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Key Components of An SAP SCM Organizational Structure

The organizational structure of SAP Supply Chain Management (SCM) includes key entities such as Company Code, Plant, Storage Location, Sales Organization, Distribution Channel, and Purchasing Organization, which facilitate control over procurement, production, warehousing, and sales. It allows for hierarchical relationships among units, role-based access for users, and customization based on business needs. An example structure includes a Company Code with multiple plants and associated storage locations, along with a sales organization managing various distribution channels.

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30 views2 pages

Key Components of An SAP SCM Organizational Structure

The organizational structure of SAP Supply Chain Management (SCM) includes key entities such as Company Code, Plant, Storage Location, Sales Organization, Distribution Channel, and Purchasing Organization, which facilitate control over procurement, production, warehousing, and sales. It allows for hierarchical relationships among units, role-based access for users, and customization based on business needs. An example structure includes a Company Code with multiple plants and associated storage locations, along with a sales organization managing various distribution channels.

Uploaded by

Jancy Sunish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ORGANIZATIONAL STRUCTURE OF SCM

In SAP Supply Chain Management (SCM), the organizational structure is typically built
around key entities like "Company Code," "Plant," "Storage Location," "Sales
Organization," "Distribution Channel," and "Purchasing Organization," with each
representing a distinct level within the supply chain process, allowing for granular control and
management of different aspects like procurement, production, warehousing, and sales
based on specific organizational units within the company; users can define relationships
between these entities to reflect their business processes and workflows.

Key components of an SAP SCM organizational structure:

 Company Code: Represents a legally independent entity within the company, often
used for financial reporting purposes.
 Plant: A production facility or location within a company code, responsible for
manufacturing and materials planning.
 Storage Location: A specific area within a plant where materials are stored.
 Sales Organization: The unit responsible for managing sales activities, including
customer interaction and pricing.
 Distribution Channel: Defines how products are marketed and sold (e.g., online,
retail)
 Purchasing Organization: The unit responsible for procuring goods and services
from vendors

Important aspects of SAP SCM organizational structure:

 Hierarchical Relationships: Each organizational unit can be linked to other relevant


units, creating a hierarchy that reflects the flow of materials and information within the
supply chain.
 Role-Based Access: Users are assigned specific roles based on their organizational
unit, granting them access to relevant functions and data within the SAP system.
 Customizable: Depending on business needs, users can tailor the organizational
structure by adding additional levels or modifying existing ones.

Example of how an SAP SCM organizational structure might be set up:

 Company Code: "Global Manufacturing" (ox15)


o Plant: "Plant A" (located in the US) (ox10)
 Storage Location: "Raw Materials"
 Storage Location: "Finished Goods"

o Plant: "Plant B" (located in Europe)


 Storage Location: "Assembly Components"

 Sales Organization: "North America Sales"


o Distribution Channel: "Online Sales"
o Distribution Channel: "Retail Sales"

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