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RDS_IBP_IBP1802_10_Best_Practices_Scope_Presentation_EN_XX.pdf

The document describes the scope of SAP Best Practices for SAP Integrated Business Planning V10.1802. It includes new scope items that allow for sales order confirmation and adjusting supply plans based on demand changes. It also details integration with SAP S/4HANA for exchanging order data and sharing forecasts with suppliers in SAP Ariba. The SAP Best Practices provide documentation, sample data, and templates to help customers implement and use SAP Integrated Business Planning.

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CUSTOMER SAP Best Practices for SAP Integrated Business Planning V10.1802
2 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Scope overview Scope in detail Appendix ▪ System landscape ▪ Sample data overview ▪ New scope and changes in past versions Agenda
Scope overview
4 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V10.1802 ▪ Technical upgrade to SAP Integrated Business Planning 1802 ▪ The new ‘IBP for response and supply – response planning’ scope item allows for sales order confirmation and adjusting the supply and allocations plan based on short-term changes in demand and supply constraints ▪ The two new ‘IBP – order-based planning inbound integration with SAP S/4HANA’ and ‘IBP – order-based planning outbound integration with SAP S/4HANA’ scope items describe the configuration and execution of exchanging order data between SAP S/4HANA and SAP IBP ▪ The new ‘IBP – Business Network Collaboration – supplier commit with SAP Ariba’ scope item shares a component forecast with suppliers in SAP Ariba and receives committed quantities for further constrained supply planning View Confirmations in Response Planning Supplier Forecast in SAP Ariba Supply Chain Collaboration
5 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Unified planning in SAP Integrated Business Planning ▪ Exemplary, integrated planning process across SAP IBP applications facilitated by SAP Best Practices ▪ Comprehensive sample planning area that supports planning on different time and data granularity ▪ Preconfigured and validated application content for running the integrated process including planning views in Excel, dashboards, alerts, sample data, and more ▪ Extensive documentation of solution configuration and process execution allows for running tests, building demos, facilitating education, and accelerating implementations ▪ Extendable to cover specific customer needs Susan Price Supply Chain Planner Monthly Daily Time Data Product Family Customer Region Location Sales & Operations Planning Supply Planning Demand Planning Inventory Planning Demand Sensing Control Tower Product Customer Resource Sales Orders Weekly Response Planning
6 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Unified planning process flow Tactical Frequency: Monthly Horizon: 1-3 years Buckets: Months, Weeks Mid-Term Operational Frequency: Weekly Horizon: 1-12 months Buckets: Weeks, Days Short-Term Operational Frequency: Daily Horizon: 1-12 weeks Buckets: Days Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Sales Order Processing Open,Confirmed,Delivered Sales Orders External Process SAP IBP Process Available-to-Promise Processing Sales Order Confirmations Demand Review Consensus Demand Plan Supply Review - Heuristic, Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan Reconciliation Review Constrained Demand Plan Demand Planning Global Demand Plan Demand Sensing Sensed Demand Supply and Allocations Planning Supply Proposals. Product Allocations Response Planning Supply Proposals, Sales Order Confirmations Inventory Optimization Inventory Plans Supplier Commit with SAP Ariba Committed Forecast Execution Procurement Purchase Orders Stock Transfer Stock Transfer Requisitions Production Production Orders Supply Chain Control Tower Managed Cases and Exceptions
7 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Unified planning process flow: Internal and external processes Tactical Frequency: Monthly Horizon: 1-3 years Buckets: Months, Weeks Mid-Term Operational Frequency: Weekly Horizon: 1-12 months Buckets: Weeks, Days Short-Term Operational Frequency: Daily Horizon: 1-12 weeks Buckets: Days Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Sales Order Processing Open,Confirmed,Delivered Sales Orders External Process SAP IBP Process Available-to-Promise Processing Sales Order Confirmations Demand Review Consensus Demand Plan Supply Review - Heuristic, Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan Reconciliation Review Constrained Demand Plan Demand Planning Global Demand Plan Demand Sensing Sensed Demand Supply and Allocations Planning Supply Proposals. Product Allocations Response Planning Supply Proposals, Sales Order Confirmations Inventory Optimization Inventory Plans Supplier Commit with SAP Ariba Committed Forecast Execution Procurement Purchase Orders Stock Transfer Stock Transfer Requisitions Production Production Orders Supply Chain Control Tower Managed Cases and Exceptions
8 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Detailed process flows available in SAP Best Practices Explorer You can find process flows and test scripts here: http://rapid.sap.com/bp/rds_ibp
9 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Time-series based planning and order based planning Sample Planning Area Process Demand Planning and Sensing Supply and Allocations Planning Inventory Planning Sales and Operations Planning and Supply Planning Integration Tool SAP Cloud Platform Smart Data Integration (SDI) CPI-DS for time series data SAP Cloud Platform Integration for data services (CPI-DS) Time series User-configurable, internal master data types Restricted by planning operators Response Planning Orders Internal + external master data types Defined by order data model SAP7, SAP74 Deployment Planning Data Model Control Tower SAP4(C), SAP74 SAP6 SAP3 SAP5 Supply Planning Optimizer + Heuristic Statistical Forecasting Inventory Optimization - Planning Operator Constrained Forecast Run Confirmation Run Deployment Run Supply Planning Heuristic SAP2 SAPIBP1
10 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Unified Planning Sample planning areas used ▪ All time-series based planning processes run in the SAPIBP1 sample planning area (unified planning area) ▪ Order-based planning processes run in the SAP74 sample planning area (response and supply) ▪ All application content like planning views, dashboards, alerts, and sample data are tailored to the respective sample planning area ▪ Sample data for SAPIBP1 is loaded by the Data Integration app ▪ Sample data for SAP74 is loaded by the SDI agent via File Adapter and the Data Integration app, please refer to the corresponding configuration guides ▪ Time series data is copied between the two planning areas by the disaggregation operator
11 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Unified planning process flow: Mapped to sample planning areas Tactical Frequency: Monthly Horizon: 1-3 years Buckets: Months, Weeks Mid-Term Operational Frequency: Weekly Horizon: 1-12 months Buckets: Weeks, Days Short-Term Operational Frequency: Daily Horizon: 1-12 weeks Buckets: Days Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Sales Order Processing Open,Confirmed,Delivered Sales Orders External Process SAP IBP Process Available-to-Promise Processing Sales Order Confirmations Execution Procurement Purchase Orders Stock Transfer Stock Transfer Requisitions Production Production Orders SAPIBP1 time-series based, internal master data Demand Review Consensus Demand Plan Supply Review - Heuristic, Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan Reconciliation Review Constrained Demand Plan Demand Planning Global Demand Plan Demand Sensing Sensed Demand Inventory Optimization Inventory Plans SAP74 order-based, external master data Supply and Allocations Planning Supply Proposals, Product Allocations Response Planning Supply Proposals, Sales Order Confirmations Supplier Commit with SAP Ariba Committed Forecast Supply Chain Control Tower Managed Cases and Exceptions
12 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Innovation adoption made simple! with SAP Best Practices™ • Get a jump-start for your implementations with SAP Best Practices™ • Deploy SAP innovations fast, simple and flexible • Use SAP’s tested and proven methodology with prescriptive guidelines • Leverage preconfigured business content • Protect your on-premise investments with extensions to the cloud • Move up on the path to the cloud from pre-assembled trials to productive use Fast time to value Predictable results Simple on-boarding to cloud
13 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning ▪ Detailed configuration documentation for setting up predefined SAP Best Practices processes ▪ Predefined planning views in Microsoft Excel ▪ Predefined charts and dashboards to analyze trends and exceptions ▪ Predefined process management to track progress and integration into social collaboration ▪ Predefined case management in the Supply Chain Control Tower ▪ Based on an integrated planning area that allows to operate an end-to-end process across all IBP applications ▪ Reduce sales and operations planning cost ▪ Improve demand forecast accuracy and react more quickly to changes in demand ▪ Increase sales forecast accuracy ▪ Reduce inventory carrying cost and increase inventory turnover / reduce days in inventory ▪ Improve on-time delivery performance ▪ Increase revenue and reduce revenue loss due to stock-outs ▪ Increase user productivity by using Microsoft Excel for interactive planning and by integrating with SAP Jam for collaboration Solution highlights Key benefits Leverage SAP Best Practices for SAP Integrated Business Planning to get an entry scope of the Supply Chain Control Tower and the planning processes of sales and operations planning, response and supply planning, demand planning, demand sensing, and inventory optimization. Have a jump start in SAP IBP with SAP Best Practices
14 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning What it can do for you Use case Sample planning area Documentation Test scripts, configuration guides Technical content Sample data, planning views Implementation service Study Training Demonstration Proof of concept or pilot project Implementation project Use as delivered Use as a starting point, adjust to your needs No use Educate yourself and leverage reference material. Educate project members, key users, and end users. Sell it to your clients and demonstrate the capabilities of SAP Integrated Business Planning in a process-oriented way. Evaluate SAP Integrated Business Planning and build a solution that fits your client’s requirements. Roll out SAP Integrated Business Planning in your client’s organization and set it into productive use.
15 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning What it can do for you Use case Sample planning area Documentation Test Scripts, Configuration Guides Technical content Sample Data, Planning View Templates Implementation service Educate yourself and use reference material. Review the configuration of SAPIBP1. Examine scope item simulations, test scripts, and configuration guides. Review the layout of the planning views and the data structure of the CSV files. Not required. Educate project members, key users, and end users. Use the pre-installed planning area in the Starter edition and test systems. Execute the test scripts and explore the configuration of the planning area. Use the delivered sample data and planning views. Not required. Sell it to your clients and demonstrate IBP capabilities in a process-oriented way. Use the pre-installed planning area in the Starter Edition and test systems. Leverage test scripts to create your (shorten) demo script. For quick demos, use the delivered sample data and planning views. Adjust sample data and planning views as needed for a tailored demo. Not required. Evaluate IBP and build a solution that fits your client‘s requirements. Activate a new copy of SAPIBP1 or use the pre- installed planning area in the Starter Edition and test systems. As a starting point, leverage test scripts for process design and configuration guides for custom configuration. Use sample data CSV files as templates to provide custom data. Adjust the planning view templates to the client’s requirements. Could be leveraged to configure proof-of-concept system. Roll out IBP in your client‘s organization and set it into productive use. Activate a new copy of SAPIBP1. As a starting point, leverage test scripts for process design and configuration guides for custom configuration. Use sample data CSV files as templates to provide custom data. Adjust the planning view templates to the client’s requirements. Choose the predefined implementation service for a reliable implementation of SAP IBP. Study Training Demonstration Proof of concept or pilot project Implementation project
16 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning Where to get it http://help.sap.com/ibp http://rapid.sap.com/bp/rds_ibp Download the following assets: ▪ Test scripts ▪ Process flow diagrams ▪ Scope item recordings ▪ Configuration guides ▪ Excel planning view templates ▪ Sample data CSV files
17 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning Explanatory diagram SAPIBP1, SAP74 Sample planning areas Supply Chain Control Tower IBP for demand IBP for inventory IBP for sales and operations IBP for response and supply delivered in SAP tables available at http://rapid.sap.com/bp/rds_ibp SAP Best Practices for SAP Integrated Business Planning Attributes Planning Operators Key Figures Master Data Types Time Profile Planning Levels Versions Dashboards Sample Data SAP Jam Integration Test Scripts Configuration Guides Alerts Forecast Model Forecast Error Profile Segmentation Profile Process Management Planning Views
18 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning V10.1802 Scope item overview Integrated Business Planning for sales and operations ❖ IBP for sales and operations – demand review ❖ IBP for sales and operations – supply review – heuristic ❖ IBP for sales and operations – reconciliation review ❖ IBP for sales and operations – management business review ❖ IBP for sales and operations – forecast error calculation and analysis Integrated Business Planning for response and supply ❖ IBP for response and supply – supply review – optimizer ❖ IBP for response and supply – supply and allocations planning ❖ IBP for response and supply – response planning ❖ IBP – order-based planning inbound integration with SAP S/4HANA ❖ IBP – order-based planning outbound integration with SAP S/4HANA Integrated Business Planning for demand ❖ IBP for demand – demand planning ❖ IBP for demand – demand sensing ❖ IBP for demand – forecast error calculation and analysis Integrated Business Planning for inventory ❖ IBP for inventory Supply Chain Control Tower and Business Network Collaboration ❖ Supply Chain Control Tower ❖ IBP – Business Network Collaboration – supplier commit with SAP Ariba Cross-application scope items ❖ IBP – ABC-XYZ Segmentation
19 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning V10.1802 Scope item status (1/2) IBP Application Scope Item SID Status Short Description and What’s New Integrated Business Planning for sales and operations IBP for sales and operations – demand review 2BQ Technical upgrade Gather demand input from various sources like sales, marketing, and finance, and generate a single consensus demand plan for measuring current volume and financial target achievement. IBP for sales and operations – supply review – heuristic 2BS Technical upgrade Generate an infinite supply plan with no shortages for your consensus demand, and identify supply and capacity bottlenecks. Carry out manual capacity leveling to solve potential supply issues and to create a feasible, constrained demand plan. IBP for sales and operations – reconciliation review 2BU Technical upgrade Evaluate constrained demand scenarios and prepare an executive proposal for demand, supply and finance alignment. IBP for sales and operations – management business review 2BW Technical upgrade Decide on demand, supply and finance alignment, and approve final consensus demand plan. IBP for sales and operations – forecast error calculation and analysis 2C4 Technical upgrade Analyze the accuracy of your past consensus demand forecasts by calculating error measures based on actual sales data. Integrated Business Planning for demand IBP for demand – demand planning 11V Technical upgrade Gain full demand transparency for mid- and long-term forecasting by leveraging statistical forecasting methods. IBP for demand – demand sensing 11X Technical upgrade Refine short-term forecasts to drive better fulfillment and inventory reduction. Get a better sense of demand by identifying demand patterns based on daily, granular demand signals. IBP for demand – forecast error calculation and analysis 2BM Technical upgrade Analyze the accuracy of your past demand forecasts by calculating error measures based on actual sales data. Integrated Business Planning for inventory IBP for inventory 11Z Technical upgrade Optimize multi-stage inventory targets to most efficiently meet or exceed customer service levels, fully considering uncertainties like forecast error and supply uncertainty.
20 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning V10.1802 Scope item status (2/2) IBP Application Scope Item SID Status Short Description and What’s New Integrated Business Planning for response and supply IBP for response and supply – supply review – optimizer 18N Technical upgrade Generate a feasible, cost-optimized supply plan for your consensus demand based on finite capacities, lead times, lot sizes, and other supply chain constraints. IBP for response and supply – supply and allocations planning 2I0 Technical upgrade Create an operational supply plan and product allocations based on prioritized forecast demands and supply chain constraints. IBP for response and supply – response planning 2P0 NEW Create order confirmations and adopt the supply plan based on prioritized demands, allocations and supply chain constraints. New scope item in SAP Integrated Business Planning 1802 IBP – order-based planning inbound integration with SAP S/4HANA 2S4 NEW Order-based planning requires a dynamic data integration from the execution system within the SAP IBP system to allow you to react swiftly to demand changes coming from sales orders. New scope item in SAP Integrated Business Planning 1802 IBP – order-based planning outbound integration with SAP S/4HANA 2S6 NEW To benefit from the output of the order-based planning in the execution, for example in production planning, a dynamic data integration between the SAP IBP system and the execution system is needed to exchange order information on a detailed level. New scope item in SAP Integrated Business Planning 1802 Supply Chain Control Tower and Business Network Collaboration Supply Chain Control Tower 18P Technical upgrade Quickly identify supply chain problems, evaluate their impact, and resolve them with an end-to-end supply chain visibility, real-time monitoring, analytics, alerting, and exception management. IBP – Business Network Collaboration – supplier commit with SAP Ariba 2P2 NEW Share an unconstrained component forecast with your suppliers in SAP Ariba and receive committed quantities for your further constrained supply planning. New scope item in SAP Integrated Business Planning 1802 Cross application IBP – ABC-XYZ Segmentation 1S6 Technical upgrade Group your planning objects based on data and thereby increase user efficiency and planning accuracy.
21 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Supply Chain Control Tower Unified planning process flow: Mapped to IBP applications Tactical Frequency: Monthly Horizon: 1-3 years Buckets: Months, Weeks Mid-Term Operational Frequency: Weekly Horizon: 1-12 months Buckets: Weeks, Days Short-Term Operational Frequency: Daily Horizon: 1-12 weeks Buckets: Days Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Sales Order Processing Open,Confirmed,Delivered Sales Orders External Process SAP IBP Process Available-to-Promise Processing Sales Order Confirmations Execution Procurement Purchase Orders Stock Transfer Stock Transfer Requisitions Production Production Orders IBP for sales and operations Demand Review Consensus Demand Plan IBP for response and supply Supply Review - Heuristic, Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan Reconciliation Review Constrained Demand Plan IBP for inventory Inventory Optimization Inventory Plans Supply Chain Control Tower Supplier Commit with SAP Ariba Committed Forecast IBP for demand Demand Planning Global Demand Plan Demand Sensing Sensed Demand IBP for response and supply Supply and Allocations Planning Supply Proposals. Product Allocations Response Planning Supply Proposals, Sales Order Confirmations Supply Chain Control Tower Managed Cases and Exceptions
22 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Integrated Business Planning starter edition, non-production SAP Best Practices ▪ The starter edition contains an activated copy of sample planning area SAPIBP1 with SAP Best Practices content configured and all sample data uploaded ▪ Immediately execute the exemplary end-to-end planning process in SAP IBP without the need of manual configuration ▪ Learn the capabilities of SAP IBP in a process-oriented way using illustrative sample data and click-by-click instructions provided in test scripts ▪ Activated SAP Best Practices scope items in the Starter edition: ❖ IBP for sales and operations – demand review ❖ IBP for sales and operations – supply review – heuristic ❖ IBP for response and supply – supply review – optimizer ❖ IBP for sales and operations – reconciliation review ❖ IBP for sales and operations – management business review ❖ IBP for sales and operations – forecast error calculation and analysis ❖ IBP for demand – demand planning ❖ IBP for demand – demand sensing ❖ IBP for demand – forecast error calculation and analysis ❖ IBP for inventory ❖ Supply Chain Control Tower ❖ IBP – ABC-XYZ Segmentation The starter edition in SAP Store
23 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ ▪ An end-to-end supply chain planning platform for small and mid-sized organizations ▪ Aligns sales and operations plans to corporate strategy and goals to drive revenue growth, increase market share, and attain financial targets ▪ Limited in scope compared to SAP IBP “Enterprise” applications ▪ Applicable SAP Best Practices scope items for the Edge edition: ❖ IBP for sales and operations – demand review ❖ IBP for sales and operations – supply review heuristic ❖ IBP for sales and operations – reconciliation review ❖ IBP for sales and operations – management business review ❖ IBP for sales and operations – forecast error calculation and analysis ❖ Supply Chain Control Tower ❖ IBP – ABC-XYZ Segmentation SAP Integrated Business Planning, Edge edition SAP Best Practices SAP Best Practices provides content for all SAP IBP applications. Make sure that you only use features of SAP IBP that are included in your licensed applications. Refer to the Applications and Features of SAP Integrated Business Planning (http://help.sap.com/ibp-ref → Application Help → What's in the IBP Applications).
Scope in detail IBP for sales and operations – demand review
25 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – demand review Process flow External Process Demand Review SAP IBP Process Review Marketing Forecast Marketing Forecast Review Annual Operating Plan Annual Operating Plan New Product Introduction Consensus Demand Plan Create Consensus Demand Consensus Demand Plan Demand Planning Global Demand Plan Supply Review – Optimizer Constrained Demand Plan ABC-XYZ Segmentation Segmented Products Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Review Sales Forecast Sales Forecast Supply Review – Heuristic Constrained Demand Plan
26 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Sales forecast, 1 worksheet ▪ Marketing forecast, 1 worksheet ▪ Annual operating plan, 1 worksheet ▪ Consensus demand plan, 2 worksheets Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Demand Review’ dashboard with 5 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Align supply chain planning with corporate financial targets ▪ Collaboratively define a consensus demand plan Benefits ▪ Create the optimal business plan to drive revenue growth and increase market share ▪ Improve the speed, agility, and accuracy of sales and operations planning Frequency ▪ Monthly Participants ▪ Director finance, sales manager, marketing manager, demand planner Technical details Input ▪ Annual operating plan ▪ Sales forecast ▪ Marketing forecast ▪ Global demand plan Output ▪ Unconstrained, consensus demand plan Planning Level ▪ Months / Product Family / Customer Group Planning Operator ▪ No planning operator The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During demand review, representatives from sales, marketing, finance, demand planning, and other involved lines of business first gather and review their various demand input. In a second step, they jointly define a single, consolidated consensus demand plan for measuring current volume and financial target achievement. In the subsequent supply review, a complete supply plan is created for the consensus demand plan. IBP for sales and operations – demand review Description
27 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Business purpose ▪ Include a new product in your sales and operations planning and evaluate how it adds to revenue growth and impacts your supply plan ▪ Get executive management decision on introducing the new product Prerequisites ▪ In contrast to new product introduction in demand planning, master data and planning objects for the new product are created manually in SAP IBP ▪ The new product is created in a dedicated version of the planning area ▪ Consensus demand for the new product is copied from an existing product with a similar demand pattern, that is, it’s not in scope to create a statistical forecast based on a reference product Process flow 1. Demand review: The demand planner creates the master data and planning objects for the new product in Excel 2. Supply review: The supply planner creates a supply plan that includes the new product 3. Reconciliation review: Attribute PLM status is used in various charts to analyze the impact of the new product on revenue, gross profit, and supply 4. Management business review: At the end, the manually created master data and planning objects are deleted in SAP IBP. In case of a positive business decision, the master data will be created later in the leading master data system (for example, ERP) and it continues with the new product introduction in demand planning IBP for sales and operations – demand review New product introduction (1/2)
28 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Use of template product ▪ To reduce manual effort, only the highest node of the product BOM is created during demand review, for example, the finished good with product ID NEW-150 ▪ For testing purposes, the sample data contains template product IBP-1X0, for which the product BOM and the sourcing and production in the supply chain network has already been defined ▪ Only if a finished good is assigned to the template product and customer demand is created, the new product / template product is part of the supply planning ▪ Transformation (sourcing) of finished good to template product happens in the distribution center; you can think of it as labeling the template product IBP for sales and operations – demand review New product introduction (2/2) IBP-1X0 IBP-1X1-S IBP-1X1-R IBP-1X2-R IBP-1X3-R Semi-finished dummy product Semi-finished product Raw material Raw materials Template product NEW-150 New product Finished good Transformation in DC
Scope in detail IBP for sales and operations – supply review – heuristic
30 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – supply review – heuristic Process flow External Process Supply Review – Heuristic SAP IBP Process Run Supply Heuristic Constrained Demand Plan Check Capacity Alerts Constrained Demand Plan Prepare Supply Scenarios Constrained Demand Plan Carry Out Capacity Leveling Constrained Demand Plan Inventory Optimization Inventory Plans Demand Review Consensus Demand Plan Reconciliation Review Constrained Demand Plan ABC-XYZ Segmentation Segmented Products
31 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Supply Plan Heuristic, 9 worksheets Alerts ▪ The ‘Supply Plan Heuristic’ planning view includes 1 alert definition for capacity overload Analytics ▪ 1 predefined ‘Supply Review’ dashboard with 5 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Create infinite supply plan with no shortages to identify capacity bottlenecks ▪ Perform manual capacity leveling to create a feasible, constrained demand plan Benefits ▪ Effectively balance demand and supply Frequency ▪ Monthly Participants ▪ Supply planner Technical details Input ▪ Consensus demand plan (from demand review) ▪ Resource capacities ▪ Safety stock Output ▪ Constrained, consensus demand plan Planning Level ▪ Weeks / Product / Location / Customer (Worksheets have different planning levels, for example, Capacity: Resource / Component; Production: Source / Ship-To; Transportation: Ship-To / Ship-From) Planning Operator ▪ Time-Series-Based Supply Planning Heuristic The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During the supply review, the supply planner creates a complete supply plan for the consensus demand. This plan defines for each product how much should be purchased, produced, or shipped at each location in the supply chain and in which period of the planning horizon. Using the S&OP heuristic planning algorithm, the supply planner can generate an infinite supply plan with no shortages to identify supply and capacity bottlenecks. By carrying out manual capacity leveling, he or she can then solve potential supply issues and create a feasible, constrained demand plan. The supply planner can simulate different solutions and provide them as scenarios to the participants of the reconciliation review. IBP for sales and operations – supply review – heuristic Description
Scope in detail IBP for response and supply – supply review – optimizer
33 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – supply review – optimizer Process flow External Process Supply Review – Optimizer SAP IBP Process Run Supply Optimizer Constrained Demand Plan Prepare Supply Scenarios Constrained Demand Plan Inventory Optimization Inventory Plans Demand Review Consensus Demand Plan Reconciliation Review Constrained Demand Plan ABC-XYZ Segmentation Segmented Products
34 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Supply Plan Optimizer, 10 worksheets Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Supply Review’ dashboard with 5 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Create a feasible, cost-optimized supply plan for the entire supply chain based on constraints Benefits ▪ Effectively balance demand and supply, and achieve a cost-optimal plan for production, distribution, and procurement Frequency ▪ Monthly Participants ▪ Supply planner Technical details Input ▪ Consensus demand plan (from demand review) ▪ Resource capacities ▪ Safety stock ▪ Cost per unit Output ▪ Constrained, consensus demand plan Planning Level ▪ Weeks / Product / Location / Customer (Worksheets have different planning levels, for example, Capacity: Resource / Component; Production: Source / Ship-To; Transportation: Ship-To / Ship-From) Planning Operator ▪ Time-Series-Based Supply Planning Optimizer The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During the supply review, the supply planner creates a complete supply plan for the consensus demand. This plan defines for each product how much should be purchased, produced, or shipped at each location in the supply chain and in which period of the planning horizon. The S&OP optimizer planning algorithm generates a cost-optimized production, distribution, and procurement plan for the entire supply chain network, taking certain constraints into account. It generates a feasible, constrained demand plan that is maximized either for profit or for delivery. The supply planner provides the result of the optimizer to the participants of the reconciliation review. IBP for sales and operations – supply review – optimizer Description
Scope in detail IBP for sales and operations – reconciliation review
36 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – reconciliation review Process flow External Process Reconciliation Review SAP IBP Process Agree on Executive Proposal Constrained Demand Plan Review Supply Scenarios Constrained Demand Plan Supply Review – Heuristic Constrained Demand Plan Supply Review – Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan
37 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Version comparison, 1 worksheet Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Reconciliation Review’ dashboard with 14 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Evaluate constrained demand scenarios and prepare an executive proposal for demand, supply, and finance alignment Benefits ▪ Better align your strategic, long-term supply chain planning with your operational, short-term planning ▪ Improve the speed, agility, and accuracy of sales and operations planning Frequency ▪ Monthly Participants ▪ Director finance, sales manager, marketing manager, demand planner, supply planner Technical details Input ▪ Constrained, consensus demand plan Output ▪ Constrained, consensus demand plan Planning Level ▪ Months / Product Family / Customer Group Planning Operator ▪ No planning operator The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During reconciliation review, representatives from sales, finance, marketing, production, and demand planning discuss deviations between constrained demand and consensus demand, agree on one executive proposal, and prepare a list of issues for escalation. Subsequently, the executive management will take a decision on an executive proposal during the management business review. IBP for sales and operations – reconciliation review Description
Scope in detail IBP for sales and operations – management business review
39 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – management business review Process flow External Process SAP IBP Process Management Business Review Approve Final Plan Final Consensus Demand Plan Review Executive Proposal Constrained Demand Plan Reconciliation Review Constrained Demand Plan Supply Chain Control Tower Managed Cases Demand Planning Global Demand Plan Operational Planning & Execution Processes S&OP – forecast error calculation and analysis Forecast Errors
40 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Management Business Review’ dashboard with 3 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Achieve executive agreement on final consensus demand plan across functional business units Benefits ▪ Increased product and customer profitability by given supply and financial constraints ▪ Optimal business plan to drive revenue growth and increase market share ▪ Improve the speed, agility, and accuracy of sales and operations planning Frequency ▪ Monthly Participants ▪ Executive management of the involved lines of business Technical details Input ▪ Constrained, consensus demand plan Output ▪ Final consensus demand plan Planning Level ▪ Months / Product Family / Customer Group Planning Operator ▪ No planning operator The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During management business review, the executive management of the involved business units determine if the presented proposal align with the company's financial targets and key performance indicators. They assess and take a decision on the presented list of escalated issues. This results in an approved, final consensus demand and supply plan that should ultimately drive revenue growth and increase market share, optimize product and customer profitability, minimize inventory costs, and overcome capacity constraints. IBP for sales and operations – management business review Description
Scope in detail IBP for sales and operations – forecast error calculation and analysis
42 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – forecast error calculation and analysis Process flow External Process S&OP – forecast error calculation and analysis SAP IBP Process Analyze Forecast Errors Forecast Accuracy Sales & Distribution Open,Confirmed,Delivered Sales Orders Run Forecast Error Calculation Forecast Errors Management Business Review Final Consensus Demand Plan
43 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘SOP Forecast Error’ dashboard with 6 charts Collaboration ▪ No predefined process management or SAP Jam integration Scope Use Case ▪ Analyze the accuracy of past consensus demand forecasts by calculating error measures based on actual sales data Benefits ▪ Insight into forecast accuracy ▪ Increased forecast quality Frequency ▪ Monthly Participants ▪ S&OP process expert Technical details Input ▪ Unconstrained, consensus demand plan ▪ Final consensus demand plan ▪ Sales history Output ▪ Forecast error values Planning Level ▪ Months / Product / Location / Customer Planning Operator ▪ Forecast error calculation Gain insight into the forecasting accuracy of your sales and operations planning. Compare the unconstrained consensus demand plan and the final, constrained consensus demand plan generated in the past against the actual sales data of the forecasted period. Two lags (1 month, 3 months) have been defined for a lag-to-lag comparison. Take advantage of a predefined forecast error profile and dedicated analytics. IBP for sales and operations – forecast error calculation and analysis Description
Scope in detail IBP for demand – demand planning
45 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for demand – demand planning Process flow External Process Demand Planning SAP IBP Process Gather and Cleanse Historical Data Adjusted Actuals Run Statistical Forecasting Statistical Forecast Create Global Demand Plan Global Demand Plan Create Local Demand Plan Local Demand Plan Demand Sensing Sensed Demand Inventory Optimization Inventory Plans Sales Planning Sales Forecast Sales & Distribution Open,Confirmed,Delivered Sales Orders Operational Planning & Execution Processes Demand – forecast error calculation and analysis Forecast Errors Management Business Review Final Consensus Demand Plan New Product Introduction New Products Demand Review Consensus Demand Plan ABC-XYZ Segmentation Segmented Products Supply and Allocations Planning Supply Proposals. Product Allocations Supplier Commit with SAP Ariba Committed Forecast
46 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Historical Data Cleanse, 1 worksheet ▪ Statistical Forecast, 1 worksheet ▪ Local Demand Plan, 1 worksheet ▪ Global Demand Plan, 2 worksheets Alerts ▪ 2 predefined custom alerts: Global Demand Planner, Statistical Fcst Error Measures Analytics ▪ 1 predefined ‘Demand Planning’ dashboard with 2 charts Collaboration ▪ 1 predefined process management template, 1 SAP Jam group integration Scope Use Case ▪ Mid- or long-term demand planning ▪ Advanced statistical forecasting ▪ Role-based local and central planning Benefits ▪ Improved forecast accuracy with automatic forecast models based on historical data ▪ Increased efficiency by automated, exception-based planning and embedded analytics and collaboration capabilities Frequency ▪ Weekly ▪ New global demand plan at the end of every week Participants ▪ Local demand planner, global demand planner, demand planning process expert Technical details Input ▪ Order based or time-series based sales history ▪ Approved consensus demand plan from the last S&OP cycle ▪ Additional input: Sales forecast, final sensed demand* Output ▪ Global demand plan ▪ Combined final demand = global demand plan + last final sensed demand* Planning Level ▪ Weeks / Product / Location / Customer Planning Operator ▪ Statistical Forecasting based on forecast models, which allows for many forecasting algorithms and any combination of them Gain full demand transparency for mid- and long-term forecasting by leveraging statistical forecasting methods. Collaborate in a globally distributed demand planning team to align on decisions via SAP Jam. Combine automated, exception-based planning processes as well as manual planning capabilities. Execute role-based local and global demand planning. *only if the IBP for demand – demand sensing scope item is implemented IBP for demand – demand planning Description
47 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Prerequisites ▪ A business decision has been made to introduce a new product in a defined launch country at a defined launch date ▪ The new product has been included in the Annual Operating Plan and Sales Plan ▪ Master data for the new product has been created in leading system (for example, ERP) and is imported into SAP IBP ▪ A reference product exists that has a similar historical sales pattern Process flow 1. The demand planning process expert creates planning objects for the new product by uploading master data and key figure data (Annual Operating Plan, Sales Plan). 2. The demand planning process expert defines in the Manage Product Lifecycle app the reference product, launch country, and launch date. 3. The statistical forecast run creates a forecast for a period of 12 months for the new product. 4. The local demand planner reviews in the ‘DP 130 Local Demand Plan’ Excel planning view the created Statistical Forecast for the new product and makes manual adjustments to the Local Demand Plan. IBP for demand – demand planning New product introduction
Scope in detail IBP for demand – demand sensing
49 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for demand – demand sensing Process flow External Process Demand Sensing SAP IBP Process Manage Demand Sensing Issues Final Sensed Demand Demand Planning Global Demand Plan Inventory Optimization Inventory Plans Sales & Distribution Open,Confirmed,Delivered Sales Orders Operational Planning & Execution Processes Demand – forecast error calculation and analysis Forecast Errors Run Demand Sensing Sensed Demand ABC-XYZ Segmentation Segmented Products Supply and Allocations Planning Supply Proposals. Product Allocations Supplier Commit with SAP Ariba Committed Forecast
50 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ 1 predefined ‘Demand Sensing’ Excel template (used when navigating from customer alert to Excel) Alerts ▪ 1 custom alert to inform the demand planner about large deviations between global demand plan and sensed demand Analytics ▪ No predefined chart Collaboration ▪ Typically no collaboration involved during the process, therefore no SAP Jam integration Scope Use Case ▪ Short-term statistical forecasting with pattern recognition based algorithms Benefits ▪ React faster to short term demand changes ▪ Drive more accurate deployment of products based on short term demand Frequency ▪ Daily batch run ▪ Manual interaction only in case of alerts Participants ▪ Demand planner Technical details Input ▪ Confirmed sales orders with future material availability date (only order-based data) ▪ Global demand plan Output ▪ Sensed demand (result of algorithm) ▪ Final sensed demand (contains manual adjustments to sensed demand, otherwise equals sensed demand) Planning Level ▪ Days / Product / Location / Customer Planning Operator ▪ Demand Sensing algorithm can be applied in forecast models of the Statistical Forecasting operator Refine short-term forecasts to drive better fulfillment and inventory reduction. Get a better sense of demand by identifying demand patterns based on daily, granular demand signals. By sensing demand, you can deploy stock to distribution centers that need stock earlier in the week as opposed to later in the week, resulting in better fulfillment and inventory reduction. The demand sensing forecast can be fed back into the collaborative demand planning process to allow demand planners to make adjustments to demand plans. IBP for demand – demand sensing Description
Scope in detail IBP for demand – forecast error calculation and analysis
52 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for demand – forecast error calculation and analysis Process flow External Process Demand – forecast error calculation and analysis SAP IBP Process Analyze Forecast Errors Forecast Accuracy Sales & Distribution Open,Confirmed,Delivered Sales Orders Run Forecast Error Calculation Forecast Errors Demand Planning Global Demand Plan
53 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Demand Planning Forecast Error’ dashboard with 8 charts Collaboration ▪ No predefined process management, no SAP Jam integration Scope Use Case ▪ Analyze the accuracy of past demand forecasts by calculating error measures based on actual sales data Benefits ▪ Insight into forecast accuracy ▪ Increased forecast quality Frequency ▪ Monthly Participants ▪ Demand planning process expert Technical details Input ▪ Statistical forecast ▪ Combined final demand ▪ Sales history Output ▪ Forecast error values Planning Level ▪ Months / Product / Location / Customer Planning Operator ▪ Forecast error calculation Gain insight into the forecasting accuracy of your demand planning. Compare the statistical forecast and the combined final demand plan (includes manual modifications and sensed demand) generated in the past against the actual sales data of the forecasted period. Two lags (1 month, 3 months) have been defined for a lag-to-lag comparison. Take advantage of a predefined forecast error profile and dedicated analytics. IBP for demand – forecast error calculation and analysis Description
Scope in detail IBP for inventory
55 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for inventory Process flow External Process Inventory Optimization SAP IBP Process Validate Data Inputs Demand Forecast Run and Review Inventory Plan Inventory Plans Finalize Inventory Plan Inventory Plans What-If Analysis Inventory Plans Demand Sensing Sensed Demand Operational Planning & Execution Processes Demand Planning Global Demand Plan Supply Review – Heuristic, Optimizer Constrained Demand Plan ABC-XYZ Segmentation Segmented Products
56 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Input Data Review, 5 worksheets ▪ Planning Results, 3 worksheets ▪ Scenario Comparison, 1 worksheet ▪ Inventory Component Review, 3 worksheets Alerts ▪ The ‘Planning Results’ planning view includes 2 alert definitions for recommended safety stock and safety stock delta Analytics ▪ 3 predefined dashboards: Validate Data Inputs (7 charts), Review Inventory Plan (6 charts), Finalize Inventory Plan (5 charts) Collaboration ▪ 1 predefined process management template, 1 SAP Jam group integration Technical details Input ▪ Global demand plan ▪ Final sensed demand ▪ Target service levels Output ▪ Safety stock ▪ Cycle stock ▪ On-hand stock ▪ In-process stock ▪ Vendor-in-transit stock ▪ Merchandising stock ▪ Inventory position Planning Level ▪ Weeks / Product / Location Planning Operator ▪ Used algorithms of the Inventory Optimization operator: Multi-stage Inventory Optimization, Forecast Error Calculation, Inventory Components Optimize multi-stage inventory targets to most efficiently meet or exceed customer service levels, fully considering uncertainties like forecast error and supply uncertainty. Validate data inputs such as demand forecast and target service level. Execute a what-if analysis to analyze the effects of changed demands to inventory component levels. IBP for inventory Description Scope Use Case ▪ Multi-stage inventory optimization across all stages of the supply chain, compensating for uncertainties in demand forecasts, supply timing, and supply quantity ▪ Prescribe inventory targets to minimize inventory costs while buffering for uncertainty and meeting customer service targets ▪ Execute a what-if analysis to identify supply chain improvement opportunities Benefits ▪ Maximize the utilization of inventory ▪ Improve customer service levels Frequency ▪ Weekly Participants ▪ Inventory planner
Scope in detail IBP for response and supply – supply and allocations planning
58 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for response and supply – supply and allocations planning Process flow External Process Supply and Allocations Planning SAP IBP Process Review Priority Rules, Forecast and Constraints Unconstrained Forecast Run Constrained Forecast Constrained Forecast Create Different Supply Plan Versions Constrained Forecast Check Alerts and Identify Bottlenecks Constrained Forecast Supplier Commit with SAP Ariba Committed Forecast Demand Sensing Sensed Demand Analyze Supply and Allocations Planning Constrained Forecast, Product Allocation Plan Create Product Allocation Plan Product Allocation Plan Operational Planning & Execution Processes Available-to-Promise Check Sales Order Confirmations Demand Planning Global Demand Plan Response Planning Supply Proposals, Sales Order Confirmations
59 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Forecast and Constraints, 4 worksheets ▪ Forecast and Product Allocations, 1 worksheet Alerts ▪ ‘Forecast Deviation Above or Below Threshold’ custom alert Analytics ▪ 1 predefined ‘Supply and Allocations Planning’ dashboard with 6 charts Collaboration ▪ No predefined process management, no SAP Jam integration Scope Use Case ▪ Create a finite supply plan based on prioritized demand and supply chain constraints ▪ Create a product allocation plan for available-to- promise (ATP) checks and confirmation of sales orders Benefits ▪ Reduce inventory carrying costs ▪ Avoid capacity and material shortages ▪ Ability to quickly react to exceptions in the supply chain with fast simulations Frequency ▪ Weekly Participants ▪ Supply planner Technical details Input ▪ Global demand plan, sensed demand ▪ Resource capacities Output ▪ Constrained forecast ▪ Product allocations Planning Level ▪ Days / Product / Location / Customer Planning Operator ▪ Order-based planning: Constrained Forecast Run ▪ Note: The Constrained Forecast Run only takes unconstrained forecast as a time series. It does not consider any sales orders as demand. Order-based planning lets you generate a finite production, distribution and procurement plan to match your demand forecast. It integrates supply chain master and order data from an external system using the OpenAPI. The priority-driven algorithm creates a feasible supply plan based on demand priority rules and supply chain constraints like resource capacity, supplier committed quantities, and safety stock targets. What-if analysis and root-cause analysis are supported by a number of SAP Fiori apps, which makes it possible to see, for example, projected stocks for all location materials and its corresponding supply elements and gating factors that prevent demand to be fulfilled. Simulation capabilities allow you to change constraints and see the impact on the generated supply plan. The supply plan is used to provide product allocations for available-to-promise (ATP) checks and confirmation of sales orders. IBP for response and supply – supply and allocations planning Description
Scope in detail IBP for response and supply – response planning
61 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for response and supply – response planning Process flow External Process Response Planning SAP IBP Process Review Demands by Priority Ranked Demand Run and Check Order Confirmation Run Create and Simulate Scenario Supply and Allocations Planning Product Allocation Supply Proposals Order Confirmation for Adjusted Allocation Execution on Orders Sales Order Confirmations Supply Plan Sales Order Confirmations Sales Order Confirmation Adjusted Allocation Sales Order Processing Open,Confirmed,Delivered Sales Orders Available-to-Promise Processing Sales Order Confirmations
62 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Forecast and Product Allocations, 1 worksheet Alerts ▪ No predefined alerts Analytics ▪ No predefined analytics Collaboration ▪ No predefined process management, no SAP Jam integration Scope Use Case ▪ Adjust supply plan ▪ Respond to incoming customer orders for deviation from forecast ▪ Confirm sales orders ▪ Plan allocation for constrained supply Benefits ▪ Allow flexibility to respond in the short term to market realities ▪ Provide detailed, end-to-end visibility ▪ Analyze root causes via gating factor analysis ▪ Maximize service level using what-if analysis for a potential opportunity or risk scenario without impacting the live data Frequency ▪ Daily Participants ▪ Account planner Technical details Input ▪ Product allocation ▪ Supply constraint ▪ Orders Output ▪ Confirmed sales orders ▪ Planned orders ▪ Purchase requisitions for components ▪ Stock transfer requisitions Planning Level ▪ Day / Product / Location / Customer Planning Operator ▪ Order-based planning: Confirmation Run Response planning allows you to react quickly to incoming customer orders. It results in confirmed orders and the most preferred supply plan per the prioritization rule and organization's ability to supply. The response planning algorithm automatically performs order prioritization and product allocation, following the defined rule for creating the most suitable supply plan for the organization. With the help of several SAP Fiori apps, a review of order-relevant planning information (for example, detailed sequential view of the demand, information like the percentage confirmation, delays, and gating factors) is possible. Root-cause analysis shows where issues in the supply chain limits the customer order fulfillment on time. Simulation and collaboration capabilities are applied for further review and finalization of the supply plan. The creation of scenarios allows the what-if analysis to simulate potential alternatives. Based on a decision for a scenario, data can be updated in the back-end system to make the simulation model real. IBP for response and supply – response planning Description
Scope in detail IBP – order-based planning inbound/outbound integration with SAP S/4HANA
64 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Scope Use Case • Order-based planning in IBP with master and transactional data coming from SAP S/4HANA Benefits • Out-of-the-box integration reduces implementation efforts and costs • Near real-time integration allows you to react quickly to demand changes from sales orders Participants • Order-based planning administrator • General response planner Technical details Inbound Integration – Objects Master Data ▪ Locations: Plant, DC, supplier, customer ▪ Materials ▪ Location Material ▪ Transportation Lane ▪ Work Centers ▪ Production Data Structures Transactional Data ▪ Sales Orders ▪ Outbound Deliveries ▪ Initial Stock / Inventory ▪ Planned Orders ▪ Production Orders ▪ Purchase Requisition ▪ Purchase Orders ▪ Stock Transfer Requisition / Stock Transfer Order IBP – order-based planning inbound integration with SAP S/4HANA Description Based on the nature of order-based planning, a dynamic data integration is required from the execution system within the SAP IBP system. The near real-time integration of detailed order-level information with SAP Cloud Platform Smart Data Integration (SDI) allows you to react quickly to demand changes coming from sales orders. This scope item covers the complete integration process from SAP S/4HANA to SAP IBP and describes the various master data and transactional objects. What's more, it provides references to SAP Best Practices for SAP S/4HANA to explain how to maintain them in SAP S/4HANA. It also provides the steps needed to execute the initial respective delta load. On the receiving side, the execution of the inbound integration job via SDI is covered. Finally, the imported data is checked via SAP Fiori apps.
65 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Scope Use Case • Order-based planning in IBP with master and transactional data coming from SAP S/4HANA Benefits • Out-of-the-box integration reduces implementation efforts and costs • Near real-time integration allows you to react quickly to plan changes based on sales orders Participants ▪ Order-based planning administrator Technical details Outbound Integration – Objects ▪ Sales Order Confirmation proposals (only when response planning has taken place) ▪ Purchase Requisitions ▪ Planned Orders ▪ Stock Transfer Requisitions IBP – order-based planning outbound integration with SAP S/4HANA Description Based on the nature of order-based planning, a dynamic data integration is required from the execution system within the SAP IBP system and vice versa. The near real-time integration with SAP Cloud Platform Smart Data Integration (SDI) allows the execution system to react to planning changes quickly and efficiently, for example, in the production planning or in purchasing. The process ensures that order information like order numbers and order quantities are consistent in both systems.
66 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP Integration for order-based planning Using SAP Cloud Platform Smart Data Integration (SDI) IBP SAP S/4HANA Technical connection HTTPS Application Data SDI Data Provisioning Agent Data Provisioning Adapter Staging Area Staging Tables or Files SAP S/4HANA IBP Add-On Data Flow Open API Sourcing / Target
Scope in detail Supply Chain Control Tower
68 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Supply Chain Control Tower Process flow External Process Supply Chain Control Tower SAP IBP Process Check Alerts Demand, Capacity, Incoming Orders Sales & Distribution Open,Confirmed,Delivered Sales Orders Analyze KPIs Supply Chain KPIs, Plan Adherence Demand Planning Global Demand Plan Manage Cases Managed Cases Demand Review Consensus Demand Plan Supply Review – Heuristic, Optimizer Constrained Demand Plan Inventory Optimization Inventory Plans ABC-XYZ Segmentation Segmented Products
69 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ 3 predefined custom alerts: Unfulfilled Demand, Capacity Overload, Incoming Orders above Forecast Analytics ▪ 4 predefined dashboards: Supply Chain KPIs (2 KPIs), Adherence to Plan (5 KPIs), Dashboard for Alerts (1 geo chart), Supply Network Cost KPIs (3 charts) Collaboration ▪ Exemplary case management: ‘Resolve Unfulfilled Demand’ Scope Use Case ▪ Performance Management with standard and definable KPIs ▪ Event Management with case management for resolution Benefits ▪ Network insights to proactively monitor the supply chain, resolve issues, and drive continuous improvement Frequency ▪ Daily ▪ Ad-hoc analysis and case management Participants ▪ Supply chain analyst Technical details Input ▪ All key figures of the Unified Planning Area Output ▪ Predefined KPIs for Supply Chain Management (safety stock deficit, inventory target overage) and Plan Adherence Planning Level ▪ All planning levels of the Unified Planning Area Planning Operator ▪ No planning operator, but use of custom alerts and case management Quickly identify supply chain problems, evaluate their impact, and resolve them with an end-to-end supply chain visibility, real-time monitoring, analytics, alerting, and exception management. Manage performance with standard and definable KPIs. The scope item provides exemplary scenarios with KPIs and dashboards for supply chain management and plan adherence. Leverage the built-in case management of SAP IBP for resolving problems. The scope item shows one example of resolving unfulfilled demand. Supply Chain Control Tower Description
Scope in detail IBP – Business Network Collaboration – supplier commit with SAP Ariba
71 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP – Business Network Collaboration – supplier commit with SAP Ariba Process flow SAP IBP Process Steps SAP IBP Process SAP Ariba Process Steps Check Alerts Supplier Committed Forecast Analyze Supplier Committed Forecast Supplier Committed Forecast Review & Release Component Forecast Component Forecast Demand Planning Global Demand Plan Review Forecast Component Forecast Publish Supplier Commits Supplier Committed Forecast Supply and Allocations Planning Supply Proposals, Product Allocations Demand Sensing Sensed Demand Copy Initial Stock and Unconstrained Forecast Unconstrained Forecast Generate Component Forecast Component Forecast
72 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Supplier Commit, 4 worksheets Alerts ▪ 2 predefined custom alerts: Undercommitted demand, overcommitted demand Analytics ▪ 1 predefined ‘Supplier Commit with SAP Ariba’ dashboard with 2 charts Collaboration ▪ Integration with SAP Ariba Supply Chain Collaboration Scope Use Case ▪ Share your component demand with your suppliers in SAP Ariba ▪ Receive committed quantities from your suppliers and analyze deviations from original component demand ▪ Use the committed quantities as supplier constraint in your subsequent supply planning Benefits ▪ React to changes in supply and demand quickly and efficiently ▪ Reduce inventory carrying cost by enhancing supplier visibility and interactivity Frequency ▪ Weekly Participants ▪ Supply Planner ▪ Suppliers Technical details Input ▪ Global demand plan ▪ Final sensed demand ▪ Initial stock Output ▪ Supplier committed component forecast Planning Level ▪ Product, Location, Ship-To Location Planning Operator ▪ Time-Series-Based Supply Planning Heuristic to generate component forecast Business Network Collaboration enables you to share key figure data with your business partners in SAP Ariba Supply Chain Collaboration. In this process, it's used to receive committed quantities for required components from each of your suppliers. The Multilevel Supply Planning Heuristic is used to generate the Supplier Forecast, that is the demand of components which you source from suppliers, from your unconstrained forecast of finished goods. After releasing the Supplier Forecast to SAP Ariba, suppliers commit the confirmed quantities. The commitments are then published in SAP Ariba. Custom alerts inform you about over- and undercommitted components, and predefined charts help you decide on how to react to any deviations from the original Supplier Forecast. The committed quantities are taken as the Supplier Constraint input of the Constrained Forecast operator in the subsequent process of IBP for response and supply – supply and allocations planning. IBP – Business Network Collaboration – supplier commit with SAP Ariba Description
Scope in detail IBP – ABC-XYZ Segmentation
74 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP – ABC-XYZ Segmentation Process flow External Process ABC-XYZ Segmentation SAP IBP Process Review Segmentation of Products Segmented Products Sales & Distribution Open,Confirmed,Delivered Sales Orders Run ABC/XYZ Segmentation Segmented Products Demand Planning Global Demand Plan Demand Review Consensus Demand Plan Supply Review – Heuristic, Optimizer Constrained Demand Plan Inventory Optimization Inventory Plans Supply Chain Control Tower Managed Cases Demand Sensing Sensed Demand
75 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘ABC-XYZ Segmentation’ dashboard with 2 charts Collaboration ▪ No predefined process management, no SAP Jam integration Scope Use Case ▪ Group products based on sales history Benefits ▪ Tailor your forecast strategy and inventory optimization to the characteristics of segments ▪ Analyze forecast accuracy by product segments ▪ Identify inventory items that require closer attention ▪ Define alerts for specific segments only ▪ View analytic charts with regards to specific segments Frequency ▪ Monthly Participants ▪ Process expert Technical details Input ▪ Sales history Output ▪ Segmented products Planning Level ▪ Product Planning Operator ▪ Segmentation Group your planning objects based on the values of a selected key figure, for example, products by historical sales revenue. Segmentation is used in every scope item for specific analytics and custom alerts, which guides the user to the most relevant segments, and thereby increases user efficiency and generates more accurate planning results. IBP – ABC-XYZ Segmentation Description
76 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ ▪ ABC/XYZ segmentation lets you group planning objects based on the values of a selected key figure ▪ An exemplary segmentation profile is delivered with SAPIBP1 that categorizes products by historical sales revenue with a 70- 20-10 distribution (A-B-C) and by coefficient of variation in historical sales quantity (X-Y-Z) in the past 12 months ▪ The ABC-XYZ Segmentation scope item describes how to run the segmentation operator and analyze the result; it’s a preceding process to all other scope items ▪ Segmentation is used in every scope item for specific analytics and custom alerts, which guides the user to the most relevant segments, and thereby increases user efficiency and generates more accurate planning results IBP – ABC-XYZ Segmentation
77 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for demand – demand planning ▪ ‘DP110 Historical Data Cleanse’ planning view: Manual outlier correction is performed for products in segment A ▪ ‘Statistical Fcst Error Measures’ alert: Find alerts per segment in the alert overview ▪ ‘DP120 Statistical Forecast’ planning view: Evaluate forecast quality for products in segment A ▪ ‘DP130 Local Demand Plan’ planning view: Focus on products in segment A ▪ ‘Global Demand Planner’ alert: Find alerts per segment in the alert overview ▪ New heatmap chart for analyzing Demand Plan Revenue by segments ▪ New charts for analyzing forecast errors in segment A IBP for demand – demand sensing ▪ ‘Demand Sensing Above Threshold’ alert: Find alerts per segment in the alert overview IBP for inventory ▪ Target service levels are maintained for each ABC segment ▪ ‘IO210 Input Data Review’ planning view: ABC code is added to the planning level ▪ ‘IO220 Planning Result’ planning view: Review the detailed planning result for products in segment A IBP – ABC-XYZ Segmentation Usage of segmentation in scope items (1/2)
78 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations ▪ ‘SOP040 Consensus Demand Plan’ planning view: Additional worksheet to review consensus demand by segments ▪ New chart to compare Consensus Demand Revenue with AOP Revenue and Sales Forecast Revenue grouped by segments ▪ ‘SOP050 Supply Planning’ planning view: Review planning results for products in segment A ▪ New chart to compare Consensus Demand Revenue with Constrained Demand Revenue grouped by segments Supply Chain Control Tower ▪ ‘Incoming Orders above Forecast’ alert: Find alerts per segment in the alert overview ▪ ‘Unfulfilled Demand’ alert: Find alerts per segment in the alert overview IBP – ABC-XYZ Segmentation Usage of segmentation in scope items (2/2)
Appendix System landscape
80 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ System landscape SAP Best Practices SAP Integrated Business Planning SAP HANA Sample Planning Areas SAPIBP1, SAP74 Attributes & Master Data Key Figures Planning Levels Time Profile Versions Planning Operators SAP Jam Microsoft Excel + IBP Add-On SAP Best Practices Application Content Planning View Templates SAP Fiori Launchpad in Browser SAP Best Practices Application Content Charts and Dashboards Custom Alerts Process Management Templates Forecast Models Forecast Error Profiles Segmentation Profile Visibility Filters Data Sharing Plan Supply Chain Network Product Lifecycle Forecast Consumption Product Allocation Profile SAP Ariba SAP S/4HANA + IBP Add-On SAP Best Practices Sample Data + Configuration Flat Files Integration Methods & Tools
81 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP S/4HANA Add-On for IBP Integrate with SAP S/4HANA? CSV file upload in Data Integration Jobs app Open API using SAP Smart Data Integration (SDI) SAP Jam SAP Ariba Additional processes, additional data Collaboration Supplier Forecast Commit Time series as well? Time-series based planning Yes Yes Order-based planning Object type? Main master and transactional data (must have) What to integrate? SDI File Adapter No → for loading sample data into IBP 2I0 – supply and allocations planning 2P0 – response planning 2P2 – supplier commit with SAP Ariba 2I0 – supply and allocations planning 2P0 – response planning 2P2 – supplier commit with SAP Ariba 2S4 – inbound integration with SAP S/4HANA 2S6 – outbound integration with SAP S/4HANA 2P2 – supplier commit with SAP Ariba Used in all scope items 11V – demand planning 11Z – inventory 2BQ – demand review 2BS – supply review – heuristic 18N – supply review – optimizer 2BU – reconciliation review 2BW – management business review Communication Scenario? Manual, low data volume → for loading sample data Integration methods and tools used for SAP Best Practices
Appendix Sample data overview
83 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Sample data – Supply chain network 1720 AME DC 1710 AME Mfg 1010 EU Mfg 1310 APJ Mfg 3710 EU DC 6210 APJ DC 13300001 18100001 61100001 13100001 11100001 10100001 12100001 17100002 17100001 17100003 Customers 13300002 13300003 IBP-100, IBP-110, IBP-120 IBP-300, IBP-310, IBP-320 IBP-200, IBP-210, IBP-220 1310 APJ Mfg 6210 APJ DC IBP-100, IBP-110, IBP-120 IBP-100, IBP-110, IBP-120 IBP-200, IBP-210, IBP-220 IBP-300, IBP-310, IBP-320 IBP-200, IBP-210, IBP-220 IBP-300, IBP-310, IBP-320 IBP-101-R, IBP-103-R, IBP-112-R, IBP-121-R, IBP-123-R, IBP-202-R, IBP-211-R, IBP-212-R, IBP-221-R, IBP-223-R, IBP-301-R, IBP-302-R, IBP-311-R, IBP-313-R, IBP-322-R IBP-111-S DCs Plants Suppliers Subcontractor All final products All final products All final products All products All products All products IBP-102-R, IBP-111-R, IBP-113-R, IBP-122-R, IBP-201-R, IBP-203-R, IBP-213-R, IBP-222-R, IBP-303-R, IBP-312-R, IBP-321-R, IBP-323-R 1710 Assemby, 1710 Pack, 1710 Subassembly 1010 Assembly, 1010 Pack, 1010 Subassembly 1310 Assembly, 1310 Pack, 1310 Subassembly 13300003 Subassembly Location Product Resource
84 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-100) IBP-100 IBP-101-S IBP-101-R IBP-102-R IBP-103-R Finished product Semi-finished product Raw material Raw materials SOURCEPRODUCTION.CSV SOURCEPRODUCTIONITM.CSV
85 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-110 / -120) Same BoMs repeat for locations 1010 and 1310 IBP-110 IBP-111-S IBP-111-R IBP-112-R IBP-113-R Finished product Semi-finished product Raw material Raw materials IBP-120 IBP-121-S IBP-121-R IBP-122-R IBP-123-R Finished product Semi-finished product Raw material Raw materials
86 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-200 / -210 / -220) IBP-200 IBP-201-S IBP-201-R IBP-202-R IBP-203-R Finished product Semi-finished product Raw material Raw materials IBP-210 IBP-211-S IBP-211-R IBP-212-R IBP-213-R Finished product Semi-finished product Raw material Raw materials IBP-220 IBP-221-S IBP-221-R IBP-222-R IBP-223-R Finished product Semi-finished product Raw material Raw materials
87 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-300 / -310 / -320) IBP-300 IBP-301-S IBP-301-R IBP-302-R IBP-303-R Finished product Semi-finished product Raw material Raw materials IBP-310 IBP-311-S IBP-311-R IBP-312-R IBP-313-R Finished product Semi-finished product Raw material Raw materials IBP-320 IBP-321-S IBP-321-R IBP-322-R IBP-323-R Finished product Semi-finished product Raw material Raw materials
88 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-100) and routing (LOCID 1010) Production Source Resource SOURCEID RESID CAPACONSUMPTION 1010_IBP-100 1010 Pack 1 1010_IBP-100 1010 Assembly 1 SOURCEID RESID CAPACONSUMPTION 1010_IBP-101-S 1010 Subassembly 1 Assembly IBP-100 Packaging IBP-101-S IBP-103-R IBP-101-R IBP-102-R Subassembly Finished Product Semi-finished Product Raw Materials Raw Material SOURCEID PRDID LOCID OUTPUTCOEFFICIENT 1010_IBP-100 IBP-100 1010 1 Production Source Header SOURCEID PRDID LOCID OUTPUTCOEFFICIENT 1010_IBP-101-S IBP-101-S 1010 1 SOURCEID PRDID SOURCEITMID COMPONENTCOEFFICIENT 1010_IBP-100 IBP-101-S 10 1 1010_IBP-100 IBP-103-R 20 1 Production Source Item SOURCEID PRDID SOURCEITMID COMPONENTCOEFFICIENT 1010_IBP-101-S IBP-101-R 10 1 1010_IBP-101-S IBP-102-R 20 1
Appendix New scope and changes in past versions
90 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V3.62 • Technical upgrade to SAP IBP 6.2
91 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V4.63 • Technical upgrade to SAP IBP 6.3 • IBP for inventory now supports all components of inventory: safety, cycle, pipeline, pre-build, and so on • All planning view templates now leverage the VBA-based Excel templates, see SAP Note 1790530 Pipeline Stock Drivers: • Order processing lead times • Transit times • Demand Safety Stock Drivers: • Demand • Demand uncertainty • Lead times • Lead time uncertainty • Review frequency • Service level targets • Service times Cycle Stock Drivers: • Demand • Review frequency • Batch sizes • Production rules Pre-Build Stock Drivers: • Time-varying capacity • Time-varying demand • Sourcing ratios • Changes in safety stock Inventory Components
92 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V5.1611 (1/4) • Technical upgrade to SAP IBP 1611 • The Unified Planning Area is now based on technical weeks to support a correct week- to-month split • Supports Time Profile configuration with split weeks in a month • Supports the E2E business processes • Disaggregation and aggregation possible in actual calendar weeks
93 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V5.1611 (2/4) • Forecast error calculation for forecast analysis in Demand Planning and Sales & Operations Planning • Analyze the quality of your past forecasts by calculating error measures based on actual sales data • Lag to lag comparison • Supported forecasts: • Statistical Forecast • Combined Final Demand Plan • Consensus Demand Plan • Final Consensus Demand Plan
94 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V5.1611 (3/4) • Manage demand sensing issues by navigating from an alert directly to the Excel planning view • Use alert monitor to be informed about deviations between sensed demand and demand plan • Open Excel with a filter on the metrics of the alert • Make manual adjustments to sensed demand in Excel
95 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V5.1611 (4/4) • Additional Control Tower scenario: new alert for 'Incoming orders above forecast‘ • Use alert monitor to be informed when the requested quantity of all incoming sales orders is higher than the forecast • Supported forecast is Combined Final Demand Plan in Demand Planning
96 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V6.1702 • Technical upgrade to SAP IBP 1702 • Enhancement of the ‘IBP for demand – demand planning’ scope item: New Product Introduction creates a statistical forecast for a new product by leveraging the historical sales of a reference product
97 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V7.1705 • Technical upgrade to SAP IBP 1705 • The new name ‘SAP Best Practices for SAP Integrated Business Planning’ replaces ‘SAP HANA Integrated Business Planning rapid-deployment solution’ • New ABC-XYZ Segmentation scope item added and enhancements to other scope items made to support segmentation in planning views, analytics, and alerts • Pre-defined forecast models are now delivered as part of the SAPIBP1 sample planning area • All charts and dashboards have been migrated to the new SAP Fiori-based Analytics
98 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V8.1708 ▪ Technical upgrade to SAP IBP 1708 ▪ The Sales and Operations Planning process has been enhanced with the New Product Introduction: It illustrates how to create master data for a new product in Excel and how to include it in further planning ▪ The ‘DP140 Global Demand Pan – Revenues’ and ‘DS010 Demand Sensing’ planning views now use the new IBP Excel add-in feature ‘flexible time axis’, which allows for adding totals over periods ▪ The ‘IBP for sales and operations’ scope item has been split into the following scope items: demand review, supply review – heuristic, reconciliation review, and management business review ▪ The ‘IBP for response and supply – supply planning’ scope item has been renamed to ‘IBP for response and supply – supply review – optimizer’ ▪ The scope of forecast error calculation and analysis has been moved to two new scope items: ‘IBP for sales and operations – forecast error calculation and analysis’ and ‘IBP for demand – forecast error calculation and analysis’ New Product Introduction: Create a new product, run supply simulations, and achieve management approval Flexible time axis: Year-to-Date and year totals as columns
99 CUSTOMER © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V9.1711 ▪ Technical upgrade to SAP Integrated Business Planning 1711 ▪ The new 'IBP for response and supply – supply and allocations planning' scope item adds order-based planning to the unified planning process ▪ The SAP74 sample planning area is used for order-based supply planning, data is copied between the SAP74 and SAPIBP1 planning areas with the disaggregation operator Gating Factor Analysis in Supply and Allocations Planning Analytics for Supply and Allocations Planning
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. © 2018 SAP SE or an SAP affiliate company. All rights reserved.

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RDS_IBP_IBP1802_10_Best_Practices_Scope_Presentation_EN_XX.pdf

  • 1.
    CUSTOMER SAP Best Practicesfor SAP Integrated Business Planning V10.1802
  • 2.
    2 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Scope overview Scope in detail Appendix ▪ System landscape ▪ Sample data overview ▪ New scope and changes in past versions Agenda
  • 3.
  • 4.
    4 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V10.1802 ▪ Technical upgrade to SAP Integrated Business Planning 1802 ▪ The new ‘IBP for response and supply – response planning’ scope item allows for sales order confirmation and adjusting the supply and allocations plan based on short-term changes in demand and supply constraints ▪ The two new ‘IBP – order-based planning inbound integration with SAP S/4HANA’ and ‘IBP – order-based planning outbound integration with SAP S/4HANA’ scope items describe the configuration and execution of exchanging order data between SAP S/4HANA and SAP IBP ▪ The new ‘IBP – Business Network Collaboration – supplier commit with SAP Ariba’ scope item shares a component forecast with suppliers in SAP Ariba and receives committed quantities for further constrained supply planning View Confirmations in Response Planning Supplier Forecast in SAP Ariba Supply Chain Collaboration
  • 5.
    5 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Unified planning in SAP Integrated Business Planning ▪ Exemplary, integrated planning process across SAP IBP applications facilitated by SAP Best Practices ▪ Comprehensive sample planning area that supports planning on different time and data granularity ▪ Preconfigured and validated application content for running the integrated process including planning views in Excel, dashboards, alerts, sample data, and more ▪ Extensive documentation of solution configuration and process execution allows for running tests, building demos, facilitating education, and accelerating implementations ▪ Extendable to cover specific customer needs Susan Price Supply Chain Planner Monthly Daily Time Data Product Family Customer Region Location Sales & Operations Planning Supply Planning Demand Planning Inventory Planning Demand Sensing Control Tower Product Customer Resource Sales Orders Weekly Response Planning
  • 6.
    6 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Unified planning process flow Tactical Frequency: Monthly Horizon: 1-3 years Buckets: Months, Weeks Mid-Term Operational Frequency: Weekly Horizon: 1-12 months Buckets: Weeks, Days Short-Term Operational Frequency: Daily Horizon: 1-12 weeks Buckets: Days Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Sales Order Processing Open,Confirmed,Delivered Sales Orders External Process SAP IBP Process Available-to-Promise Processing Sales Order Confirmations Demand Review Consensus Demand Plan Supply Review - Heuristic, Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan Reconciliation Review Constrained Demand Plan Demand Planning Global Demand Plan Demand Sensing Sensed Demand Supply and Allocations Planning Supply Proposals. Product Allocations Response Planning Supply Proposals, Sales Order Confirmations Inventory Optimization Inventory Plans Supplier Commit with SAP Ariba Committed Forecast Execution Procurement Purchase Orders Stock Transfer Stock Transfer Requisitions Production Production Orders Supply Chain Control Tower Managed Cases and Exceptions
  • 7.
    7 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Unified planning process flow: Internal and external processes Tactical Frequency: Monthly Horizon: 1-3 years Buckets: Months, Weeks Mid-Term Operational Frequency: Weekly Horizon: 1-12 months Buckets: Weeks, Days Short-Term Operational Frequency: Daily Horizon: 1-12 weeks Buckets: Days Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Sales Order Processing Open,Confirmed,Delivered Sales Orders External Process SAP IBP Process Available-to-Promise Processing Sales Order Confirmations Demand Review Consensus Demand Plan Supply Review - Heuristic, Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan Reconciliation Review Constrained Demand Plan Demand Planning Global Demand Plan Demand Sensing Sensed Demand Supply and Allocations Planning Supply Proposals. Product Allocations Response Planning Supply Proposals, Sales Order Confirmations Inventory Optimization Inventory Plans Supplier Commit with SAP Ariba Committed Forecast Execution Procurement Purchase Orders Stock Transfer Stock Transfer Requisitions Production Production Orders Supply Chain Control Tower Managed Cases and Exceptions
  • 8.
    8 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Detailed process flows available in SAP Best Practices Explorer You can find process flows and test scripts here: http://rapid.sap.com/bp/rds_ibp
  • 9.
    9 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Time-series based planning and order based planning Sample Planning Area Process Demand Planning and Sensing Supply and Allocations Planning Inventory Planning Sales and Operations Planning and Supply Planning Integration Tool SAP Cloud Platform Smart Data Integration (SDI) CPI-DS for time series data SAP Cloud Platform Integration for data services (CPI-DS) Time series User-configurable, internal master data types Restricted by planning operators Response Planning Orders Internal + external master data types Defined by order data model SAP7, SAP74 Deployment Planning Data Model Control Tower SAP4(C), SAP74 SAP6 SAP3 SAP5 Supply Planning Optimizer + Heuristic Statistical Forecasting Inventory Optimization - Planning Operator Constrained Forecast Run Confirmation Run Deployment Run Supply Planning Heuristic SAP2 SAPIBP1
  • 10.
    10 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Unified Planning Sample planning areas used ▪ All time-series based planning processes run in the SAPIBP1 sample planning area (unified planning area) ▪ Order-based planning processes run in the SAP74 sample planning area (response and supply) ▪ All application content like planning views, dashboards, alerts, and sample data are tailored to the respective sample planning area ▪ Sample data for SAPIBP1 is loaded by the Data Integration app ▪ Sample data for SAP74 is loaded by the SDI agent via File Adapter and the Data Integration app, please refer to the corresponding configuration guides ▪ Time series data is copied between the two planning areas by the disaggregation operator
  • 11.
    11 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Unified planning process flow: Mapped to sample planning areas Tactical Frequency: Monthly Horizon: 1-3 years Buckets: Months, Weeks Mid-Term Operational Frequency: Weekly Horizon: 1-12 months Buckets: Weeks, Days Short-Term Operational Frequency: Daily Horizon: 1-12 weeks Buckets: Days Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Sales Order Processing Open,Confirmed,Delivered Sales Orders External Process SAP IBP Process Available-to-Promise Processing Sales Order Confirmations Execution Procurement Purchase Orders Stock Transfer Stock Transfer Requisitions Production Production Orders SAPIBP1 time-series based, internal master data Demand Review Consensus Demand Plan Supply Review - Heuristic, Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan Reconciliation Review Constrained Demand Plan Demand Planning Global Demand Plan Demand Sensing Sensed Demand Inventory Optimization Inventory Plans SAP74 order-based, external master data Supply and Allocations Planning Supply Proposals, Product Allocations Response Planning Supply Proposals, Sales Order Confirmations Supplier Commit with SAP Ariba Committed Forecast Supply Chain Control Tower Managed Cases and Exceptions
  • 12.
    12 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Innovation adoption made simple! with SAP Best Practices™ • Get a jump-start for your implementations with SAP Best Practices™ • Deploy SAP innovations fast, simple and flexible • Use SAP’s tested and proven methodology with prescriptive guidelines • Leverage preconfigured business content • Protect your on-premise investments with extensions to the cloud • Move up on the path to the cloud from pre-assembled trials to productive use Fast time to value Predictable results Simple on-boarding to cloud
  • 13.
    13 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning ▪ Detailed configuration documentation for setting up predefined SAP Best Practices processes ▪ Predefined planning views in Microsoft Excel ▪ Predefined charts and dashboards to analyze trends and exceptions ▪ Predefined process management to track progress and integration into social collaboration ▪ Predefined case management in the Supply Chain Control Tower ▪ Based on an integrated planning area that allows to operate an end-to-end process across all IBP applications ▪ Reduce sales and operations planning cost ▪ Improve demand forecast accuracy and react more quickly to changes in demand ▪ Increase sales forecast accuracy ▪ Reduce inventory carrying cost and increase inventory turnover / reduce days in inventory ▪ Improve on-time delivery performance ▪ Increase revenue and reduce revenue loss due to stock-outs ▪ Increase user productivity by using Microsoft Excel for interactive planning and by integrating with SAP Jam for collaboration Solution highlights Key benefits Leverage SAP Best Practices for SAP Integrated Business Planning to get an entry scope of the Supply Chain Control Tower and the planning processes of sales and operations planning, response and supply planning, demand planning, demand sensing, and inventory optimization. Have a jump start in SAP IBP with SAP Best Practices
  • 14.
    14 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning What it can do for you Use case Sample planning area Documentation Test scripts, configuration guides Technical content Sample data, planning views Implementation service Study Training Demonstration Proof of concept or pilot project Implementation project Use as delivered Use as a starting point, adjust to your needs No use Educate yourself and leverage reference material. Educate project members, key users, and end users. Sell it to your clients and demonstrate the capabilities of SAP Integrated Business Planning in a process-oriented way. Evaluate SAP Integrated Business Planning and build a solution that fits your client’s requirements. Roll out SAP Integrated Business Planning in your client’s organization and set it into productive use.
  • 15.
    15 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning What it can do for you Use case Sample planning area Documentation Test Scripts, Configuration Guides Technical content Sample Data, Planning View Templates Implementation service Educate yourself and use reference material. Review the configuration of SAPIBP1. Examine scope item simulations, test scripts, and configuration guides. Review the layout of the planning views and the data structure of the CSV files. Not required. Educate project members, key users, and end users. Use the pre-installed planning area in the Starter edition and test systems. Execute the test scripts and explore the configuration of the planning area. Use the delivered sample data and planning views. Not required. Sell it to your clients and demonstrate IBP capabilities in a process-oriented way. Use the pre-installed planning area in the Starter Edition and test systems. Leverage test scripts to create your (shorten) demo script. For quick demos, use the delivered sample data and planning views. Adjust sample data and planning views as needed for a tailored demo. Not required. Evaluate IBP and build a solution that fits your client‘s requirements. Activate a new copy of SAPIBP1 or use the pre- installed planning area in the Starter Edition and test systems. As a starting point, leverage test scripts for process design and configuration guides for custom configuration. Use sample data CSV files as templates to provide custom data. Adjust the planning view templates to the client’s requirements. Could be leveraged to configure proof-of-concept system. Roll out IBP in your client‘s organization and set it into productive use. Activate a new copy of SAPIBP1. As a starting point, leverage test scripts for process design and configuration guides for custom configuration. Use sample data CSV files as templates to provide custom data. Adjust the planning view templates to the client’s requirements. Choose the predefined implementation service for a reliable implementation of SAP IBP. Study Training Demonstration Proof of concept or pilot project Implementation project
  • 16.
    16 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning Where to get it http://help.sap.com/ibp http://rapid.sap.com/bp/rds_ibp Download the following assets: ▪ Test scripts ▪ Process flow diagrams ▪ Scope item recordings ▪ Configuration guides ▪ Excel planning view templates ▪ Sample data CSV files
  • 17.
    17 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning Explanatory diagram SAPIBP1, SAP74 Sample planning areas Supply Chain Control Tower IBP for demand IBP for inventory IBP for sales and operations IBP for response and supply delivered in SAP tables available at http://rapid.sap.com/bp/rds_ibp SAP Best Practices for SAP Integrated Business Planning Attributes Planning Operators Key Figures Master Data Types Time Profile Planning Levels Versions Dashboards Sample Data SAP Jam Integration Test Scripts Configuration Guides Alerts Forecast Model Forecast Error Profile Segmentation Profile Process Management Planning Views
  • 18.
    18 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning V10.1802 Scope item overview Integrated Business Planning for sales and operations ❖ IBP for sales and operations – demand review ❖ IBP for sales and operations – supply review – heuristic ❖ IBP for sales and operations – reconciliation review ❖ IBP for sales and operations – management business review ❖ IBP for sales and operations – forecast error calculation and analysis Integrated Business Planning for response and supply ❖ IBP for response and supply – supply review – optimizer ❖ IBP for response and supply – supply and allocations planning ❖ IBP for response and supply – response planning ❖ IBP – order-based planning inbound integration with SAP S/4HANA ❖ IBP – order-based planning outbound integration with SAP S/4HANA Integrated Business Planning for demand ❖ IBP for demand – demand planning ❖ IBP for demand – demand sensing ❖ IBP for demand – forecast error calculation and analysis Integrated Business Planning for inventory ❖ IBP for inventory Supply Chain Control Tower and Business Network Collaboration ❖ Supply Chain Control Tower ❖ IBP – Business Network Collaboration – supplier commit with SAP Ariba Cross-application scope items ❖ IBP – ABC-XYZ Segmentation
  • 19.
    19 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning V10.1802 Scope item status (1/2) IBP Application Scope Item SID Status Short Description and What’s New Integrated Business Planning for sales and operations IBP for sales and operations – demand review 2BQ Technical upgrade Gather demand input from various sources like sales, marketing, and finance, and generate a single consensus demand plan for measuring current volume and financial target achievement. IBP for sales and operations – supply review – heuristic 2BS Technical upgrade Generate an infinite supply plan with no shortages for your consensus demand, and identify supply and capacity bottlenecks. Carry out manual capacity leveling to solve potential supply issues and to create a feasible, constrained demand plan. IBP for sales and operations – reconciliation review 2BU Technical upgrade Evaluate constrained demand scenarios and prepare an executive proposal for demand, supply and finance alignment. IBP for sales and operations – management business review 2BW Technical upgrade Decide on demand, supply and finance alignment, and approve final consensus demand plan. IBP for sales and operations – forecast error calculation and analysis 2C4 Technical upgrade Analyze the accuracy of your past consensus demand forecasts by calculating error measures based on actual sales data. Integrated Business Planning for demand IBP for demand – demand planning 11V Technical upgrade Gain full demand transparency for mid- and long-term forecasting by leveraging statistical forecasting methods. IBP for demand – demand sensing 11X Technical upgrade Refine short-term forecasts to drive better fulfillment and inventory reduction. Get a better sense of demand by identifying demand patterns based on daily, granular demand signals. IBP for demand – forecast error calculation and analysis 2BM Technical upgrade Analyze the accuracy of your past demand forecasts by calculating error measures based on actual sales data. Integrated Business Planning for inventory IBP for inventory 11Z Technical upgrade Optimize multi-stage inventory targets to most efficiently meet or exceed customer service levels, fully considering uncertainties like forecast error and supply uncertainty.
  • 20.
    20 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Best Practices for SAP Integrated Business Planning V10.1802 Scope item status (2/2) IBP Application Scope Item SID Status Short Description and What’s New Integrated Business Planning for response and supply IBP for response and supply – supply review – optimizer 18N Technical upgrade Generate a feasible, cost-optimized supply plan for your consensus demand based on finite capacities, lead times, lot sizes, and other supply chain constraints. IBP for response and supply – supply and allocations planning 2I0 Technical upgrade Create an operational supply plan and product allocations based on prioritized forecast demands and supply chain constraints. IBP for response and supply – response planning 2P0 NEW Create order confirmations and adopt the supply plan based on prioritized demands, allocations and supply chain constraints. New scope item in SAP Integrated Business Planning 1802 IBP – order-based planning inbound integration with SAP S/4HANA 2S4 NEW Order-based planning requires a dynamic data integration from the execution system within the SAP IBP system to allow you to react swiftly to demand changes coming from sales orders. New scope item in SAP Integrated Business Planning 1802 IBP – order-based planning outbound integration with SAP S/4HANA 2S6 NEW To benefit from the output of the order-based planning in the execution, for example in production planning, a dynamic data integration between the SAP IBP system and the execution system is needed to exchange order information on a detailed level. New scope item in SAP Integrated Business Planning 1802 Supply Chain Control Tower and Business Network Collaboration Supply Chain Control Tower 18P Technical upgrade Quickly identify supply chain problems, evaluate their impact, and resolve them with an end-to-end supply chain visibility, real-time monitoring, analytics, alerting, and exception management. IBP – Business Network Collaboration – supplier commit with SAP Ariba 2P2 NEW Share an unconstrained component forecast with your suppliers in SAP Ariba and receive committed quantities for your further constrained supply planning. New scope item in SAP Integrated Business Planning 1802 Cross application IBP – ABC-XYZ Segmentation 1S6 Technical upgrade Group your planning objects based on data and thereby increase user efficiency and planning accuracy.
  • 21.
    21 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Supply Chain Control Tower Unified planning process flow: Mapped to IBP applications Tactical Frequency: Monthly Horizon: 1-3 years Buckets: Months, Weeks Mid-Term Operational Frequency: Weekly Horizon: 1-12 months Buckets: Weeks, Days Short-Term Operational Frequency: Daily Horizon: 1-12 weeks Buckets: Days Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Sales Order Processing Open,Confirmed,Delivered Sales Orders External Process SAP IBP Process Available-to-Promise Processing Sales Order Confirmations Execution Procurement Purchase Orders Stock Transfer Stock Transfer Requisitions Production Production Orders IBP for sales and operations Demand Review Consensus Demand Plan IBP for response and supply Supply Review - Heuristic, Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan Reconciliation Review Constrained Demand Plan IBP for inventory Inventory Optimization Inventory Plans Supply Chain Control Tower Supplier Commit with SAP Ariba Committed Forecast IBP for demand Demand Planning Global Demand Plan Demand Sensing Sensed Demand IBP for response and supply Supply and Allocations Planning Supply Proposals. Product Allocations Response Planning Supply Proposals, Sales Order Confirmations Supply Chain Control Tower Managed Cases and Exceptions
  • 22.
    22 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Integrated Business Planning starter edition, non-production SAP Best Practices ▪ The starter edition contains an activated copy of sample planning area SAPIBP1 with SAP Best Practices content configured and all sample data uploaded ▪ Immediately execute the exemplary end-to-end planning process in SAP IBP without the need of manual configuration ▪ Learn the capabilities of SAP IBP in a process-oriented way using illustrative sample data and click-by-click instructions provided in test scripts ▪ Activated SAP Best Practices scope items in the Starter edition: ❖ IBP for sales and operations – demand review ❖ IBP for sales and operations – supply review – heuristic ❖ IBP for response and supply – supply review – optimizer ❖ IBP for sales and operations – reconciliation review ❖ IBP for sales and operations – management business review ❖ IBP for sales and operations – forecast error calculation and analysis ❖ IBP for demand – demand planning ❖ IBP for demand – demand sensing ❖ IBP for demand – forecast error calculation and analysis ❖ IBP for inventory ❖ Supply Chain Control Tower ❖ IBP – ABC-XYZ Segmentation The starter edition in SAP Store
  • 23.
    23 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ ▪ An end-to-end supply chain planning platform for small and mid-sized organizations ▪ Aligns sales and operations plans to corporate strategy and goals to drive revenue growth, increase market share, and attain financial targets ▪ Limited in scope compared to SAP IBP “Enterprise” applications ▪ Applicable SAP Best Practices scope items for the Edge edition: ❖ IBP for sales and operations – demand review ❖ IBP for sales and operations – supply review heuristic ❖ IBP for sales and operations – reconciliation review ❖ IBP for sales and operations – management business review ❖ IBP for sales and operations – forecast error calculation and analysis ❖ Supply Chain Control Tower ❖ IBP – ABC-XYZ Segmentation SAP Integrated Business Planning, Edge edition SAP Best Practices SAP Best Practices provides content for all SAP IBP applications. Make sure that you only use features of SAP IBP that are included in your licensed applications. Refer to the Applications and Features of SAP Integrated Business Planning (http://help.sap.com/ibp-ref → Application Help → What's in the IBP Applications).
  • 24.
    Scope in detail IBPfor sales and operations – demand review
  • 25.
    25 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – demand review Process flow External Process Demand Review SAP IBP Process Review Marketing Forecast Marketing Forecast Review Annual Operating Plan Annual Operating Plan New Product Introduction Consensus Demand Plan Create Consensus Demand Consensus Demand Plan Demand Planning Global Demand Plan Supply Review – Optimizer Constrained Demand Plan ABC-XYZ Segmentation Segmented Products Financial Planning Annual Operating Plan Sales Planning Sales Forecast Marketing Planning Marketing Plan Review Sales Forecast Sales Forecast Supply Review – Heuristic Constrained Demand Plan
  • 26.
    26 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Sales forecast, 1 worksheet ▪ Marketing forecast, 1 worksheet ▪ Annual operating plan, 1 worksheet ▪ Consensus demand plan, 2 worksheets Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Demand Review’ dashboard with 5 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Align supply chain planning with corporate financial targets ▪ Collaboratively define a consensus demand plan Benefits ▪ Create the optimal business plan to drive revenue growth and increase market share ▪ Improve the speed, agility, and accuracy of sales and operations planning Frequency ▪ Monthly Participants ▪ Director finance, sales manager, marketing manager, demand planner Technical details Input ▪ Annual operating plan ▪ Sales forecast ▪ Marketing forecast ▪ Global demand plan Output ▪ Unconstrained, consensus demand plan Planning Level ▪ Months / Product Family / Customer Group Planning Operator ▪ No planning operator The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During demand review, representatives from sales, marketing, finance, demand planning, and other involved lines of business first gather and review their various demand input. In a second step, they jointly define a single, consolidated consensus demand plan for measuring current volume and financial target achievement. In the subsequent supply review, a complete supply plan is created for the consensus demand plan. IBP for sales and operations – demand review Description
  • 27.
    27 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Business purpose ▪ Include a new product in your sales and operations planning and evaluate how it adds to revenue growth and impacts your supply plan ▪ Get executive management decision on introducing the new product Prerequisites ▪ In contrast to new product introduction in demand planning, master data and planning objects for the new product are created manually in SAP IBP ▪ The new product is created in a dedicated version of the planning area ▪ Consensus demand for the new product is copied from an existing product with a similar demand pattern, that is, it’s not in scope to create a statistical forecast based on a reference product Process flow 1. Demand review: The demand planner creates the master data and planning objects for the new product in Excel 2. Supply review: The supply planner creates a supply plan that includes the new product 3. Reconciliation review: Attribute PLM status is used in various charts to analyze the impact of the new product on revenue, gross profit, and supply 4. Management business review: At the end, the manually created master data and planning objects are deleted in SAP IBP. In case of a positive business decision, the master data will be created later in the leading master data system (for example, ERP) and it continues with the new product introduction in demand planning IBP for sales and operations – demand review New product introduction (1/2)
  • 28.
    28 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Use of template product ▪ To reduce manual effort, only the highest node of the product BOM is created during demand review, for example, the finished good with product ID NEW-150 ▪ For testing purposes, the sample data contains template product IBP-1X0, for which the product BOM and the sourcing and production in the supply chain network has already been defined ▪ Only if a finished good is assigned to the template product and customer demand is created, the new product / template product is part of the supply planning ▪ Transformation (sourcing) of finished good to template product happens in the distribution center; you can think of it as labeling the template product IBP for sales and operations – demand review New product introduction (2/2) IBP-1X0 IBP-1X1-S IBP-1X1-R IBP-1X2-R IBP-1X3-R Semi-finished dummy product Semi-finished product Raw material Raw materials Template product NEW-150 New product Finished good Transformation in DC
  • 29.
    Scope in detail IBPfor sales and operations – supply review – heuristic
  • 30.
    30 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – supply review – heuristic Process flow External Process Supply Review – Heuristic SAP IBP Process Run Supply Heuristic Constrained Demand Plan Check Capacity Alerts Constrained Demand Plan Prepare Supply Scenarios Constrained Demand Plan Carry Out Capacity Leveling Constrained Demand Plan Inventory Optimization Inventory Plans Demand Review Consensus Demand Plan Reconciliation Review Constrained Demand Plan ABC-XYZ Segmentation Segmented Products
  • 31.
    31 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Supply Plan Heuristic, 9 worksheets Alerts ▪ The ‘Supply Plan Heuristic’ planning view includes 1 alert definition for capacity overload Analytics ▪ 1 predefined ‘Supply Review’ dashboard with 5 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Create infinite supply plan with no shortages to identify capacity bottlenecks ▪ Perform manual capacity leveling to create a feasible, constrained demand plan Benefits ▪ Effectively balance demand and supply Frequency ▪ Monthly Participants ▪ Supply planner Technical details Input ▪ Consensus demand plan (from demand review) ▪ Resource capacities ▪ Safety stock Output ▪ Constrained, consensus demand plan Planning Level ▪ Weeks / Product / Location / Customer (Worksheets have different planning levels, for example, Capacity: Resource / Component; Production: Source / Ship-To; Transportation: Ship-To / Ship-From) Planning Operator ▪ Time-Series-Based Supply Planning Heuristic The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During the supply review, the supply planner creates a complete supply plan for the consensus demand. This plan defines for each product how much should be purchased, produced, or shipped at each location in the supply chain and in which period of the planning horizon. Using the S&OP heuristic planning algorithm, the supply planner can generate an infinite supply plan with no shortages to identify supply and capacity bottlenecks. By carrying out manual capacity leveling, he or she can then solve potential supply issues and create a feasible, constrained demand plan. The supply planner can simulate different solutions and provide them as scenarios to the participants of the reconciliation review. IBP for sales and operations – supply review – heuristic Description
  • 32.
    Scope in detail IBPfor response and supply – supply review – optimizer
  • 33.
    33 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – supply review – optimizer Process flow External Process Supply Review – Optimizer SAP IBP Process Run Supply Optimizer Constrained Demand Plan Prepare Supply Scenarios Constrained Demand Plan Inventory Optimization Inventory Plans Demand Review Consensus Demand Plan Reconciliation Review Constrained Demand Plan ABC-XYZ Segmentation Segmented Products
  • 34.
    34 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Supply Plan Optimizer, 10 worksheets Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Supply Review’ dashboard with 5 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Create a feasible, cost-optimized supply plan for the entire supply chain based on constraints Benefits ▪ Effectively balance demand and supply, and achieve a cost-optimal plan for production, distribution, and procurement Frequency ▪ Monthly Participants ▪ Supply planner Technical details Input ▪ Consensus demand plan (from demand review) ▪ Resource capacities ▪ Safety stock ▪ Cost per unit Output ▪ Constrained, consensus demand plan Planning Level ▪ Weeks / Product / Location / Customer (Worksheets have different planning levels, for example, Capacity: Resource / Component; Production: Source / Ship-To; Transportation: Ship-To / Ship-From) Planning Operator ▪ Time-Series-Based Supply Planning Optimizer The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During the supply review, the supply planner creates a complete supply plan for the consensus demand. This plan defines for each product how much should be purchased, produced, or shipped at each location in the supply chain and in which period of the planning horizon. The S&OP optimizer planning algorithm generates a cost-optimized production, distribution, and procurement plan for the entire supply chain network, taking certain constraints into account. It generates a feasible, constrained demand plan that is maximized either for profit or for delivery. The supply planner provides the result of the optimizer to the participants of the reconciliation review. IBP for sales and operations – supply review – optimizer Description
  • 35.
    Scope in detail IBPfor sales and operations – reconciliation review
  • 36.
    36 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – reconciliation review Process flow External Process Reconciliation Review SAP IBP Process Agree on Executive Proposal Constrained Demand Plan Review Supply Scenarios Constrained Demand Plan Supply Review – Heuristic Constrained Demand Plan Supply Review – Optimizer Constrained Demand Plan Management Business Review Final Consensus Demand Plan
  • 37.
    37 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Version comparison, 1 worksheet Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Reconciliation Review’ dashboard with 14 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Evaluate constrained demand scenarios and prepare an executive proposal for demand, supply, and finance alignment Benefits ▪ Better align your strategic, long-term supply chain planning with your operational, short-term planning ▪ Improve the speed, agility, and accuracy of sales and operations planning Frequency ▪ Monthly Participants ▪ Director finance, sales manager, marketing manager, demand planner, supply planner Technical details Input ▪ Constrained, consensus demand plan Output ▪ Constrained, consensus demand plan Planning Level ▪ Months / Product Family / Customer Group Planning Operator ▪ No planning operator The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During reconciliation review, representatives from sales, finance, marketing, production, and demand planning discuss deviations between constrained demand and consensus demand, agree on one executive proposal, and prepare a list of issues for escalation. Subsequently, the executive management will take a decision on an executive proposal during the management business review. IBP for sales and operations – reconciliation review Description
  • 38.
    Scope in detail IBPfor sales and operations – management business review
  • 39.
    39 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – management business review Process flow External Process SAP IBP Process Management Business Review Approve Final Plan Final Consensus Demand Plan Review Executive Proposal Constrained Demand Plan Reconciliation Review Constrained Demand Plan Supply Chain Control Tower Managed Cases Demand Planning Global Demand Plan Operational Planning & Execution Processes S&OP – forecast error calculation and analysis Forecast Errors
  • 40.
    40 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Management Business Review’ dashboard with 3 charts Collaboration ▪ 1 step in predefined S&OP process management template with SAP Jam task integration Scope Use Case ▪ Achieve executive agreement on final consensus demand plan across functional business units Benefits ▪ Increased product and customer profitability by given supply and financial constraints ▪ Optimal business plan to drive revenue growth and increase market share ▪ Improve the speed, agility, and accuracy of sales and operations planning Frequency ▪ Monthly Participants ▪ Executive management of the involved lines of business Technical details Input ▪ Constrained, consensus demand plan Output ▪ Final consensus demand plan Planning Level ▪ Months / Product Family / Customer Group Planning Operator ▪ No planning operator The sales and operations planning process is divided into demand review, supply review, reconciliation review, and management business review. During management business review, the executive management of the involved business units determine if the presented proposal align with the company's financial targets and key performance indicators. They assess and take a decision on the presented list of escalated issues. This results in an approved, final consensus demand and supply plan that should ultimately drive revenue growth and increase market share, optimize product and customer profitability, minimize inventory costs, and overcome capacity constraints. IBP for sales and operations – management business review Description
  • 41.
    Scope in detail IBPfor sales and operations – forecast error calculation and analysis
  • 42.
    42 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations – forecast error calculation and analysis Process flow External Process S&OP – forecast error calculation and analysis SAP IBP Process Analyze Forecast Errors Forecast Accuracy Sales & Distribution Open,Confirmed,Delivered Sales Orders Run Forecast Error Calculation Forecast Errors Management Business Review Final Consensus Demand Plan
  • 43.
    43 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘SOP Forecast Error’ dashboard with 6 charts Collaboration ▪ No predefined process management or SAP Jam integration Scope Use Case ▪ Analyze the accuracy of past consensus demand forecasts by calculating error measures based on actual sales data Benefits ▪ Insight into forecast accuracy ▪ Increased forecast quality Frequency ▪ Monthly Participants ▪ S&OP process expert Technical details Input ▪ Unconstrained, consensus demand plan ▪ Final consensus demand plan ▪ Sales history Output ▪ Forecast error values Planning Level ▪ Months / Product / Location / Customer Planning Operator ▪ Forecast error calculation Gain insight into the forecasting accuracy of your sales and operations planning. Compare the unconstrained consensus demand plan and the final, constrained consensus demand plan generated in the past against the actual sales data of the forecasted period. Two lags (1 month, 3 months) have been defined for a lag-to-lag comparison. Take advantage of a predefined forecast error profile and dedicated analytics. IBP for sales and operations – forecast error calculation and analysis Description
  • 44.
    Scope in detail IBPfor demand – demand planning
  • 45.
    45 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for demand – demand planning Process flow External Process Demand Planning SAP IBP Process Gather and Cleanse Historical Data Adjusted Actuals Run Statistical Forecasting Statistical Forecast Create Global Demand Plan Global Demand Plan Create Local Demand Plan Local Demand Plan Demand Sensing Sensed Demand Inventory Optimization Inventory Plans Sales Planning Sales Forecast Sales & Distribution Open,Confirmed,Delivered Sales Orders Operational Planning & Execution Processes Demand – forecast error calculation and analysis Forecast Errors Management Business Review Final Consensus Demand Plan New Product Introduction New Products Demand Review Consensus Demand Plan ABC-XYZ Segmentation Segmented Products Supply and Allocations Planning Supply Proposals. Product Allocations Supplier Commit with SAP Ariba Committed Forecast
  • 46.
    46 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Historical Data Cleanse, 1 worksheet ▪ Statistical Forecast, 1 worksheet ▪ Local Demand Plan, 1 worksheet ▪ Global Demand Plan, 2 worksheets Alerts ▪ 2 predefined custom alerts: Global Demand Planner, Statistical Fcst Error Measures Analytics ▪ 1 predefined ‘Demand Planning’ dashboard with 2 charts Collaboration ▪ 1 predefined process management template, 1 SAP Jam group integration Scope Use Case ▪ Mid- or long-term demand planning ▪ Advanced statistical forecasting ▪ Role-based local and central planning Benefits ▪ Improved forecast accuracy with automatic forecast models based on historical data ▪ Increased efficiency by automated, exception-based planning and embedded analytics and collaboration capabilities Frequency ▪ Weekly ▪ New global demand plan at the end of every week Participants ▪ Local demand planner, global demand planner, demand planning process expert Technical details Input ▪ Order based or time-series based sales history ▪ Approved consensus demand plan from the last S&OP cycle ▪ Additional input: Sales forecast, final sensed demand* Output ▪ Global demand plan ▪ Combined final demand = global demand plan + last final sensed demand* Planning Level ▪ Weeks / Product / Location / Customer Planning Operator ▪ Statistical Forecasting based on forecast models, which allows for many forecasting algorithms and any combination of them Gain full demand transparency for mid- and long-term forecasting by leveraging statistical forecasting methods. Collaborate in a globally distributed demand planning team to align on decisions via SAP Jam. Combine automated, exception-based planning processes as well as manual planning capabilities. Execute role-based local and global demand planning. *only if the IBP for demand – demand sensing scope item is implemented IBP for demand – demand planning Description
  • 47.
    47 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Prerequisites ▪ A business decision has been made to introduce a new product in a defined launch country at a defined launch date ▪ The new product has been included in the Annual Operating Plan and Sales Plan ▪ Master data for the new product has been created in leading system (for example, ERP) and is imported into SAP IBP ▪ A reference product exists that has a similar historical sales pattern Process flow 1. The demand planning process expert creates planning objects for the new product by uploading master data and key figure data (Annual Operating Plan, Sales Plan). 2. The demand planning process expert defines in the Manage Product Lifecycle app the reference product, launch country, and launch date. 3. The statistical forecast run creates a forecast for a period of 12 months for the new product. 4. The local demand planner reviews in the ‘DP 130 Local Demand Plan’ Excel planning view the created Statistical Forecast for the new product and makes manual adjustments to the Local Demand Plan. IBP for demand – demand planning New product introduction
  • 48.
    Scope in detail IBPfor demand – demand sensing
  • 49.
    49 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for demand – demand sensing Process flow External Process Demand Sensing SAP IBP Process Manage Demand Sensing Issues Final Sensed Demand Demand Planning Global Demand Plan Inventory Optimization Inventory Plans Sales & Distribution Open,Confirmed,Delivered Sales Orders Operational Planning & Execution Processes Demand – forecast error calculation and analysis Forecast Errors Run Demand Sensing Sensed Demand ABC-XYZ Segmentation Segmented Products Supply and Allocations Planning Supply Proposals. Product Allocations Supplier Commit with SAP Ariba Committed Forecast
  • 50.
    50 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ 1 predefined ‘Demand Sensing’ Excel template (used when navigating from customer alert to Excel) Alerts ▪ 1 custom alert to inform the demand planner about large deviations between global demand plan and sensed demand Analytics ▪ No predefined chart Collaboration ▪ Typically no collaboration involved during the process, therefore no SAP Jam integration Scope Use Case ▪ Short-term statistical forecasting with pattern recognition based algorithms Benefits ▪ React faster to short term demand changes ▪ Drive more accurate deployment of products based on short term demand Frequency ▪ Daily batch run ▪ Manual interaction only in case of alerts Participants ▪ Demand planner Technical details Input ▪ Confirmed sales orders with future material availability date (only order-based data) ▪ Global demand plan Output ▪ Sensed demand (result of algorithm) ▪ Final sensed demand (contains manual adjustments to sensed demand, otherwise equals sensed demand) Planning Level ▪ Days / Product / Location / Customer Planning Operator ▪ Demand Sensing algorithm can be applied in forecast models of the Statistical Forecasting operator Refine short-term forecasts to drive better fulfillment and inventory reduction. Get a better sense of demand by identifying demand patterns based on daily, granular demand signals. By sensing demand, you can deploy stock to distribution centers that need stock earlier in the week as opposed to later in the week, resulting in better fulfillment and inventory reduction. The demand sensing forecast can be fed back into the collaborative demand planning process to allow demand planners to make adjustments to demand plans. IBP for demand – demand sensing Description
  • 51.
    Scope in detail IBPfor demand – forecast error calculation and analysis
  • 52.
    52 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for demand – forecast error calculation and analysis Process flow External Process Demand – forecast error calculation and analysis SAP IBP Process Analyze Forecast Errors Forecast Accuracy Sales & Distribution Open,Confirmed,Delivered Sales Orders Run Forecast Error Calculation Forecast Errors Demand Planning Global Demand Plan
  • 53.
    53 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘Demand Planning Forecast Error’ dashboard with 8 charts Collaboration ▪ No predefined process management, no SAP Jam integration Scope Use Case ▪ Analyze the accuracy of past demand forecasts by calculating error measures based on actual sales data Benefits ▪ Insight into forecast accuracy ▪ Increased forecast quality Frequency ▪ Monthly Participants ▪ Demand planning process expert Technical details Input ▪ Statistical forecast ▪ Combined final demand ▪ Sales history Output ▪ Forecast error values Planning Level ▪ Months / Product / Location / Customer Planning Operator ▪ Forecast error calculation Gain insight into the forecasting accuracy of your demand planning. Compare the statistical forecast and the combined final demand plan (includes manual modifications and sensed demand) generated in the past against the actual sales data of the forecasted period. Two lags (1 month, 3 months) have been defined for a lag-to-lag comparison. Take advantage of a predefined forecast error profile and dedicated analytics. IBP for demand – forecast error calculation and analysis Description
  • 54.
    Scope in detail IBPfor inventory
  • 55.
    55 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for inventory Process flow External Process Inventory Optimization SAP IBP Process Validate Data Inputs Demand Forecast Run and Review Inventory Plan Inventory Plans Finalize Inventory Plan Inventory Plans What-If Analysis Inventory Plans Demand Sensing Sensed Demand Operational Planning & Execution Processes Demand Planning Global Demand Plan Supply Review – Heuristic, Optimizer Constrained Demand Plan ABC-XYZ Segmentation Segmented Products
  • 56.
    56 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Input Data Review, 5 worksheets ▪ Planning Results, 3 worksheets ▪ Scenario Comparison, 1 worksheet ▪ Inventory Component Review, 3 worksheets Alerts ▪ The ‘Planning Results’ planning view includes 2 alert definitions for recommended safety stock and safety stock delta Analytics ▪ 3 predefined dashboards: Validate Data Inputs (7 charts), Review Inventory Plan (6 charts), Finalize Inventory Plan (5 charts) Collaboration ▪ 1 predefined process management template, 1 SAP Jam group integration Technical details Input ▪ Global demand plan ▪ Final sensed demand ▪ Target service levels Output ▪ Safety stock ▪ Cycle stock ▪ On-hand stock ▪ In-process stock ▪ Vendor-in-transit stock ▪ Merchandising stock ▪ Inventory position Planning Level ▪ Weeks / Product / Location Planning Operator ▪ Used algorithms of the Inventory Optimization operator: Multi-stage Inventory Optimization, Forecast Error Calculation, Inventory Components Optimize multi-stage inventory targets to most efficiently meet or exceed customer service levels, fully considering uncertainties like forecast error and supply uncertainty. Validate data inputs such as demand forecast and target service level. Execute a what-if analysis to analyze the effects of changed demands to inventory component levels. IBP for inventory Description Scope Use Case ▪ Multi-stage inventory optimization across all stages of the supply chain, compensating for uncertainties in demand forecasts, supply timing, and supply quantity ▪ Prescribe inventory targets to minimize inventory costs while buffering for uncertainty and meeting customer service targets ▪ Execute a what-if analysis to identify supply chain improvement opportunities Benefits ▪ Maximize the utilization of inventory ▪ Improve customer service levels Frequency ▪ Weekly Participants ▪ Inventory planner
  • 57.
    Scope in detail IBPfor response and supply – supply and allocations planning
  • 58.
    58 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for response and supply – supply and allocations planning Process flow External Process Supply and Allocations Planning SAP IBP Process Review Priority Rules, Forecast and Constraints Unconstrained Forecast Run Constrained Forecast Constrained Forecast Create Different Supply Plan Versions Constrained Forecast Check Alerts and Identify Bottlenecks Constrained Forecast Supplier Commit with SAP Ariba Committed Forecast Demand Sensing Sensed Demand Analyze Supply and Allocations Planning Constrained Forecast, Product Allocation Plan Create Product Allocation Plan Product Allocation Plan Operational Planning & Execution Processes Available-to-Promise Check Sales Order Confirmations Demand Planning Global Demand Plan Response Planning Supply Proposals, Sales Order Confirmations
  • 59.
    59 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Forecast and Constraints, 4 worksheets ▪ Forecast and Product Allocations, 1 worksheet Alerts ▪ ‘Forecast Deviation Above or Below Threshold’ custom alert Analytics ▪ 1 predefined ‘Supply and Allocations Planning’ dashboard with 6 charts Collaboration ▪ No predefined process management, no SAP Jam integration Scope Use Case ▪ Create a finite supply plan based on prioritized demand and supply chain constraints ▪ Create a product allocation plan for available-to- promise (ATP) checks and confirmation of sales orders Benefits ▪ Reduce inventory carrying costs ▪ Avoid capacity and material shortages ▪ Ability to quickly react to exceptions in the supply chain with fast simulations Frequency ▪ Weekly Participants ▪ Supply planner Technical details Input ▪ Global demand plan, sensed demand ▪ Resource capacities Output ▪ Constrained forecast ▪ Product allocations Planning Level ▪ Days / Product / Location / Customer Planning Operator ▪ Order-based planning: Constrained Forecast Run ▪ Note: The Constrained Forecast Run only takes unconstrained forecast as a time series. It does not consider any sales orders as demand. Order-based planning lets you generate a finite production, distribution and procurement plan to match your demand forecast. It integrates supply chain master and order data from an external system using the OpenAPI. The priority-driven algorithm creates a feasible supply plan based on demand priority rules and supply chain constraints like resource capacity, supplier committed quantities, and safety stock targets. What-if analysis and root-cause analysis are supported by a number of SAP Fiori apps, which makes it possible to see, for example, projected stocks for all location materials and its corresponding supply elements and gating factors that prevent demand to be fulfilled. Simulation capabilities allow you to change constraints and see the impact on the generated supply plan. The supply plan is used to provide product allocations for available-to-promise (ATP) checks and confirmation of sales orders. IBP for response and supply – supply and allocations planning Description
  • 60.
    Scope in detail IBPfor response and supply – response planning
  • 61.
    61 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for response and supply – response planning Process flow External Process Response Planning SAP IBP Process Review Demands by Priority Ranked Demand Run and Check Order Confirmation Run Create and Simulate Scenario Supply and Allocations Planning Product Allocation Supply Proposals Order Confirmation for Adjusted Allocation Execution on Orders Sales Order Confirmations Supply Plan Sales Order Confirmations Sales Order Confirmation Adjusted Allocation Sales Order Processing Open,Confirmed,Delivered Sales Orders Available-to-Promise Processing Sales Order Confirmations
  • 62.
    62 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Forecast and Product Allocations, 1 worksheet Alerts ▪ No predefined alerts Analytics ▪ No predefined analytics Collaboration ▪ No predefined process management, no SAP Jam integration Scope Use Case ▪ Adjust supply plan ▪ Respond to incoming customer orders for deviation from forecast ▪ Confirm sales orders ▪ Plan allocation for constrained supply Benefits ▪ Allow flexibility to respond in the short term to market realities ▪ Provide detailed, end-to-end visibility ▪ Analyze root causes via gating factor analysis ▪ Maximize service level using what-if analysis for a potential opportunity or risk scenario without impacting the live data Frequency ▪ Daily Participants ▪ Account planner Technical details Input ▪ Product allocation ▪ Supply constraint ▪ Orders Output ▪ Confirmed sales orders ▪ Planned orders ▪ Purchase requisitions for components ▪ Stock transfer requisitions Planning Level ▪ Day / Product / Location / Customer Planning Operator ▪ Order-based planning: Confirmation Run Response planning allows you to react quickly to incoming customer orders. It results in confirmed orders and the most preferred supply plan per the prioritization rule and organization's ability to supply. The response planning algorithm automatically performs order prioritization and product allocation, following the defined rule for creating the most suitable supply plan for the organization. With the help of several SAP Fiori apps, a review of order-relevant planning information (for example, detailed sequential view of the demand, information like the percentage confirmation, delays, and gating factors) is possible. Root-cause analysis shows where issues in the supply chain limits the customer order fulfillment on time. Simulation and collaboration capabilities are applied for further review and finalization of the supply plan. The creation of scenarios allows the what-if analysis to simulate potential alternatives. Based on a decision for a scenario, data can be updated in the back-end system to make the simulation model real. IBP for response and supply – response planning Description
  • 63.
    Scope in detail IBP– order-based planning inbound/outbound integration with SAP S/4HANA
  • 64.
    64 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Scope Use Case • Order-based planning in IBP with master and transactional data coming from SAP S/4HANA Benefits • Out-of-the-box integration reduces implementation efforts and costs • Near real-time integration allows you to react quickly to demand changes from sales orders Participants • Order-based planning administrator • General response planner Technical details Inbound Integration – Objects Master Data ▪ Locations: Plant, DC, supplier, customer ▪ Materials ▪ Location Material ▪ Transportation Lane ▪ Work Centers ▪ Production Data Structures Transactional Data ▪ Sales Orders ▪ Outbound Deliveries ▪ Initial Stock / Inventory ▪ Planned Orders ▪ Production Orders ▪ Purchase Requisition ▪ Purchase Orders ▪ Stock Transfer Requisition / Stock Transfer Order IBP – order-based planning inbound integration with SAP S/4HANA Description Based on the nature of order-based planning, a dynamic data integration is required from the execution system within the SAP IBP system. The near real-time integration of detailed order-level information with SAP Cloud Platform Smart Data Integration (SDI) allows you to react quickly to demand changes coming from sales orders. This scope item covers the complete integration process from SAP S/4HANA to SAP IBP and describes the various master data and transactional objects. What's more, it provides references to SAP Best Practices for SAP S/4HANA to explain how to maintain them in SAP S/4HANA. It also provides the steps needed to execute the initial respective delta load. On the receiving side, the execution of the inbound integration job via SDI is covered. Finally, the imported data is checked via SAP Fiori apps.
  • 65.
    65 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Scope Use Case • Order-based planning in IBP with master and transactional data coming from SAP S/4HANA Benefits • Out-of-the-box integration reduces implementation efforts and costs • Near real-time integration allows you to react quickly to plan changes based on sales orders Participants ▪ Order-based planning administrator Technical details Outbound Integration – Objects ▪ Sales Order Confirmation proposals (only when response planning has taken place) ▪ Purchase Requisitions ▪ Planned Orders ▪ Stock Transfer Requisitions IBP – order-based planning outbound integration with SAP S/4HANA Description Based on the nature of order-based planning, a dynamic data integration is required from the execution system within the SAP IBP system and vice versa. The near real-time integration with SAP Cloud Platform Smart Data Integration (SDI) allows the execution system to react to planning changes quickly and efficiently, for example, in the production planning or in purchasing. The process ensures that order information like order numbers and order quantities are consistent in both systems.
  • 66.
    66 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP Integration for order-based planning Using SAP Cloud Platform Smart Data Integration (SDI) IBP SAP S/4HANA Technical connection HTTPS Application Data SDI Data Provisioning Agent Data Provisioning Adapter Staging Area Staging Tables or Files SAP S/4HANA IBP Add-On Data Flow Open API Sourcing / Target
  • 67.
    Scope in detail SupplyChain Control Tower
  • 68.
    68 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Supply Chain Control Tower Process flow External Process Supply Chain Control Tower SAP IBP Process Check Alerts Demand, Capacity, Incoming Orders Sales & Distribution Open,Confirmed,Delivered Sales Orders Analyze KPIs Supply Chain KPIs, Plan Adherence Demand Planning Global Demand Plan Manage Cases Managed Cases Demand Review Consensus Demand Plan Supply Review – Heuristic, Optimizer Constrained Demand Plan Inventory Optimization Inventory Plans ABC-XYZ Segmentation Segmented Products
  • 69.
    69 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ 3 predefined custom alerts: Unfulfilled Demand, Capacity Overload, Incoming Orders above Forecast Analytics ▪ 4 predefined dashboards: Supply Chain KPIs (2 KPIs), Adherence to Plan (5 KPIs), Dashboard for Alerts (1 geo chart), Supply Network Cost KPIs (3 charts) Collaboration ▪ Exemplary case management: ‘Resolve Unfulfilled Demand’ Scope Use Case ▪ Performance Management with standard and definable KPIs ▪ Event Management with case management for resolution Benefits ▪ Network insights to proactively monitor the supply chain, resolve issues, and drive continuous improvement Frequency ▪ Daily ▪ Ad-hoc analysis and case management Participants ▪ Supply chain analyst Technical details Input ▪ All key figures of the Unified Planning Area Output ▪ Predefined KPIs for Supply Chain Management (safety stock deficit, inventory target overage) and Plan Adherence Planning Level ▪ All planning levels of the Unified Planning Area Planning Operator ▪ No planning operator, but use of custom alerts and case management Quickly identify supply chain problems, evaluate their impact, and resolve them with an end-to-end supply chain visibility, real-time monitoring, analytics, alerting, and exception management. Manage performance with standard and definable KPIs. The scope item provides exemplary scenarios with KPIs and dashboards for supply chain management and plan adherence. Leverage the built-in case management of SAP IBP for resolving problems. The scope item shows one example of resolving unfulfilled demand. Supply Chain Control Tower Description
  • 70.
    Scope in detail IBP– Business Network Collaboration – supplier commit with SAP Ariba
  • 71.
    71 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP – Business Network Collaboration – supplier commit with SAP Ariba Process flow SAP IBP Process Steps SAP IBP Process SAP Ariba Process Steps Check Alerts Supplier Committed Forecast Analyze Supplier Committed Forecast Supplier Committed Forecast Review & Release Component Forecast Component Forecast Demand Planning Global Demand Plan Review Forecast Component Forecast Publish Supplier Commits Supplier Committed Forecast Supply and Allocations Planning Supply Proposals, Product Allocations Demand Sensing Sensed Demand Copy Initial Stock and Unconstrained Forecast Unconstrained Forecast Generate Component Forecast Component Forecast
  • 72.
    72 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ Supplier Commit, 4 worksheets Alerts ▪ 2 predefined custom alerts: Undercommitted demand, overcommitted demand Analytics ▪ 1 predefined ‘Supplier Commit with SAP Ariba’ dashboard with 2 charts Collaboration ▪ Integration with SAP Ariba Supply Chain Collaboration Scope Use Case ▪ Share your component demand with your suppliers in SAP Ariba ▪ Receive committed quantities from your suppliers and analyze deviations from original component demand ▪ Use the committed quantities as supplier constraint in your subsequent supply planning Benefits ▪ React to changes in supply and demand quickly and efficiently ▪ Reduce inventory carrying cost by enhancing supplier visibility and interactivity Frequency ▪ Weekly Participants ▪ Supply Planner ▪ Suppliers Technical details Input ▪ Global demand plan ▪ Final sensed demand ▪ Initial stock Output ▪ Supplier committed component forecast Planning Level ▪ Product, Location, Ship-To Location Planning Operator ▪ Time-Series-Based Supply Planning Heuristic to generate component forecast Business Network Collaboration enables you to share key figure data with your business partners in SAP Ariba Supply Chain Collaboration. In this process, it's used to receive committed quantities for required components from each of your suppliers. The Multilevel Supply Planning Heuristic is used to generate the Supplier Forecast, that is the demand of components which you source from suppliers, from your unconstrained forecast of finished goods. After releasing the Supplier Forecast to SAP Ariba, suppliers commit the confirmed quantities. The commitments are then published in SAP Ariba. Custom alerts inform you about over- and undercommitted components, and predefined charts help you decide on how to react to any deviations from the original Supplier Forecast. The committed quantities are taken as the Supplier Constraint input of the Constrained Forecast operator in the subsequent process of IBP for response and supply – supply and allocations planning. IBP – Business Network Collaboration – supplier commit with SAP Ariba Description
  • 73.
    Scope in detail IBP– ABC-XYZ Segmentation
  • 74.
    74 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP – ABC-XYZ Segmentation Process flow External Process ABC-XYZ Segmentation SAP IBP Process Review Segmentation of Products Segmented Products Sales & Distribution Open,Confirmed,Delivered Sales Orders Run ABC/XYZ Segmentation Segmented Products Demand Planning Global Demand Plan Demand Review Consensus Demand Plan Supply Review – Heuristic, Optimizer Constrained Demand Plan Inventory Optimization Inventory Plans Supply Chain Control Tower Managed Cases Demand Sensing Sensed Demand
  • 75.
    75 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ User interaction Planning Views ▪ No predefined Excel template Alerts ▪ No predefined alert Analytics ▪ 1 predefined ‘ABC-XYZ Segmentation’ dashboard with 2 charts Collaboration ▪ No predefined process management, no SAP Jam integration Scope Use Case ▪ Group products based on sales history Benefits ▪ Tailor your forecast strategy and inventory optimization to the characteristics of segments ▪ Analyze forecast accuracy by product segments ▪ Identify inventory items that require closer attention ▪ Define alerts for specific segments only ▪ View analytic charts with regards to specific segments Frequency ▪ Monthly Participants ▪ Process expert Technical details Input ▪ Sales history Output ▪ Segmented products Planning Level ▪ Product Planning Operator ▪ Segmentation Group your planning objects based on the values of a selected key figure, for example, products by historical sales revenue. Segmentation is used in every scope item for specific analytics and custom alerts, which guides the user to the most relevant segments, and thereby increases user efficiency and generates more accurate planning results. IBP – ABC-XYZ Segmentation Description
  • 76.
    76 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ ▪ ABC/XYZ segmentation lets you group planning objects based on the values of a selected key figure ▪ An exemplary segmentation profile is delivered with SAPIBP1 that categorizes products by historical sales revenue with a 70- 20-10 distribution (A-B-C) and by coefficient of variation in historical sales quantity (X-Y-Z) in the past 12 months ▪ The ABC-XYZ Segmentation scope item describes how to run the segmentation operator and analyze the result; it’s a preceding process to all other scope items ▪ Segmentation is used in every scope item for specific analytics and custom alerts, which guides the user to the most relevant segments, and thereby increases user efficiency and generates more accurate planning results IBP – ABC-XYZ Segmentation
  • 77.
    77 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for demand – demand planning ▪ ‘DP110 Historical Data Cleanse’ planning view: Manual outlier correction is performed for products in segment A ▪ ‘Statistical Fcst Error Measures’ alert: Find alerts per segment in the alert overview ▪ ‘DP120 Statistical Forecast’ planning view: Evaluate forecast quality for products in segment A ▪ ‘DP130 Local Demand Plan’ planning view: Focus on products in segment A ▪ ‘Global Demand Planner’ alert: Find alerts per segment in the alert overview ▪ New heatmap chart for analyzing Demand Plan Revenue by segments ▪ New charts for analyzing forecast errors in segment A IBP for demand – demand sensing ▪ ‘Demand Sensing Above Threshold’ alert: Find alerts per segment in the alert overview IBP for inventory ▪ Target service levels are maintained for each ABC segment ▪ ‘IO210 Input Data Review’ planning view: ABC code is added to the planning level ▪ ‘IO220 Planning Result’ planning view: Review the detailed planning result for products in segment A IBP – ABC-XYZ Segmentation Usage of segmentation in scope items (1/2)
  • 78.
    78 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IBP for sales and operations ▪ ‘SOP040 Consensus Demand Plan’ planning view: Additional worksheet to review consensus demand by segments ▪ New chart to compare Consensus Demand Revenue with AOP Revenue and Sales Forecast Revenue grouped by segments ▪ ‘SOP050 Supply Planning’ planning view: Review planning results for products in segment A ▪ New chart to compare Consensus Demand Revenue with Constrained Demand Revenue grouped by segments Supply Chain Control Tower ▪ ‘Incoming Orders above Forecast’ alert: Find alerts per segment in the alert overview ▪ ‘Unfulfilled Demand’ alert: Find alerts per segment in the alert overview IBP – ABC-XYZ Segmentation Usage of segmentation in scope items (2/2)
  • 79.
  • 80.
    80 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ System landscape SAP Best Practices SAP Integrated Business Planning SAP HANA Sample Planning Areas SAPIBP1, SAP74 Attributes & Master Data Key Figures Planning Levels Time Profile Versions Planning Operators SAP Jam Microsoft Excel + IBP Add-On SAP Best Practices Application Content Planning View Templates SAP Fiori Launchpad in Browser SAP Best Practices Application Content Charts and Dashboards Custom Alerts Process Management Templates Forecast Models Forecast Error Profiles Segmentation Profile Visibility Filters Data Sharing Plan Supply Chain Network Product Lifecycle Forecast Consumption Product Allocation Profile SAP Ariba SAP S/4HANA + IBP Add-On SAP Best Practices Sample Data + Configuration Flat Files Integration Methods & Tools
  • 81.
    81 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP S/4HANA Add-On for IBP Integrate with SAP S/4HANA? CSV file upload in Data Integration Jobs app Open API using SAP Smart Data Integration (SDI) SAP Jam SAP Ariba Additional processes, additional data Collaboration Supplier Forecast Commit Time series as well? Time-series based planning Yes Yes Order-based planning Object type? Main master and transactional data (must have) What to integrate? SDI File Adapter No → for loading sample data into IBP 2I0 – supply and allocations planning 2P0 – response planning 2P2 – supplier commit with SAP Ariba 2I0 – supply and allocations planning 2P0 – response planning 2P2 – supplier commit with SAP Ariba 2S4 – inbound integration with SAP S/4HANA 2S6 – outbound integration with SAP S/4HANA 2P2 – supplier commit with SAP Ariba Used in all scope items 11V – demand planning 11Z – inventory 2BQ – demand review 2BS – supply review – heuristic 18N – supply review – optimizer 2BU – reconciliation review 2BW – management business review Communication Scenario? Manual, low data volume → for loading sample data Integration methods and tools used for SAP Best Practices
  • 82.
  • 83.
    83 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Sample data – Supply chain network 1720 AME DC 1710 AME Mfg 1010 EU Mfg 1310 APJ Mfg 3710 EU DC 6210 APJ DC 13300001 18100001 61100001 13100001 11100001 10100001 12100001 17100002 17100001 17100003 Customers 13300002 13300003 IBP-100, IBP-110, IBP-120 IBP-300, IBP-310, IBP-320 IBP-200, IBP-210, IBP-220 1310 APJ Mfg 6210 APJ DC IBP-100, IBP-110, IBP-120 IBP-100, IBP-110, IBP-120 IBP-200, IBP-210, IBP-220 IBP-300, IBP-310, IBP-320 IBP-200, IBP-210, IBP-220 IBP-300, IBP-310, IBP-320 IBP-101-R, IBP-103-R, IBP-112-R, IBP-121-R, IBP-123-R, IBP-202-R, IBP-211-R, IBP-212-R, IBP-221-R, IBP-223-R, IBP-301-R, IBP-302-R, IBP-311-R, IBP-313-R, IBP-322-R IBP-111-S DCs Plants Suppliers Subcontractor All final products All final products All final products All products All products All products IBP-102-R, IBP-111-R, IBP-113-R, IBP-122-R, IBP-201-R, IBP-203-R, IBP-213-R, IBP-222-R, IBP-303-R, IBP-312-R, IBP-321-R, IBP-323-R 1710 Assemby, 1710 Pack, 1710 Subassembly 1010 Assembly, 1010 Pack, 1010 Subassembly 1310 Assembly, 1310 Pack, 1310 Subassembly 13300003 Subassembly Location Product Resource
  • 84.
    84 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-100) IBP-100 IBP-101-S IBP-101-R IBP-102-R IBP-103-R Finished product Semi-finished product Raw material Raw materials SOURCEPRODUCTION.CSV SOURCEPRODUCTIONITM.CSV
  • 85.
    85 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-110 / -120) Same BoMs repeat for locations 1010 and 1310 IBP-110 IBP-111-S IBP-111-R IBP-112-R IBP-113-R Finished product Semi-finished product Raw material Raw materials IBP-120 IBP-121-S IBP-121-R IBP-122-R IBP-123-R Finished product Semi-finished product Raw material Raw materials
  • 86.
    86 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-200 / -210 / -220) IBP-200 IBP-201-S IBP-201-R IBP-202-R IBP-203-R Finished product Semi-finished product Raw material Raw materials IBP-210 IBP-211-S IBP-211-R IBP-212-R IBP-213-R Finished product Semi-finished product Raw material Raw materials IBP-220 IBP-221-S IBP-221-R IBP-222-R IBP-223-R Finished product Semi-finished product Raw material Raw materials
  • 87.
    87 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-300 / -310 / -320) IBP-300 IBP-301-S IBP-301-R IBP-302-R IBP-303-R Finished product Semi-finished product Raw material Raw materials IBP-310 IBP-311-S IBP-311-R IBP-312-R IBP-313-R Finished product Semi-finished product Raw material Raw materials IBP-320 IBP-321-S IBP-321-R IBP-322-R IBP-323-R Finished product Semi-finished product Raw material Raw materials
  • 88.
    88 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Sample data – Bill of materials (IBP-100) and routing (LOCID 1010) Production Source Resource SOURCEID RESID CAPACONSUMPTION 1010_IBP-100 1010 Pack 1 1010_IBP-100 1010 Assembly 1 SOURCEID RESID CAPACONSUMPTION 1010_IBP-101-S 1010 Subassembly 1 Assembly IBP-100 Packaging IBP-101-S IBP-103-R IBP-101-R IBP-102-R Subassembly Finished Product Semi-finished Product Raw Materials Raw Material SOURCEID PRDID LOCID OUTPUTCOEFFICIENT 1010_IBP-100 IBP-100 1010 1 Production Source Header SOURCEID PRDID LOCID OUTPUTCOEFFICIENT 1010_IBP-101-S IBP-101-S 1010 1 SOURCEID PRDID SOURCEITMID COMPONENTCOEFFICIENT 1010_IBP-100 IBP-101-S 10 1 1010_IBP-100 IBP-103-R 20 1 Production Source Item SOURCEID PRDID SOURCEITMID COMPONENTCOEFFICIENT 1010_IBP-101-S IBP-101-R 10 1 1010_IBP-101-S IBP-102-R 20 1
  • 89.
    Appendix New scope andchanges in past versions
  • 90.
    90 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V3.62 • Technical upgrade to SAP IBP 6.2
  • 91.
    91 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V4.63 • Technical upgrade to SAP IBP 6.3 • IBP for inventory now supports all components of inventory: safety, cycle, pipeline, pre-build, and so on • All planning view templates now leverage the VBA-based Excel templates, see SAP Note 1790530 Pipeline Stock Drivers: • Order processing lead times • Transit times • Demand Safety Stock Drivers: • Demand • Demand uncertainty • Lead times • Lead time uncertainty • Review frequency • Service level targets • Service times Cycle Stock Drivers: • Demand • Review frequency • Batch sizes • Production rules Pre-Build Stock Drivers: • Time-varying capacity • Time-varying demand • Sourcing ratios • Changes in safety stock Inventory Components
  • 92.
    92 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V5.1611 (1/4) • Technical upgrade to SAP IBP 1611 • The Unified Planning Area is now based on technical weeks to support a correct week- to-month split • Supports Time Profile configuration with split weeks in a month • Supports the E2E business processes • Disaggregation and aggregation possible in actual calendar weeks
  • 93.
    93 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V5.1611 (2/4) • Forecast error calculation for forecast analysis in Demand Planning and Sales & Operations Planning • Analyze the quality of your past forecasts by calculating error measures based on actual sales data • Lag to lag comparison • Supported forecasts: • Statistical Forecast • Combined Final Demand Plan • Consensus Demand Plan • Final Consensus Demand Plan
  • 94.
    94 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V5.1611 (3/4) • Manage demand sensing issues by navigating from an alert directly to the Excel planning view • Use alert monitor to be informed about deviations between sensed demand and demand plan • Open Excel with a filter on the metrics of the alert • Make manual adjustments to sensed demand in Excel
  • 95.
    95 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V5.1611 (4/4) • Additional Control Tower scenario: new alert for 'Incoming orders above forecast‘ • Use alert monitor to be informed when the requested quantity of all incoming sales orders is higher than the forecast • Supported forecast is Combined Final Demand Plan in Demand Planning
  • 96.
    96 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V6.1702 • Technical upgrade to SAP IBP 1702 • Enhancement of the ‘IBP for demand – demand planning’ scope item: New Product Introduction creates a statistical forecast for a new product by leveraging the historical sales of a reference product
  • 97.
    97 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V7.1705 • Technical upgrade to SAP IBP 1705 • The new name ‘SAP Best Practices for SAP Integrated Business Planning’ replaces ‘SAP HANA Integrated Business Planning rapid-deployment solution’ • New ABC-XYZ Segmentation scope item added and enhancements to other scope items made to support segmentation in planning views, analytics, and alerts • Pre-defined forecast models are now delivered as part of the SAPIBP1 sample planning area • All charts and dashboards have been migrated to the new SAP Fiori-based Analytics
  • 98.
    98 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V8.1708 ▪ Technical upgrade to SAP IBP 1708 ▪ The Sales and Operations Planning process has been enhanced with the New Product Introduction: It illustrates how to create master data for a new product in Excel and how to include it in further planning ▪ The ‘DP140 Global Demand Pan – Revenues’ and ‘DS010 Demand Sensing’ planning views now use the new IBP Excel add-in feature ‘flexible time axis’, which allows for adding totals over periods ▪ The ‘IBP for sales and operations’ scope item has been split into the following scope items: demand review, supply review – heuristic, reconciliation review, and management business review ▪ The ‘IBP for response and supply – supply planning’ scope item has been renamed to ‘IBP for response and supply – supply review – optimizer’ ▪ The scope of forecast error calculation and analysis has been moved to two new scope items: ‘IBP for sales and operations – forecast error calculation and analysis’ and ‘IBP for demand – forecast error calculation and analysis’ New Product Introduction: Create a new product, run supply simulations, and achieve management approval Flexible time axis: Year-to-Date and year totals as columns
  • 99.
    99 CUSTOMER © 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New scope and changes in V9.1711 ▪ Technical upgrade to SAP Integrated Business Planning 1711 ▪ The new 'IBP for response and supply – supply and allocations planning' scope item adds order-based planning to the unified planning process ▪ The SAP74 sample planning area is used for order-based supply planning, data is copied between the SAP74 and SAPIBP1 planning areas with the disaggregation operator Gating Factor Analysis in Supply and Allocations Planning Analytics for Supply and Allocations Planning
  • 100.
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