Procter & Gamble has begun what could, potentially, be a global
rollout of SAP's supply chain management software, as it continues
to tighten links with its suppliers using online marketplaces and
other Web-based collaborative technologies.
P&G began using SAP's Advanced Planner and Optimiser (APO)
application at several of its plants in Europe earlier this year
and plans to start installing the software in its North American
facilities, said Stephen David, P&G's chief information officer
and chief business-to-business officer.
APO gets updates from retailers on customer demand, which create
"demand triggers" that forecast the right amount of product mix
needed. The software also takes into account the delivery schedule
of raw materials and production cycles.
David said that during the next three years P&G expects APO to
help halve out-of-stock problems by ensuring that it has the right
mix of goods available at distribution centres and on store
shelves.
APO "is more of a reality" now than it was when the software was
introduced three years ago, David said. "I think it's fair to say
this is a new product for SAP, so they're working with us and other
manufacturers to try to get it fully commercial and [have] the key
functionality," he said.
Christian Knoll, vice-president for global supply chain initiatives
at SAP, said SAP has 278 APO customers. He added that the latest
version, 3.1, includes built-in processes tailored to specific
vertical industries, including the consumer packaged goods sector.