Comparison of SAP forecasting tools

SAP ECC, IBP, FMO (+ HANA), APO-DP, FLO

Bernhard von Hasseln, SAP
March 21, 2023
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 Comparison of different SAP forecasting tools
A SAP ECC. Forecasting in material master
SAP Standard Software B SAP ECC. Forecasting in LIS InfoStructures
C SAP SCM-APO-DP
D SAP IBP
Solution overview
A ECC Add-On Forecasting & Monitoring Tool (FMO)
SAP Consulting Solutions B SCM-APO Add-On: Forecast Level Optimizer (FLO)
C ECC HANA Add-On: Forecasting on HANA (FOH)

Forecast methods A Overview / Comparison

A Overview / Comparison
B Lifecycle Planning
Forecasting Additional functions C Work on aggregated levels
D Manual forecast
E Reporting

A Overview / Comparison
B Auto-model choose
Forecast optimization C Demand Sensing
D Forecast Level Optimization

Data sources A Overview

Implementation A Aspects to consider when implementing forecasting solutions

effort

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 A SAP ECC. Forecasting in material master
The forecast functions in ECC are available since SAP
has been released ERP in the mid of 1990s. With the
new versions, also with HANA, some new functionality
has been added. The forecasting functionality in ECC
is still more a basic box. For enhanced forecasting, an
additional tool is necessary. The historical data are
only values from MVER.

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 B SAP ECC. Forecasting in LIS InfoStructures
The ECC also consists of the LIS InfoStructures. The InfoStructures are a table
which can be loaded with data from ECC. The planner can decide which characters
and key figures are part of the InfoStructure. Within the InfoStructure a forecast can
be created and saved. Exporting the results in PBED is possible with a special
transaction

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 C SAP SCM-APO Demand Planning

The APO solution has been developed from the late 1990s. APO contains several modules for
production planning. The Demand Planning (DP) module consists of enhanced planning functions
like statistical forecasting, macro calculation, lifecycle planning, manual input, data integration and
so on. Around 2005 APO is part of the new solution SAP SCM. SAP is planning to stop the APO
support in 2025.

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 D SAP IBP Demand
SAP IBP is the newest planning tool. IBP is a cloud based system and can be connected
to the existing ECC system using an interface. Within IBP, it is not possible to access the
system on a basis level like in former SCM system. On user side, IBP is working with an
interface for MS Excel, so the daily work will happens there.

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 A ECC Add-On: Forecasting & Monitoring Tool (FMO)
The Forecasting & Monitoring Tool (FMO, former: Forecast Monitor) is and Add-On tool for SAP ERP /
ECC to create forecasts, compare history forecast with historical sales, determine the best forecasting
model in the future, calculate trends, error signals, show master data, works together with other
Consulting Solution tools (e.g. Actions (measures), Comments. The tool was in the former releases more
a monitoring tool, with release 2021 it has been completely redesigned and can be used as complete
forecasting tool. In connection with the HANA Add-On tool “Forecasting Optimization on HANA (FOH) it
can also use additional HANA forecasting methods and optimize the aggregation level for forecasting

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 A ECC Add-On: Forecasting & Monitoring Tool (FMO)

You will see the simulated forecast for the past and the future.
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 B APO-DP Add-on: Forecast Level Optimization (FLO)
The FLO is an Add-On tool for APO-DP. It will be installed as transport
request and can be used immediately. Its original purpose was to find
out the best aggregation level to execute a forecast for a specific (other)
level (target aggregation level).

For example it can help to forecast on level product group, if all finished
goods having the same half material and differ only in a small thinks at
the end of the production process. This tool help to find out the best level
to forecast on.

Besides the aggregation level it optimizes also the forecast method

(better way as the automatic model selection)

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 C ECC-HANA Add-on: Forecast Optimization on HANA (FMO + FOH)
The FOH (Forecast Optimization on HANA) is an Add-On tool for SAP ECC
running on HANA. It can be used as standalone tool to find out the best
aggregation level to forecast on. It can also optimize the forecast methods.

In connection with the FMO tool a complete forecasting solution is available.

The FMO tool can read the historical data from a lot of data sources,
determine the best forecast method and shows everything (including master
data, forecast error calculation..) to the user. In connection with the FOH tool,
also the aggregation level can be optimized and further forecasting methods
for HANA can be used.

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 C ECC-HANA Add-on: Forecast Optimization on HANA (FOH)

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Forecast methods

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 X Full support
O Partly support
Forecast methods overview (1/2) N/A Not available
1 Only with FOH

Forecast method IBP ECC FMO FOH APO-DP FLO

Single exponential smoothing (Constant Model) X X X X X X

Constant model with smoothing factor adjust. X X X N/A X X

Double exponential smoothing (Trendmodel / Holt) X X X X X X

Brown exponential smoothing (Trendmodel) X N/A 1 X N/A N/A

Seasonal model N/A X X N/A X X

Triple exponential smoothing (Saisonal-Trend-Model) X X X X X X

Average X X X N/A N/A N/A

Moving average X X X N/A X X

Weighted Average X N/A N/A N/A N/A N/A

Weighted moving average X X X N/A X X

2nd order trendmodel with smoothing factor adjustment N/A X X X X X

2nd order trendmodel N/A X X X X X

Linear regression N/A N/A N/A N/A X X

Seasonal Linear Regression X N/A N/A N/A X X

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 X Full support
O Partly support
Forecast methods overview (2/2) N/A Not available
1 Only with FOH

Forecast method IBP ECC FMO FOH APO-DP FLO

Historical data adopted X N/A N/A N/A X X

Automatic model selection X O X X O X

Croston’s method (constant & sporadic) X X X X X X

Median method N/A N/A N/A N/A X X

MLR X N/A N/A N/A X X

Gradient Boosting of Decision Trees X N/A N/A N/A N/A N/A

ARIMA (Autoregressive integrated moving average) X N/A 1 X N/A N/A

SARIMA X N/A 1 X N/A N/A

LRDTSA Linear regression with damped trend and sesonal adjust X N/A 1 X N/A N/A

No forecast/no external model X X X X X X

Demand Sensing (Full) X N/A N/A N/A N/A N/A

Demand Sensing (Update) X N/A N/A N/A N/A N/A

BADI (User-defined Model) X N/A X N/A X N/A

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Additional functions

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Additional functions: Overview X Full support
O Partly support
N/A Not available

Function IBP ECC FMO FOH APO-DP FLO

Lifecycle planning X O O N/A X X

Aggregated planning X N/A X X X X

Key-figure-based planning (manual

X O X (rel. 2022) N/A X N/A
corrections, distribution factors, marketing, …)

Reporting X O X X X X

MS Excel integration X N/A X O O O

Forecast / history comparison X O X X X N/A

Macro functions and custom calculations X N/A X (rel. 2022) N/A X N/A

Alerts X O O O X O

Custom specific material attributes X N/A X (rel. 2022) N/A X X

Planning on 2nd aggregation level X N/A O (rel. 2022) N/A X N/A

Add Comments / notes in planning grid X N/A X N/A X N/A

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 APO-DP
Lifecycle Planning
With the lifecycle Planning it is possible to
phase in new products or phase-out old
products. During the phase in it is possible to
create a forecast for the new product by
looking on the historical data of the
predecessor product.

Additional functions make it possible to

increase or reduce the historical sales of the
predecessor product, e.g. in case of
cannibalism.

IBP

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Work on aggregated levels (FMO)
Select on aggregated planning the levels, you
want to see the panning aggregated. After
execution of the tool you see a summation of
all history and forecast values.

The aggregated view is available in FMO

without restrictions. The optimization of the
aggregation level to forecast on with the aim,
to optimize the forecast on your planning
level, is only available in connection with the
FOH tool.

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Work on aggregated levels (FOH)
The additional tool “Forecast Optimization on
HANA) can work with data inputs from FMO
tool and display the results in an intuitive
FIORI app.

In the history view, the consumption data is

available on the detail view or on the
aggregated view according to the target
aggregation level

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 D Manual Forecast (FMO)

Manual forecast is the possibility to add manual forecast demand in addition to the statistical forecast. This can be
necessary if no forecast has been created but also in case, the statistical forecast is based on continuous sales data,
while the planning of marketing / sales events is running separately or a big contract has been signed which has not
taken place in the past before.

The manual forecast can be saved in a separate planning version in PBED (MD62) or InfoStructure. So both demands
can be considered in MRP run and the planner keeps the transparency of where the origin of the demand comes from
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 E Reporting (FMO)

On result screen, several columns available to show the

error signal, trend and the error measures for the forecast
method which has been used for this material in the past
(has nothing to do with the simulation of different forecast
models).

These errors will be shown in detail view after selecting the

different forecast models

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Forecast optimization

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 X Full support
Forecast optimization: Overview O Partly support
N/A Not available
1 Only with FOH

Function IBP ECC FMO FOH APO-DP FLO

Demand Sensing X N/A N/A N/A N/A N/A

Event Planning X N/A O N/A X N/A

Auto-model choose X X X X X X

Forecast model
X N/A X X N/A X
optimization

Forecast level optimization N/A N/A 1 X N/A X

MAD, MSE,
MAD, MSE, RMSE, MAPE,
MAD, MSE,
Error measures for RMSE, MAPE, MPE, ET, AET
MAD, ET Like FMO RMSE, MAPE, Like APO-DP
optimization available MPE, ET, MASE, WMAPE,
MPE, ET
WMAPE SMAPE, MASE,
TS

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 B Auto-model choose (FMO)

Choose the time period you would

like to use as database for the
analysis of the forecast.

Select the forecast models to be analyzed.

Select all the error metrics you

want to be calculated.

You may also calculate the error

trend and show traffic lights
depending on the entered thresholds.

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 B Auto-model choose (FMO + FOH)
Besides the normal forecast method “Automatic model selection”,
which can also be used in FMO, one of the biggest advantages is
to determine the best forecast model by running several forecasts
for the past in a row and compare the result with the historical
sales data.

Dependent on the selected error measure the best forecast

method can be determined. This is much better than the
automatic model selection which is only doing some spot checks
and also does not include all forecasts methods which are
available.

In connection with FOH, the FMO is able to use the new HANA
forecasting methods additional to the existing methods in ECC.
Only IBP has a comparable functionality.

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 D Forecast level optimization (FOH)

Click on FIORI Log to access the FIORI Launchpad. A browser window opens.
Enter Username and Password of your SAP system. The initial screen shows
the forecast level and aggregation level

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 D Forecast level optimization (FMO + FOH)
Fill-out all fields which are needed to create a forecast. Then:
Go to tab “aggregated planning. You have to choose:
1. Target aggregation level. On this level the forecast should be optimized. This level usually has to do with your
production process
2. Forecasting levels. On these levels the consumption data will be used to generate a forecast. This forecast will be
(dis)aggregated to the target level and on the target level it will be compared with the historical data on target level
The result shows the forecast on target aggregation level (yellow; here on level purchasing group) and also the
disaggregated individual forecasts for single material / plants, to save them in system for production process

The aggregated planning is

not available if you have
activated the planning
functions on “program
execution” tab

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Supported Datasources

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Supported Data sources overview X
O
Full support
Partly / has to be implemented
N/A Not available
1 FOH can use the data in connection
with FMO

Data source IBP ECC FMO FOH APO-DP FLO

VBAP (Sales Orders) O N/A X 1 O O

Info Structures O X X 1 O O

RESB (Reservations) O N/A X 1 O O

DVER (consumption MRP area) O N/A X 1 O O

MVER (material consumption O X X 1 O O

MSEG (Document Segment material) O N/A X 1 O O

Add-on: Material documents (/SAPLOM/MDA) O N/A X 1 O O

MS Excel upload O N/A X X O O

Add-on: MRP elements (/SAPLOM/XMD) O N/A X 1 O O

Further data sources O N/A Via BADI N/A O O

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Implementation Aspects

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 X Full support
Implementation aspects O Partly / has to be implemented
N/A Not available
(1) In case APO planning area has been created and loaded with data
(2) Assuming ECC is already running
(3) Depending on the IBP setup
(4) In case of BADI implementations to use custom specific data
sources or targets or to implement key-figure calculations, some
days for development and customizing are necessary

Implementation aspects IBP ECC FMO FOH APO-DP FLO

Ready to use No Yes Yes Yes No Yes(1)

Implementation project necessary Yes No(2) No (4) No Yes No(1)

Cloud system Yes No No No No No

Interface necessary Yes No No No Yes No(1)

Master data maintenance in several

No(3) No No No Yes No(1)
systems

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 More information on SCM Consulting Solution

follow us:
SCM Launchpad with Price List and many more
Forecasting & Monitoring Tool on SAP Help Portal
Overview of all SCM Consulting Solutions

or send us an email:
SCM-Consulting-Solutions@sap.com

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Thank you.
Contact information:

Bernhard von Hasseln

bernhard.von.hasseln@sap.com

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