SAP APO (Advanced Planner and Optimizer)
SAP APO is the planning component within the mySAP SCM solution. APO is an acronym for Advanced Planner and Optimizer. This is a large component of SAP's New Dimension products. APO is an entire suite of supply chain planner applications that increase overall knowledge of the supply chain and provide forecasting, planning and optimization.
There are eight application levels within SAP APO: network design, supply network planning, demand planning, production planning and detailed scheduling, transportation planning and vehicle scheduling, global availabilty and supply chain collaboration.
The SAP APO is not a standalone application and requires a backend ERP system such as SAP R/3 for the execution. SAP R/3 communicate with SAP APO using the the APO Core Interface (CIF) which supplies SAP APO with the master and the transaction data in the real time. Interaction between the SAP R/3 at backend and the SAP APO is in real time and any data related to the production, the sales or the supplies is immediately transfered from one system to another without requiring any batch processing.
The efficient way of installing some standard SAP APO scenarios is by reference to the SAP Best Practices for Supply Chain Management.
SAP APO (Advanced Planner and Optimizer) Hints and Tips What is SAP APO? SAP Advanced Planner and Optimizer (SAP APO) is a key application component of mySAP.com and forms a technical foundation for several mySAP.com solutions. What is the benefits of using SAP APO? The benefits of the SAP APO, is that it provides the basis for an end-to-end supply chain management solution, seamlessly linking all key processes -- from order generation to production planning to transportation. SAP APO offers functionality for: • Demand planning • Supply network planning • Production planning • Detailed scheduling • Available to promise Although SAP APO is no longer marketed as a separate solution, its functionality underlies mySAP Supply Chain Management, mySAP Customer Relationship Management, and mySAP E-Procurement.
Modules within SAP APO
Supply Chain Cockpit
Demand Planning - a toolkit of statistical and collaborative forecasting techniques.
Supply Network Planning - used to calculate quantities to be delivered to a location in order to match customer demand and maintain the desired service level.
Global Available to Promise - uses a rule based strategy to ensure you can deliver what you promise to your customers.
Transportation Planning / Vehicle Scheduling - optimizes transportation route and schedules vehicle resources.
Service Parts Planning
Production Plan / Detailed Scheduling - create procurement proposals for in-house production or external procurement to cover product requirements and optimizes the same.
Using Demand Planning, you can:
· Perform collaborative forecasting
You can collect forecast data from multiple sources and store it in a common repository so planners from marketing, sales, logistics, and even third-party vendors and suppliers can work together on a consensus forecast.
· Manage product life cycles
You can manage the life cycles of your products according to such factors as product supersession, substitution, and cannibalization.
· Plan promotions
You can model promotional demand based on profitability goals, product availability, and historical patterns. You can even predict how price increases or decreases will affect future demand.
· Forecast new product demand
You can develop accurate forecasts for new products based on models from similar products, demand histories, and other factors. You can monitor the launch of a new product and the end of a product’s life using point-of-sale data.
· Perform causal analysis
You can identify and predict how such factors as demographic changes, environmental variables, and social or political factors affect demand for your products. You can analyze actual demand using a variety of tools, such as multiple linear regression, and incorporate causal factors such as price.
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