APO DP and SNP compare to ECC Demand management and MRP

[Former Member]

Hi Experts

We have a APO project for our client. 

Basally, DP will run baseline forecast consumption forecast based on historical data ( moving average),  maintain the consumption forecast in Demand Plan, Then Release to SNP  to run heuristic for the procurement , and check the stock position.

Our client have a question, say why APO, why not MD61+MD04 (MRP)

To me, DP have a consolidate view, statistical forecast, easy maintain forecast, with the attributes.  SNP is a ready time, consolidate book compare to MD04. I do like the stock projection in SNP during the simulation.

The feeling like, you have a car, but you don’t want use the car, instead you want carry the car and walk.  But I don’t have a killing point that we must use APO. 

However does SAP have a comparison the DP+SNP to ECC Demand management and MRP?   , I want a summary of the comparison and maybe a killing point that we must use APO.

Thanks a lot

James.

[Former Member · Accepted solution]

Thank you Marius and Mariano, very helpful answer. I also read thread, very ingesting.

Forgot to mention, we will also release back SNP result (PR + Stock -safety stock) to DP, when there is constraint of supply.   

In SNP it's quite straight forward, sometimes one plant for purchase. sometimes, there is a network between warehouse and site plant.  But the distribution is not the requirement. The requirement is only to calculate the purchase base one MRP logic.  So no capacity levelling or deployment etc.

DP I think it’s quite easy to back up, it's a bit difficult to back up SNP from functional perspective.   But from user usability perspective, it is really helpful to plan interactively in a Book for a bulk of materials drill down (around 1000 SKU, at this point ) , rather than one by one in MD04 ?

Is that a killing point?

Thanks James.  

[Former Member · Accepted solution]

Hello James,

In my opinion yes.

Another killing point can be if you work with supply chain engineering SCE. So, better view, control of the supply chain (from/to flow, SKUs flow, means of transport, work center, etc.).

Regards, Marius  

[marianoc · Accepted solution]

Hi James,

As you said, planning in SNP from an user usability perspective, it is really helpful and much better than in ECC. Now, it is also true that when you introduce APO with his planning books and powerful functionalities, you are also introducing an interface that sometimes fails and required a daily maintenance. So if the complexity does not require a powerful system, then you maybe don't need APO SNP.

Now, you mentioned that you want to release back SNP result to DP.. In this case, this could be a problem if you don't have APO SNP.. At least this would be much easier if you have SNP.

Kind Regards,

Mariano

[Former Member]

Hello,

In my opinion the killing points for DP should be forecast accuracy and stock. A good forecast equal with a low stock level, so economy.

The killing point for SNP could be multilevel network planning. With one click you plan all network from customer to supplier and then you can do the capacity leveling to take in consideration the production capacities.

Another killing point is the APO performance of the technology  LiveCache (100 faster than ECC).

Regards, Marius

[marianoc]

Hi James,

APO (DP&SNP) has a more and better funtionalities, but an APO implementation will be more expensive and the effort required to maintain (for your users and IT teams) APO will be higher.  An ECC PP (SOP&MRP) couldb be ok for you, if what you need is not too complex.

Anyway, in your case, I would probably use DP in APO and MRP in ECC. The performance in DP is really much better than in ECC.. Sometimes, even when the complexity of what you need is not a problem, the performance is not going to help.

Check the following thread, specially the comparison made by the expert: Somnath Manna

Kind Regards,

Mariano