Sap apo vs. ecc

SAPAPO 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)
BWLIS
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 APOSAP ECCFeat.
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.)

SAP APOSAP ECCFeat.
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 availableDeployment 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
SAP APOSAP ECCFeat.
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/3TechnicallyPerformance
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 SOPFunctional 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 Planningdetailed scheduling
SAP APOSAP ECCFeat.
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 Planningdetailed scheduling
SAP APOSAP ECCFeat.
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 AvailableSupply 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)

APO GATP vs. ECC ATP
SAP APOSAP ECCFeat.
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 Availablemethod
availability check in different location like DC , Mfg. plant
etc.
On locationLocation

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

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