Advance Planning and Optimization (APO)

Planning and Optimization of the entire supply chain

About SAP APO (Advanced Planning & Optimization)

SAP APO (Advanced Planning & Optimization) is an integrated suite of advanced planning tools that are used for the scheduling, execution and optimization of the entire supply chain. The processes covered by these tools range from forecast management to the detailed scheduling of production orders.

APO is not an independent application; it needs to be connected to an operating system such as SAP ERP. However, with the arrival of HANA technology, some APO modules are now available as a complement to SAP ERP without requiring new servers to be added.

Modules related to planning included in APO are:

APO DP – Demand Planning

Demand Planning has advanced forecast and demand management features with diversified forecasting models.

It is used by different departments to collaborate, with the help of layouts that are specific to each user.

It directly integrates into APO SNP, which means it can support the whole S&OP process.

APO SNP – Supply Network Planning

APO SNP – Supply Network Planning is used to schedule purchases, manufacturing and the necessary transfers throughout the supply chain in an integrated manner to meet customer demand and maintain the desired quality of service.

Amongst other things, APO SNP offers the functionalities of advanced inventory management, capacity management, deployment, inventory and transportation with or without optimization.

APO PP/DS – Production planning & Detailed scheduling

Production Planning & Detailed Scheduling is used to simultaneously schedule material requirements and detailed capacity leveling. It provides greater flexibility for planning and scheduling through to several heuristics that are able to carry out multilevel capacity leveling in addition to offering the ability to use an optimizer. Its advanced planning table is used by planners to work in an effective and flexible graphical tool.

APO gATP – Global Available-to-Promise

APO gATP – Global Available-to-Promise has features that determine when a product will be available so that a specific date can be confirmed with the customer when orders are taken.

APO gATP enables the availability of multiple sites to be checked at the same time, the alternatives to be chosen according to predefined rules and even a direct call to APO PP/DS to find out possible manufacturing dates depending on available capacity.

The added values of using SAP APO in your business are as follows:

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Demand Management

Improve the quality of forecasts and design a structured demand plan

Reduce inventory

Improve service quality and reduce inventory levels

Simulation and Comparison

Simulate and compare with the help of scenarios (APO DP, SNP & PP/DS)

Alert monitoring

Improve supply chain monitoring with the help of the alert-monitoring tool

Powerful and flexible tools

Optimize the production and supply plan using powerful and flexible tools

Increase delivery ratios

Reduce supply time and increase the number of deliveries performed by the promised date

Read our articles on scheduling and optimization

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