The Research Of B Group H Company’ Supply Chain Optimization With APO System

Management guru Peter Drucker said,"Today, competition amongenterprises is not competition between products, but the business modelbetween the competitions." Since the late20th century, the rapid developmentof information technology promotes the integration of the global economyand market accelerated. With the trend of personalized customer demand andproduct diversification, business activities of manufacturers have beenincreasingly more international. Competition among enterprises has beenincreasingly more intense and this competition has gradually evolved intosupply chain relationships constitute a corporate group or enterprisecompetition between alliances. Construct various manufacturing companiesare trying to make themselves give more value to the supply chain system,which will make new demands manufacturing companies, manufacturingcompanies need to have a new production and management processes to adapt to this change.Supply Chain Management program is designed to ensure the supplychain collaboration between the various members, which is to improve theefficiency of the entire supply chain, one of the key core areas, but also oneof the core supply chain management. As the limitations of MRP/MRPII inthe existing ERP system in on supply chain management, Advanced Planningand Scheduling（APS）increasingly and widely used by more and moreenterprises. It is different from the traditional planning techniques and can bemulti-site, multi-process, multi-business entity planning and optimization.This is a supplementary for existing ERP supply chain management function.APS bases on the finite resource capacity optimization plan, the real situationof enterprises in the production activities would be encountered. It can helpcompanies significantly increase production capacity, and effectively controlof inventory levels. It also would help to improve the speed of response tochanges in market demand and to help businesses get the best input-outputratio and the ongoing real-time programs, which helps companies to meet theever-changing market situation.Many ERP system companies have launched its own APS system, and thefamous ERP system supplier company, SAP, introduces its own APS moduleoptimizer, calling Advanced Planner and Optimizer, referred to as APO. APO has been integrated into SAP’s supply chain management solutions MySAPSCM. It can not only fully support the demand for supply chain planning, butalso with other business systems (such as ERP, CRM, SRM, PLM, etc.) fordata exchange to achieve decision support role.This paper reviews the theoretical foundation of supply chainmanagement and importance and will explain the importance of APS forsupply chain management in current environment. After introduction of Themain function in SAP APO, an APO actual cases would be analyzed foroptimizations which enterprise supply chain management get. Finally analyzeand summarize the characteristics of APO implementation and future outlookof supply chain management trends.