Ask the Manufacturing Execution Systems (MES) Expert: Scheduling Assistance
 Asked on Jun 2 2005 10:03:34:000AM | Q | SAP talks about creating a "business process platform" enabled by its NetWeaver application integration architecture that uses SAP-supplied and certified third-party code to build new applications and / or infuse existing apps with additional functionality. How should my company, an SAP shop still running R/3 in the consumer products space, prepare for the transition to these composite applications as we begin upgrading to mySAP ERP? We are evolving to a build to order business model and need better ways to manage our inventory and work in progress, while preventing stock outs. Aaron, Boston |
| A | I assume that you mean "assemble-to-order" unless you are in a specialty end of your market. Either way, assuming that your upgrade to mySAP goes well, the emergence of SAP's business process platform endeavor will not adversely affect your mySAP implementation. When SAP speaks of its BPP, what they're really talking about is NetWeaver, which is expected to be on the market in its full incarnation by 2007. NetWeaver is designed to extend, rather than replace standard ERP functions throughout an enterprise. More importantly, it is the lynchpin to a long-term, next-generation application approach R3-like functionality that support core modules such as SCM, CRM, etc., over which composite applications in the form of third-party applications, distinct functional and process modules, or even web services would run. The idea is to give the enterprise flexibility in how it constructs its architecture while providing the LOB the ability to build or change application functionality to support business process changes as they are needed. It's a great concept (it is somewhat reminiscent of Novell's ill-timed Appware pitch in the early ?90s), but as SAP realistically acknowledges, it will take organizations a long time to get there. The reason is that the new approach will require that businesses alter their IT infrastructure to support this modular application approach. I would note that SAP is not alone in advocating this new application approach, and is joined by the likes of Microsoft and many other SCM and ERP vendors. It is not to be ignored and more than likely represents the next wave of application technology and business process function support. To your point on how to improve WIP and inventory management, it is very difficult to smooth out process flow without first refining your internal processes, or gaining greater visibility into customer demand and supplier capabilities. I assume as a CPG manufacturer that you are now warehousing components somewhere and assembling them at another location. The BPP holds the promise of building tight and flexible integration of those activities within your enterprise. The question is how will you do that with multiple trading partners up and down the demand chain? That's the killer requirement if you are to successfully move to a demand-driven operating environment. |
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