SAP® Integrated Business Planning 1905 – what’s new?
This time, we have released the newest version of IBP right during SAP’s annual conference- SAPPHIRE 2019. In case you have been visiting us in Orlando last week, I hope you kept your eyes open for the multitude of customer stories, roundtables, demos, and expert sessions around IBP and the broader Design to Operate Showcase.
Apart from preparing and running #SAPPHIRE2019, we moved on with the development of IBP and released another version – IBP 1905.
As part of this release, I would like to talk a bit more about two of our key IBP development topics.
- Operational Supply Planning.Please join IBP’s Chief Product Owners Thomas Klemm and Karsten Schierholt in this video where they are discussing the current status and next steps in this important area.
- Demand-driven material requirements planning (DDMRP): Its finally here!
Included in the 1905 release is a brand-new business function called SAP Integrated Business Planning for demand-driven replenishment. This solution supports the business process known as Demand-Driven Material Requirements Planning (DDMRP).
Demand-driven MRP is a methodology to model, plan and manage supply chains to protect and promote the flow of relevant information and materials. Demand-driven MRP is largely comprised of known and accepted methods (e.g. MRP, Lean, ToC, …). The key element of demand-driven MRP is harmonizing these methods together with several key innovations.
The primary objective of DDMRP is to enable relevant material and information FLOW, a concept based on core principles that allow customers to:
- Dampen the effect of demand & supply variation on the supply chain by decoupling. This is done by calculating inventory buffers and assigning and managing those buffers at strategic decoupling points.
- Drive replenishment at strategic decoupling points on actual demand.
- Achieving visibility and prioritization by exposing downstream inventory and demand status to upstream sources to facilitate demand-driven prioritization of supply.
You can find additional information about DDMRP through the following links:
- Blog by Stephan Kreipl, Chief Product Owner for DDMRP
- Website Demand Driven Institute
- Recommended book about DDMRP
- Video: Precisely Wrong
- Video: Introduction to DDMRP
The new IBP 1905 release also includes new features and enhancements in all areas:
- New forecasting algorithms Auto-ARIMAX and Auto-SARIMAXwhich are an enhanced version of existing ARIMA models with the capability to support additional explanatory variables like weather data. This helps to further improve the forecast accuracy.
- Capture business drivers such as risks or opportunitiesthat can influence your organization’s supply chain plan, evaluate your likely effects, and express those effects in key figure values. Tweaking business drivers in planning allows you to model potential outcomes and make more profitable decisions.
- Advanced Forecast Consumption: No longer is forecast consumption just within the bucket of sales order, extended the ability to do backwards \ forwards by duration and with boundary conditions to allow for more flexible modeling.
- Maximum Lateness of Demands: Planners can now use a new setting to determine the maximum lateness of a demand, this results in the ability to control how late a demand element is allowed to be fulfilled.
- Attribute permission: To restrict users from seeing all attributes of a master data type, customer can now create attribute permissions and assign them to the users.
- Simplified Key Figure Calculation: Complex key figure calculation for cumulative aggregation (a type of cross-period calculations) can now be configured in one step using the IBP_CAGGR function. Previously, building up cross-period calculations required multiple steps, and in some cases, an L script calculation as well.
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