Apo scm overview and Unilever Process Flow

1. Use of Advance Planner and
Optimizer in entire Supply
Chain
Prepared By:
Arava Santosh kumar

2. Supply Chain Management
SC:
The supply chain encompasses all activities associated with the
flow and transformation of goods from the raw materials stage,
through the end user, as well as the associated information flow
both up and down the supply chain.
SCM:
Supply chain management is the integration of these activities
through improved supply chain relationships, to achieve
sustainable competitive advantage.

3. Advance Planner and Optimizer
Advanced Planner and Optimizer is designed to help a company to improve its
production planning, pricing, scheduling, and product shipping. APO can be
integrated with the SAP R/3 and legacy enterprise resource planning (ERP)
systems in entire supply chain.

4. Purpose of APO
SAP Advanced Planning and Optimization (SAP APO) offers a fully
integrated pallet of functions that you use to plan and execute your supply
chain processes.
SAP APO supports the following:
· Business collaboration on a strategic, tactical, and operational planning
level.
· Co-operation between partners at all stages of the supply chain
process; from order receipt, stock monitoring, through final shipping of the
product.
· Cultivation of customer and business partner relationships.
· Constant optimization and evaluation of the supply chain network’s
efficiency.

5. Advantages of APO
 High performance using live cache technology.
 Global Server : integrates multiple OLTP systems.
 Collaborative planning via the internet.
 Simultaneous material and finite capacity requirements planning.
 Cross-plant optimization of the resource load.
 Sequence and setup time optimization of orders.
 Transportation optimization with route planning.
 Evaluation and analysis of orders.
 Seamless integration between APO and R/3.

6. Modules in APO
Demand Planning
Supply Network Planning
Production Planning & Detailed
Scheduling
Global Available to Promise

9. Demand Planning
Contents :
 Demand Planning Tasks and Functions
 Integration with Business Information Warehouse (BIW)
 Forecast Toolbox
 Life Cycle Planning
 Promotions

10. Demand Forecast Toolbox
Univariate Forecasting
 Moving Average
 Models (Constant , Seasonal, Trend and Seasonal Trend)
 Exponential Smoothing
 Seasonal Linear Regression
 Holt-Winters
 Croston’s Method (for sporadic demand)
Casual Analysis
 Multiple Linear Regression
Composite Forecasting
 Weighted Average of multiple models

11. Life Cycle Management & Like Modeling

13. Aims of SNP Planning
 SNP planning plans the mid to long term horizon. It creates a rough quantity
based
cross-location production and distribution plan with individual rough bills of
material(BOM) and routing.
 The SNP BOM contains critical products that are produced on bottleneck
resources and
products with a long replenishment lead time.
 SNP ensures that the right quantity is available on the right day without critical
resources being overloaded. The smallest unit used for scheduling is days.

16. Performing of SNP Mid-to-Long term planning
Strategies:
Infinite Planning:
Heuristic : Resources and material availability are not checked when
creating planned orders, Stock transfers and purchase
requisition.
Finite Planning:
CTM and Optimizer :
Simultaneous quantity and finite capacity scheduling:
SNP resources and material availability are checked during
creation of orders.

18. Production Planning/Detailed Scheduling
Contents :
 Consumption of planning by sales orders for forecast-controlled
products in make-to-stock and make-to-order production.
 Simultaneous material and capacity requirements
planning at operation level in the production plant.
 Tools for production planning and production
scheduling.
 Schedule optimization in PP/DS.
 Transfer of planning results to the execution system.

22. Global Availability Check in APO
 Rules-based availability check (multi step availability check ) :
Check of Multiple locations and products.
 Better integration between sales and distribution and
production : Triggering of production when there is no
availability ( integration PP/DS).
 Multilevel component and capacity check (real-time
operation).
 Check against aggregated, memory-resident data.

24. Adaptation of APO in Unilever

25. Weekly Activities
 Monday Activity
 Load Sales/Explored History
 Load MSO Stocks
 Run weekly (Monthly Stat.) – Various forecast profiles
 Run Short term Macros
Batch Jobs
MSO Activities
Work on improving forecast accuracy
Monday pm
Monday am
Batch Jobs
Short Term forecast Macros
Release forecast to SNP
MSO Heuristics
 Load SU Intransit Stocks

26.  Tuesday Activity
Tuesday am
Batch Jobs
Load Intransits
MSO Activities
Finalize SNP forecast and Dependent Demand
Flow Thru Management
Repack Planning
Tuesday pm
Batch Jobs
Short Term forecast Macros
Release forecast to SNP
MSO Heuristics

27.  Wednesday Activity
SU Activities
Rough Cut mid term production plan
Focus on first 26 weeks
Use SU Alerts & Stock Projection Report
MSO Activities
Repack Planning
Forecasting (DP Only)
Master Data
Batch Jobs
Actual/Planned Dispatches
MSO Heuristics
Deployment
MSO Alerts
Delete Responses
Re-Run MSO Heuristics ( re-generate the Request)

28.  Thursday Activity
SU Activities
Review MSO Alerts for Critical Stock Issues
Amend production plan in Short term
Finish planning to 26 weeks
MSO Activities
Repack Planning
Forecasting (DP Only)
Master Data
Batch Jobs
Load Actual/Planned Dispatches
MSO Heuristics
Deployment
MSO Alerts

29.  Friday Activity
SU Activities
Review MSO Alerts for Critical Stock Issues
Complete & send out “Communication File”
Final adjustments to Production Plan
MSO Activities
Review Stock Projection Report for NON-IVMI sites
Engage in critical stock discussions with SU
Master Data
Batch Jobs
Delete Responses
Load Actual/Planned Dispatches
MSO Heuristics
Deployment (Final delivery plan)
Order Transport for following week
MSO Alerts

30.  Sunday Activity
House Keeping
 Deletion of Live Cache Database
 Deletion of all Database Sales Orders

31. SUMI
 SUMI++ is a web based platform, that supports 31 SUMI MSO’s & 16 SUMI
SU’s by providing visibility to stakeholders in the extended supply chain.
 It promotes a shared understanding of product requirements, projected
deliveries and shipment tracking.
Introduction:
Navigation SUMI:
 Top left corner of the home page is a button labeled location and is called
location selector.
 Once appropriate location (MSO or SU) has been selected, all information
viewed in system will be in context of that location.

32. Master Data :
Master data field in the home page of SUMI system has the following
options:
Create, modify and block users
 New MSO and SU location creations
 New product creations (Portfolio)
 Create and modify unit of measures
 Sourcing Matrix
 Inbound & outbound connectivity
 Upload help & sample files
 Home page settings

33. Sourcing Matrix:
Sourcing Matrix field helps to maintain new relationships between
MSO’s and SU’s as mentioned below.
MSO SU Process
APO MSO SUMI SU
Order At
MSO
SUMI MSO APO SU VMI
Process runs on
Wednesday AM
Tuesday PM

34. After maintaining the new relationship it should be activated.
 Products to be sourced between MSO and SU should be maintained in the
active relationship.
Outbound and Inbound Connectivity:
Outbound connectivity for VMI process:
• MSO Forecasts
• MSO Stocks
• MSO In transits
• Dependent Demand
Outbound connectivity for Order at MSO process:
• SUMI SU projected deliveries

35. Inbound connectivity for VMI process:
• APO SU projected deliveries
• SUMI Dispatches (Shipments)
Inbound connectivity for Order at MSO process:
• APO MSO demands
Actions:
Actions field enable users to upload,
download, view and delete data for the
following
• MSO requirement at MSO
• MSO Stocks (VMI)
• MSO Forecasts (VMI)
• Dependent Demand (VMI)
• Projected Deliveries

36. Planning:
 To view planning by start date for particular MSO
 To search orders with brand and category
 Planning Status
Shipments:
Shipment log
To search shipments
Shipment report

37. Interface between SUMI to APO:
• On Tuesday evening Intransits, MSO forecasts, MSO stocks and Dependant demands
are transferred from SUMI MSO to APO SU through message broker.
• On Thursday evening SUMI SU send their responses to APO MSO through message
broker
Interface between APO to SUMI:
• On Wednesday morning APO MSO send their demands to SUMI SU through
message broker
• On Friday and Saturday evening APO SU send their responses to SUMI MSO through
message broker

38.  As in traditional supply chains evolve into supply networks, collaboration
becomes increasingly critical. For manufacturers and their suppliers, successful
collaboration starts with making sure that everyone has clear visibility into inventory
information, so suppliers know what their customers need and when they need it.
 Often, however, that visibility is not easy to achieve. Supply networks are
typically complex and involve a wide range of suppliers, making it difficult to share
timely inventory information.
Inventory Collaboration Hub (ICH)

39. Benefits of ICH
 Interms of Cost:
 A reduction in raw-material inventory buffers.
 Lower unplanned overtime as well as costs for setup and breakdown.
Reduced administrative costs.
 Interms of Customer Service:
Reduced risk of stock outs.
Lower risk of production delays.
Increased accuracy in production and delivery dates.

40.  Supports network-oriented planning and optimization.
 Provides flexible and adaptive advanced planning capabilities that support the
full spectrum of planning requirements.
 Integrates and synchronizes planning and execution information for timely
decision-making.
 Integrates supply planning with other network processes (e.g., CRM, SRM,
PLM).
 Enables manufacturers and their suppliers to collaborate on the right level of
inventory to meet production schedules.
 Provides suppliers with complete visibility into the inventory they supply to
each manufacturing plant.
 Integrates seamlessly into any manufacturer's existing back-end transaction
and planning system.
SAP APO
SAP ICH

41. Thank You