Category Archives: Tools

Difference between APO and SNC

SAP APO

APO Functionalities

Generally both are part of SAP’s SCM box but can be implemented independently.

APO is used for advanced planning of demand(generally finished goods, though other material planning is quite possible), supply (various manufacturing plants to various DCs, Inter DCs, Various DCs to customer location, plants to customer locations etc), detailed production planning and scheduling, ATP checking at whole enterprise level , Truck load planning etc. APO is generally used for big enterprises having multiple plants, multiple DCs, a number of suppliers and customers etc.

SNC Functionalities

SNC Functionalities

You can view APO as a planning tool(demand forecast to production and some level of distribution) whereas SNC is a both planning(small extent) & execution tool mainly used for collaboration perspective (with external business partners such as Suppliers <-> Plants <-> customers and Plants<->external manufacturers).

Both tools have different objectives, they work very differently and both are required for enterprises to increase their KPIs in supply chain.

Difference Between SMI and VMI in SAP SNC

VMI vs SMI

VMI vs SMI

I am providing a small description of the difference between SMI and VMI scenarios in SAP Supplier Network Collaboration.

SMI: Supplier Managed Inventory

VMI: Vendor Managed Inventory

Let’s start with an example business scenario.

A Manufacturing company M is manufacturing a product P. For manufacturing P the company needs raw material ‘R’ which is supplied by supplier ‘S’. After manufacturing the company sells it to it’s customer ‘C’.

Now if Supplier S wants to implement SAP SNC then it need to implement VMI scenario.

If Manufacturer M wants to implement SAP SNC then it need to implement SMI scenario.

Note: Both business concepts are same, i.e collaboration between customer and supplier. But the role playing by the implementing organization is different. In case of VMI the implementer plays as Supplier Role .

Hope this will help someone. Please don’t forget to mention your feedback in the comments section.