SAP Integrated Business Planning
Take your supply chain to the cloud! Walk through the SAP Integrated Business Planning applications—S&OP, demand, response and supply, demand-driven MRP, and inventory. Then learn to monitor and control these processes. See how to set up and use your SAP IBP system, from planning areas to key figures. With coverage of intelligent visibility, SAP IBP for demand-driven replenishment, and more, you can be sure you’re getting the latest information on supply chain planning with SAP!
- Configure and use SAP IBP for S&OP, demand, response and supply, inventory, and analytics
- Incorporate demand-driven MRP into your supply chain planning
- Deploy SAP IBP and set it up in your landscape
You'll learn about:
- Getting Started:
Understand the scope of SAP IBP and plan your implementation! Learn how to navigate the system, load data, and use the basic planning model.
- Configuration:
Follow comprehensive steps for configuring SAP IBP, starting with the baseline functionality common to all planning applications. Then, delve into application-specific setup.
- Functionality:
Learn to balance demand and supply, perform demand forecasting, use order simulation, optimize inventory levels, manage buffer levels, monitor KPIs, and more!
Key Highlights:
- Planning model
- Planning areas
- Sales and operations planning (S&OP)
- Demand planning and forecasting
- Supply planning
- Response planning
- Inventory planning
- Demand-driven replenishment
- SAP Supply Chain Control Tower
- Implementation methodology
- Case studies
View Full Table of Contents
- Foreword from Martin Barkman
- Foreword from Tim Gaus
- Preface
- Target Audience
- How to Read This Book
- How This Book Is Organized
- Conclusion
- Acknowledgments
- 1 Introduction
- 1.1 Supply Chain Complexity in the Digital World
- 1.1.1 Customer Centricity
- 1.1.2 Individualized Products
- 1.1.3 The Sharing Economy
- 1.1.4 Sustainability
- 1.1.5 Supply Chain Resiliency
- 1.2 The Evolution of Supply Chain Planning at SAP
- 1.3 SAP Integrated Business Planning at a Glance
- 1.3.1 SAP Integrated Business Planning for Sales and Operations
- 1.3.2 SAP Integrated Business Planning for Inventory
- 1.3.3 SAP Supply Chain Control Tower
- 1.3.4 SAP Integrated Business Planning for Demand
- 1.3.5 SAP Integrated Business Planning for Response and Supply
- 1.3.6 SAP Integrated Business Planning for Demand-Driven Replenishment
- 1.4 SAP Integrated Business Planning and the Intelligent Digital Supply Chain
- 1.4.1 Design-to-Operate
- 1.4.2 Collaborative Enterprise Planning
- 1.4.3 Synchronized Planning
- 1.4.4 Intelligent Visibility
- 1.5 SAP Integrated Business Planning Architecture
- 1.6 Summary
- 2 Navigation
- 2.1 SAP Fiori
- 2.1.1 My Home
- 2.1.2 Administrator Apps
- 2.1.3 Configuration Apps
- 2.1.4 Planner Apps
- 2.1.5 Identity and Access Management Apps
- 2.2 SAP Integrated Business Planning Excel Planning View
- 2.2.1 Excel Add-In
- 2.2.2 Planning View Options
- 2.2.3 Data Input Options
- 2.2.4 Alerts
- 2.2.5 Master Data Options
- 2.2.6 Scenario and Version Options
- 2.2.7 Advanced Planning Options
- 2.2.8 Integration with Planning Collaboration
- 2.3 Summary
- 3 Planning Data
- 3.1 Master Data in a Supply Chain Network
- 3.1.1 Time Series-Based Planning
- 3.1.2 Order Series-Based Planning
- 3.2 Transactional Data in a Supply Chain Network
- 3.3 Standard Data Models in SAP Integrated Business Planning
- 3.4 Data Integration
- 3.4.1 Manual Data Integration
- 3.4.2 SAP Cloud Integration for Data Services
- 3.4.3 SAP HANA Smart Data Integration
- 3.4.4 OData Integration
- 3.5 Data Visualization in SAP Integrated Business Planning
- 3.5.1 Excel Planning Views
- 3.5.2 SAP Fiori Views
- 3.5.3 Web-Based Planning Views
- 3.6 Summary
- 4 Building Blocks of a Planning Model
- 4.1 Attributes
- 4.2 Master Data Types
- 4.3 Time Profiles
- 4.4 Planning Areas
- 4.5 Planning Levels
- 4.6 Key Figures
- 4.7 Key Figure Calculation Logic
- 4.8 Planning Operator Profiles
- 4.9 Versions
- 4.10 Scenarios
- 4.11 Reason Codes
- 4.12 Global Configuration Parameters
- 4.13 Snapshot Configuration Parameters
- 4.14 Summary
- 5 Configuring an SAP IBP System
- 5.1 Managing Planning Attributes
- 5.2 Assigning Attributes to a Master Data Type
- 5.3 Creating Time Profiles
- 5.4 Defining Planning Areas
- 5.5 Managing the Planning Level
- 5.6 Using Key Figures
- 5.7 Adding Calculation Logic to Key Figures
- 5.8 Attributes as Key Figures
- 5.9 Creating Reason Codes
- 5.10 Version Configuration
- 5.11 Creating Scenarios
- 5.12 Managing Global Configuration Settings
- 5.13 Copying a Standard SAP-Delivered Planning Area
- 5.14 Activating the Planning Model
- 5.15 Deleting Active Objects
- 5.16 Summary
- 6 Sales and Operations Planning with SAP IBP
- 6.1 Objective of Sales and Operations Planning
- 6.1.1 Sales and Operations Plan
- 6.1.2 Benefits of Sales and Operations Planning
- 6.2 Technical, Design, and Philosophical Requirements Supporting Sales and Operations Planning
- 6.2.1 Scalable and Flexible Data Model
- 6.2.2 Scenario Planning
- 6.2.3 Collaboration
- 6.3 Managing Sales and Operations Planning Processes with SAP Integrated Business Planning
- 6.3.1 Product/Portfolio Planning
- 6.3.2 Consensus Demand Planning
- 6.3.3 Supply Planning
- 6.3.4 Reconciliation and Preparation
- 6.3.5 Executive Review
- 6.4 Planning and External Procurement Collaboration
- 6.5 What’s Ahead for Sales and Operations Planning?
- 6.6 Summary
- 7 Implementing SAP IBP for Sales and Operations
- 7.1 Managing Master Data for Sales and Operations Planning
- 7.2 Building and Activating Sales and Operations Planning Models
- 7.2.1 Time Profiles and Planning Levels
- 7.2.2 Key Figures
- 7.2.3 Planning Area Activation and Related Settings
- 7.3 Demand and Supply Planning for Sales and Operations Planning
- 7.3.1 Demand Review Process Configuration
- 7.3.2 Supply Review Process Configuration
- 7.4 Planning Views and Alerts through Sales and Operations Planning
- 7.5 Collaboration
- 7.6 Obstacles to Sales and Operations Planning Success and Achievement
- 7.7 Summary
- 8 Demand Planning and Forecasting with SAP IBP
- 8.1 Demand Planning
- 8.1.1 Statistical Forecasting
- 8.1.2 Pre- and Postforecast Processing
- 8.1.3 Segmentation
- 8.2 Product Lifecycle Forecasting
- 8.3 Integrating Promotion Data in Forecasting
- 8.4 Realignment
- 8.5 Forecast Error Calculations in Demand Planning
- 8.6 Forecast Automation
- 8.7 Demand Sensing
- 8.8 What’s Ahead for Demand Planning?
- 8.9 Summary
- 9 Implementing SAP IBP for Demand
- 9.1 Planning Model Configuration
- 9.1.1 Master Data Types
- 9.1.2 Period Types
- 9.1.3 Planning Levels
- 9.1.4 Key Figures
- 9.1.5 Planning Areas, Models, and Planning Operators
- 9.2 Forecast Model Management
- 9.2.1 General Settings
- 9.2.2 Preprocessing Settings
- 9.2.3 Forecasting Settings
- 9.2.4 Postprocessing Settings
- 9.3 Promotion Planning
- 9.4 Demand Planning Run in SAP Integrated Business Planning
- 9.5 Demand Planning for a New Product
- 9.6 Summary
- 10 Response and Supply Planning with SAP IBP
- 10.1 Response and Supply Planning Overview
- 10.2 Supply Planning Methodology
- 10.2.1 Demand Prioritization
- 10.2.2 Supply, Allocation, and Response Planning
- 10.2.3 Deployment Planning
- 10.2.4 Synchronized Planning
- 10.3 Forecast Consumption
- 10.4 Gating Factor Analysis
- 10.5 Order Review and Analysis
- 10.5.1 SAP Integrated Business Planning Excel Planning Views
- 10.5.2 SAP Integrated Business Planning: SAP Fiori Views
- 10.6 Order Simulation and Scenario Planning
- 10.6.1 Simulation of Sales Order
- 10.6.2 Scenario Creation, Analysis, and Constraint Management
- 10.7 What’s Ahead for Response and Supply Planning?
- 10.8 Summary
- 11 Implementing SAP IBP for Response and Supply
- 11.1 Data Integration
- 11.2 Planning Area Overview
- 11.3 Basic Configuration
- 11.3.1 Planning Levels
- 11.3.2 Settings for Order-Based Planning
- 11.3.3 Forecast Consumption Profile
- 11.3.4 Product Allocation Profile
- 11.3.5 Fair-Share Set Profiles
- 11.3.6 Planning Run Profiles
- 11.4 Demand Prioritization Rule
- 11.4.1 Segment Definition and Segment Condition
- 11.4.2 Sorting Condition of a Segment
- 11.4.3 View Demand by Priority
- 11.5 Response and Supply Management Planning Run
- 11.5.1 Configure and Schedule Application Job
- 11.5.2 Constrained Forecast Run for Product Allocation and Supply Plan
- 11.5.3 Confirmation Planning Run
- 11.5.4 Gating Factor Analysis Run
- 11.6 Order Simulation and Scenario Planning
- 11.7 Planning Review for Response and Supply
- 11.8 Gating Factor Analysis
- 11.9 Deployment Planning
- 11.9.1 Order Series-Based Planning Deployment Run
- 11.9.2 Key Figures in Deployment Planning
- 11.9.3 Available-to-Deploy Profiles
- 11.10 Synchronized Planning
- 11.11 Summary
- 12 Inventory Management with SAP IBP
- 12.1 Why Hold Inventory?
- 12.2 Inventory Types and Usage
- 12.2.1 Inventory Types Based on the Product Property
- 12.2.2 Inventory Types Based on Inventory Planning and Optimization
- 12.3 Inventory Planning and Related Analytics
- 12.3.1 Supply Chain Network and Inventory Optimization
- 12.3.2 Basic Concepts and Analytics for Inventory Optimization
- 12.4 Inventory Optimization Calculations
- 12.5 SAP IBP for Inventory
- 12.5.1 Network Visualization and Inventory Calculation
- 12.5.2 Sales, Inventory, and Operations Planning and Analytics Applications
- 12.5.3 Planning Views for SAP Integrated Business Planning for Inventory
- 12.6 What’s Ahead for Inventory?
- 12.7 Summary
- 13 Implementing SAP IBP for Inventory
- 13.1 Building Network Visualizations
- 13.1.1 Supply Chain Nodes
- 13.1.2 Supply Chain Network App
- 13.1.3 Master Data Elements for Supply Chain Network App
- 13.2 Modeling Inventory Optimization
- 13.3 Manage Forecast Error Calculations App
- 13.4 Inventory Profiles App
- 13.5 Inventory Analysis App
- 13.6 Input/Output Data Objects and Key Figures
- 13.6.1 Input Data for Inventory Optimization
- 13.6.2 Output of the Inventory Optimization Engine
- 13.7 Planning Operators for Inventory Calculation
- 13.8 Performing and Reviewing Inventory Optimization
- 13.8.1 Executing Planning Runs
- 13.8.2 Review Inventory Optimization
- 13.9 Summary
- 14 SAP Supply Chain Control Tower
- 14.1 Supply Chain Analytics and Dashboards
- 14.2 SAP Supply Chain Control Tower Alerts
- 14.3 The Networked Supply Chain
- 14.4 Root-Cause Analysis and Resolution
- 14.5 Analytics and Key Performance Indicators
- 14.5.1 Key Performance Indicators for Order Fulfillment and Service Quality
- 14.5.2 Key Performance Indicators for Demand Forecasting
- 14.5.3 Key Performance Indicators for Supply, Response, and Transportation
- 14.5.4 Key Performance Indicators for Inventory
- 14.6 Business Network Collaboration
- 14.7 Intelligent Visibility
- 14.8 What’s Ahead for Analytics?
- 14.9 Summary
- 15 Implementing SAP Supply Chain Control Tower with SAP IBP
- 15.1 Analytics Application
- 15.2 Process Modeling
- 15.3 Dashboard Creation
- 15.4 Key Performance Indicators
- 15.5 Case and Task Management
- 15.6 Collaboration
- 15.7 Custom Alerts
- 15.7.1 Creating Custom Alert Definitions
- 15.7.2 Subscribing to Custom Alerts
- 15.7.3 Custom Alert Overview
- 15.7.4 Monitoring Custom Alerts
- 15.8 Business Network Collaboration
- 15.8.1 Creating a Communication System
- 15.8.2 Creating a Communication Arrangement
- 15.8.3 Setting Up Data Sharing Plan
- 15.8.4 Setting Up SAP Ariba Supply Chain Collaboration for Buyers
- 15.9 Intelligent Visibility
- 15.10 Summary
- 16 Demand-Driven MRP with SAP IBP
- 16.1 What Is Demand-Driven Material Requirements Planning?
- 16.1.1 History of Material Requirements Planning
- 16.1.2 Understanding Flow and Relevant Information
- 16.2 Position, Protect, and Pull
- 16.2.1 Strategic Positioning
- 16.2.2 Buffer Management
- 16.2.3 Planning in a Demand-Driven Environment
- 16.2.4 Execution in a Demand-Driven Environment
- 16.3 Demand-Driven Sales and Operations Planning
- 16.4 The Demand-Driven Adaptive Enterprise
- 16.5 Organizational Readiness
- 16.6 Summary
- 17 Implementing SAP IBP for Demand-Driven Replenishment
- 17.1 Master Data and Planning Area Configuration
- 17.2 Average Daily Usage Calculation
- 17.3 Strategic Inventory Positioning and Buffer Sizing
- 17.4 Managing Buffers
- 17.5 Demand-Driven Order Recommendations
- 17.6 Integration with SAP ERP
- 17.7 Visibility and Collaboration
- 17.8 Summary
- 18 Unified Planning and User Roles
- 18.1 Unified and Integrated Planning Areas
- 18.1.1 Unified Planning Area: SAPIBP1
- 18.1.2 Integrated Planning Area for Response and Supply: SAP7
- 18.2 Application Jobs
- 18.2.1 Application Job Templates
- 18.2.2 Application Jobs
- 18.2.3 Application Logs
- 18.3 User and Business Roles
- 18.3.1 Maintaining Employees and Business Users
- 18.3.2 Maintaining Business Roles
- 18.3.3 Role Assignment
- 18.4 User Group Creation
- 18.5 Summary
- 19 Implementation Methodology
- 19.1 SAP Integrated Business Planning Project Implementation
- 19.2 Project Implementation Methodology
- 19.2.1 Waterfall and the ASAP Methodology
- 19.2.2 Agile Methodology
- 19.2.3 SAP Activate Approach
- 19.3 Sprint Delivery and Team Framework
- 19.4 SAP Best Practices for SAP Integrated Business Planning
- 19.5 SAP Integrated Business Planning, Edge Edition
- 19.6 Implementation Recommendations
- 19.7 Summary
- 20 Customer Case Studies
- 20.1 Automotive
- 20.1.1 Situation and Objective
- 20.1.2 Solution and Benefits
- 20.2 Building Materials
- 20.2.1 Situation and Objective
- 20.2.2 Solution and Benefits
- 20.3 Chemicals
- 20.3.1 Chemicals for Water-Intensive Sectors
- 20.3.2 Crop Chemicals
- 20.4 Consumer Products
- 20.4.1 Beverage Company
- 20.4.2 Distilleries
- 20.4.3 Meat Production
- 20.4.4 Agricultural Supplies
- 20.4.5 Home Appliances
- 20.4.6 Spirit Maker
- 20.4.7 Seafood
- 20.4.8 Potato Products
- 20.4.9 Semi-Processed Cheese
- 20.5 Healthcare
- 20.5.1 Situation and Objective
- 20.5.2 Solution and Benefits
- 20.6 High Tech
- 20.6.1 Computers and Accessories
- 20.6.2 Imaging Machine Components
- 20.7 Industrial Machinery and Components
- 20.7.1 Situation and Objective
- 20.7.2 Solution and Benefits
- 20.8 Mill Products
- 20.8.1 Situation and Objective
- 20.8.2 Solution and Benefits
- 20.9 Retail
- 20.9.1 Situation and Objective
- 20.9.2 Solution and Benefits
- 20.10 Utilities
- 20.10.1 Situation and Objective
- 20.10.2 Solution and Benefits
- 20.11 Summary
- A Supply Chain Management Acronyms
- B The Authors
- Index
