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APO Implementation

Former Member
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1.) Why is APO required ?

2.) Which type of industry should implement APO ?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Andy !!!!

To explain in basic terms, ERP ( SAP or anyother) packages is used to integrate the execution functions of an organization. The main advantages of ERP are close integration amongst function and visibility & control over the functions.

APO is required to carry out the following functions

1.) Carry-out planning functions right from stragetic to operational levels ( APO has got components which carry out these functions)

2.) Carry out activities such as matching supply with demans ( DP caters to forecasting needs and SNP does the supply chain planning activites)

3.) Have real time monitoring and planning of goods movement and know the present available to promise data (GATP caters to these needs)

so in brief, APO helps to carry out activities which requires logic or intelligence such as Product demand forecasting, Product lifecycle management, Promotion planning, Planning out supply chain, optimizing routes, constraint based planning, Available to promise functions such as Product substitution and location substitution.. etc...

APO is recommeded in all industry which requires to optimize returns while matchin Demand and supply through appropriate supply chain management techniques...Industry such as CPG, Hi-tech, FMCG, Oil, etc. can have serious benifits with application of APO. Moreover industries like aerospace, engineering, etc. can also thing about implementing APO.

Answers (3)

Answers (3)

Former Member
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Hi Andy,

1) Why is APO required?

APO is an effective and advanced Planning tool for Long term to Medium term and Long term to short-term planning.

APO has got powerful functionalities like macros, process chains, interactive planning books, Optimisers, Integration with other modules, GATP etc.,

It is very useful to plan our Demand and supplies. It is also useful very much for Cross plant planning.

2) Which type of industry should implement APO ?

Any industries who are having only execution tool can go for APO. Industries having process oriented, REM type, Manufacturing centres, Chemical industries etc., are best fit for APO.


R. Senthil Mareeswaran.

Former Member
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Why is APO required ?

SAP APO has fully integrated functions that can be used to plan and execute the supply chain processes.APO supports

1.Business collaboration on a strategic, tactical, and operational planning level

2.Co-operation between partners at all stages of the supply chain process; from order receipt, stock monitoring, through final shipping of the product

3.Cultivation of customer and business partner relationships

4.Constant optimization and evaluation of the supply chain networku2019s efficiency

Which type of industry should implement APO ?

SAP for Aerospace & Defense

SAP for Apparel and Footwear

SAP for Automotive

SAP for Beverage

SAP for Consumer Products

SAP for Engineering, Construction & Operations

SAP for Healthcare

SAP for High Tech

SAP for Media

SAP for Mill Products

SAP for Oil & Gas

SAP for Retail

SAP for Telecommunications

SAP for Utilities

For more inormation on SAP APO I would suggest you to go through SAP Official websites like, and SDN WIKI

Former Member
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Hi Andy,

SAP APO is Advanced Planning and Optimization.

SAP R/3 known as Execution System.

As the name APO says its a Planning System.

Used to plan Demand and Supply for the products with a long/medium/short term periods.

APO is used to plan all / few plants/ rgions of a company.

R/3 is used for planning a particular plant/country/region.

APO speaks industry as a whole and plans for the entire company.

A company will be having 3-4 APO servers and many other OLTP (R/3) systems.

The planning results from APO are released to OLTP systems to execute the plans.

APO consists

Demand Planning, Supply Network Planning, Global Available To Promise, Production Planning/ Detail Scheduling, Transportation Planning Vehicle Scheduling.


Demand Mgt, Sales and Operations Planning, Production Planning...

Demand planning output is Planned Independent Requirements(PIRs). these can be sent to R/3 Demand Mgt or SNP.

SNP takes PIRs from R/3 DM or APO DP and gives the plan which consists of Planned orders, Purchase Requisitions, Stock Transfer Requests.

SNP used to plan for Long/medium term.

PP/DS used for Short-term , to- the minute planning.................

APO used in industries like Manufacturing, Mining, Oil & Gas, High- tech ...................................