SCM APO vs. SOP in R/3

[Former Member]

Dear SCM experts,

I have a client who would just like to do the simple sales forecasting and demand planning based on the sales history by sales region and product group. I understand SAP R/3 has Sales and Operation Planning functions. What is the difference between SAP R/3 SOP and SAP SCM APO? I wander if we have to go to SAP SCM APO in order to do the sales forecasting and demand planning.

Thanks,

Richard

[Former Member · Accepted solution]

The SCM APO is extention of Forecasting fucntionality based on the requirements without changing the documents in R/3

Supppose if you use Demand planning of APO .......then based on the history or sales palnning you do the forecast aswell as you can alter that forecast by directly entering the customer based forecast or based on your past experience....you can do many thing in APO to change the forecast adn send bakc to R/3 as planned independent requirements.

Hope this will gie fare idea.

SAP Advanced Planning and Optimization (SAP APO) offers a fully integrated pallet of functions that you use to plan and execute your supply chain processes. SAP APO supports the following:

· Business collaboration on a strategic, tactical, and operational planning level

· Co-operation between partners at all stages of the supply chain process; from order receipt, stock monitoring, through final shipping of the product

· Cultivation of customer and business partner relationships

· Constant optimization and evaluation of the supply chain network’s efficiency

Use APO Demand Planning (DP) to create a forecast of market demand for your company's products. This component allows you to take into consideration the many different causal factors that affect demand. The result of APO Demand Planning is the demand plan.

Demand Planning is a powerful and flexible tool that supports the demand planning process in your company. User-specific planning layouts and interactive planning books enable you to integrate people from different departments, and even different companies, into the forecasting process. Using the DP library of statistical forecasting and advanced macro techniques you can 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 reconcile the demand plans of different departments. To add marketing intelligence and make management adjustments, you use promotions and forecast overrides. The seamless integration with APO Supply Network Planning supports an efficient S&OP process.

[Former Member]

But I heard that MRP is also available in APO. Is it true?

Thanks,

Richard

[Former Member]

Yes MRP is ther but in this case you have to implement the DP, SNP and PP/DS...that means you are using total APO wihtout the Base system R/3. in this case you have to mantian all data in APO.

[somnath_manna]

Hi Richard,

As Charlie has already explained - for Sales Forecasting process you can use Demand Planning (DP) module of APO. As regards MRP - APO uses Heuristics for doing Net Requirement Planning along with many other functions related to replenishment, requirement, production and scheduling operations.

In APO there are two major modules using these Heuristics namely Supply Network Planning (SNP) and Production Planning Detailed Scheduling (PPDS). For a Supply Chain based Replenishment/Requirement planning the SNP module can be used. High-level DP will be used to collect, generate and arrive at a consensus forecast numbers. This forecast (requirement) is then passed to SNP module of APO where the requirements are netted against stock and expected receipts at Distribution Centers and then net requirements passed to the manufacturing plants wigth suitable lead-time offsets. At the manufacturing plant the detailed production planning and scheduling at operation level can be carried out using PPDS module.

For your customer requirement based on information shared by you DP and SNP module of APO should suffice the requirement.

Hope this helps,

Somnath

[Former Member]

Thanks Charlie.

In order to have this benefit,

-Co-operation between partners at all stages of the supply chain process; from order receipt, stock monitoring, through final shipping of the product.

Do we need to have both systems SAP APO and SAP R/3 in place? Since my client is not using any SAP solution yet, in phrase one we would just want to have a demand planning tool first with interfaces with our in-house developed systems. In phrase II, then we would would like to a have an integrated SAP ERP.

Thanks,

Richard

[Former Member]

Without R/3 how will you run your MRP based on the Forecast of APO....anyway you can use the APO without R/3 but then you will have to create many interface with your legacy system