APO (Advanced Planning and Optimization) application is at the heart of SCM. It offers planning and optimization functionalities in different business processes of Demand Planning, Supply Planning, Supply and Demand Matching, Production Planning Detailed Scheduling, Global Available to Promise and Transportation Management.
SAP APO functionalities enable Plan to Inventory End to End Business Processes.
Collaboration with Suppliers and Customers is also possible through newer application Supply Network Collaboration (SNC) till recently known as Inventory Collation Hub (ICH)
With SCM 5.0 a new set of functionalities under Services Parts Planning were added specifically catering to Spare Parts Management.
APO as a application is tightly integrated to execution (OLTP) system like ERP using a standard interface called Core Interface Function (Interfaces - Core Interface (CIF) and BAPIs). It also has full BI (erstwhile BW) component for Data Mart as well as Reporting functionalities.
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