Below, Venture Outsource highlights fundamental differences in the functional approach of demand management programs in SAP ECC 6.0, Oracle / JD Edwards and NetSuite.
The core demand management functionality inherent in both SAP and Oracle / JD Edwards was designed 20 years ago.
The pressing issue for today’s electronics manufacturers is integrating CRM and MRP functionality.
Core functionality of tier-1 and -2 ERP have been around for a long time. Obviously, the Internet and mobile technology we take for granted today was in its infancy when their code was developed.
Plus, computing has become more powerful, making it possible to run larger more integrated business processes in an ERP system a fraction of the time doing the same would have taken way back in 1994.
The possibility of real time collaboration with customers and field sales had not had the impact that sales mobility and CRM integration has had today.
Traditional ERP
JD Edwards and SAP ECC create demand plans based on a best-fit forecast of sales history as the basis of the production plan.
The core business process for SAP / JD Edwards looks like this:
Sales quote => Sales order document => Sales order transaction file => Aggregated sales history file => Forecast engine=> Best fit statistical forecast => Demand plan worksheet => MRP
Using SAP or JD Edwards, a quote is issued to the customer and some of the quotes are converted to sales orders. Records of sales orders are stored in a transaction file where they are processed through to shipment. The sales transaction file is then extracted into a sales history file.
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The sales history file can then be used as input to the ERP’s built-in forecasting engine, which, using a best-fit algorithm the forecast engine creates a forecast for the product, need date, and, if desired, shipping point.
Or, it can be exported to an external forecasting engine and then reimported as a forecast file in ERP.
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