaboration. Meet Becky the Buyer. She’s a stone-cold procurement expert, & she’s an incredibly hard worker. Becky focuses a lot of her time communicating with suppliers, doing everything she can to stay in the know about orders, line changes and shipments. Becky rules. When Becky’s information is accurate, forecasting, demand planning and inventory planning are much easier and much more accurate. When her information is outdated or erroneous, issues arise quickly. Unfortunately, most of the time, it’s outdated or erroneous. At the root of Becky’s problem is a lack of true visibility across the supply chain. She and her team don’t have it because they rely on email & spreadsheets to communicate with suppliers and collect the information they need. Emails & spreadsheets?! 2010 called and they want their manual processes back. Disruptions are more common than ever, so you as a supply chain leader must be able to ascertain the problem, develop a solution and pivot quickly to mitigate risk and protect cash flow. If a shipment is going to be late or partial, you need to know immediately—not in a day or two when the email is found in a cluttered inbox (or worse, when the shipment arrives on the dock). I interview supply chain leaders every day who experience many of these same challenges. Their buyers are overloaded with clerical work, the process is slow and error-prone and they don’t really know the full story of what’s going on across the supply chain. Of course, there’s a solution to all this madness, and technology provides it. Modern supplier collaboration solutions bring buyers together with their suppliers in software that consolidates communication and automates the PO workflow from beginning to end. Instead of hoping to catch an email in a stack of emails, Becky’s team is notified the instant a message is sent. All communication happens within the context of specific POs, so everyone is always on the same page. At any moment of the day, Becky can see exactly what’s happening with an order—every last update, line change & acknowledgment. All of this information is written directly into the ERP, which eliminates the need for error-prone manual entry & guarantees the data is much more accurate. Now, demand planning and inventory planning are more accurate and forecast adjustments can be made quickly when new information is available. This exchange of information between buyers and suppliers is true collaboration. Without that seamless connection, there is no complete visibility and everything downstream is affected. A collaboration solution can provide real-time supplier scorecards so you can monitor on-time delivery, responsiveness and other critical key performance indicators (KPIs) that can be tailored to specific suppliers. We call this mutual accountability. 👉👉Full article: bit.ly/3qMYHe4

  • View profile for Harvinder Singh Banga

    Chief Information Officer at CJ Darcl Logistics Ltd. | Driving Digital Transformation

    25,991 followers

    🚚 𝗟𝗼𝗴𝗶𝘀𝘁𝗶𝗰𝘀 𝗜𝘀𝗻’𝘁 𝗮 𝗡𝗲𝘄 𝗚𝗮𝗺𝗲 – 𝗜𝘁’𝘀 𝗛𝘂𝗺𝗮𝗻𝗶𝘁𝘆’𝘀 𝗢𝗹𝗱𝗲𝘀𝘁 𝘍𝘳𝘰𝘮 𝘵𝘩𝘦 𝘦𝘢𝘳𝘭𝘪𝘦𝘴𝘵 𝘵𝘳𝘢𝘥𝘦 𝘳𝘰𝘶𝘵𝘦𝘴 🐫 𝘵𝘰 𝘵𝘰𝘥𝘢𝘺’𝘴 𝘰𝘯𝘦-𝘤𝘭𝘪𝘤𝘬 𝘥𝘦𝘭𝘪𝘷𝘦𝘳𝘪𝘦𝘴 📦, 𝘵𝘩𝘦 𝘢𝘳𝘵 𝘰𝘧 𝘮𝘰𝘷𝘪𝘯𝘨, 𝘴𝘵𝘰𝘳𝘪𝘯𝘨, 𝘢𝘯𝘥 𝘥𝘦𝘭𝘪𝘷𝘦𝘳𝘪𝘯𝘨 𝘨𝘰𝘰𝘥𝘴 𝘩𝘢𝘴 𝘢𝘭𝘸𝘢𝘺𝘴 𝘣𝘦𝘦𝘯 𝘵𝘩𝘦 𝘣𝘢𝘤𝘬𝘣𝘰𝘯𝘦 𝘰𝘧 𝘤𝘪𝘷𝘪𝘭𝘪𝘻𝘢𝘵𝘪𝘰𝘯. 🕐 But over the last decade, the rules have changed.  With the e-commerce boom and the pandemic-driven demand, customers now expect: ⚡ 𝗟𝗶𝗴𝗵𝘁𝗻𝗶𝗻𝗴-𝗳𝗮𝘀𝘁, 𝗱𝗼𝗼𝗿𝘀𝘁𝗲𝗽 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝗶𝗲𝘀 👁️🗨️ 𝗥𝗲𝗮𝗹-𝘁𝗶𝗺𝗲 𝘁𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 💯 𝗦𝗲𝗮𝗺𝗹𝗲𝘀𝘀 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲𝘀 Yet here’s the challenge:  The biggest hurdles today aren’t physical — they’re digital. Over 56% of consumers demand full visibility on their orders, but many logistics providers are still playing catch-up. 💡 The industry is rising to meet this moment with innovation: 🤖 AI is optimizing operations 🔗 Blockchain is offering trust, traceability & transparency 🧠 Smart integration is streamlining stakeholder coordination Real Talk: Blockchain isn’t just a buzzword anymore.  It’s quietly transforming complex supply chains — from tea ☕ and coffee ☕ to pharma 💊 and defense 🛡️ — where traceability is mission-critical. 🔐 Despite this, only ~5% of global logistics firms are exploring blockchain.  But early adopters are seeing benefits like: 🛑 𝗥𝗲𝗮𝗹-𝘁𝗶𝗺𝗲 𝗳𝗿𝗮𝘂𝗱 𝗱𝗲𝘁𝗲𝗰𝘁𝗶𝗼𝗻 🧾 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗲𝗱 𝘀𝗺𝗮𝗿𝘁 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝘀 & 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 🚨 𝗧𝗵𝗲𝗳𝘁 𝗽𝗿𝗲𝘃𝗲𝗻𝘁𝗶𝗼𝗻 📍 𝗘𝗻𝗱-𝘁𝗼-𝗲𝗻𝗱 𝘀𝗵𝗶𝗽𝗺𝗲𝗻𝘁 𝘁𝗿𝗮𝗰𝗸𝗶𝗻𝗴 The future of logistics lies in smart, digital-first ecosystems — powered by AI, blockchain, and a mindset shift toward full visibility & trust. The next era of logistics isn’t just faster.  It’s smarter. Transparent. And finally, secure by design. 🔄🔐 🔖 #Logistics #SupplyChainInnovation #DigitalTransformation #FutureOfLogistics #SupplyChainVisibility #LogisticsTechnology #hsbanga Harvinder Singh Banga

  • View profile for Anam Rahman

    CEO at Kavida AI • AI Agents to Automate Procurement Tasks You Hate

    7,935 followers

    Procurement teams aren’t losing money because they’re careless. They’re losing money because they can’t see where it’s leaking. And by the time they do, it’s already too late. I’ve spoken to procurement leaders at some of the world’s largest enterprises. And here’s the uncomfortable truth we keep running into: The costliest problems in procurement aren’t just operational. They’re invisible. Here’s what I mean: Untracked obligations → On-paper agreements that never make it into systems or workflows. No one notices. No one follows up. No one gets billed. Inconsistent commercial terms → One supplier. Multiple contracts. Different pricing, rebates, and volume commitments. Legacy systems weren’t built to reconcile this kind of nuance, and people don’t have time to do it manually. Supplier overpayments → Not fraud. Just fragmentation. Discounts missed, surcharges ignored, renewals triggered without review. McKinsey estimates these blind spots drain around 2% of total enterprise spend. For a $2B company, that’s $40 million lost every year. It’s all because no one could see what was happening under the surface. The smartest procurement leaders I know are targeting the gaps no one else wants to touch. → Pricing terms embedded in PDF contracts. → Supplier commitments buried in email chains. → Manual workflows running on outdated knowledge. → Procurement strategies fragmented across teams, systems, and spreadsheets. That’s where AI shines. Not as a replacement for people. But as a visibility engine that surfaces insights no human could catch at scale. Because if you can’t see what’s happening in your procurement function, you definitely can’t optimise it —and you’re probably bleeding millions.

  • View profile for ARUN KUMAR KASINATHAN

    15K + Linkedin followers|SAP MM, PP ,IBP|Supply digital transformation |Kinaxis | Demand Sensing | Inventory Optimization | Supply & Demand Planning | Forecast Analysis|Procurement|Content Creator

    18,218 followers

    Mastering MRP in SAP PP – A Breakdown for Learners and Practitioners Planning materials in manufacturing doesn’t have to feel overwhelming. SAP’s Material Requirements Planning (MRP) helps businesses answer three core questions: ✔️ What materials do I need? ✔️ How much do I need? ✔️ When do I need them? Let’s simplify MRP for anyone diving into SAP PP or brushing up on the essentials—with config TCodes, real-life cues, and planning logic! 1. What Is MRP? MRP = Smart planner for materials. It ensures you have the right materials, in the right quantity, at the right time, using stock data, lead times, and demand. Think of it like planning a dinner: Check what’s in the pantry (stock) Count the guests (demand) Create a shopping list (planned orders) 2. Key MRP Elements in SAP Materials Required (Demand): Sales Orders Production Orders BOM Components (dependent requirements) Reservations Materials Received (Supply): Purchase Orders Planned Orders Schedule Lines Production Orders Formula: Requirement – Stock – Incoming = Shortage → MRP Proposal 3. Lead Time & Lot Sizing Lead Times include: Planned delivery time In-house production time Goods receipt processing time Lot Sizes include: Fixed (e.g., always produce 100 pcs) Minimum/Maximum Rounding values (multiples of 10, etc.) 4. Safety Stock Your insurance buffer. Helps prevent stockouts due to unexpected demand or delays. 5. Types of MRP Runs in SAP Net Change (NETCH / NETPL): Only materials with changes (inventory update, master data change) get planned. Run with: MD01 and choose the appropriate processing key. Full Regeneration (NEUPL): Plans everything from scratch, regardless of changes. Usually run weekly (e.g., Fridays). Single Item Planning: Plan individual material on-demand with MD02 or MD03. Background Scheduling: Use SM36 or MDBT to schedule nightly batch runs. 6. MRP vs MPS MPS (Master Production Scheduling): Top-level planning (e.g., finished goods) MRP: Plans components to meet MPS demand MPS run first (MD41), then MRP kicks in. 7. MRP Areas (Decentralized Planning) Use MRP Areas to plan at department/storage-location level: Defined in OMIZ Assigned in material master (MM02 → MRP 1 View) Supports focused, mini-plant-style planning 8. Configuration Must-Knows Create/Change Material: MM01, MM02 Create BOM: CS01 Create Routing: CA01 Create Work Center: CR01 Define MRP Types: OMD0 Define Lot Size Procedures: OMI4 Define Planning Horizon: OMI1 Assign MRP Controller: OMCY Manage Planning File: MD20, MD21, MD22 9. Real-Life Scenario: You're assembling laptops. BOM contains RAM Stock low on RAM MRP run (MD01) generates planned order Planner reviews in MD04 and converts to PO That’s MRP in action—automated, real-time, data-driven. If you find it useful, please For more insightful content follow ARUN KUMAR KASINATHAN #SAPPP #SAPLearning #MaterialPlanning #ManufacturingExcellence #MRP #SAPERP #DigitalTransformation #ProductionPlanning #SAPConfiguration #SAPBOM

  • View profile for Joyes Pramanik

    Certified SAP S/4HANA Asset Management Consultant | SAP PM/EAM/IAM/FSM/Mobile Asset Management Expert | SAP Implementation Specialist at TCS | Ex-Accenture, Steag Energy, Unilever | Mechanical Engineer (B.Tech & M.Tech)

    5,348 followers

    🌟 Mastering Material Requirements Planning (MRP) in SAP PM 🌟 Efficient maintenance depends on having the right materials at the right time. Enter Material Requirements Planning (MRP)—a game-changer in SAP Plant Maintenance (SAP PM). It ensures operations run smoothly by aligning material needs with maintenance tasks. 🚀 Let’s dive into MRP with technical details, practical insights, and examples. 🛠️ 🔑 What is MRP in SAP PM? MRP in SAP PM determines materials needed for maintenance tasks. It automates planning and procurement, reducing delays caused by unavailable materials. 🛠️ How Does MRP Work in SAP PM? 💡 Integration with Maintenance Orders: 👉 Specify Materials: Planners list the required materials in the order’s Bill of Materials (BOM) or manually add them. 📝 Seamless Flow: Materials are processed during MRP runs to ensure timely availability. 💡 MRP Process Overview: ⚙️ Run MRP: Execute through T-Code MD02 (specific materials) or MD01 (plant-wide planning). 📊 Analyze Requirements: MRP checks stock and open reservations to identify shortages. 🛒 Generate Proposals: Automatically creates purchase requisitions (PRs), planned orders, or stock transfer requests for shortages. 🌟 Example in Action: Scenario: A pump requires seal replacements during preventive maintenance. 🛠️ Planner Action: The planner creates a maintenance order in T-Code IW31, listing seals as components. 🔍 MRP Check: ✅ If available: Materials are reserved. ❌ If unavailable: MRP generates a PR. 🛒 Procurement Process: The PR is converted into a purchase order (PO) for procurement. 🎯 Result: Seals are procured in time, ensuring maintenance proceeds smoothly. ⏩ Technical Details of MRP in SAP PM: 🔧 Key Fields in Maintenance Orders 🧾 Component Tab: For listing required materials. 📦 Reservation Field: Automatically reserves stock items. 🛠️ Procurement Type: Indicates whether materials are in-house or externally procured. 🔧 Configuration Steps: 🔧 MRP Groups: Defined in T-Code OPPR for planning parameters. 🛠️ Material Master Setup: Configure Reorder Point and Lot Sizing in T-Code MM01/MM02. 🌟 Benefits of MRP in SAP PM: ✅ Prevents Material Shortages: Ensures availability before tasks start. 🤖 Streamlines Procurement: Automates PR and planned order creation. 📦 Optimizes Inventory Levels: Minimizes surplus stock while maintaining critical materials. 🚀 Boosts Maintenance Efficiency: Eliminates delays for timely task execution. 🚀 Real-World Applications: 🔄 Preventive Maintenance: Prepares materials for scheduled tasks. 🔧 Emergency Repairs: Triggers swift procurement for unexpected needs. 🏭 Shutdown Planning: Coordinates large-scale material requirements. 📈 Stock Replenishment: Identifies low-stock items for restocking. How do you utilize MRP in your SAP PM processes? Share your insights or challenges in the comments below! 💬👇 🐈 #SAPPM #MRP #PM #EAM #SAP

  • View profile for Vi jayakumar I.

    Problem Solver, Knowledge Blogger, Innovator, SAP Consultant, Lead, Solution Architect (ECC & S/4 HANA Modules) - Global Roles SAP ECC Modules - SD/VC/WM/MM/OTC/LOGISTICS/ABAP SAP S/4 HANA - AVC/AATP

    7,341 followers

    SAP MRP The Material Requirements Planning (MRP) process in SAP is a critical component for managing production planning and inventory control. It ensures that materials and products are available for production and delivery to customers, while maintaining the lowest possible inventory levels. Here’s an overview of how the SAP MRP process works: Key Objectives • Ensure material availability: Meet customer demands and production schedules by having the right materials in the right quantity. • Optimize inventory levels: Avoid excess inventory while preventing stockouts. • Plan production schedules: Align production activities with material availability and demand forecasts. Core Elements of SAP MRP 1. Master Data: • Material Master: Contains information on all materials within the company, including procurement type, MRP type, lot sizing, and lead times. • Bill of Materials (BOM): Defines the components and quantities required to produce a finished product. • Work Centers: Locations where production operations are carried out. • Routing: Sequence of operations needed to produce a product. 2. MRP Types: • Consumption-Based Planning: Based on historical consumption data. • Reorder Point Planning: Triggers procurement when stock falls below a certain level. • Forecast-Based Planning: Utilizes demand forecasts to anticipate material needs. 3. MRP Process Steps: • Net Requirements Calculation: Determines the quantities needed by comparing available stock and scheduled receipts against the required quantities. • Lot-Sizing: Determines the order quantity based on the lot-sizing procedure (e.g., fixed lot size, lot-for-lot, economic order quantity). • Procurement Proposal Generation: Creates purchase requisitions or planned orders based on net requirements and lot-sizing results. • Scheduling: Plans the start and end dates for production orders and purchase orders. 4. MRP Execution: • MRP Run: Executed using transaction code MD01, MD02, or MD03, depending on the scope (total planning, single-item planning, etc.). It can be run in regenerative or net change mode. 5. MRP Evaluation: • Stock/Requirements List (MD04): Provides an overview of current stock levels, planned orders, purchase requisitions, and sales orders. • MRP List: Shows the results of the last MRP run, allowing users to analyze planning results. Benefits • Improved Efficiency: Streamlines production planning and procurement processes. • Cost Savings: Reduces excess inventory and associated carrying costs. • Enhanced Customer Service: Ensures timely product availability to meet customer demands. Challenges • Data Accuracy: Relies on accurate master data and demand forecasts. • Complexity: Requires careful configuration and management to meet specific business needs. SAP MRP is a powerful tool that helps organizations balance demand and supply effectively, ensuring smooth production operations and optimal inventory management.

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