Why migrate now from SAP APO to SAP IBP

Migrating from Advanced Planning and Optimization (APO) to SAP Integrated Business Planning (IBP) is a strategic step that many organizations have already successfully taken, and if you haven’t already, you should be considering it without delay.

To reduce risk and downtime, we recommend that you approach the switch from SAP APO (DP and/or SNP) to SAP IBP prior to the main migration to S/4HANA, taking advantage of the cloud planning model and its versatile integration capabilities right out of the box.

This shift not only aligns with the technological evolution to SAP S/4 HANA, but also responds to the needs for efficiency, agility, and visibility required by today’s disruptive environment and enabled by SAP’s modern advanced supply chain planning platform.

APO had 4 main modules DP, SNP, GATP and PPDS. DP and SNP are replaced and enhanced with SAP IBP, while GATP and PPDS are replaced with similar functionalities but embedded in S/4HANA.

Differential Points between PPIs and APO./h2>

Technological Solution:

The SAP HANA in-memory platform allows IBP to handle significantly larger volumes of data than APO and this is essential for both functionalities such as IBP for Demand, with new AI forecasting algorithms (e.g. Gradient Boosting), and for the analytical and scenario simulation capabilities offered by SAP IBP that were unthinkable in APO.

In addition, from the architectural point of view, IBP stands out for:

• Scalability and Flexibility: Being a cloud solution, IBP offers easier scalability and faster deployment of new functionalities, which makes it crucial for companies that must quickly adapt to market fluctuations.
• Intuitive User Interface:
  With easy integration with Excel or its new and powerful web-based Planner Workspace, IBP’s interface is much easier to use. The planner’s data design and visualization capabilities through interactive dashboards, charts, and analytics far outweigh the limitations of APO’s rigid interface.
• Integration and Extensibility: IBP integrates natively and seamlessly with other SAP solutions, e.g., with S/4HANA, SAC Planning, and SAP Business Network, as well as with third-party applications via SAP Integration Suite, facilitating effective collaboration between departments and business partners through data exchange, task workflows, and process management capabilities considering the entire value chain, that APO does not allow.

Functional Solution:

SAP IBP offers broader functionality, providing greater visibility, agility, and efficiency in supply chain planning, enabling companies to successfully adapt and respond to current and future market dynamics:

• Demand: IBP uses advanced Artificial Intelligence and Machine Learning algorithms to obtain the best forecast in the long, medium and short term (Demand Sensing), analyzing the time series and automating the choice of the best model.
• Inventory Optimization: Advanced Inventory Planning Solution (MEIO) with true multi-level capability to optimize stock in a complex network.
• Sales and Operations Planning (S&OP): Management of the S&OP process from demand review to alignment with supply constraints, financial integration, and simulation scenario analysis. The integration of costs, prices and exchange rates provides both operational and financial perspective.
• Supply Planning: Through the Response & Supply module, achievable plans are proposed considering the capacity and availability constraints of the supply chain, both at tactical and operational levels. Including finite capacity algorithms for cost and priority optimization, quotas, order and transfer confirmation, deployment and TLB.
• Control Tower: Real-time visibility of the end-to-end supply chain for decision support and quick corrective actions, through exception management through customized alerts with a subscription model for users.

Maintenance and Upgrades:

• As an SAP-managed cloud solution, SAP IBP benefits from automatic updates every 3 months, ensuring that companies have access to the latest innovations without the disruptions and costs associated with upgrades to on-premise systems such as SAP APO.

Are ready to move from SAP APO to SAP IBP?

Saptools

At Saptools, a valantic Company, we have +100 SAP consultants to accompany you on this path. Valantic is Europe’s No. 1 SAP consulting company in supply chain, one of the fastest-growing digital solutions, consulting and software companies on the market with +3500 specialized consultants and +1000 SAP consultants.
We have proven experience in more than 150 SAP SCM projects, being market leaders (80% market share in Spain) and extensive experience in key sectors of food and beverages and consumer goods, oil and gas, chemicals and pharmaceuticals.
If you want to boost your planning with SAP IBP, do not hesitate to contact us.