SAP Supply Chain Management (SAP SCM) delivers supply chain execution excellence and best-of-breed functionality by integrating sales order management, transportation, and warehouse processes, and by linking to back-end financials, manufacturing, and purchasing. Features and functions include:

• Materials management – By sharing information about inventory and procurement orders, SAP SCM ensures that the materials required for manufacturing are in the right place at the right time. Plan-driven procurement, inventory management, and invoicing close the feedback loop between demand and supply – and improve fill rates and customer satisfaction through increased replenishment speed, delivery confirmation, and invoice accuracy.
• Manufacturing execution – SAP SCM supports all production processes, including engineer-to-order, configure-to-order, make-to-order, and make-to-stock. It also generates optimized production schedules that take into account real-time material and capacity constraints. By integrating manufacturing with other supply chain processes, SAP SCM enables a rapid, flexible approach to responding to engineering changes and customer requirements.
• Order promising – Based on the global available-to-promise (ATP) capability, order promising receives queries from order management or CRM systems, and determines when a product is available across a fulfillment network or can be built. It also shows how much the product will cost, and how long it will take to deliver. Order promising is the critical link between order management/CRM systems and supply chain planning systems, providing a window into product availability.
• Transportation execution – SAP SCM allows distributed enterprises to manage transportation from a centralized location or from locations throughout business units. Transportation managers can consolidate orders and optimize shipments from suppliers to customers – to get maximum efficiency for their transportation dollars. They can also consider transportation constraints and costs while ensuring time-definite deliveries. SAP SCM supports shipment tendering and booking, carrier selection, freight building, freight cost calculation, shipment cost settlement, document printing, and international trade management, such as denied-party list screening and embargo lists.
• Warehouse management – Warehouse management reconciles open purchase orders with incoming shipments, supports a put-away system that remembers where goods are stored, and optimizes employee picking assignments. Warehouse management also supports warehousing tasks such as labeling, kitting, and deferred handling.