A comparison of time series based supply planning vs Order based supply planning in SAP IBP, taking into considerations, some of the most needed solution across industries.

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IBP Time Series(TS) Vs Order Based Planning (OBP)
By Ayan Bishnu

2. Agenda
2
• Present focus on few top supply planning requirements.
• IBP Time Series(TS) Vs Order Based Planning (OBP)
• Proposed Solutions with Pros & Cons Analysis.
• Approach for the future.

3. Present focus on few top supply planning requirements
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• End-to-end supply planning which includes both in house production & external
procurement.
• Key vendor capacity management and planning like inhouse production
• Multiple category of stock type and status specific to industries need to be mapped
• Supply planning to include both SAP and Legacy execution system to be integrated
• Different order type to be generated based on the good movement between 2 locations
based on custom rules.
• Pegging relationship is a requirement for tagging supply element to a sales order
• Integrating transactional data to multiple legacy systems need to be as seamless as
possible

4. IBP Time Series(TS) Vs Order Based Planning (OBP)
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Focus Area Time Series Planning Order Based Planning
Integration of MD & TD
• Very flexible and has much wider scope for
customization.
• Integrates very well with NON-SAP systems
• Have very limited scope for customization
• Integration with NON-SAP systems are
file based with limitations
Customization
Flexibility
• Customizing requirements and creation of
additional features are easy.
• Almost no scope for customization in
OBP and MD as SDI is a rigid integration
tool.
Supply Planning
Features & Capabilities
• From a supply planning perspective both
TS supply plan and order-based supply
plan have almost the same features &
capabilities
• From a supply planning perspective both
TS supply plan and order-based supply
plan have almost the same features &
capabilities.
Data model size &
performance
• Time series-based planning requires less
database space and hence model size,
and performance will be comparatively
better
• OBP as a tool requires more database
space and runs at daily level in most
cases, which will have performance
impact, if we don’t reduce the horizon.
Associated Features
like confirmation &
Deployment
• Time series doesn’t support SO
confirmation & pegging and don’t have the
deployment modules available.
• Confirmation process, pegging
relationship and deployment modules are
available in OBP only.

5. Proposed Solutions for E2E Supply Planning
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1. Perform the supply planning
part in IBP TS.
2. Publish the TS result into ECC
and update TS tables.
3. Leverage existing BADIs in ECC
to convert the TS values to
actual orders ( Planned order,
PREQs).
4. Use SDI inbound to pull the
order series data into OBP from
ECC & Legacy.
5. Perform confirmation run in
OBP and generate pegging in
IBP.**
6. Leverage deployment features
in OBP to generate STR and
STO.
7. Publish the order based STR /
STO to ECC and Legacy using
SDI outbound
SAP IBP
Execution system
Time Series
Demand
Planning
Order Series
Inventory
Optimization
SAP Based Systems Legacy Systems
Legacy 1
MFGPRO
Legacy 2
Legacy 3
Legacy 4
Legacy n
ECC 1 ECC 2
ECC 3
Supply Planning
Supply
Planning
?
Confirmation
Run
?
Deployment Run
?
MD
MD
TD
MD / TD
MD / TD
MD / TD

6. Pros & Cons Analysis
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Parameters Full TS Supply
Planning
Full Order
Based
Planning
Hybrid
Approach
Development and customization complexity for
additional requirements.
Development and customization complexity for
Integration
Additional cost & effort on system Integration
Actual order based transactional data integration
Confirmation & Pegging functionality
Deployment functionality
Future scope scalability to integrate with AATP
Future scalability to move to RTI and flexible Master
data types

7. Approach for the future
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• RTI or Real Time Integration is the way forward.
• To leverage RTI we need to migrate to a new master data type called flexible MD.
• Flexible master data type can be used for both TS and OBP.
• Although RTI is new and don’t have all the functionalities today, we still need to start our
planning as migrating to flexible MD will involve some change management.
• Order Confirmation and pegging from IBP can integrate with AATP. So, we need to have a
S/4 HANA migration plan
• Since we have multiple execution system, we need to consider having a single master
data tool to avoid duplication of SKU ID, Location ID, Customer ID, etc.

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