Overview of SAP APO
SAP (APO) Advanced Planner and Optimizer is a set of software applications from the German-based software company SAP for supply chain management. Also, it is known as (APS) Advance Planning and Scheduling tool. SAP APO is a key component of SAP and forms a technical support for many SAP modules. The tool is designed to achieve high flexibility in business processes, right through from order generation to production planning and improving customer service while reducing costs.
According to SAP materials, Advanced Planner and Windows optimizer are designed to help a business improve production planning, pricing, scheduling, and product shipping. APO works by getting real-time updates from retailers about customer demand. The updates are being used to create APO demand triggers that take into thought many complex variables, including the delivery schedule of important materials and productions periods, to forecast the right amount of product blend the organization will need to meet future customer requirements.
Another important function of SAP APO is the Supply Chain Cockpit (SCC), it provides users with a graphical instrument panel for controlling and managing the supply chain. Various department of a company uses SCC like demand planners, strategic planners and production planners. APO involves eight application levels are network design, demand planning, supply network planning, development planning and detailed management, global availability, shipping planning and vehicle scheduling, and supply chain collaboration.
Significant Components of SAP APO used in Supply Chain
SAP APO is not a standalone product, but integrates with SAP ERP which supplies master and the transaction production, sales and material data in the real time to the APO application. Following are components of SAP APO.
APO (DP) Demand Planning
The demand planning component of APO can create a forecast of market demand for a company's products. Demand Planning is a flexible tool that supports the demand planning process in a company. Using the demand planning library of statistical forecasting and advanced macro techniques it is possible to create forecasts based on demand history as well as any number of causal factors, carry out predefined and self-defined tests on forecast models and forecast results, and adopt a consensus-based approach to accommodate the demand plans of different departments. Promotions and forecast overrides can be used to add marketing intelligence and make management arrangements.
APO (SNP) Supply Network Planning
This component integrates purchasing, manufacturing, distribution, and transportation allowing tactical planning and sourcing decisions to be simulated and implemented using a single consistent model. Supply Network Planning uses advanced optimization techniques, based on constraints and penalties, to plan product flow along the supply chain. The result is optimal purchasing, production and distribution decisions, reduced order fulfillment times and inventory levels, and improved customer service. This component is used to calculate quantities to be delivered to a location in order to match customer demand and maintain the desired service level. It includes both heuristics and mathematical optimization methods to ensure that demand is covered and transportation, production, and warehousing resources are operating within the specified capacities.
APO (PP/DS) Production Planning and Detailed Scheduling
PP/DS is designed to plan critical products, such as those with a long replenishment lead time or those that are produced on bottleneck resources. With the plans generated through PP/DS, it is possible to reduce lead times, increase on-time delivery, increase throughput due to better management and planning of resources, and reduce inventory costs.
APO (Global ATP) Global Availability to Promise
This functionality is required by companies as they manufacture and sell items in the global marketplace. A basic method of availability check is to perform an availability check on the items required, check any existing product allocations, and to perform a forecast check. An availability check on the items required is performed on the available to promise quantity. This quantity is calculated from the current stock, planned receipts, and planned requirements. The system dynamically checks stock and planned goods movements. The global ATP will also check any existing product allocations which may have already been made to specific customers or for a certain region that requires a longer shipping time. The forecast check is important as it allows users to identify if enough planned independent requirements are available for the incoming sales orders.
APO(TP/VS)Transport Planning and Vehicle Scheduling
By opting for best and short route of transportation, company can save time, money and fuel spent for transporting and delivering goods. TP/VS provides transportation planner and schedules the routes at lower transportation cost. It offers functions like shipment consolidation, route determination, carrier selection, multi-pick and multi-drop.
Advance Features in SAP APO
On manifesting positive outcome of SAP APO for business process, SAP APO is enhanced with extra features like
1. It has become much faster than before as main memory of SAP APO is updated to several gigabytes.
2. Scheduling is a significant part of any business process. To deal with Scheduling, currently SAP APO uses the following approaches, Constraint Planning, Generative Algorithm, and Repair Algorithm.
3. Now it comes with advanced optimization libraries like fast linear programming solver and effective constraint propagation for scheduling problems.
4. SAP APO now enables transactional ERP systems in the supply chain to be interconnected. This will help in monitoring costs and pricing.
SAP APO Training at SAPVITS
SAPVITS is one of the leading SAP Online Training and consulting company. We provide extensive SAP training to corporate and individuals. We recognize that many of you are willing to put the extra effort to migrate to SAP practice and become SAP consultants.
SAPVITS provides real-time and focused SAP APO Training and other SAP modules. We have designed this course according to the industry standards. We have planned our SAP APO course content and syllabus based on students requirement to achieve everyone’s career goal.
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