you cannot choose between APO and SPP because SPP (Service Parts Planning) is part of APO as DP or SNP:
Why to choose SPP please read following link:
Hope this helps.
SPP is more specialised for Automobile industries and it comes under APO. It is available under SCM 5.0 and you have to buy licence for using it.
Now the million dollar question is why should one go and spend more money to use SPP.Well it all depends how much of your intricate business you want to map in SAP.
Caterpillar and Ford are the first company to implement APO-SPP as they figured out their full complete business scenarios will not work unless they have a sophisticated industry specific product such as SPP.
I was one of the lucky people to have worked in SPP for 2 years. Trust me SPP is vast and a different product in itself ,it has different planning techniques,forecasting etc..
Tibor has given the link for SPP,it has exhaustive information about SPP.
Although SPP was originally designed for Service Parts, there are some features that are applicable to other industries, particularly wholesale distribution. SPP is mostly for finished goods; however, there is some limited mfg. functionality for repairing spares. One of the requirements was to plan a large number of independent demand items at a large number of locations (many projects have over 25 million location products). It has some diferent forecast models, e..g., for sproadic demand, and uses fixed distribution networks (Bill of Distribution) instead of any dymamic sourcing. It has some other unique functionality like inventory balancing between locations and surplus and obsolescence determination. It is also designed to make decisions based on rules rather than manual intervention but has configurable thresholds for management by exception.
I would suggest you to refer to Why to choose SPP instead of APO
There're a couple of features listed there.
Edited by: Marcos Nunez on Apr 18, 2011 9:55 PM
Hello David -
Hopefully I should be able to provide some light on the differences between standard APO DP, SNP solution and the SPP solution. I have had the opportunity to implement SPP as well as Spares planning using DP and SNP and have seen the following major differences:
1. SPP has the ability to carry out Inventory balancing capabilities in your various DCs/ Depots or your stocking locations. This is due to the presence of Bills of Distributions (BODs) instead of Transportation Lanes to create a network.
2. Cyclicity of Replenishment is possible due to the above inventory balancing functionality
3. Ability in SPP to consider reworked parts as part of finished goods inventory. The whole rework piece otherwise needs to be custom developed in APO
4. Ability to manage hundreds of locations, agents, buyers, forwarding agents in the BODs which would be practically impossible to maintain Transportation lanes for.
David, you have gotten some good responses on why SPP is different from APO. I will add that SAP has partnered with MCA Solutions' Service Inventory Optimization (SIO) solution for forecasting & inventory optimization for asset intensive environments. SIO complements & extends SPP and has supported integration through SAP enterprise services.
You can learn more on our [Eco-Hub page|https://ecohub.sdn.sap.com/irj/ecohub/solutions/serviceoptimization], and if you click on the details tab you can see collateral and case studies for successful implementations in SAP environments at KLA-Tencor, Tellabs, and Rockwell Collins.
Please let me know if you need additional information,
SVP Marketing MCA Solutions
I am sure you are also looking at DP part as how it is different than APO DP.
Well. Here it goes
It is exclusively developed for Engineering and Automotive industry. (Has been developed with Caterpillar and ford often called CATFORD)
Service parts requires special forecasting methods for sporadic demand
Demand forecasting for spare parts is very very difficult to predict on. So SPP provides special forecasting methods (not in APO DP Fcst except crostonu2019s method) such as Dynamic moving avg model for slow moving parts, Declining Demand forecast, Intermittent Model
SPM is complete suite consists of Service Parts planning and Execution.
Planning has Demand planning, Inventory balancing, stocking destocking, DRP, Deployment, Surplus & Obsolescence Plng. No production, only external procurement is considered.
Service parts are different???
u2022 Very High Parts Order Volumes
u2022 High Order Lines / Fewer Pieces per Line
u2022 High Number of Part Numbers/SKUs
u2022 Short to No Lead Times
u2022 Very Fast to Ultra Slow Movers
u2022 Customers Demand High Availability
u2022 Time Critical Delivery
You can see the extra focus areas are particular to service parts planning:
1. Stocking and destocking (this allows you to exclude parts from planning, these could be obsolete parts)
2. Surplus and obsolescence planning
Service parts planning always has a significant focus on simulation. This is because service organizations are always trying to figure out the right trade off between service level and inventory investment.
Caterpillar Logistics Services
SPP can be intergrated with CRM, ERP,BI,EWM,SNC,APO.
so, its possible to create a SO in CRM with ATP, pricing, credit check etc using the above integrated systems which would source products if its available in BOD or procure/produce it.
APO is more of planning tool where as in SPP we hve ability to sell to stock or procure to stock with returns management.
SAP has also published an FAQ document describing the difference between APO & SPP and when to use what application
some of the distinctive features that SPP provides are--
1- Spares parts demand is very sporadic/intermittent. hence we need sophisticated models which would give better results.
In DP we have only one strategy(croston method) which helps us run a forecast with sporadic demand in past where as in SPP we have more models. few are for example dynamic moving average model, declining demand forecast etc
2- EOQ and safety stock planning togetther. This helps us saving cost in terms of not overstocking by ordering more or not giving out more in terms of frequent orderings.
3- Obsolete and surplus planning. helps us identifying the not so good moving parts and taking them off the business.
4- Inventory balancing- helps us maintaining the right stock level at particular locations by moving extra from or bringing into stocks
5- Nice integration with SNC/EWM/CRM to avail the full fledged planning
Hope this helps.
As already mentioned SPP is one of the part of APO which is responsible to provide planning (with hierarchy levels of locations - BOD) capabilities specific to service parts, and transparency throughout the supply chain, right from the moment demand occurs through to the delivery of the product.
It also has the integrations other than SAP APO e.g SNC etc.