SAP Best Practices for SAP Integrated Business Planning – 1908
In sync with the delivery of new versions of SAP Integrated Business Planning, we provide each quarter a new version of the SAP Best Practices for SAP Integrated Business Planning.
Besides the upgrade and test of the content and the technical assets based on the newest release, we enhance our scope with new topics and features. For 1908 we delivered 4 new scope items, a new tips and tricks document, enhancements to existing scope items as well as several changes on the unified planning area SAPIBP1. Here the highlights for this release:
NEW: SAP Integrated Business Planning for demand-driven replenishment
SAP Integrated Business Planning for demand-driven replenishment supports an approach known as Demand-Driven Material Requirements Planning or simply DDMRP which redefines the way we think and act in supply chain planning. By incorporating concepts like material flow, decoupling points, and inventory buffers, Demand Driven Replenishment supports a replenishment strategy based on actual demand and not on forecasts. SAP provides a complete end-to-end solution for companies that are interested in adopting the DDMRP approach or have already adopted it. The benefits are lead time compression, reduced inventory investment and improved customer service.
1908 comes with three new scope items covering the end-to-end demand-driven replenishment process.
- Strategic buffer positioning (40U)
During strategic buffer positioning, decoupling points are determined simultaneously across the end-to-end supply chain network. Decoupling points are quantities of inventory allowing planners to compress the lead time between the buffer and the customer, as well as to mitigate the demand signal distortion and supply continuity variability.
SAP IBP for demand-driven replenishment – FIORI app: DDMRP Buffer Analysis
- Buffer setup and adjustment (40V)
Buffers are levels of inventory that are sized and maintained in a way to ensure optimum stocking levels for inventory. Demand-driven replenishment uses a dynamic three-zone color-coded buffer for planning and execution. The levels are calculated using individual material properties and group settings (buffer profiles) for each material/location decoupling point.
SAP IBP for demand-driven replenishment – Planning view: Buffer adjustments
- Planning (40W)
After determining the buffer position and the buffer sizes, the planner must ensure that the daily planning and execution process runs smoothly and does not affect the material and signal flow.
The net flow position is calculated for relevant location-product combinations. The net flow position reflects on-hand inventory, open supply and qualified demand orders. Supply for a product is determined by its net flow position relative to its buffer and zone levels. A supply order is only generated when the net flow position drops into the yellow buffer zone. This reflects a prioritized replenishment proposal.
SAP IBP for demand-driven replenishment – Planning view: On-Hand status
NEW: SAP Integrated Business Planning for response and supply – supply and allocations planning – using optimizer (42C)
Order-based planning allows you to generate a finite production, distribution, and procurement plan to match your demand forecast.The rule-based optimizer algorithm creates a feasible supply plan based on given capacities, supply chain constraints, and cost rules like inventory costs, e.g. inventory holding costs, safety stock violation costs, transportation costs, procurement costs, production costs, and demand costs.
The supply plan is used to provide product allocations for available-to-promise (ATP) checks and confirmation of sales orders.
This scope item provides an alternative to the scope item IBP for response and supply – supply and allocations planning. Depending on your business requirements, you can either use this scope item with the optimizer or the other scope item with the heuristic.
SAP IBP for response and supply – supply and allocations planning – optimizer: Planning Run Profil
NEW: Process Management for Unified Planning Process
A new Tips and Tricks document titled Process Management for Unified Planning Process describes the process orchestration within and between processes carried out, for example in Sales and Operations (S&OP) by a Sales and Operations Coordinator, or in Demand Planning by a Demand Planner and so on.
NEW: Learning Video SAP Best Practices for SAP Integrated Business Planning: Unified Planning Process Flow
The unified planning process flow sets an example for an integrated, end-to-end planning process that crosses all SAP Integrated Business Planning applications. It’s based on a comprehensive sample planning area – called SAPIBP1 – that supports planning on different time and data levels. The SAP Best Practices for SAP IBP delivers preconfigured and validated content, like planning views in Excel, dashboards, alerts, and sample data, to allow you to run this integrated process out of the box. If you want to learn more about the Unified Planning Process Flow, please check out this video.
ENHANCED: IBP – time-series-based inbound integration with SAP S/4HANA (3OF)
1902 came with a new scope item covering the integration between SAP S/4HANA and IBP for time-series-based planning. This scope item has been enhanced in 1905 and 1908 with additional extractors in the SAP S/4HANA add-on for IBP and with additional templates in SAP Cloud Platform Integration for data services. Here you can see the list of available master data types and key figures:
- Location: Plant, DC
- Location Product
- Location Resource
- Production Source Header
- Production Source Item
- Location Source
- Customer Source
- Target UoM
- UoM Conversion Factor
- Capacity Supply
- NEW: Stock on Hand
- NEW: Minimum External Receipts
Enhancements/Changes unified planning area SAPIBP1
In this release we made a lot of changes and enhancements in the unified planning area SAPIBP1. Here the major changes done for 1908 are listed:
- All Key Figures with last period aggregation calculation have been simplified to use the IBP_LPA function. This results in simplification of the sample planning area by removing few Planning Levels, Helper Key Figures and calculations related to last period aggregation.
- As of release 1908, shelf life visibility L-code will no longer be available in the SAPIBP1 sample planning area. New customers from 1908 onwards can use the shelf life planning heuristic in sample planning area SAP4S instead.
- In the area of Supply Planning there have been certain deviations between SAP4 and SAPIBP1. To further align the two models, the changes listed in the detailed presentation (see below) have been made in SAPIBP1.
For more details regarding the unified planning area SAPIBP1 and the changes and enhancements for each release please check out this presentation.
The news for SAP Best Practices for SAP Integrated Business Planning 1908 are also captured in this video.
Check out this video to learn what SAP Best Practices for SAP Integrated Business Planning can do for you.
To view and download more information for free, please go to SAP Best Practices Explorer