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Difference Between APO and IBP - Part 1

Difference between APO and IBP – Part 1

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88 views2 pages

Difference Between APO and IBP - Part 1

Difference between APO and IBP – Part 1

Uploaded by

abdulganisap111
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Difference between APO and IBP – Part 1

SAP APO (Advanced Planner and Optimizer) and SAP IBP (Integrated Business
Planning) are both supply chain management solutions from SAP, but they differ
significantly in terms of architecture, functionality, and the technological
foundation. Here's a breakdown of the key differences:
1. Architecture and Technology
 SAP APO:
o Part of the older SAP SCM (Supply Chain Management) suite.

o Built on the traditional SAP NetWeaver platform.

o Uses SAP HANA only optionally (if integrated with newer


technologies).
o Works with on-premise systems, typical in earlier SAP landscapes.

 SAP IBP:
o Built natively for the SAP HANA platform and operates on the
cloud.
o It uses SAP’s HANA in-memory computing for real-time data
processing and rapid analytics.
o Fully hosted on SAP Cloud Platform, promoting seamless
integration with S/4HANA and other cloud-based applications.
2. Functional Scope and Focus
 SAP APO:
o Core focus on operational supply chain planning: Demand
Planning (DP), Supply Network Planning (SNP), Production
Planning and Detailed Scheduling (PP/DS), Global Available-
to-Promise (GATP).
o Extensive support for discrete planning functions such as
production scheduling and detailed supply chain optimization.
o APO is highly customized, requiring significant configuration for
each business scenario.
 SAP IBP:
o Aimed at integrated business planning across various supply
chain domains like demand, inventory, supply, sales and
operations planning (S&OP), and response management.
o Focuses on collaborative planning, allowing different
stakeholders (finance, sales, and operations teams) to work in an
integrated environment.
o Advanced features like machine learning, real-time simulations,
and scenario planning are more accessible in IBP.
o Provides pre-built templates and functionality for rapid
deployment, reducing the need for heavy customization.
3. Deployment Model
 SAP APO:
o Primarily an on-premise solution, though it can be hosted in
private cloud setups.
o Requires integration with other systems like SAP ERP (ECC) for full
functionality.
o Integration and deployment can be complex due to the age of the
technology and architecture.
 SAP IBP:
o A cloud-based solution that integrates seamlessly with SAP
S/4HANA and other modern systems.
o Easier and faster to deploy because it is hosted in SAP's cloud
infrastructure.
o SAP IBP uses a modern user interface (Fiori) and offers a more
user-friendly experience compared to APO’s older GUI.

Cntd in part 2….

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