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Reason to Move from SAP APO to SAP IBP: A Comparative Study

Many blog posts and discussions floating around with different opinions about comparison and replacement of SAP APO with SAP IBP. So, thought of writing a comparative analysis of SAP APO and SAP IBP based on my experience and study. Indeed, it will help you to decide while moving from SAP APO to SAP IBP or new implementation of SAP IBP.

It will tuff decisions for the customers who are using SAP APO and did complex development to match their requirement especially manufacturing, O&G, and A&D customers. Therefore, their exercise will be different instead of merely a generic analysis of APO vs. IBP. They need to also consider the maturity of APO currently in use, long term objectives achieved as of now, and what the prospect wants to change due to recent digitalization.

Now let us understand using the below pictorial representation that where SAP APO functionality moved from SAP APO (in a combination of SAP IBP and S/4HANA EM):

I can’t say you move to SAP IBP right now, but you need to plan in long term. If you are already moved to S/4HANA then better to plan for SAP IBP as sooner or later, you need to move to SAP IBP. As SAP APO’s most powerful functionality GATP and PPDS now available within S/4HANA EM.

S/4HANA based aATP is much more matured compared to SAP APO or even competitor products. You can try out the below features of aATP of S/4HANA (1809 onwards) and feel the impact and Fiori based customer experience of the below features:

  1. Product Availability Check (PAC)
  2. Back Order Processing (BOP)
  3. Product Allocations (PAL)
  4. Alternative Based Confirmations (ABC)
  5. Release for Delivery (RefDy)

Now let’s discuss the adoption options for applications not available in SAP IBP comparing to SAP APO.

SAP IBP does not contain applications for Available to Promise (ATP) or detailed Production Planning (PP/DS). So, options for you:

  1. S/4HANA release 1610 onwards, PP/DS is inbuilt in S/4HANA EM therefore it’s completely integrated into S/4HANA
  2. Release 1610 onwards a new ATP solution called Advanced ATP (aATP) is available in S/4HANA EM. With release 1909 aATP is more versatile and supports a different set of ATP scenarios comparing to SAP APO gATP.
  3. Migration service from APO to S/4HANA PP/DS is available for customizing, master, and transactional data. The only missing part, how to bring complex customer-specific enhancement in S/4HANA. You will find a tool for the same either from SAP or partners shortly.

Check below the comparison matrix of SAP APO and SAP IBP for ready reference which helps you while taking a decision:

 

Conclusion: This SAP blog post helps you while deciding to move from SAP APO to SAP IBP. I would recommend registering for the SAP live webcast “Moving from SAP APO to SAP IBP” series planned in January/ February 2021 for more clarification and details.

Reference:

1. SAP Best practice for IBP

2. Past project reference

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