The mySAP SCM is one of the mySAP Business Suite solutions to manage Supply Chain Management in an efficient and effective way which improves supply chain effectiveness for meeting business goals. In this blog, we present the high level role of the Demand Planning component within APO.

APO Demand Planning (DP) is for forecasting purpose and normally, forecasting takes place based on historical data (extracted from ECC or Legacy System) using some forecasting methods/different forecasting models (for example,  Univariate forecasting, causal analysis, composite forecasting etc).

Demand Planning is a powerful and flexible tool that supports the demand planning process in company. The goal of Demand Planning is to create sales quantity forecasts that are as accurate as possible.

Master data for Demand Planning is called characteristic value combination (CVC). This data is created in SAP SCM Demand Planning and stored in the Planning Object Structure.

SAP Business Warehouse (BW) is an important tool integrated in APO DP itself.

Further, these forecasts are sent to SAP R3 as Planned Independent Requirements (PIRs) for triggering MRP if DP is used as a standalone system or PIRs are released to SNP from DP for further processing if APO is used for planning purpose such as creation of planned orders.

Please send us your questions, comments or assistance, and our team would be glad to assist you.

By Mahesh Janugade (on behalf of SAP Consulting Team)

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