Why to choose SPP instead of APO

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David Fernandez
Dec 17, 2008 6:52 PM
Hi all,
I'm attempting to install SAP - SPP module, but I don't find clear evidences to choose it.
I'm seeing APO offers same functionalities (DP, SNP, ITS...) than SPP. Could someone
tell me differences between both?
I will really appreciate.
Many thanks,
David
Helpful Answers by Anjali Butley, Krutiman Das

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Helpful AnswerRe: Why to choose SPP instead of APO

Anjali Butley Dec 18, 2008 7:09 AM (in response to David Fernandez)
Spare part planning (SPP) is one of the component of the SCM
APO - Advance planning optimization is also a one of the component of the SCM

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Re: Why to choose SPP instead of APO

David Fernandez Dec 18, 2008 9:27 AM (in response to David Fernandez)
Hi Anajali,
First of all, I want to thank your quick response. That was great.
But I'm still wondering why to choose Spare Parts Planning instead of Advanced
Planning and Optimization. Could you give me reasons for this?
I'm a bit confused.

Many thanks,
David

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Re: Why to choose SPP instead of APO

Anjali Butley Dec 18, 2008 12:19 PM (in response to David

Fernandez)
Spare part planning having diffrent business processes than the finished
goods and raw materials which gets plan in APO.
Hence the diffrent components require in SCM

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Re: Why to choose SPP instead of APO

Tibor Nagy Dec 18, 2008 3:33 PM (in response to David Fernandez)
Dear David,
you cannot choose between APO and SPP because SPP (Service Parts Planning) is
part of APO as DP or SNP:
- SCM
- SCM-APO
+ SCM-APO-SNP
+ SCM-APO-FCS
+ SCM-APO-SPP
+ SCM-APO-PPS
+ SCM-APO-ATP
+ SCM-APO-INT
+ SCM-BAS
+ SCM-EWM
+ SCM-ICH
+ etc.
Why to choose SPP please read following link:
http://help.sap.com/saphelp_scm2007/helpdata/en/a3/7ed240caeb752ae10000000

a155106/frameset.htm
Hope this helps.
Regards,
Tibor

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Helpful AnswerRe: Why to choose SPP instead of APO

Krutiman Das Dec 19, 2008 12:57 PM (in response to David Fernandez)
Hi David,
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.
Cheers,
KD

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Re: Why to choose SPP instead of APO

Richard Handley Mar 4, 2009 6:14 PM (in response to Krutiman

Das)
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.

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Re: Why to choose SPP instead of APO

SRS KANNAN Mar 7, 2011 10:58 AM (in response to Krutiman

Das)
WANT TO KNOW MORE ABOUT SPP,
thanks
SRS Kannan

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Re: Why to choose SPP instead of APO

Marcos Nunez Apr 18, 2011 10:04 PM (in response to SRS

KANNAN)
Hi Kanan
I would suggest you to refer to Why to choose SPP instead of APO
There're a couple of features listed there.
Regards,
Marcos
Edited by: Marcos Nunez on Apr 18, 2011 9:55 PM

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Re: Why to choose SPP instead of APO

Gaurav Kohli Apr 24, 2009 7:04 PM (in response to David Fernandez)
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.
Gaurav

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Re: Why to choose SPP instead of APO - MCA's Service Inventory Optimization

Tim Andreae Apr 26, 2009 5:32 AM (in response to David Fernandez)
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,
Tim
SVP Marketing MCA Solutions
617.823.0664

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Re: Why to choose SPP instead of APO

RAVINDRA G Apr 28, 2009 8:43 AM (in response to David Fernandez)

Hi David,
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
Simulation
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.
Few Customers
Porsche
Caterpillar Logistics Services
Airbus

Regads RV

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Re: Why to choose SPP instead of APO

Rainer Kloos May 7, 2009 3:11 PM (in response to David Fernandez)

Hi all,
is it possible to mix functionalities between APO and SPP? E.g. use forecasting in
SPP, but use the result in APO SNP?
Best
Rainer

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Re: Why to choose SPP instead of APO

Harsha GattSridhar Aug 30, 2009 3:13 PM (in response to David

Fernandez)
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.

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Re: Why to choose SPP instead of APO

Thomas Pohl Dec 3, 2009 4:20 PM (in response to Harsha

GattSridhar)
All
SAP has also published an FAQ document describing the difference
between APO & SPP and when to use what application
[http://download.sap.com/download.epd?
context=FD78313BD295346048030F3154BB50D3CFF34462C412ACEB

0C52B3DE39B51C2E78FD9D7920859C3271F219C975B29CCAD00B6
1CA46BC2AB6 ]
Regards
Thomas

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Re: Why to choose SPP instead of APO

Binod Sahu Apr 1, 2010 8:25 AM (in response to David Fernandez)

Hi David,
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.
Regards
Binod

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Re: Why to choose SPP instead of APO

Guest Apr 15, 2010 10:54 AM (in response to David Fernandez)

Hi,
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.
Thanks,
Harjinder