Why SAP APO Can’t Forecast Demand in Complex Environments

Most of today’s supply chains are far more complex than when planning systems like SAP APO were created in the 1990s. Through the years business complexity has grown, fueled by multi-channel marketing, demand shaping, and the impact of the Internet on buying. There are more products, shorter life spans, and an explosion of product proliferation—adding complexity to the supply chain and increasing demand volatility. SAP APO is not equipped to address today’s supply chain challenges and that makes demand forecasting and supply chain planning more cumbersome and off target with APO or similar tools...

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