Serve your priority customers/channels with Supply Protection in S/4HANA


Hyper-personalization has grown strong in the last few years and along these lines, businesses are expected to deliver channel-agnostic tailor-made offers and exemplary customer service, that creates an intimate and individualized value for repeat engagement and more loyalty. For building that loyalty to ensure recurring interactions and repeat orders, delivering your orders to key customers and channels on time is paramount. Committing and failing to keep delivery dates may see declining orders.

Real-time visibility is also the most important supply chain capability for delivering an enhanced customer experience. Real-time visibility to orders, shipments, and inventory received the most top-factor votes overall (28%), followed by Time-definite deliveries (20%) and Proactive notifications regarding orders and shipments (19%) - Supply Chain Research

Unfortunately, the unpredictability of the supply chain means companies find it hard to promise a delivery date for their client’s orders. In some instances, they would commit to a delivery date and then face product shortages or don’t get their hands on the requisite raw materials in time to manufacture the stock, leading to delays and dissatisfaction that ruin relationships and lower lifetime value.

Why do businesses fail to meet demand on time?

The absence of accurate stock management with proper visibility and intelligent allocation to customers means brands end up delivering the goods to other customers/channels, leading to Out-of-Stock (OOS) situations for priority customers/channels. In some cases, the reserved goods of top-tier clients/channels would end up with a less valuable client/channel, making it hard for the business to satisfy the demands of the priority customer/channel on time.

This is where businesses need a solution that can smartly assess the in-store stock, stock in the warehouse, client/channel relationship priority, and other factors, throughout the supply chain to take the guesswork out of the process and fulfill the order to the right customer/channel at the right time. The Supply Protection (SUP) feature in SAP S/4HANA helps businesses protect stock, give out delivery dates, and unlock other benefits. Let’s understand Supply Protection better.

What is Supply Protection (SUP) in SAP?

First-come-First-Serve may not be the best approach to serving your customers. Businesses don’t want to sell their goods in the sequence of incoming orders. Instead, they would want to reserve some quantities for special groups and assign priorities to these groups. This is where Supply Protection comes into the picture to protect quantities of a material against the demands of other groups.

Read more https://www.applexus.com/blogs/s4hana-aatp-for-supply-protection

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