What Is SAP APO?

SAP APO (SAP Advanced Planning and Optimization) is one of the key modules in the SAP SCM, and it controls Spare Parts Planning, Supply Network Planning, TP/VS and Demand Planning in the Supply Chain process. It also helps organizations to manage their supply chain process in a more dynamic environment. SAP APO is a complete software that covers the key processes such as supply chain planning, supply chain networking and coordination, and supply chain execution.

The Advanced Planning and Optimization (APO) module is one of the major components that is under the SAP Supply Chain Management (SCM). SAP APO offers different business processes that are related to Demand and Planning, Production Planning and Detailed Scheduling (PP/DS), Supply Network and Planning (SNP),  Transport Management and Global Available-to-Promise.

APO is strictly installed with the ECC system using a core interface (CIF) and it provides full reporting functionalities on top of the data marts and InfoCubes.

The use of Supplier Network Collaboration (SNC) which is also known as Inventory Collation Hub (ICH) is to allow for collaboration between the suppliers and the consumers. Using APO, you can ensure coordination across different partners at all stages of the supply chain process. It starts with receiving an order, monitoring the current stock, and shipping of the product to the Customer. You can constantly carry out optimization and evaluation processes of the Supply Chain process and monitor the process efficiency rate. APO also gives you BI components to support it's reporting functions and data marts.

This course is meant for project team members, project leaders, SAP consultants, sales consultants, and those that are related to the departments of Supply Chain and Material Management.

Features of SAP APO

1. APO Demand Planning: To successfully run a business, market forecasting and planning is a major important factor to consider. Demand Planning is the process of understanding your customer's future demands and carrying out such demands by the corporate supply chain and business management.  It also provides very advanced forecasting and demand planning tools that help companies and business owners to identify changes in demand as soon as possible. Marketing and promotion are also determined and done by the forecast of market demand.

2. APO Supply Network Planning: SNP which stands for Supply Network Planning integrates the various pieces of information on manufacturing, distribution, purchasing, and transportation so that the tactical planning and decision making can be made and implemented based on a single consistent data model. Based on heuristic and some mathematical methods of optimization optimization, SNP makes sure that your organization or company reach the demand and performs activities such as transportation, production, and warehousing resources.

3. Production Planning and Detailed Scheduling (PP/DS): This allows various units in manufacturing to plan material and critical resources in a very optimal way.  A constant or frequent demand for manufacturing units is to manufacture with limited resources. PP/DS helps you to analyze the lead time and the resources that are required for production.  You can reduce the cost of inventory, increase your on-time delivery performance, and reduce lead time for the product by making use of PP/DS.

4. Global available-to-promise (global ATP): The main purpose of the “Global available-to-promise” is to find out weather the requested product by your customer would be available on the fixed or promised date.  This process is concerned with improving the on-time delivery performance, planning system integration and sufficiently increasing the stock to buffer inventories.

5. Transport Planning and Vehicle Scheduling (TP/VS): By deciding to go for the best and short route of transportation, a company can save a lot of time, money and fuel that is spent on transporting and delivering goods to customers. TP/VS provides a transportation planner and organizes, plans and schedules the routes at lower transportation cost. It offers functions such as shipment consolidation, determination of routes, carrier selection, multi-pick  up, and multi-drop off, etc. 

Benefits Of SAP APO

SAP APO has a lot of benefits and some of them are:

1. It brings about an increase in revenue.

2. It improves profit margins.

3. It reduces purchasing costs.

4. It reduce production and logistics costs.

5. It brings about Improved inventory management.

6. It brings about improved Management for a business


Student Login

Login & Study At Your Pace
500+ Relevant Tech Courses
300,000+ Enrolled Students


86% Scholarship Offer!!

The Scholarship offer gives you opportunity to take our Course Programs and Certification valued at $50 USD for a reduced fee of $7 USD. - Offer Closes Soon!!

Copyrights © 2019. SIIT - Scholars International Institute of Technology. A Subsidiary of Scholars Global Tech. All Rights Reserved.