Supply Chain Management Blogs by Members
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lingaiahvanam
Active Contributor

Get your business software up and running in weeks* instead of months – in the cloud, on-premise, or in a hybrid environment – with SAP Rapid Deployment solutions. Traditional implementations can be slow and costly, but these preconfigured software and service packages change that by simplifying the delivery approach and using best practices to deploy quickly, predictably, and affordably.

SAP HANA Integrated Business Planning rapid-deployment solution - V2.61

SAP HANA Integrated Business Planning rapid-deployment solution offers a modular approach to implement fast and reliable the applications: IBP for sales and operations, IBP for supply, IBP for demand, IBP for inventory and Supply Chain Control Tower.


All scope items are based on an integrated data model and form an end-to-end business process across all IBP applications. Each scope item can be deployed stand-alone or in some combination of the others. It is not required to implement the complete end-to-end process. The implementation service offers the choice to implement selected scope items.


The SAP Best Practices content comprises planning view templates for interactive simulations and what-if analysis, predefined dashboards for embedded analytics, SAP JAM integration for context-aware social collaboration, alert definitions for exception-based planning and sample data to showcase the end-to-end process.

Benefits


    • 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 utilizing Microsoft Excel for interactive planning and by integrating with SAP JAM for collaboration.


Integrated Business Planning for sales and operations

The process is divided into Demand Review, Supply Review, Pre-S&OP Meeting, and Executive S&OP Meeting.


During Demand Review, representatives from sales, finance, marketing, and demand planning prepare their input data for the new S&OP planning cycle and agree on a consensus demand plan with respect to corporate financial targets.


During Supply Review, a supply planner creates a constrained demand plan based on the consensus demand and supply constraints. He prepares a list of related issues and recommendations for the Pre-S&OP Meeting.


During Pre-S&OP Meeting, 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.


During Executive S&OP Meeting, executive management of the involved business units decides on the presented proposal and escalated issues, resulting in an approved consensus demand plan.

Key Process Steps Covered


  • Demand Review
  • Supply Review
  • Pre-S&OP Meeting
  • Executive S&OP Meeting

Benefits


  • Improve the speed, agility, and accuracy of sales and operations planning
  • Identify tactics to drive revenue growth and increase market share
  • Optimize product profitability, customer profitability, and product mix, given supply and financial constraints
  • Minimize costs by managing inventory levels and discovering new opportunities for cost savings
  • Avoid capacity and material shortages via effective resource usage
  • Precisely balance demand and supply as market conditions change

Integrated Business Planning for demand - demand planning

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.

Key Process Steps Covered


  • Gather and Cleanse Historical Data
  • Run Statistical Forecasting
  • Create Local Demand Plan
  • Create Global Demand Plan

Benefits


  • Build a single, comprehensive demand plan, integrated with the consensus forecasting process
  • Improve service levels, reduce stock-outs and lower expediting costs through more accurate forecasts
  • Reduce inventory targets by lowering forecast errors
  • Anticipate plan deviations via embedded analytics

Integrated Business Planning for demand - demand sensing

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.

Key Process Steps Covered


  • Run Demand Sensing
  • Manage Demand Sensing Issues

Benefits


  • React faster to short-term demand changes
  • Drive more accurate deployment of products based on short-term demand

Integrated Business Planning for response and supply - supply planning

The profit and cost optimizer algorithm of the supply planning operator generates a cost-optimized production, distribution, and procurement plan for the entire supply chain network, taking into account certain constraints. The plan includes all material flows to customers from plants and suppliers via distribution centers or other intermediate locations, and includes all production processes.


The scope item describes how to leverage the profit and cost optimizer algorithm during the Supply Review of the sales and operation planning process to create a feasible, cost-optimized constrained demand plan. It is used in replacement of the unconstrained demand and supply heuristic algorithm described in scope item Integrated Business Planning for sales and operations.

Key Process Steps Covered


  • Supply Review
  • Effectively balance demand and supply and achieve a cost-optimal plan for production, distribution, and procurement

Benefits

  • Effectively balance demand and supply and achieve a cost-optimal plan for production, distribution, and procurement

Integrated Business Planning for inventory

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 forecast error, demand forecast and target service level. Execute what-if analysis to analyze the effects of changed demands to safety stock levels. Collaborate with experts using SAP Jam to get approval for exceptional deviations.

Key Process Steps Covered


  • Validate Data Inputs
  • Run and Review Inventory Plan
  • What-if Analysis
  • Approve and Update Inventory Plan
  • Improve customer service levels
  • Maximize the efficiency of inventory and working capital
  • Improve planner productivity, standardize planning processes
  • Standardize the inventory target-setting process at each tier within the supply chain to feed operational plans
  • Reduce production and distribution costs

Benefits


  • Improve customer service levels
  • Maximize the efficiency of inventory and working capital
  • Improve planner productivity, standardize planning processes
  • Standardize the inventory target-setting process at each tier within the supply chain to feed operational plans
  • Reduce production and distribution costs


Integrated Business Planning for Supply Chain Control Tower

Quickly identify, evaluate impact and resolve supply chain problems 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 two exemplary scenarios with KPIs and dashboards for supply chain management and plan adherence.

Leverage the built-in case and task management of IBP for resolving problems. The scope item shows one example of resolving unfulfilled demand.

Key Process Steps Covered


  • Analyze KPIs
  • Check Alerts
  • Manage Cases and Tasks
  • Proactive issue resolution through increased visibility and orchestration
  • Increased responsiveness through real-time decision making capabilities
  • Better decision making across the supply chain
  • Lower inventory costs due to multitier visibility into inventory, demand, and supply
  • Improved customer service with effective alert and exception management

Benefits


  • Proactive issue resolution through increased visibility and orchestration
  • Increased responsiveness through real-time decision making capabilities
  • Better decision making across the supply chain
  • Lower inventory costs due to multitier visibility into inventory, demand, and supply
  • Improved customer service with effective alert and exception management
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