SAP's Accuracy

How Accurate Was SAP the SNP Optimizer?

Executive Summary

  • For years SAP has said that the SNP optimizer is useful for performing supply planning.
  • In this article, we review the accuracy of this claim. 

What SAP Said About its the SNP Optimizer

The SNP Optimizer is part of the SAP APO suite, and it is a cost optimizer that produces a supply plan. It is supposed to provide higher quality output for the following:

  1. The initial supply planning run
  2. The deployment supply planning run

It is supposed to be leading edge and to allow a company to constrain by production resources, warehouse resources, storage resources, and transportation resources. It is also supposed to be able to enable a customer to perform multisourcing, which is intelligent and dynamic sourcing. For instance, if an inbound location has two sources of supply, it was supposed to be able to select the lower cost source of supply. Or switch to a higher cost source of supply if the lower cost source of supply was out of capacity for the time the supply was demanded.

See our references for this article and related articles at this link.

The Truth About the SNP Optimizer

The SNP optimizer does not work anything like what SAP proposes. We covered the problem with deployment in the SNP optimizer in the article The Problem with SNP Optimizer for Flow Control. We questioned whether the vaunted multisourcing, that pushes so many companies to select the SNP Optimizer even works in the article is Multisourcing Supported with CTM or the SNP Optimizer? and The False Assumption of Supply Planning Multi-Sourcing.

Reviewing a large number of projects, we never found an instance where the SNP Optimizer worked anywhere like it was advertised. The SNP Optimizer’s output is frequently a source of friction between the IT department and the business, with the company realizing the output is not useful.

Conclusion and Calculation

SAP receives a 0% accuracy rating on SAP Optimizer.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.