APO Industry Solutions: Extensions for Auto and Retail

  • by Rajesh Ray, Senior Managing Consultant and SCM Product Lead, IBM Global Business Services
  • July 22, 2013
SAP’s Advanced Planning and Optimization (APO) solution offers 10 extensions for six industries: Mill (Paper, Metal), Chemical/Process, Auto, Retail, Cable, and Defense. In this article, I discuss industry extensions for the retail and auto industries.
Key Concept

Advanced Planning and Optimization (APO) industry solutions are industry-specific extensions that are integrated with SAP’s core ERP Central Component Industry Specific (ECC IS) solutions. 

Advanced Planning and Optimization (APO) extensions for particular industries are designed to work with SAP ERP Central Component (ECC) Industry Specific (IS) solutions. For example, many retail clients are using APO Forecasting and Replenishment (F&R) with IS Retail, and it’s common for users to work with APO Rapid Planning Matrix (RPM) with IS Auto.

As the retail industry does not have any manufacturing operations, F&R does not have any Production Planning/Detailed Scheduling (PP/DS) component and mainly focuses on F&R between retail distribution centers (DC) and stores. Retailers often use F&R either with the IS Retail solution or with the traditional ECC solution.

APO offers two extensions for the auto industry: Rapid Planning Matrix (RPM) and Multi Mix Scheduling (MMS). These extensions address planning and scheduling challenges faced by the auto industry, such as complex multi-level bill of material, line balancing, issues with MRP performance, and scheduling constraints. Auto companies often use RPM and MMS either with the IS Auto solution or with the traditional ECC solution.

Rajesh Ray

Rajesh Ray currently leads the SAP SCM product area at IBM Global Business Services. He has worked with SAP SE and SAP India prior to joining IBM. He is the author of two books on ERP and retail supply chain published by McGraw-Hill, and has contributed more than 52 articles in 16 international journals. Rajesh is a frequent speaker at different SCM forums and is an honorary member of the CII Logistics Council, APICS India chapter and the SCOR Society. 

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