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SAP APO vs. PeopleSoft's Advanced Planning engine

EXPERT RESPONSE FROM: Padman Ramankutty

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QUESTION POSED ON: 25 November 2002
We're a supplier of parts & devices for wireless technology, and we're trying to move to a truly global "available to promise" environment. We have 60,000 customers worldwide that we sell to via multiple types of channels (direct, 3rd party partner sales, Web-based ordering, OEM deals). We recently received SAP's Advanced Planner and Optimizer (APO) solution. We are now grappling with the fact that, a few years ago, we installed Peoplesoft's Advanced Planning engine (formerly the Red Pepper product). Do you recommend completely overhauling the whole infrastructure and going to a pure SAP shop?

I have found that the philosophy "if it's not broken, don't fix it" suits most situations. While you could certainly rip out all of your existing infrastructure and move to a "pure" environment, you likely will not achieve your Global ATP "end state" any more efficiently. The idea is to achieve greater efficiencies with new SAP functionality that makes sense, but not at the expense of jeopardizing the cost and timing of the project by pulling out solutions that are still effective. Try taking a more fluid approach to how to use software, and what pieces you use (remember, just because you have APO doesn't mean you have to use the whole thing immediately) while remaining firm on what ultimately need to achieve.

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