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Supply Chain Performance Management 2.0 offers better integration, analytics

SAP BusinessObjects Supply Chain Performance Management 2.0 includes a new Rapid Deployment option and ups the value in Enterprise Performance Management, according to consultant William Newman.

After nearly one year of ramp-up, SAP BusinessObjects Supply Chain Performance Management (SCPM) release 2.0 is scheduled for general availability in Q3 of 2012. Its many improvements have drawn attention from both software industry analysts and practitioners alike.

One of the “nonfinancial” solutions in the SAP BusinessObjects Enterprise Performance Management stack, SAP SCPM has matured significantly since 2010. Originally, SCPM was viewed as the performance management answer to integrated logistics and material processes found in SAP Business Suite applications, including Supply Chain Management (SCM) and its extension, Advanced Planning and Optimization (APO).

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As with the earlier version, SAP SCPM integrates with SCM and APO platforms, providing a preconfigured analytics environment for the business of moving, shipping and making products and delivering services. In addition, information may be loaded from preconfigured BI InfoCubes and other data environments for financial and sensitivity analysis.

Based on the deeper integration moving into release 2.0, users can perform root cause analysis in SCPM and align to financial objectives associated with key performance indicators. Benchmark data provided by SAP Value Engineering further aligns the best practices for the application in SCPM release 2.0.

Greater risk mitigation, supply chain visibility

SAP SCPM 2.0 also improves operational risk management processes as they relate to the supply chain. Tighter integration with SAP BusinessObjects Risk Management 10.0 means that mitigation plans and risk events can be mapped backward and forward between the two applications. This is a capability that users of the current release suggested following logistics disruptions from the BP oil spill in 2010 and the tsunami in Japan last year.

Additional supply chain visibility is now available in the form of predictive analytics and scenario modeling for both procurement and inventory management Furthermore, specific industry content focused in the core value chain models to match the Business Suite industry applications allow users greater access. SCPM Release 2.0 is also available in a Rapid Deployment model framework. This limits risk and guarantees a specific, fixed time for implementing the application's core capabilities.

Release 2.0 will also offer language support in Spanish, Portuguese, French and Japanese. This extends support beyond English, simplified Chinese, Turkish and German, available in the current release.

William Newman is managing principal of Newport Consulting Group, an independent management and technology consulting firm based in Clarkston, Mich. Email him at or follow him on Twitter (@william_newman).

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