sap apo vs. ecc

SAP APO vs . SAP ECC

Jalil Mousavi

https://ir.linkedin.com/in/jalil-mousavi-b1564756

March 2015

© 2011 SAP AG. All rights reserved. 2

• 1.Strategic planning

SAP Business objects

Business Planning &

Consolidation(BPC)

• Demand Planning

Demand Planning with

APO

• Supply Planning

supply network planning with SAP APO

• Supply /Demand

Balancing

Demand & Supply

Planning with SAP

APO

• Management Evaluation

&Analysis

SAP Business Objects

Business Planning &

Consolidation(BPC) Xcelsius

dashboard

Major process Steps supported by SAP software


SAP APO

SAP Advanced Planning and Optimization (APO) is the planning component of SAP SCM, the supply chain management

solution provided by SAP. SAP APO is used to make strategic, tactical and operational decisions and supports you in

performing the following planning activities:

•Demand Planning (DP)

•Supply Network Planning (SNP)

•Production Planning (PP)

•Detailed Scheduling (DS)

•Deployment

•Transport Load Builder (TLB)

•Transport Planning and Vehicle Scheduling (TP/VS)

•Global Available-to-Promise (GATP)


Cont.

•SAP SCM is a more complete solution that covers planning, networking, coordinating and execution. In

addition to SAP APO, which is still the core of SAP SCM, there are other applications such as SNC

(Supplier Network Collaboration - erstwhile ICH), SCEM (Event Management), EWM (Extended

Warehouse Management) and SPP (Service Parts Planning).

•APO is an planning & optimization tool, means the results are optimized to the tune of optimized costs &

capacities, the system will plan the orders considering the best available cost & the capacities across the

planning chain defined in the system,

• APO is having the capabilities of planning the MRP & capacities simultaneously, means the planned

orders for the dependent requirements shall be generated provided the capacities are available on the

defined work centers, whereas in R/3 first the Qty. planning is done followed by capacity analysis. This shall

mean the planned order shall be generated irrespective of capacity available or not on the work center.

•APO is capable of doing the global planning across the supply chain.

•APO can do the broad level planning in SNP where in it looks for the header level material across the

supply chain globally & create the Planned orders or Purchase requisitions based on the shortfall qty. & PPDS is

responsible for doing the minute based planning at the shop floor.


Demand Management

Flexible Planning

S&D

Material Requirements

Planning(MRP)

Capacity Requirements

Planning(CRP)

Standard

SOP

Demand Planning(DP)

Manufacturing/Procurement

Production Planning/Detailed

Scheduling(PP/DS)

Supply Network

Planning(SNP)

Global Available to

Promise(GATP)

BW LIS

Transportation Planning &

Vehicle Scheduling(TP/VS)

ECC SCM

SAP ECC & SAP SCM Integration

CIF

• plants, vendors, customers

• Materials

• Work centers

• Routing and bom

• ……

• Sales order

• Planned/ production orders

• Purchase orders

• stock

• Production orders

• Order proposals

• Result of availability check

ECC APO

:Master data Transaction data: APO ECC

planning result


Why to choose APO over ECC for Planning?(ABS.)

• APO-DP vs. R3-Flexible Planning

• APO-GATP vs. R3-ATP

• APO-SNP vs. R3-DRP

• APO-PPDS vs. R3-MRP & Capacity Planning

• APO-BW vs. R3-LIS

• APO-Live cache vs. R3-Application run time memory

• APO-OLAP vs. R3-OLTP

• APO-TPVS vs. R3-LE


SAP APO SAP ECC Feat.

Demand Planning DP (SAP APO)

Demand Planning adds to forecasting capabilities to manage promotions,

product introductions and phase outs, as well as the impact o causal

factors, like weather or macro economic data.

Additional forecasting techniques are available like Linear Regression

(Causal Factors), Croston Method (Slow Moving Items) and Weighted

Average

Consensus based Planning enables Marketing, Sales, Logistics to share

and collaborate on their forecast and create a final consensus forecast

Forecasting based on characteristics instead of SKU for configured

products

Forecasting enables companies to run statistical

forecasting model, aggregate and disaggregate

forecasts, as well as the capability to modify

forecasting numbers manually

Forecasting

Supply Network Planning SNP (SAP APO)

Demand and Supply Plans can be intelligently balanced leveraging cost

or/and revenue based optimization techniques

Trade-off Analysis to determine product-mix, inventory build ups for

seasonal demand, capacity allocations for alternative manufacturing

locations etc.

Web based information sharing and collaborative interactive planning

environment

KPI Reporting

SOP allows to consolidate forecast based on

supply capabilities, through reporting and

interactive planning capabilities

Sales & Operations

Planning


Supply Network Heuristic enables to run DRP across the complete supply

network generating requirements (production and purchasing) at each

node.

The planner can easily navigate through the network to view and modify

demands and supply‘s in their different categories

Demand Planning Units and Stock Keeping Units mapping can be done on

quotations

Traditional DRP logic allows to calculate

requirements for a single stage distribution

network

Distribution

Requirements

Planning

Why to choose APO over ECC for Planning?(Deta.)



The ability to deploy products through the supply network based on pull or

push concepts. Different heuristics like fair share logics are supported.

Transport Load Building allows to combine different products to a single

load, interactive, as well as via heuristic to create full truck loads.

Not available

Deployment SNP


Supply Network Planning allows to consider distribution, production and

transportation constraints concurrently.

In addition to a generic SNP Optimizer based on Linear Programming and

capacity leveling algorithms, industry specific optimization is available for

Campaign Optimization

Capable to Match

Master Planning allows to plan production at an

aggregated level including rough cut capacity

planning.

Master Planning

Production Planning PP/DS (SAP APO)

Production Planning allows to consider material and capacity constraints

simultaneously to derive material, capacity requirements and dynamic lead

times. BOMs and lot sizing will be also considered

Pegging relationships between customer order, production orders,

purchase orders will be stored and enable bi-directional propagation if

changes occur on the demand or supply si

MRP calculates material requirements based on

BOM structures, lead times, lot sizes etc.

Capacity Planning

CRP in a second step looks at the capacity

requirements

Material

Requirements

Planning

Transportation Planning TP/VS (SAP APO)

Transportation Planning enables companies to determine the right

shipment mode and route based on demand and supply situation,

considering transportation constraints and costs

Manual Planning of shipments, including

predefined master routes Transportation

Planning

Detailed Scheduling PP/DS (SAP APO)

Finite and infinite scheduling, considering material, capacity, time and

market constraints. Manual scheduling،Scheduling optimization via

optimization algorithms, like Genetic Algorithm Constraint based

Propagation

Planning Table to view in a Gant Chart the

schedule.

Heuristics like forward/backward scheduling

(infinite)

Manual scheduling

Shop Floor

Scheduling

Cont.


Demand Planning

Demand planning can be carried out as part of flexible

planning in SAP ECC or as Demand Planning (DP) in

SAP SCM. Demand Planning is often used to create a

production program. this either continue to use the

results of SAP SCM Demand Planning in SAP SCM or

transfer them to SAP ECC.

Demand Planning is a powerful and flexible tool that

supports the demand planning process.

User-specific planning layouts and interactive planning

books enable to integrate people from different

departments, and even different companies, into the

forecasting process.

.

APO Demand Planning (DP) to create a forecast of market demand for your company's products


SAP APO DP(Demand Planning)

Features Key Benefits

• Statistical forecasting with casual and

time-series methods

• Selection of best –fit model

• Supporting aggregation/disaggregation

logic

• Lifecycle planning

• Plan promotions separately from the

rest of your forecast

• Track & monitor forecast accuracy

• Collaborative demand planning

• Improved forecast quality

• One tools for power and

business user

• Consolidated demand

plan)different regions,

countries , departments,…)

Calculate and determine future demand to improve demand quality and accuracy


APO DP VS ECC SOP

SOP VS DP


APO has some advanced features, like for example

Planning in Live Cache.

Using Live cache u have better performance experience

in planning related activities

it is pulled/copied from info cube to Live cache and

planned there.

This allows easy aggregation and disaggregation

Data is not stored in tables as in R/3 Technically Performance

DP has advanced ways of doing these things

The macro functionality in DP provides quick and user-

friendly computations on the transaction data

all the chars/key figures and macros define in ECC in Flexible

planning and run

DP have some scenarios , which are not available in

Standard SOP, like Promotion planning and Life cycle

Planning. And DP Forecasting tool is not comparable

with ECC and it is advanced in SCM

STANDARD SOP Functional scenario

DP is conceptually similar to Flexible SOP, but with

more advanced functionality as San deep indicated.

Some of the other advanced features include

characteristics based forecasting and DP BOM's(CVC).

Companies implement DP for one or more of these reasons -

1. They like the advanced functionality offered by DP.

2. They like the flexibility/ scalability/ performance offered by DP due to its technical architecture.

3. DP integrates well with other SCM tools such as SNP, GATP, etc.

4. They think they can improve their Sales & Operations Planning process by implementing DP.

5. DP is SAP's tool of choice for Demand Planning. Which means DP will get development

resources and incremental improvements over time. SOP will not receive the same attention.


Cross-Plant Planning(supply network planning)

Supply Network Planning determined requirements for distribution centers and how these requirements are

met by distribution centers, production plants and suppliers in your network

APO Supply Network Planning integrates purchasing, manufacturing, distribution, and transportation so that

comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of a

single, global consistent model.

Supply Network Planning uses advanced optimization techniques, based on constraints and penalties, to plan

product flow along the supply chain. Supply Network Planning is takes place in two steps:

1. During the first step (actual planning), stock transfer requisitions are created that optimize distribution to

meet the demands within the network

2. The second step occurs after production in the production plants is complete: Planning is executed within

deployment. In deployment, stock transport requisitions are converted into deployment stock transfers, based

on the quantities actually produced. The deployment stock transfer is then triggered.


SNP Planned Orders into PP/DS Planned

Prod. Planning

Production BOM and routing

Finite Detailed planning for

each plant

Sequences and set up times

Continuous and order-related

pegging

Supply Network Planning

SNP BOM and routing

Cross-plant (finite)planning

Distribution and procurement

Quantity- based period-based

No pegging

today PP / DS horizon Time


SAP APO SNP(Supply Network Planning)


• Cross-plant medium-term rough-cut

planning, Integrated purchasing ,

manufacturing , distribution , and

transportation

• Advanced safety stock methods

considering multilevel supply chain

networks and demand variability

• Supports system wide inventory

modeling and planning

• Enable Planning on different levels of

detail(aggregated planning)

• Simultaneous material planning and finite

capacity planning of production, storage

and transport resources.

• Internet-based collaborative supply

planning

• Detailed distribution planning

(deployment)

• Increased visibility over the

overall supply chain

• Optimized sourcing and

capacity utilization

• Reduced inventory levels

• Improved customer service

Calculate quantities to be produced and delivered to the locations to match customer

demand and maintain desired service levels.


APO SNP VS ECC DRP

• Supply Network Planning in APO can be mapped to DRP in ECC. But then APO

offers planning cross-plant for a complete supply chain network.

• SNP in APO offers basic Heuristic-based planning (quite similar to R/3 DRP)

along with advanced planning features like Optimization and Capable-to-Match

(order-based planning for prioritized demand matching).

• Deployment and Transport Load Builder functionalities provides automatic

planning in case of short supply followed by consolidation of deliveries according

to transportation capacities


ECC Production Planning/MRP VS APO detailed

scheduling/SNP

Production Planning\detailed scheduling


1. Plans for both Material & Capacity Constraints in

one planning process

2. Optimization of Planning

3. Sequencing & Changeover

4. Bottleneck resources

5. Automatic solve constraint resources alternate

resource, capacity variant

6. Detailed Capacity Planning

1. Linear Process – Traditional MRP Logic

2. Run MPS & MRP

3. Create planned purchases, production orders, Explodes BOM,

Calculates net requirements & Lot size

4. Run Rough-Cut Capacity Planning

5. Backward scheduling logic only using standard lead-times to

determine required start date

6. Production order process

7. Optional material & capacity check

8. Scheduling

9. Capacity leveling over & under

10. Sequencing by overall setup time within day

Linear vs Simultaneous

Planning Process

1. Parallel Processing - Simultaneously Plans Material

& Capacity

2. Constraints Based Forecast - Planning for Materials

& Capacity

3. Reduced Planning Cycle Time from Weeks to

Minutes

1. Sequential programs makes for long planning cycle

2. Batch runs

3. Limited what-if simulations

PP Linear Planning Process

1. Finite capacity & material planning

2. Constraint-Based Planning

3. Uses Optimization to create schedule

4. Minimize = total LT + setup time + delay time +

production cost + setup cost

5. Simulation is fast real-time, “what if” planning

capabilities

6. Forward & backward scheduling

7. Customer priority, cost, driven solution

8. Scheduling Algorithms

9. Detail Capacity Planning

1. Infinite material & capacity planning

2. Creates unconstraint plan

3. Creates feasible schedule

4. Sequencing by overall setup time within day

5. Simulation is for long term planning

6. Backward scheduling logic only

7. Due date driven planning

8. Manual Capacity Leveling

Unconstrained vs

Constraint-Based Planning


Cont.

Production Planning\detailed scheduling


1. Real-time integration of enterprise-wide and inter-

enterprise - R/3 and non-SAP

2. System transaction information utilizing

3. Live Cache technology in a APO architecture,

enables fast responsive planning

1. Real-time integration of enterprise-wide

2. Data utilizing 3-tier client/server architecture

3. Application Link Enabling (ALE)

4. Componentization of applications

Technology

1. Graphical Supply Chain visualization

2. Model builder for APO applications

3. Alert monitor for exception-based supply

4. chain management

5. Key performance indicators

6. Information retrieval from live Cache

Not Available

Supply Chain Cockpit


APO GATP

Global ATP contains the functions for the ATP check in SAP APO. This includes Transportation and Shipment Scheduling,

which is carried out in SAP APO.

The ATP check – also known as the availability check – represents an online search that should ensure that your company

can provide the requested product at the requested time in the quantity requested by the customer. The ATP check can use

the basic methods to determine if a requirement can be confirmed.

The basic methods, that are also known in SAP R/3, have been enhanced in SAP APO by new methods. These include:

Combination of Basic Methods:

•Capable-to-Promise (CTP)

•Multilevel ATP Check

•Rules-Based ATP Check

Function Required Component

Capable-to-Promise (CTP)

Multilevel ATP check

ATP Check in the Order

Production and Detailed Scheduling (PP/DS)

Backorder processing in Vehicle Scheduling

Transportation Planning/Vehicle Scheduling

(TP/VS)

http://help.sap.com/saphelp_scm50/helpdata/EN/05/f8923945b12c4de10000000a114084/content.htm

http://help.sap.com/saphelp_scm50/helpdata/EN/35/ac50e64dcd4a48e10000009b38f9b8/content.htm

http://help.sap.com/saphelp_scm50/helpdata/EN/35/bdadeaad3b421ae10000009b38f977/content.htm

http://help.sap.com/saphelp_scm50/helpdata/EN/c1/3f24392300b80be10000000a11402f/content.htm

http://help.sap.com/saphelp_scm50/helpdata/EN/64/7294375960a42be10000009b38f8cf/content.htm





http://help.sap.com/saphelp_scm50/helpdata/EN/05/7e1f3bc779144ae10000000a114084/content.htm

http://help.sap.com/saphelp_scm50/helpdata/EN/f4/b877377fae0261e10000009b38f842/content.htm



http://help.sap.com/saphelp_scm50/helpdata/EN/a9/21e93a96233343e10000000a114084/frameset.htm

http://help.sap.com/saphelp_scm50/helpdata/EN/bd/147a375f0dbc7fe10000009b38f8cf/frameset.htm

http://help.sap.com/saphelp_scm50/helpdata/EN/ba/af12ef3fb8cf4b8c1c54178eee0a93/frameset.htm

http://help.sap.com/saphelp_scm50/helpdata/EN/ba/af12ef3fb8cf4b8c1c54178eee0a93/frameset.htm


APO GATP vs. ECC ATP


GATP define the execution sequence of the check

methods as required in customizing which is unlikely in

ATP

its checking stock available if stock is more than sales order then its

checking Product allocation Qty and Confirming the Sales Order

EXECUTION

GATP combine the basic methods (availability check

and allocation) and define the sequence for executing

the checks as you required.

If you have simulation version maintained in system, it

carry out a simulation check before actually executing it

in live system whereas the R/3 system will not have this

functionality.

GATP has advance method - multi level ATP, CTP and

rule based ATP form which you can define rule and

check as per the check rule

Not Available

method

availability check in different location like DC , Mfg. plant

etc.

On location Location


SAP Transportation Solution History (1994 - 2011)

Improved carrier collaboration & resource utilization


SAP Extended Warehouse Management

Comprehensive, flexible, scalable,integrated, best-in-class solution extensible system


SAP APO EWM(Extensive Warehouse Management)


• Service Parts Industry

• Highly complex warehouse Requirement -

picking , packing, Deconsolidation , Task

Management , YM, VAS, Kitting , Slotting ,

contract packaging , Extensive cross -

docking , RF, Automation

• High volume, Resource management & Yard

management

• Deconsolidation During Put away

• Stock IDs , Slotting / Rearrangement , Kitting

• Discrepancy Processing for Stock Transport

Orders

• EH&S Integration

• Delivered BI Content

• Separate component SCM EWM or Add-on

ERP

•

• Get the right person to the right place at the right

time

• Calculate costs and incentives for employees

• Monitors the performance of areas or the whole

warehouse

• Customs management, SPL Screening, Re-exports

• Duty unpaid returns

• Improved customer service

A solid and flexible platform for warehouse operations


SAP Transportation Management 8.0

Solution overview

Efficient logistics & fulfillment processes


Transportation Management Processes, Scenarios and Rapid Deployment Solutions

Integrated transportation management & billing


External Communication & Connectivity

Enabling effective B2B & collaborative transportation management