Available-to-Promise (ATP) in SAP Supply Chain

Available-to-Promise (ATP) in SAP Supply Chain

Available-to-Promise (ATP) is a key function in SAP Supply Chain Management (SCM) that helps businesses to determine the quantity of a product that can be promised to a customer on a specific delivery date. It does this by taking into account various factors, such as:

  • Inventory levels:The quantity of a product that is available in stock

  • Planned production:The quantity of a product that is scheduled to be produced in the future

  • Purchase plans:The quantity of a product that is scheduled to be purchased from suppliers

  • Sales orders:Orders that have been received from customers but have not yet been shipped

  • Lead times:The time it takes to manufacture or procure a product and deliver it to the customer

ATP is performed using a process called ATP check. The ATP check is triggered automatically when a sales order is entered into the system. The ATP check performs the following steps:

  1. The system checks the inventory level of the ordered product.

  2. If the inventory level is greater than or equal to the order quantity, the ATP check is successful and the system determines the delivery date.

  3. If the inventory level is less than the order quantity, the system considers other factors such as planned production, purchase plans, sales orders, and lead times.

  4. Based on these factors, the system determines the quantity of the product that is available to fulfill the order.

  5. If the available quantity is greater than or equal to the order quantity, the ATP check is successful and the system determines the delivery date.

  6. If the available quantity is less than the order quantity, the ATP check fails and the system informs the customer of the delay.

ATP helps businesses to achieve the following benefits:

  • Improved customer satisfaction:By providing customers with accurate delivery dates, businesses can improve customer satisfaction.

  • Improved inventory management:By optimizing inventory levels, businesses can reduce inventory costs.

  • Reduced lost sales:By avoiding delivery delays, businesses can reduce lost sales opportunities.

ATP is a critical function in SAP SCM that helps businesses to efficiently manage their supply chains and improve customer satisfaction.

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