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8/10/2019 SAP APO - General Overview
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2001 Andersen. All rights reserved
SAP APO Overview and
Business Opportunities
Business Consulting
Andersen European SAP Centre of Excellence
8/10/2019 SAP APO - General Overview
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Agenda
SCM today. Why APO?
APO functions
APO Integration
APO Market
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The Supply Chain :From Supplier to Consumer
SAP AG 2001
Increase customer responsiveness at least cost
Manufacturer DistributionSupplier
INFORMATION FLOW
Retail Outlet Consumer
Supply Chain Optimization
CASH FLOW
Transfer Transfer Transfer Transfer
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Reasons for the Supply Chain Management I
To reduce the inventory level and the operating capital.
To improve the use of resources and the efficiency of the operations.
To lower the cost of origin of finished products and raw materials.
To obtain a global vision of the resources, the plans, etc.
To optimize the decision making in sorroundings of more and more complex
business.
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Reasons for the Supply Chain Management II
Integration with e-marketplaces, allowing a global compare of the vendors ina easy and fast way.
To level the supply and demand through a planning integration tool.
Improve the use of assets and reduce the waste actions.
To reduce the cycles of planning and manufacture.
NEW CONCEPT??????
8/10/2019 SAP APO - General Overview
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Todays Supply Chain Pain. Secuencial Supply Chain
SAP AG
8/10/2019 SAP APO - General Overview
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Todays Business Reality
SAP AG
8/10/2019 SAP APO - General Overview
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Coordination Through Event Management
SAP AG
8/10/2019 SAP APO - General Overview
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SAPs Total Supply Chain Solution
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Manual communication
(phone/fax/EDI)
Unsynchronized planning cycles
Assumption-based planning
Excessive inventory buffers
Todays Supply Chains are not online
Tier 3
Supplier
Tier 2
Supplier
Tier 1
Supplier
... to CNO
FAX, e-mail
EDI
Online
(Internet/Extranet)
2002
60%
60%
88%
Today
78%
65%
28%
Forrester Research, 2000
SAP AG
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Why SAP and SCM?
APO as a Planning Advance tool. More than MRP II
The initial strategy of SAP was to certify interfases of external vendors in Advance
planning.
This interfases are still in use.
The market requires for a functionality of advance planning and scheduling:
optimizor
simulation
restriction based
High performance in real time
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SAP Supply Chain Management
R/3ERP
P M S
Vendor
P M S
Customer
Contracts Contracts
Internet
Intranet
Execution
Analysis
Internet
BW
Planning and OptimizationAPO
Procurement Production Distribution
APO integration
SAP AG
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Simul taneousmaterial and capacity planning across multiple levels of the logistics
chain
Consideration of existing bot t lenecks
Increased accuracy inplanning
Optimizat ionof plans in harmony with operative aims
Seamless technical integrat ionbetween APO, BW and R/3
Integrationbetween customers and suppliers (e.g. collaboration)
Synchronizat ionof different activities in the logistics chain
Transparencyacross the complete logistics chain
Direct performance measurement
Reduction of planning t ime, what-if scenarios
APO features I
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Maximize ability to react to customer
Flexibility Ability to supply
Minimize the costs of the complete supply chain
Procurement Production
Transportation
Warehouse management
Optimize use of assets
Raw materials, semi-finished products, finished products, resources for
production, transportation, and storage
APO features II
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Agenda
SCM today. Why APO?
APO functions
Introduction.Business Scenarios
Demand Planning
Supply Network Planning
PP/DS
Global ATP
Transport Planning
APO Integration
APO Market
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APO: Planning Sequence.
R
RecommendedTransport Orders
Forecast
Supply Network
Planning
Demand Planning
Production PlanningDetailed Scheduling
Transport LoadBuilder
Deployment
TransportOrders
Planned Orders
ConfirmedTransport Orders
SAP AG
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APO Areas
Supplier
Partner Partne
Custome
Direct
Procurement
Source Deliver
Order
Fulfillment
Make
Manufacturing
Supply Chain Design
Strategize
Demand and
Supply Planning
Plan
Supply Chain Performance Management
Measure
Supply Chain Event Management
Track
Supply
ChainCollaboratio
n
C
ollaborate
SupplyChainCollab
oration
Collaborate
Supply Chain
Network
Supply Cha
Network
SAP AG
Network Design
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Network Design
Design and redesign of your Supply Chain
Supply Chain Dessign
SAP AG
Assignment of mySAP Applications to Supply Chain
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Decisions about direction of the company
Supply Chain Design
Network Design (ND)
Operational aggregated planning (tactical planning)
Aggregated sales and demand
planning Demand Planning(DP)
Supply Network Planning
(SNP)
Ext. proc. planning Production
planning
Delivery planning
Partner
Assignment of mySAP Applications to Supply Chain
External procurement Production Outbound delivery External
procurement at
customer
Operational detailed planning(operational planning)
Execution
Planning
Cu
stomer
Strategy planning
Tactical planning: strategy realization and infrastructure planning (plan infrastructure)
SNPPP/DS SNP
Deploy,
TP/VS, ATP
PP/DS
for example,
LES, MM
for example,PP for example,LES,
MM, SD
Planning Levels
SAP AG
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Functional Arquitecture.
APOAPOR/3R/3
Global
ATP
SAP -BW
Historical
Data
Key
Perform.
Indicators
External
Data
(e.g. POS)
SAP- BW
Historical
Data
Key
Perform.
Indicators
External
Data
(e.g. POS)
Sales
Orders
Manufacturing
Execution
Inventory
Management
Supply
Network
Planning
Supply Chain Cockpit
Deployment
ProductionPlanning and
Detailed
Scheduling
Demand Planning
Transport
SAP AG
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Agenda
SCM today. Why APO?
APO functions
Introduction.Business Scenarios
Demand Planning
Supply Network Planning
PP/DS
Global ATP
Transport Planning
APO Integration
APO Market
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Supply Chain
Network
Supplier
Partner Partne
Custome
Direct
Procurement
Source Deliver
Order
Fulfillment
Make
Manufacturing
Supply Chain Design
Strategize
Demand and
Supply Planning
Plan
Supply Chain Performance Management
Measure
Supply Chain Event Management
Track
SupplyChainCollaboration
Collaborate
S
upplyChainCollaboration
Collaborate
Supply Cha
Network
Demand Planning What are my expected sales?What is the impact of causal factors?
What is the impact or promotions and competitor
activity?What is the impact of new products?
Does my current forecast support the budget plan for
my key account?
SAP AG
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Planning type:
Manual / Automatic
Historic
Collaboration
Promotion planning
Canibalization
Lifecycle planning
Forecasting Accuracy
Planning levels:
Product
Product Group
Dimensions: Sales area,
client,.
Planning material
Demand Planning functionality
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Planning Book
SAP AG
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Promotion Planning
SAP AG
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Tool to share information and collaborate between 2 or more partners (external and
internal).
Information about demand and forecasting.
Supplying information
Data selection throught selection IDs.
Optional update list.
Display and manage alerts.
Grouped by type.
Filtered by priority
Macros execution. (Possible to link macros and alerts).
Sending mails trought email
Tools (1)
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Tools (2)
Advances Macros technics:
Logic functions: if, else if, ...
Operators and mathematical functions: (), , sin, sqrt, ...
Causal analysis : market campaigns
Forecasting models:
Alisado exponencial, Holt-Winters,...
Authomatic selection of models.
Seasonal linear regression
Forecasting combination:
Pick-the-best.
Promotion planning
Analysis and comparing results.
Releasing the plan to SNP.
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Basic Planning enhancements
High Performance thru Live Cache Architecture
Fixed Values at Aggregated Level
Navigation Attributes for Data Selection
Characteristics Dependent Planning
Distribution Function with distribution patterns
Statistical Methods
Seasonal linear regression (planificacin con variables dependientes)
Manual forecasting
Graphical capabilities
Life cycle
Like modelling
Pase-in/out (ie product introduction)
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SAP AG
Collaborative Demand Planning I
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SAP AG
Collaborative Demand Planning II
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Benefits
Demand visibility
Improve forecasting accuracy
Improve customer service
Reduce inventory levels
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Agenda
SCM today. Why APO?
APO functions
Introduction.Business Scenarios
Demand Planning
Supply Network Planning
PP/DS
Global ATP
Transport Planning
APO Integration
APO Market
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Supplier
Partner Partne
Custome
Direct
Procurement
Source Deliver
Order
Fulfillment
Make
Manufacturing
Supply Chain Design
Strategize
Demand and
Supply Planning
Plan
Supply Chain Performance Management
Measure
Supply Chain Event Management
Track
SupplyChainCollaboration
C
ollaborate
SupplyChainColla
boration
Collaborate
When and where should material be sourced,
produced, moved and stored?
How to satisfy demand at minimal cost?
Can all demand be satisfied while respecting all
constraints?
What is my profit- or cost-optimal product mix
given supply constraints?
What are the consequences of raising my
service level?
Supply Chain
Network
Supply Cha
Network
Supply Network Planning
SAP AG
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Graphical Output of results
SAP AG
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Basic Functionality
Automatic creation of feasible plans
using heuristics models.
Optimization based in costs/ profits
Control capacity at the vendor site.
Distribution calcul rule based.
Deployment
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APO-SNP: Strategies
SNP Heuristics:
Distribution by quotes
Taking into account delivery times
Check of production capacity
Automatic capacity leveling.
SNP Optimization: Cost - Based
Selection of most suitable production plant.
Optimization of costs for production, transportation and storage
Mixed Integer Linear Programming / meta heuristics
Feasible plans
SNP Capable to match
Assignnment of requirements to quotations by means of priorities
Supplier WH
Manufacurer
DC
Customer DC
Production Model
Manufacturer Plant
Supplier Plant
Capable-to-Match
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1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Capable-to-Match
Cross-plant capacity check and check of
transportation possibilities
Prioritized
requirements
Categorized
receipts
SAP AG
APO-SNP: Capable-to-Match
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Supply Network Planning- Capacity Leveling
SAP AG
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SNP Sourcing
Make or Buy decission
Time depending sourcing
Lot Size depending sourcing
Quotation only necessary for multi sourcing
Interactive Sourcing like in Purchasing Workbench
Purchasing Contracts and Info Records
considered for External Procurement
Scheduling Agreements can be used for SNP
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Costs Transportation costs
Production costs
Inventory costs
Handling costs
Procurement costs
Location costs / subsidies
Fixed costs of maintenance
Costs of opening / closing down of locations
Public subsidies
Penalty costs (e.g. unfulfilled demand)
Costs
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Deployment
Model with restriccions: capacities, calendars
Distribution logic PULL
Distribution logic PUSH
Fair Share Logic
One Step Deployment
Deployment Run without Heuristic
Considers most actual information
Allows multiple Deployment Runs per day
Integrated with Allocation module
Demand Prioritization possible
Cost optimization
Philadelphia
New Orleans
Montreal
Chicago
Winnipeg
Calgary
CustomerPhiladelphia
Montreal
SAPCO
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Benefits
Satisfy supply with demand dynamically
To model the distribution network and the existent restrictions.
Balance and optimize the distribution network
Reduce the inventory levels
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Agenda
SCM today. Why APO?
APO functions
Introduction.Business Scenarios
Demand Planning
Supply Network Planning PP/DS
Global ATP
Transport Planning
APO Integration
APO Market
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Production Planning and Detailed Scheduling
Supplier
Partner Partne
Custome
Direct
Procurement
Source Deliver
Order
Fulfillment
Make
Manufacturing
Supply Chain Design
Strategize
Demand and
Supply Planning
Plan
Supply Chain Performance Management
Measure
Supply Chain Event Management
Track
SupplyC
hainCollaboration
Co
llaborate
SupplyChainCollaboration
Collabor
ate
What is the optimal production plan in relation to
customer service and total costs?
Which material, resources and capacity is needed
and when?
What is the optimal production sequence to
minimize set-up, cost, work-in-process, delays ...?
Supply Chain
Network
Supply Cha
Network
SAP AG
Production Planning & Detailed Scheduling in APO:
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Advantages
Simultaneous material and capacity requirements planning for in-house production, external
procurement, and stock transfers in a production plant at operation level: Fast generation offeasible plans
Immediate and automatic planning (for example, to trigger production from the plant) - close
integration with plant
Planning with exact times, even for dependent requirements (for example, a prerequisite for
material staging by shift)
Dynamic exception messages in real-time and based on order linking (pegging) across the wholesupply chain
Multi-level capacity requirements planning possible: automatic, multi-level, bi-directional
propagation of order changes
Planning of alternative resources
Available capacity: time, volumn, length ...
Consideration of restrictions in planning (for example, supplier capacity)
Schedule optimization (order sequencing, lead time, etc.)
Simulation and What If
PP / DS Features
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Example.
t
Capacity 1
Capacity 2
Capacity 3
Sales OrderDesired date
and quantity
Available
Occupied
Today
1st loading attempt
Confirmed date
and quantity
Final loading
SAP AG
Wh APO PP/DS ?
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Planning critical products (for example, products with longreplenishment times or products that are produced at bottleneck
resources)
Planning in a short-term time horizon with scheduling to the
second while taking order sequences into account
Generating a feasible production plan which includes thefollowing improvements:
Reduced lead times and an increase of deliveries that are on time,
leading to greater customer satisfaction
Increased throughput of products based on a better coordination of
resources Reduced stock costs since the work-in-process stocks are limited due to
better coordination of product release
When APO PP/DS ?
Production Planning & Detailed Scheduling in APO:
I t ti ith R/3 (1)
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Integration with R/3 (1)
PP/DS is a planning tool. Execution functions such as
confirmations and goods receipts are performed in R/3.
R/3 supplies APO with data relevant for planning (such as
master data, sales orders).
Planning results are transferred from APO back to R/3. If
required, planning is completed in R/3 (for example, if all of theproducts of a BOM structure are not planned in APO).
If you plan a component in R/3, you must also plan all related
subcomponents in R/3
Recommendation:
Wrong Right
Key
Planned in APO
Planned in R/3
When APO PP/DS ? II
B fit
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Benefits
Improve the material flow
Reduce stocking levels
Less non-planned hours
Improve resource utilization
A d
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Agenda
SCM today. Why APO?
APO functions
Introduction.Business Scenarios
Demand Planning
Supply Network Planning PP/DS
Global ATP
Transport Planning
APO Integration
APO Market
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Order Fulfillment
Supplier
Partner Partne
Custome
Direct
Procurement
Source Deliver
Order
Fulfillment
Make
Manufacturing
Supply Chain Design
Strategize
Demand and
Supply Planning
Plan
Supply Chain Performance Management
Measure
Supply Chain Event Management
Track
SupplyC
hainCollaboration
Co
llaborate
SupplyChainCollaboration
Collabor
ate
Can we fulfill this customer order from stock
or planned orders?
Can we fulfill this customer order by new
production order and when do we have
material and capacity available?
Can this order be fulfilled through substitute
products or alternative locations?
Supply Chain
Network
Supply Cha
Network
SAP AG
Global Availability Check
Gl b l ATP B i F ti lit
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Availability check
product availability
product substitution
location substitution
Product allocation
check against planning
check against production
check of production versions
capacity check
component availability
SAP AG
Global ATP. Basic Functionality
Gl b l ATP R3 d APO I
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SAP AG
Global ATP. R3 and APO I
Gl b l ATP R3 d APO II
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Sales order
Sales order
R/3 APO
Sales (SD) ATP checkATP request
Production Planning/Detailed Scheduling
For non-availability Produce
Planned order
MRP
Confirmation
Update time series
Save sales order
Planned order
SAP AG
Global ATP. R3 and APO II
Benefits
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Benefits
Improve the service level
High performance even with great volum of data.
Greater visibility of the requirements
Agenda
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Agenda
SCM today. Why APO?
APO functions
Introduction.Business Scenarios
Demand Planning
Supply Network Planning PP/DS
Global ATP
Transport Planning
APO Integration
APO Market
Transport Planning
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Supplier
Partner Partne
Custome
Direct
Procurement
Source Deliver
Order
Fulfillment
Make
Manufacturing
Supply Chain Design
Strategize
Demand and
Supply Planning
Plan
Supply Chain Performance Management
Measure
Supply Chain Event Management
Track
SupplyChainCollaboration
C
ollaborate
SupplyChainColla
boration
Collaborate
Which transport orders can be combined?Which mode of transport should be used?
Which delivery route should be taken?
What are the minimal transportation costs?
Supply Chain
Network
Supply Cha
Network
SAP AG
Transport Planning
Transportation planning using SAP-APO
Transport Planning
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medium-term and bucket planning
compressed view of requirements for one period (e.g. week, month, year)
Transportation planning
Vehicle scheduling
short-term and order planning (usually next couple of days)
planning for actual and virtual orders
link to the SAP Logistics Execution System (LES) to support the plannedbusiness processes
SAP AG
Transport Planning
Transportation planning using SAP-APO
Transport Planning (in the next release APO 3.1 1stQ-2002)
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Real and fictitious vehicle planning. First planning based in fictitious
resources and later on substitution by real resources when confirmed
transports.
VSO: Vehicle Space Optimizer. Load optimization
Route planning at street level.
Transportation planning / Vehicle scheduling
SAP AG
Transport Planning (in the next release APO 3.1 1stQ 2002)
Transport Planning
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Transport Planning
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Space Reserved
forFotograph or icon
(OPTIONAL)
Service line descriptor - OPTIONAL - in case there isnt any, cancel grey line
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Logo del
Cliente (opcional)
Alerts
Alerts
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Supplier
Partner Partne
Custome
Direct
Procurement
Source Deliver
Order
Fulfillment
Make
Manufacturing
Supply Chain Design
Strategize
Demand and
Supply Planning
Plan
Supply Chain Performance Management
Measure
Supply Chain Event Management
Track
SupplyChainCollaboration
C
ollaborate
SupplyChainColla
boration
Collaborate
Supply Chain
Network
Supply Cha
NetworkHow can I stay in control in view of an increasing need for
business velocity?
How can I effectively coordinate processes both internally
and throughout the extended supply chain?
How can I automate response to unplanned events?
Supply Chain Cockpit.
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Tool to modelize and monitor the Supply Chain
APO
Planung Stammdaten Material AuftragPlanung Material Auftrag Stammdaten System Hilfe
Liste
SAP AG
Supply Chain Cockpit.
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APO
Planung Stammdaten Material
AuftragPlanung Material Auftrag Stammdaten System
Hilfe
Liste
Alerts
Several views to monitor
Modelizing
APO
Alert Monitor Cockpit Engineer
pp y p
SAP AG
Supply Chain Cockpit / Alert Monitor
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Basic Functionality
Supply Chain Modelizor
Global visibility
Managing exceptions.
APO integration with R3 and BW.
Supply Network Design.
KPIs.
Queries.
Alert Monitor
Cockpit
Engineer
SAP AG
Agenda
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SCM today. Why APO?APO functions
Introduction.Business Scenarios
Demand Planning
Supply Network Planning PP/DS
Global ATP
Transport Planning
APO Integration
APO Market
APO - R3 integrationIn Technology
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R/3
R/3 Plug-
in
BBP
CRM
BW
APO
SEM
CIF
Integration - Upgrades - Future development
SAP AG
The components and technology ofmy.SAP SCM
APO Arquitecture
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Demand Planning
BW ERP R/3 R/2 Marketplace
liveCache
InfoCube
Solver
Optimization
Cartridge
Production
Planning
Transportation
Planning
Global
ATP
Collaborative
Planning
SAP AG
Agenda
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SCM today. Why APO?
APO functions
Introduction.Business Scenarios
Demand Planning
Supply Network Planning PP/DS
Global ATP
Transport Planning
APO Integration
APO Market
SAP Competitors Provide Parts of the Puzzle
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Planning
Networking
Coordination
Execution
SAP AG
APO - European Andersen Projects
http://localhost/var/www/apps/conversion/tmp/scratch_6/http://igwp3-pcs.wdf.sap-ag.de:1080/scripts/wgate/sapwp/!http://localhost/var/www/apps/conversion/tmp/scratch_6/http://localhost/var/www/apps/conversion/tmp/scratch_6/http://www.manugistics.com/default.asphttp://www.i2.com/quickfind/rw_press.cfmhttp://www.i2.com/quickfind/rw_press.cfmhttp://www.manugistics.com/default.asp8/10/2019 SAP APO - General Overview
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Data mart (BW)set up
integration with R/3
forecast models
collaborative planning
extensive use of planningbooks and macro's
BW reporting
Metal Products
Consumer Goods. Industrial Baker
Metal Products. camshaft mechanism
DP in live
Currently, rest of APO modules in progress
implementation
- material planning and resource detailed scheduling- supplier scheduling
- Available To Promise
Colombo Filippetti
APO Examples: Non Andersen Projects
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Colgate
Supplier Performance Measurement,
Vendoranalysis
Hewlett Packard
Supply Chain KPIs:Inventory,
Orders,
Delivery,
Profitability,
Customer information
Novo Nordisk A/S
Centralized management of
production, shipment and
stock information;
valued stock, on-time delivery,
lead time for purchasing,
average stock
Owens Corning
Inventory levels, DOS, productionconfirmation levels,
shipment levels
Roche Diagnostics
Stock analysis,
Batch controlling,
Backorder analysis,
Forecast accuracy by plant, product
Non Andersen implementation SAP AG
Industry and financial analysts
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SAPs Advanced Planner & Optimizer version 3.0 (APO
3.0) is ready to compete head on with even niche vendorsproducts, meeting most of the needs of any company
looking to add supply chain planning to i ts technology
roster.
AMR, Robert Ferrari
SAP has made significant headway with its mySAP.com
solution. In particular, based on our discussions with
prospective customers, we believe the supply chain product
is now very competitive.
GOLDMANN SACHS, N.N.
END
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Questions???