SAP APO Overview

4 min readMay 31, 2017

What is SAP APO?

SAP APO which stands for — Advanced Planner and Optimizer. A Creatively designed and actively packaged planning and optimization tool, is a quickly growing an essential component of supply chain processes.

The application levels of APO are as follows:

1. Supply network planning

2. Network design

3. Demand planning

4. Supply chain management

5. Production planning and detailed scheduling

6. Global availability

7. Transportation planning and Vehicle scheduling

This famous SAP application is packed with different inbuilt characteristics and activities. It hits into real-time updates from retailers and others in the supply chain and allows correct information in respects to client needs. These updates create “demand triggers” that direct the productions cycles and delivery schedules to completion; thus determining the best product quantity that an association would need to provide to future client needs.SAP APO is combined with SAP SCM and has supported businesses customize the tasks of supply chain management to a large size.

Advanced Planner and Optimizer

Structure of SAP APO

Synchronize stock with demand in the global chain by matching push and pull network outlining processes and by handling replenishment and production based on the actual sale.

SAP Advanced Planning & Optimization involves the following components:

1. APO DP: This improves the projection quality and planning correctness

2. APO PP/DS: This helps you in building optimized production plans.

3. APO SNP: APO SNP enhances clarity across your global chain and lowers list.

4. APO TP/VS: This helps to optimize transportation loads and reduces transportation charges

5. APO Alert Monitor: Strong complaint message system blended into all APO planning modules

6. APO gATP: This allows state-of-the-art sales order verification planning processes

Components of APO

1. APO DP (Demand Planning):

Determine and Calculate future needs to improve demand quality and accuracy. Advanced prediction by using one tool for energy and business user and consolidated demand plan.

2. APO SNP (Supply Network Planning):

Calculates quantities to be generated and transferred to the areas to match customer requirement and prepare aspired service levels. To advanced clarity over the full supply chain and optimized sourcing and capacity utilization. SNP also reduced inventory levels and enhanced customer service.

3. APO PP/DS (Production Planning & Detailed Scheduling):

PP (Production Planning) presents a small time plan that suits complete supply to demand, offered available resources and production methodology.And DS (Detailed Production Scheduling) defines optimal production sequence for execution to meet delivery promises based on real constraints on the shop floor.APO PP/DS decides how, when, and where sources and elements should be deployed to achieve the production goals and Master planning for materials

APO gATP (global Available-to-Promise):

Online knowledge about the important current state of plan supports order promising that will perform after the customers’ belief. Face the demand communicated during the supply chain with the best sourcing for the available inventories in the supply chain and to sell only what you can really sell.

APO TP/VS (Transportation Planning / Vehicle Scheduling):

Plan and optimize shipments for orders and deliveries. Conversion of transportation charges via advanced planning algorithm. Use of vehicles can be optimized. Clear visibility of vehicles/resources/needs and optimized Purchases in terms of lowest transportation expenses

APO VMI (Vendor Managed Inventory):

Allows efficient management of the supply chain by managing customer inventory replenishment with automated collaboration. Reduction of stock-outs, rush orders and supply bottlenecks and improved cooperation to the customers and delivery service level.

APO Alert Monitor:

Strong exception message system integrated into all SAP APO planning modules. The first job of the day for a planner is: Check the actual alerts. Drill-down from the alert monitor to the application to solve the problem

Some of the Functionalities of APO

1. End-to-end business processes and planning of inventory.

2. Collaborations with clients and suppliers through Supply Inventory Collation Hub (ICH) or Network Collaboration (SNC).

3. Strong integration to execution (OLTP) systems such as ERP with standard interfaces known as Core Interface Function.

4. Extra parts management among SCM 5.0 and another connected application.

Find an opportunity to take SAP Online Training who are unable to attend classroom SAP training. SAP APO Online Training offered by SAPVITS includes all APO sub-components. Pre-Requisites to Learn SAP APO requires only basic technical knowledge and understanding of data required for that particular module.This training will ensure you get a good grasp of SAP APO and its sub-modules. Visit us for any SAP Course and Certification details.We provide online training for all SAP modules including server access facility and other training material. Our top SAP courses include:

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