SAP Best Practices for SAP Integrated Business Planning
for Supply Chain
V29.2211
Agenda
Scope overview
Scope in detail
Appendix
▪ System landscape
▪ Scope item flow
▪ Sample data overview
▪ New scope and changes in past versions
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
2
New scope and changes in V29.2211
▪
Technical upgrade to product version 2211 of the SAP Integrated Business
Planning for Supply Chain solution
▪
The SAPIBP1 sample planning area has been enhanced as follows:
▪
▪
▪
New key figures for time-series-based supply planning integration with PP/DS
(CONFIRMEDCAPASUPPLY, CONFIRMEDCAPAUSAGE,
CONFIRMEDUTILIZATIONPCT, NETNEWPLANNEDPRODREC)
▪
New key figures for minimum and maximum safety stock as time-varying quantity
input (IOMAXSAFETYSTOCK, IOMINSAFETYSTOCK,
▪
Planning calender as key figures (INBOUNDCALENDAR,
PRODUCTIONCALENDAR, TRANSPORTCALENDAR)
▪
Add UoM / curreny conversion calculation for quantity- and value-related key
figures
The new IBP for response and supply – transportation load building scope
item describes how to group planned distribution receipts for products with the
same transportation lane, transportation group, and delivery date using the
transportation load building run. In a next step, distribution planners can
review the loads in the Planner Workspace
Transportation Load Building: Planner Workspace
In the SAP Discovery Center you can now find the following new mission:
Forecasting in SAP Integrated Business Planning with an external algorithm
based on Prophet. This mission offers a step-by-step guidance of how to
extend the SAP IPB forecasting capabilities by using a custom forecasting
algorithm. In the mission, you implement a custom forecasting algorithm built
in SAP Data Intelligence (SAP DI) based on Prophet. Prophet is a
forecasting procedure implemented in Python.
Forecasting with external algorithm: SAP Data Intelligence Modeler
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
3
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Jump start SAP IBP with SAP Best Practices
Leverage SAP Best Practices for SAP Integrated Business Planning for
Supply Chain to get an entry scope of the planning processes of sales and
operations planning, response and supply planning, demand planning,
demand sensing, inventory optimization, and demand-driven replenishment.
Solution highlights
▪ Detailed configuration documentation for setting
up predefined SAP Best Practices processes
▪ Predefined planning views in Microsoft Excel
▪ Predefined charts and dashboards to analyze
trends and exceptions
▪ Predefined process management to track
progress and integration into social collaboration
▪ Based on an integrated planning area that
allows you to operate an end-to-end process
across all SAP IBP applications
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Key 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 using the SAP
Integrated Business Planning, add-in for
Microsoft Excel for interactive planning and
by integrating with SAP Work Zone for
collaboration
4
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
What it can do for you
Sample
planning area
Use case
Study
Training
Demonstration
Technical content
Test scripts,
configuration guides
Sample data,
planning views
Implementation
service
Educate yourself and leverage
reference material.
Train project members, key users,
and end-users.
Sell it to your clients and demonstrate the
capabilities of SAP Integrated Business
Planning in a process-oriented way.
Proof of concept
or pilot project
Evaluate SAP Integrated Business
Planning and build a solution that
fits your client’s requirements.
Implementation
project
Roll out SAP Integrated Business
Planning in your client’s organization
and put it into productive use.
Use as delivered
Documentation
Use as a starting point,
adjust to your needs
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
No use
5
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
What it can do for you
Use case
Sample
planning area
Study
Proof of concept
or pilot project
Implementation
project
Technical content
Sample Data,
Planning View Templates
Implementation
service
Educate yourself and use
reference material.
Review the configuration of
SAPIBP1.
Examine scope item
simulations, test scripts, and
configuration guides.
Review the layout of the
planning views and the data
structure of the CSV files.
Not required.
Train project members, key
users, and end-users.
Use the pre-installed
planning area in the Starter
edition and test systems.
Execute the test scripts and
explore the configuration of
the planning area.
Use the delivered sample
data and planning views.
Not required.
Training
Demonstration
Documentation
Test Scripts,
Configuration Guides
Sell it to your clients and
demonstrate IBP capabilities
in a process-oriented way.
Use the pre-installed
planning area in the Starter
Edition and test systems.
Use test scripts to create
your (shortened) demo script.
Evaluate IBP and build a
solution that fits your client‘s
requirements.
Activate a new copy of
SAPIBP1 or use the preinstalled planning area in the
Starter Edition and test
systems.
As a starting point, leverage
test scripts for process
design and configuration
guides for custom
configuration.
For quick demos, use the
delivered sample data and
planning views. Adjust
sample data and planning
views as needed for a
tailored demo.
Use sample data CSV files
as templates to provide
custom data. Adjust the
planning view templates to
the client’s requirements.
Activate a new copy of
SAPIBP1.
As a starting point, leverage
test scripts for process
design and configuration
guides for custom
configuration.
Use sample data CSV files
as templates to provide
custom data. Adjust the
planning view templates to
the client’s requirements.
Roll out IBP in your client‘s
organization and put it into
productive use.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Not required.
Could be leveraged to
configure proof-of-concept
system.
Choose the predefined
implementation service for a
reliable implementation of
SAP IBP.
6
Scope overview
Unified planning in SAP Integrated Business Planning for Supply Chain
▪
▪
▪
▪
▪
Sample integrated planning process across SAP IBP
applications facilitated by SAP Best Practices
Comprehensive sample planning areas that support
planning on different time and data granularity
Preconfigured and validated application content for
running the integrated process including planning views
in Microsoft Excel, dashboards, alerts, sample data, and
more
Extensive documentation on solution configuration and
process execution allows you to run tests, build demos,
support education, and accelerate implementations
Extendable to cover specific customer needs
Sales &
Operations
Planning
Supply
Planning
Product
Family
Monthly
Susan Price
Demand
Planning
Weekly
Customer
Region
Location
Product
Inventory
Planning
Daily
Demand
Sensing
Response
Planning
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Control
Tower
Supply Chain
Planner
Customer
Resource
Sales
Orders
Time
Data
8
Unified planning process flow
Tactical
Frequency: Monthly
Horizon: 1-3 years
Buckets: Months, Weeks
Financial
Planning
Annual
Operating Plan
Marketing
Planning
Marketing
Plan
Demand
Review
Consensus
Demand Plan
Mid-Term
Operational
Supply Review –
Heuristic, Optimizer
Constrained
Demand Plan
Reconciliation
Review
Constrained
Demand Plan
Management
Business Review
Final Consensus
Demand Plan
Inventory
Optimization
Inventory
Plans
Frequency: Weekly
Horizon: 1-12 months
Buckets: Weeks, Days
Sales
Planning
Sales
Forecast
Demand
Planning
Global
Demand Plan
Supply and
Allocations Planning
(Heuristic, Optimizer)
Supply Proposals.
Product Allocations
Short-Term
Operational
Frequency: Daily
Horizon: 1-12 weeks
Buckets: Days
Execution
Response
Planning
Supply Proposals,
Sales Order Confirmations
Demand
Sensing
Sensed
Demand
Sales Order
Processing
Open,Confirmed,Delivered
Sales Orders
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Procurement
Purchase
Orders
SAP IBP Process
Available-to-Promise
Processing
Sales Order
Confirmations
External Process
Deployment
Planning
Distribution Plan
Stock
Transfer
(Deployment/Load) Stock
Transfer Requisitions
Transportation Load
Building
Transportation
Load Requisitions
Production
Production
Orders
9
Unified planning process flow: Internal and external processes
Tactical
Frequency: Monthly
Horizon: 1-3 years
Buckets: Months, Weeks
Financial
Planning
Annual
Operating Plan
Marketing
Planning
Marketing
Plan
Demand
Review
Consensus
Demand Plan
Mid-Term
Operational
Supply Review –
Heuristic, Optimizer
Constrained
Demand Plan
Reconciliation
Review
Constrained
Demand Plan
Management
Business Review
Final Consensus
Demand Plan
Inventory
Optimization
Inventory
Plans
Frequency: Weekly
Horizon: 1-12 months
Buckets: Weeks, Days
Sales
Planning
Sales
Forecast
Demand
Planning
Global
Demand Plan
Supply and
Allocations Planning
(optional using Optimizer)
Supply Proposals.
Product Allocations
Short-Term
Operational
Frequency: Daily
Horizon: 1-12 weeks
Buckets: Days
Execution
Response
Planning
Supply Proposals,
Sales Order Confirmations
Demand
Sensing
Sensed
Demand
Sales Order
Processing
Open,Confirmed,Delivered
Sales Orders
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Procurement
Purchase
Orders
SAP IBP Process
Available-to-Promise
Processing
Sales Order
Confirmations
External Process
Deployment
Planning
Distribution Plan
Stock
Transfer
(Deployment) Stock
Transfer Requisitions
Transportation Load
Building
Transportation
Load Requisitions
Production
Production
Orders
10
Detailed process flows available in SAP Best Practices Explorer
You can find the process flows and test scripts here: http://rapid.sap.com/bp/rds_ibp
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
11
Time-series-based planning and order-based planning
Process
Sample
Planning
Area
Planning
Operator
S&OP and
Demand Planning
Inventory
Control
Demand-Driven
Supply and Allocations
Response
Deployment
Transportation
Supply Planning
/ Sensing
Planning
Tower
Replenishment
Planning
Planning
Planning
Load Building
SAP4(C/S)
SAP6
SAP3
SAP5
SAP8
SAPIBP1
Supply Planning
Optimizer
+ Heuristic
Statistical
Forecasting
SAP7F
Inventory
Optimization
-
Calculate DDMRP Buffer
Levels
Recommend Decoupling
Points
Time Series
Data Model
Integration
Tools
SAP7
Customizable internal master data types
Restricted by planning operators
SAP Cloud Integration for data services (CI-DS)
Best
Practices
Scope Items
Supply Planning Run
Deployment Run Heuristic +
Optimizer
SAP7
SAP7F
•
Orders
•
Orders
•
Internal + external master data types
•
Flexible master data model
SAP7
SAP7F
•
SAP Smart Data Integration (SDI)
•
Real-Time Integration (RTI)
•
SAP Cloud Integration for data
services for time-series data
•
SAP Cloud Integration for data
services for time-series data
SAP7 (up to 2111)
• IBP – time-series-based inbound integration with SAP S/4HANA (3OF)
• IBP – Integration of planned independent requirements to SAP S/4HANA (4NO)
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Transportation Load Building
Run
SAP7F (as of 2202)
•
IBP – order-based planning inbound
integration with SAP S/4HANA (2S4)
•
IBP – order-based planning inbound
integration with SAP S/4HANA (2S4)
•
IBP – order-based planning outbound
integration with SAP S/4HANA (2S6)
•
IBP – order-based planning outbound
integration with SAP S/4HANA (2S6)
•
IBP – order-based planning inbound
integration for deployment planning (4VA)
•
IBP – order-based planning inbound
integration for deployment planning (4VA)
•
IBP – order-based planning outbound
integration for deployment planning (5JD)
•
IBP – order-based planning outbound
integration for deployment planning (5JD)
12
Unified Planning
Sample planning areas used in SAP Best Practices for SAP Integrated Business Planning
Planning Area
Processes Running in
this Planning Area
SAPIBP1
(Unified planning area)
Time-series-based
planning processes
Application Content
Available
Yes
Dashboards, charts,
alerts, web-based
planning views, procedure
playbook, Planner
Workspace* available as
part of SAPIBP1
SAP7F
(response and supply)
Order-based planning
processes
Yes
Dashboards, charts,
alerts, procedure
playbook, Planner
Workspace* available as
part of SAP7F
SAP8
(demand-driven
replenishment)
Demand-driven
replenishment process
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Yes
Integration / Data
Sample Data
Available
1) Sample data loaded using Data Integration app
(see configuration guide 6M9 – Configuration
Guide for Implementing Time-Series-Based
Planning)
2) Integration to SAP S/4HANA using SAP Cloud
Integration for data services (CI-DS) (see test
script 3OF - IBP – time-series-based inbound
integration with SAP S/4HANA)
Yes
1) Integration to SAP S/4HANA using real-time
integration and the Data Integration app (see test
script 2S4 - IBP – order-based planning inbound
integration with SAP S/4HANA and 4VA - IBP order-based planning inbound integration for
deployment planning )
Yes
1) Sample data loaded using Data Integration app
(see configuration guide 46V – Demand-Driven
Replenishment Data Integration)
Yes
*only available in normalized systems
13
Copying SAPIBP1 – additional option (since 2108)
Create New by Partial Copy
•
Alternative to existing „Create New with Dependencies“
copy option
•
Copies only the essential master data types, attributes,
and planning level attributes needed for SAPIBP1-related
processes in demand planning, demand sensing, inventory
optimization, and supply / sales and operations
•
Copied target planning area is slim and efficient
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
14
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Explanatory chart
Preconfigured Content in Non-Productive Systems
Customer Test
Systems
Cloud Test & Demo
for Partners
IBP Starter Edition
for Customers
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Available at
http://rapid.sap.com/
bp/rds_ibp
*For SAP8
Planning
Views
Analytics
Content*
Process
Management
SAPIBP1, SAP7F, SAP8 Sample Planning Areas
Attributes
Master
Data Types
Sample Data
Planning
Operators
Planning
Levels
Key
Figures
Versions
IBP for sales and
IBP for response
© 2022 operations
SAP SE or an SAP affiliate company. All rights reserved.and supply
Segmentation
Profile
Alerts
Task Tutorials
Charts and Dashboards
Delivered
in SAP
Tables
Web-Based
Planning Views
Forecast
Error Profile
IBP for
demand
Process Flow
Diagrams
SAPIBP1, SAP7F
SAPIBP1
Forecast
Model
Time
Profile
Test Scripts,
Configuration Guides
Procedure
Playbook
IBP for
inventory
IBP for demand-driven
replenishment
Planner Workspace*
*only available in normalized planning areas
Supply Chain
Control Tower
15
New merged configuration guides (as of 2208)
As of 2208, new merged configuration guides as a central part of the SAP Best
Practices for SAP IBP content replace the existing configuration guides.
Benefits:
•
Fewer documents (3 instead of 21)
•
Merged, streamlined and simplified configuration guides for each area
•
Well-structured guides covering all steps required to configure planning areas, data
integration, analytics, and Microsoft Excel planning views as well as steps to
process specific configurations
The new configuration guides are:
•
6M9 - Configuration Guide for Implementing Time-Series-Based Planning
•
6MA - Configuration Guide for Implementing Order-Based Planning
•
6MB - Configuration Guide for Implementing Demand-Driven Replenishment
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
16
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Scope item overview – V29.2211
Integrated Business Planning for sales and operations
❖ IBP for sales and operations – demand review
❖ IBP for sales and operations – supply review – heuristic
❖ IBP for sales and operations – reconciliation review
❖ IBP for sales and operations – management business review
❖ IBP for sales and operations – forecast error calculation and analysis
❖ IBP for sales and operations – time-series-based forecast consumption
❖ IBP for sales and operations – footprint analysis
Integrated Business Planning for demand
❖ IBP for demand – demand planning
❖ IBP for demand – demand sensing
❖ IBP for demand – forecast error calculation and analysis
❖ IBP for demand – time-series analysis
❖ IBP for demand – new product introduction
Integrated Business Planning for demand-driven replenishment
❖ IBP for demand-driven replenishment – strategic buffer positioning
❖ IBP for demand-driven replenishment – buffer setup and adjustment
❖ IBP for demand-driven replenishment – planning
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Integrated Business Planning for response and supply
❖ IBP for response and supply – supply review – optimizer
❖ IBP for response and supply – supply and allocations planning – heuristic
❖ IBP for response and supply – supply and allocations planning – optimizer
❖ IBP for response and supply – response planning
❖ IBP for response and supply – deployment planning - optimizer
❖ IBP – order-based planning inbound integration with SAP S/4HANA
❖ IBP – order-based planning outbound integration with SAP S/4HANA
❖ IBP – order-based planning inbound integration for deployment planning
❖ IBP – order-based planning outbound integration for deployment planning
❖ IBP for response and supply – transportation load building
Integrated Business Planning for inventory
❖ IBP for inventory
❖ IBP for inventory – scenario planning
Cross-application scope items
❖ IBP – ABC-XYZ Segmentation
❖ IBP – time-series-based inbound integration with SAP S/4HANA
❖ IBP – Integration of planned independent requirements to SAP S/4HANA
17
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Scope item status (1/3) - V29.2211
IBP Application
Integrated Business
Planning for sales and
operations
Integrated Business
Planning for demand
Scope Item
SID
Status
Short Description and What’s New
IBP for sales and operations – demand review
2BQ
Technical
upgrade
Collect demand input from various sources like sales, marketing, and finance, and generate a single consensus
demand plan for measuring the current volume and financial target achievement.
IBP for sales and operations – supply review – heuristic
2BS
Technical
upgrade
IBP for sales and operations – reconciliation review
2BU
Technical
upgrade
Generate an infinite supply plan with no shortages for your consensus demand, and identify supply and capacity
bottlenecks. Carry out manual capacity leveling to solve potential supply issues and to create a feasible
constrained demand plan.
Evaluate constrained demand scenarios and prepare an executive proposal for demand, supply and finance
alignment.
IBP for sales and operations – management business
review
2BW
Technical
upgrade
Decide on demand, supply and finance alignment, and approve final consensus demand plan.
IBP for sales and operations – forecast error calculation
and analysis
2C4
Technical
upgrade
Analyze the accuracy of your past consensus demand forecasts by calculating error measures based on actual
sales data.
IBP for sales and operations – time-series-based forecast 3RT
consumption
Technical
upgrade
Ensure that sales orders - even if they are not in the current period - reduce or consume the forecast by the
sales order quantity.
IBP for sales and operations – footprint analysis
5LG
Techncial
upgrade
Gain insight into the greenhouse gas emissions of your plants based on the results of the supply planning run.
IBP for demand – demand planning
11V
Technical
upgrade
Gain full demand transparency for mid- and long-term forecasts by leveraging statistical forecasting methods.
IBP for demand – demand sensing
11X
Technical
upgrade
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.
IBP for demand – forecast error calculation and analysis 2BM
Technical
upgrade
Analyze the accuracy of your past demand forecasts by calculating error measures based on actual sales data.
IBP for demand – time-series analysis
34Y
Technical
upgrade
Detect and record patterns in time series which help the customer select the ideal forecasting algorithms.
Including sample data adjustment to have different types of demand.
IBP for demand – new product introduction
5OZ
Technical
upgrade
Provide a reliable forecast for new products without sales history
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
18
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Scope item status (2/3) - V29.2211
IBP Application
Integrated Business
Planning for response and
supply
Scope Item
IBP for response and supply – supply and allocations
planning – heuristic
SID
Short Description and What’s New
Technical upgrade
Create an operational supply plan and product allocations based on prioritized forecast demand and
supply chain constraints.
IBP for response and supply – supply and allocations
42C
planning – optimizer
IBP for response and supply – supply review – optimizer 18N
Technical upgrade
IBP for response and supply – response planning
2P0
Technical upgrade
Create an operational supply plan and product allocations based on given demands, supply chain
constraints, and cost rules.
Generate a feasible cost-optimized supply plan for your consensus demand based on finite
capacities, lead times, lot sizes, and other supply chain constraints.
Create order confirmations and adopt the supply plan based on prioritized demand, allocations, and
supply chain constraints.
IBP for response and supply – deployment planning –
optimizer
4UT
Technical upgrade
Create an optimum reliable short-term distribution plan to satisfy demands with the existing supply
elements based on predefined costs for supply alternatives and demands.
IBP – order-based planning inbound integration with
SAP S/4HANA
2S4
Technical upgrade
Order-based planning requires dynamic data integration between the execution system and the
SAP IBP system to allow a quick response to demand changes triggered by sales orders.
IBP – order-based planning outbound integration with
SAP S/4HANA
2S6
Technical upgrade
IBP – order-based planning inbound integration for
deployment planning
4VA
Technical upgrade
To enable execution processes (for example, in production planning) to leverage the output of orderbased planning, dynamic data integration between the SAP IBP system and the execution system is
needed to exchange order information on a detailed level.
Order-based planning requires dynamic data integration between the execution system and the
SAP IBP system to allow a quick response to demand changes triggered by sales orders. This scope
item covers the integration required for IBP for response and supply – deployment planning –
optimizer.
IBP – order-based planning outbound integration for
deployment planning
5JD
Technical upgrade
IBP for response and supply – transportation load
building
6NV
NEW
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
2I0
Status
Technical upgrade
To benefit from the output of deployment planning, dynamic data integration between the
SAP IBP system and the execution system is needed to exchange the distribution plan on a detailed
level.
Group planned distribution receipts for products with the same transportation lane, transportation group
and delivery date into loads to reduce transportation costs and optimally utilize given equipment types.
19
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Scope item status (3/3) - V29.2211
IBP Application
Integrated Business
Planning for inventory
Cross-application
Integrated Business
Planning for demand-driven
replenishment
Scope Item
SID
Status
Short Description and What’s New
IBP for inventory
11Z
Technical upgrade
Optimize multi-stage inventory targets to most efficiently meet or exceed customer service levels, fully
considering uncertainties like forecast errors and supply uncertainty.
IBP for inventory – scenario planning
4YI
Technical upgrade
IBP – ABC-XYZ Segmentation
1S6
Technical upgrade
IBP – time-series-based inbound integration with SAP
3OF
S/4HANA
IBP - Integration of planned independent requirements to 4NO
SAP S/4HANA
IBP for demand-driven replenishment – strategic buffer 40U
positioning
IBP for demand-driven replenishment – buffer setup and 40V
adjustment
IBP for demand-driven replenishment – planning
40W
Technical upgrade
Technical upgrade
Create scenarios for inventory-related changes to demand, transportation, production, and policy input
variables to determine the sensitivity of these variables with regard to baseline planning outputs.
Group your planning objects based on data and thereby increase user efficiency and planning
accuracy.
Integrate selected master data types using available extractors and templates with the unified planning
area for time-series-based planning.
Integrate planning results (planned independent requirements) from SAP IBP to SAP S/4HANA
Technical upgrade
Simultaneously determine decoupling points across the end-to-end supply chain network.
Technical upgrade
Size and maintain the inventory level for the buffers to make sure that inventory remains at optimum
stocking levels.
Calculate the net flow position for relevant location-product combinations and generate supply orders.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Technical upgrade
20
Unified planning process flow: Mapped to IBP applications
Tactical
Frequency: Monthly
Horizon: 1-3 years
Buckets: Months, Weeks
Financial
Planning
Annual
Operating Plan
Marketing
Planning
Marketing
Plan
IBP for sales and operations
Demand
Review
Consensus
Demand Plan
IBP for demand
Mid-Term
Operational
Supply Review –
Heuristic, Optimizer
Constrained
Demand Plan
IBP for response and supply
Reconciliation
Review
Constrained
Demand Plan
Management
Business Review
Final Consensus
Demand Plan
IBP for inventory
Inventory
Optimization
Inventory
Plans
Frequency: Weekly
Horizon: 1-12 months
Buckets: Weeks, Days
Sales
Planning
Sales
Forecast
Demand
Planning
Global
Demand Plan
IBP for response and supply
Supply and
Allocations Planning
(Heuristic, Optimizer)
Supply Proposals.
Product Allocations
Short-Term
Operational
Frequency: Daily
Horizon: 1-12 weeks
Buckets: Days
Execution
Response
Planning
Supply Proposals,
Sales Order Confirmations
Demand
Sensing
Sensed
Demand
Sales Order
Processing
Open,Confirmed,Delivered
Sales Orders
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Procurement
Purchase
Orders
SAP IBP Process
Available-to-Promise
Processing
Sales Order
Confirmations
External Process
Deployment
Planning
Distribution Plan
Stock
Transfer
Stock Transfer
Requisitions
Transportation Load
Building
Transportation
Load Requisitions
Production
Production
Orders
21
Unified planning process flow: Mapped to sample planning areas
Tactical
Frequency: Monthly
Horizon: 1-3 years
Buckets: Months, Weeks
Financial
Planning
Annual
Operating Plan
Marketing
Planning
Marketing
Plan
SAPIBP1 time-series based, internal master data
Demand
Review
Consensus
Demand Plan
Mid-Term
Operational
Supply Review –
Heuristic, Optimizer
Constrained
Demand Plan
Reconciliation
Review
Constrained
Demand Plan
Management
Business Review
Final Consensus
Demand Plan
Inventory
Optimization
Inventory
Plans
Frequency: Weekly
Horizon: 1-12 months
Buckets: Weeks, Days
Sales
Planning
Sales
Forecast
Demand
Planning
Global
Demand Plan
SAP7F order-based
Supply and
Allocations Planning
(Heuristic, Optimizer)
Supply Proposals.
Product Allocations
Short-Term
Operational
Frequency: Daily
Horizon: 1-12 weeks
Buckets: Days
Execution
Response
Planning
Supply Proposals,
Sales Order Confirmations
Demand
Sensing
Sensed
Demand
Sales Order
Processing
Open,Confirmed,Delivered
Sales Orders
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Procurement
Purchase
Orders
SAP IBP Process
Available-to-Promise
Processing
Sales Order
Confirmations
External Process
Deployment
Planning
Distribution Plan
Stock
Transfer
Stock Transfer
Requisitions
Transportation Load
Building
Transportation
Load Requisitions
Production
Production
Orders
22
Demand-driven replenishment flow: Mapped to sample planning areas
SAP8 Demand-driven replenishment
Material
Management
On-Hand
Stock
Strategic
Frequency: Quarterly. biannual
Horizon: 1-3 years
Strategic Buffer
Positioning
Decoupling Points
Sales Order
Processing
Open,Confirmed,Delivered
Sales Orders
Short-Term
Operational
Frequency: Daily
Horizon: Decoupled lead time
Buckets: Days
Sales
Planning
Sales
Forecast
Buffer Setup and
Adjustment
Procurement
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Supply Order
Recommendation
Buffer Levels
Material
Management/Production
Open Confirmed Supply
Orders
Execution
Planning
Purchase
Orders
Stock
Transfer
Stock Transfer
Requisitions
IBP for demand-driven
replenishment
Production
Production
Orders
External Process
23
How can SAP Best Practices help you with using time-series integration?
Use Case
Solution
Study & Training
Load Best Practices sample data using Data
Integration Jobs app
Integration
Landscape
CSV files (time profile, master
data, key figure data)
Demonstration & PoC
Load your own data using Data
Integration Jobs app
SAP IBP
Data Integration Jobs app
Implementation project
CI-DS integration from SAP S/4HANA to SAP IBP
Supply chain
integration
add-on
CI-DS
SAP IBP
SAP S/4HANA
Data
Use sample data from rapid.sap.com
Accelerators → Implementation → Technical
Assets for SAPIBP1
Documentation
Benefit
Use sample data from rapid.sap.com as
template for your own data. This can help
you to create consistent data.
Configuration Guide 6M9 – Configuration Guide for Implementing Time-Series-Based
Planning
Get access to a system with demo data
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Experience SAP IBP with your own data
Connect your SAP S/4HANA system with SAP
S/4HANA Best Practices sample data or your company
data to SAP IBP
Test script IBP – time-series based inbound integration
with SAP S/4HANA (3OF)
Test SAP IBP business processes end-to-end with your
S/4HANA data
24
SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Where to get it
http://help.sap.com/ibp
http://rapid.sap.com/bp/rds_ibp
Download the following assets:
▪
Test scripts
▪
Process flow charts
▪
Scope item recordings
▪
Configuration guides
▪
Excel planning view templates
▪
Sample data CSV files
Webinars:
•
SAP IBP Best Practices 2205: Real-Time Integration
•
SAP IBP Best Practices 2105: Fundamentals to jump-start your implementation project
(Demand) PDF | Recording
•
SAP IBP Best Practices 2011: Fundamentals to jump-start your implementation project
(OBP) PDF | Recording
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
25
SAP Integrated Business Planning starter edition, non-production
SAP Best Practices
▪
▪
▪
▪
The starter edition contains an activated copy of sample planning areas
SAPIBP1 and SAP8 with SAP Best Practices content configured and all
sample data uploaded
Immediately execute the sample end-to-end planning process in SAP IBP
without manual configuration
Learn about the capabilities of SAP IBP in a process-oriented way using
illustrative sample data and click-by-click instructions provided in test scripts
Activated SAP Best Practices scope items in the Starter edition:
❖
❖
❖
❖
❖
❖
❖
❖
❖
❖
❖
❖
❖
❖
❖
❖
The starter edition in the SAP Store
❖
❖
❖
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
IBP for sales and operations – demand review
IBP for sales and operations – supply review – heuristic
IBP for response and supply – supply review – optimizer
IBP for sales and operations – reconciliation review
IBP for sales and operations – management business review
IBP for sales and operations – time-series-based forecast consumption
IBP for sales and operations – forecast error calculation and analysis
IBP for sales and operations – footprint analysis
IBP for demand – demand planning
IBP for demand – demand sensing
IBP for demand – forecast error calculation and analysis
IBP for demand – time-series analysis
IBP for demand – new product introduction
IBP for inventory
IBP for inventory – scenario planning
IBP – ABC-XYZ Segmentation
IBP for demand-driven replenishment - strategic buffer positioning
IBP for demand-driven replenishment - buffer setup and adjustment
IBP for demand-driven replenishment - planning
26
Cloud Test & Demo for SAP Integrated Business Planning
SAP Best Practices for Partners
•
SAP Starter Edition version for
Partners
•
Same content as SAP Starter
Edition
•
Available for all SAP PartnerEdge
Partners
•
Link Partneredge Portal
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
27
How SAPIBP1 and UNIPA Differ
Unified sample planning area SAPIBP1
Planning area UNIPA
•
Delivered as part of the SAP IBP solution, like all other
sample planning areas (SAP3/4/5/6/7/8)
•
Created as an active planning area by copying SAPIBP1
•
Available in all SAP IBP systems
•
•
Used as a basis for creating custom planning areas
Pre-installed in newly deployed non-productive systems /
starter edition / partner test, demonstration, and
development systems
•
Not an active planning area that can be directly used to
load data or execute planning processes; must be
copied to your own custom planning area
•
Includes additional configuration and sample data
•
Can be directly used for process testing, demo, and
evaluation
•
Not automatically updated with each IBP release if preinstalled or added to your SAP IBP system
•
See also the FAQ wiki-page
•
Covers the time-series planning processes for sales
and operations, demand, inventory, and supply chain
control tower
•
Updated with every release
•
Find more information on changes and enhancements
on SAP Help portal:
•
What‘s New in SAP IBP for Supply Chain, search for
SAPIBP1
•
What‘s New in the Unified Planning Area?
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
•
Copy SAPIBP1
•
Activate
•
Customize
•
Add sample
data
!
28
Forecasting in SAP Integrated Business
Planning with an external algorithm
based on Prophet
Forecasting in SAP Integrated Business Planning with an external algorithm
•
Enhance the existing forecasting capabilities of SAP IBP for
demand by using custom-built forecasting algorithms in a
tightly integrated process within SAP IBP
•
Use cases include use of additional algorithms (for example,
machine learning algorithms), customized implementation
of existing algorithms, and use of additional data not
present in the SAP IBP system.
•
The custom algorithm can be written in R, Python or any
other suitable tool. Data is exchanged between SAP IBP
and the custom system using a new OData service.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
30
Forecasting in SAP Integrated Business Planning with an external algorithm
based on Prophet – Sample Content
The example showing how to extend the SAP IPB forecasting capabilities by using a custom forecasting
algorithm is delivered as a mission of the SAP Discovery Center. Missions offer step-by-step guidance on
how to implement a specific solution, in this case, how to implement a custom forecasting algorithm built in SAP
Data Intelligence (SAP DI) based on Prophet. Prophet is a forecasting procedure implemented in Python.
In this mission, the following two instances are used:
•
The demand planning process with statistical
forecasting using an external forecasting algorithm is
driven by the cloud-based solution, SAP IBP. OData
services are used to establish a connection between
SAP IBP and SAP DI.
•
Data transformation and analysis, machine learning
models, and predictions via algorithms are performed
in SAP Data Intelligence Cloud. SAP DI is part of the
SAP BTP application suite. A large part of the mission is
set up in the SAP DI instance.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
SAP IBP external forecast
Link Discovery Center
31
Forecasting in SAP Integrated Business Planning with an external algorithm
based on Prophet - How it works
SAP IBP for demand
SAP Data Intelligence (SAP DI) via SAP
Business Technology Platform (SAP
BTP)
Public cloud
Start job or
interactive
forecasting
Forecast
Prepare data
and preprocessing
(optional)
Postprocessing
(optional) and
save data
Send
notification to
SAP DI
Get forecast
result via
OData Service
Get data from
IBP via OData
Service
Compute
Forecast
(Python)
Custom
Algorithm
(Prophet)
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
32
.
SAP Data Intelligence (SAP DI) offered in SAP Business Technology Platform
(SAP BTP)
SAP Business Technology Platform (SAP BTP) enables you to turn
data into business value, set up end-to-end business processes,
and quickly build and extend existing SAP solutions.
SAP Data Intelligence Cloud (SAP DI) is a comprehensive data
management solution. As the data orchestration layer of SAP
Business Technology Platform, it transforms distributed data
sprawls into vital data insights, supporting innovation and business
growth.
Benefit
• Enhance business processes with data orchestration
• Discover, understand, and classify your data
• Perform hyprid data management
Key capabilities
• Integrate and orchestrate large data volumes and streams at scale
• Streamline, operationalize, and govern innovation driven by machine learning
• Optimize governance and minimize compliance risk with comprehensive metadata
management rules
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Please check out another SAP IBP related mission:
• Improve Plan Quality with Intelligent Lead Time Prediction
33
SAP Integrated Business Planning &
SAP Analytics Cloud
SAP Analytics Cloud
The SAP Analytics Cloud solution combines Business
Intelligence, Augmented and Predictive Analytics, and
Enterprise Planning capabilities in a single cloud environment.
Benefit
• Respond dynamically and focus on strategy by combining
transactions, analytics, and planning
• Understand your business today and tomorrow with predictive
forecasting and machine learning tools
• Leverage best-in-class connectivity to SAP solutions to link enterprise
applications and all lines of business to ensure strategic alignment
and reliable decision-making
Key capabilities
• Comprehensive in-memory data management and analytics
• Contextual delivery of smart insights through natural language
processing
• Faster, more reliable decision-making without expert intervention
• Affordable, available, and scalable analytics
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
SAP Analytics Cloud Links:
➢
www.sapanalytics.cloud
➢
Content Network Release Information Guide
➢
Content Network Getting Started Guide
➢
Content Package User Guide
35
SAP Integrated Business Planning & SAP Analytics Cloud - Available Content
Content for SAP Digital Boardroom & SAP
Analytics Cloud
Integrated Financial Planning with SAP Analytics
Cloud & SAP IBP
This content provides a high-level overview of the financial targets
and shows relevant key performance indicators which can be used
during the sales and operations planning (S&OP) process in the
management business review. Actual revenue, gross profit, and
consensus demand figures help executive management decide if
the S&OP plan is aligned with the company’s financial targets and
also shows future trends.
In this financial integration scenario, SAP IBP forecast data is
transferred to SAP Analytics Cloud and combined with financial
data from SAP S/4HANA to improve the quality of sales and
profitability planning. The planning results are sent back to SAP IBP
where they are used to increase the accuracy of the S&OP
management business review.
•
Overview SAP Analytics Cloud Content for SAP IBP
•
Architecture and abstract
•
Setting up the connection between SAP Analytics Cloud and SAP
Integrated Business Planning
•
S/4HANA On Premise: Integrated Financial Planning for SAP
S/4HANA
•
Integration of SAP Integrated Business Planning with Financial
Planning in SAP Analytics Cloud
SAP Analytics Cloud content is not part of SAP Best Practices for SAP Integrated Business Planning but works together with the sample planning area SAPIBP1.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
36
Content for SAP Digital Boardroom & SAP Analytics Cloud
Highlights of SAP Integrated Business Planning - Analytics
This content provides a high-level overview of the financial targets and shows
relevant key performance indicators which can be used during the sales and
operations planning (S&OP) process in the management business review.
Actual revenue, gross profit, and consensus demand figures help executive
management decide if the S&OP plan is aligned with the company’s financial
targets and also shows future trends.
Overview of Revenues:
This content provides a detailed overview of revenue figures on different levels down to the product level,
allowing you to better understand how revenue is allocated to different customer groups or product
families, for example.
Overview of Quantities:
This content provides insights on a quantitative basis at product family and product level, allowing you to
identify top contributors.
Data Connectivity:
Loading master data and transactional data from SAP IBP to SAP Analytics Cloud using an OData
service.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
37
Integrated Financial Planning with SAP Analytics Cloud and SAP Integrated
Business Planning
In this financial integration scenario, SAP IBP forecast data is
transferred to SAP Analytics Cloud and combined with financial data
from SAP S/4HANA to improve the quality of sales and profitability
planning. The planning results are sent back to SAP IBP where they are
used to increase the accuracy of the S&OP management business
review.
Benefits:
•
A single approved plan
•
Better alignment between financial planning and supply chain
planning
•
Consistent quantities and calculated values
•
Increased accuracy of S&OP management business review
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
38
Financial planning with SAP Analytics Cloud and SAP Integrated Business Planning
Financial Planning in SAP Analytics Cloud
CAPEX Planning
SAP Integrated Business Planning – Best Practices Processes
P&L, Balance Sheet, Cash Flow
Planning
Control Tower and Business Network Collaboration
Consensus
Demand
Plan
Quantity
SAP IBP for sales and operations
Sales and Profitability Planning
Sales Quantity
Planning
Sales Deduction
Planning
Sales Price
Planning
Profitability
Planning
Annual
Operating
Plan
Revenue
Demand
Review
Consensus
Demand Plan
Supply Review –
Heuristic, Optimizer
Constrained
Demand Plan
Reconciliation
Review
Constrained
Demand Plan
Management
Business Review
Final Consensus
Demand Plan
COGS
Product Cost Planning
Cost Object Planning (Cost Centers, Projects)
Demand
Planning
Global
Demand Plan
SAP IBP for
inventory
SAP IBP for
response and supply
SAP IBP for
demand-driven
replenishment
SAP IBP for demand
SAP S/4HANA
Transactional Data (Finance)
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Master Data (Product, location, customer,..)
Transactional Data (Supply Chain)
39
SAP IBP Architecture Overview
Model for SAP
Digital Boardroom
& SAP Analytics
Cloud
System Landscape
SAP Integrated Business Planning
SAP Analytics Cloud
Sample Planning Area SAPIBP1
Model
SAP__IBP_SOP_IM_MANAGEMENTBUSINESS
REVIEW
OData SAP_COM_0143
Model for
financial
planning with
SAC & IBP
Sales and Operations Planning
Model SAP_FI_IFP_IM_Profitability
OData SAP_COM_0143
oData services
SAP S/4HANA
SAP
CI-DS
SAP CI-DS
Agent
SAP S/4HANA, supply chain
integration add-on for SAP IBP
Cloud
On Premise
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
40
SAP Integrated Business Planning &
other SAP solutions
SAP Work Zone
SAP Work Zone enables you to build digital workplace solutions to
increase user productivity and engagement. It centralizes access
to relevant business applications, processes, information, and
communication through a single unified entry point that your users
can access from any device.
Benefit
• Increase user productivity by enabling them to quickly access apps, processes, and
information
• Harmonize user experience across SAP and third-party applications
• Increase user engagement by providing integrated information and collaboration tools
• Speed up decision-making by providing an integrated environment for collaboration,
workflows, business apps, reports, and information
Key capabilities
• Central access to apps, tasks, notifications, information, and communication
• Integrated collaboration capabilities
Check out the details in the
IBP for sales and operations
scope items
• Seamless SAP and third-party apps integration
• Extensible framework for development, customization, and branding
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
42
SAP Enterprise Product Development
SAP Enterprise Product Development empowers your enterprise
to innovate, iterate, and introduce new products faster by
connecting insights, processes, and people.
Benefit
• Develop high-quality, connected, compliant, and sustainable products
through innovative development processes
• Enable enterprise collaboration including all relevant information, insights,
and stakeholders to accelerate product development
• Create closed-loop enterprise processes to synchronize the digital thread
from design-to-operate and design-to-consume.
Key capabilities
• Collaborative development across the enterprise
• Drive efficiency in collaboration with utilities such as workflows, task
management, built-in 3D viewer support, and redlining
• Connect 3D CAD data with ERP and master data to deliver a model-based
enterprise
Check out the details in the
IBP for sales and operations –
footprint analysis
scope item
• Enable Industry 4.0 in your product lifecycle
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
43
SAP Product Footprint Management
SAP Product Footprint Management enables you to run footprint
assessments for your products across business activities. You can source
reference content for your products and materials from external content
providers like Life Cycle Assessment (LCA) databases. Using the
applications and APIs included in the service, you can then map this
content to your business data and provide the results to SAP Product
Footprint Management for footprint calculations.
Screenshot
Benefit
• Vast reuse of existing business data and structures from SAP S/4HANA
• Vast reuse of business logic: Inventory Management, Costing Structures
• Monthly calculation of all products in the system handling a high amount of data
• Provide inbuild integration back to S/4HANA systems
• Emission factor management to help customers to upload Sustainability Content
Key capabilities
• Based on SAP’s business data and application logic
• Consistent in the calculated product footprints
• Integrated with the operational processes covering all relevant business users in every
department
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Check out the details in the
IBP for sales and operations –
footprint analysis
scope item
44
Demand-driven replenishment
•
Overview
•
IBP for demand-driven replenishment – strategic buffer positioning
•
IBP for demand-driven replenishment – buffer setup and adjustment
•
IBP for demand-driven replenishment – planning
SAP Integrated Business Planning for demand-driven replenishment
Related Scope Items
Strategic Buffer
Positioning
Buffer Setup and
Adjustment
Planning
Decoupling Points
Buffer Levels
Supply Order
Recommendation
Source: Demand Driven Institute
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
46
Scope in detail
IBP for demand-driven replenishment – strategic buffer
positioning
IBP for demand-driven replenishment – strategic buffer positioning
Process flow
App
Average Daily Usage
(ADU) Calculation
ADU
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Create Buffer Positioning
Recommendation
Recommended
Decoupling Points
Strategic buffer positioning
Analyze
DDMRP Scenario
Buffer Setup
and Adjustment
Decoupling Points
Buffer Levels
SAP IBP Process
External Process
48
IBP for demand-driven replenishment – strategic buffer positioning
Description
During the demand-driven replenishment process, you carry out strategic buffer positioning as a regional supply chain planning lead to determine decoupling points
across your end-to-end supply chain network. Decoupling points are quantities of inventory allowing you to compress the lead time between the buffer and the
customer, as well as to mitigate the demand signal distortion and supply continuity variability. In the first step, you use historical sales data and forecast key figures
to calculate the average daily usage (ADU) which is a key component for determining buffer zones and levels. You then use this result to create a buffer positioning
recommendation and check the impact on decoupled lead times. For simulation purposes, you can create a scenario to show how the results change if the buffer
positioning changes. In a last step, you strategically determine the decoupling points.
Scope
Technical Details
User Interaction
Use Case
Main Input
Fiori Apps
▪ Determine where to decouple and strategically
position buffers in the supply chain
▪ Simulate and compare different scenarios
▪ Average daily usage
▪ Customer tolerance time
▪ DDMRP Buffer Analysis
▪ Dashboards - Advanced
Main Output
Planning Views
Benefits
▪ Decoupling points
▪ Decoupled lead time
▪ Dampen the effect of demand & supply variation on
the supply chain by decoupling
▪ Define the most suitable buffer positions to reduce
decoupled lead time and on-hand inventory
Frequency
▪ Quarterly/ half-yearly
Participants
▪ Regional Supply Chain Planning Lead
Planning Level
▪ One combined planning view for demand-driven
replenishment processes
– ADU Calculation Review worksheet
– Buffer Level Calculation worksheet
▪ Day / Product / Location
Alerts
Planning Operator
▪
▪
Calculate Average Daily Usage
Recommend Decoupling Points
▪ No predefined alert
Analytics
▪ 2 predefined dashboards, one for Supply Chain
Analysts comprising 13 charts, and one for Supply
Chain Directors comprising 2 charts
Collaboration
▪
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
No predefined process management, no SAP Work
Zone integration
49
Scope in detail
IBP for demand-driven replenishment – buffer setup
and adjustment
IBP for demand-driven replenishment – buffer setup and adjustment
Process flow
Strategic Buffer
Positioning
ADU Calculation
Buffer Level Calculation
Buffer Adjustment
Decoupling Points
Average Daily Usage
Buffer Levels
Adjusted Buffer Levels
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Buffer setup and
adjustment
SAP IBP Process
External Process
Planning
Supply Order
Recommendation
51
IBP for demand-driven replenishment – buffer setup and adjustment
Description
During the demand-driven replenishment process, you set up and adjust buffers as a regional supply chain planning lead. Buffers are levels
of inventory that are sized and maintained in a way that ensures optimum stocking levels for inventory. Demand-driven replenishment uses a
dynamic three-zone color-coded buffer for planning and execution. In the first step, you use historical sales data and forecast key figures to
calculate the average daily usage (ADU) which is a key component to determining buffer zones and levels. Using location-specific buffer
profiles with individual item properties and group settings, you calculate the buffer levels and then adjust them dynamically, either by
modifying the adjusted ADU or by directly adjusting the individual buffer zones using adjustment key figures.
Scope
Technical details
User interaction
Use Case
Main Input
Fiori App
▪ Determine and maintain the optimum buffer size
▪ Average Daily Usage
▪ Demand adjustment factor
Benefits
▪ Flow protection
▪ Optimum buffer size
Frequency
▪ Daily
Participants
▪ Regional Supply Chain Planner
Main Output
▪ Decoupled lead time
▪ Buffer levels
Planning Level
▪ Day / Product / Location
Planning Operator
▪
▪
Calculate Average Daily Usage
Calculate DDMRP buffer levels
▪ No Fiori app used
Planning Views
▪ One combined planning view for demand-driven
replenishment processes:
– ADU Calculation Review worksheet
– Buffer Level Calculation worksheet
– Buffer Adjustment Planning worksheet
Alerts
▪ No predefined alert
Analytics
▪ No predefined analytics
Collaboration
▪
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
No predefined process management, no SAP Work
Zone integration
52
Scope in detail
IBP for demand-driven replenishment – planning
IBP for demand-driven replenishment – planning
Process flow
Buffer Setup
and Adjustment
Check
Order Recommendation
Review
Confirmed Supply Orders
Manage Projected
On-hand Inventory Issues
Check Signal Integrity
Check Buffer Integrity
Buffer Levels
Order Recommendation
Net Flow Status
On-Hand Status
Net Flow Integrity Status
Decoupling Point
Integrity Status
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Planning
SAP IBP Process
External Process
54
IBP for demand-driven replenishment – planning
Description
During the demand-driven replenishment process, as a regional supply chain planning lead, you must ensure that the daily planning and
execution process runs smoothly and doesn’t affect the material and signal flow. You use the net flow position which is calculated for
relevant location-product combinations and reflects on-hand inventory, open supply, and qualified demand orders. First, you check the order
recommendation which is generated only if the net flow position drops into the yellow buffer zone. If buffers are maintained accurately, onhand inventory remains within stable boundaries within the green and sometimes yellow zones. Alerts inform you if the projected on-hand
status becomes very low or negative within the decoupled lead time. You can react by expediting the supply order if possible. The signal
integrity status and the buffer integrity status provide a historical view on how well the buffers behaved.
Scope
Technical Details
User Interaction
Use Case
Input
▪ Generate supply orders to keep the buffers in the
green zone
▪ Manage open supply orders
▪ Open supply
▪ Qualified demand
▪ On-hand inventory
Fiori Apps
▪ DDMRP Buffer Status Monitoring
▪ Dashboards - Advanced
Benefits
Output
▪ Drive replenishment at strategic decoupling points on
actual demand, not forecasts
▪ Achieve visibility and demand-driven prioritization of
supply based on buffer status at decoupling points
▪ Protect the signal and material flow
▪ Supply order recommendation
Frequency
▪ Daily
Participants
▪ Regional Supply Chain Planner
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
▪ Days / Product / Location
Planning Views
▪ One combined planning view for demand-driven replenishment
processes:
– Net Flow Equation worksheet
– On-Hand Status Projection worksheet
– Signal Integrity Status worksheet
– Buffer Integrity Status worksheet
Planning Operator
Alerts
▪ 1 predefined alert: lowest projected on-hand status
Planning Level
▪
DDMRP Buffer Status Snapshot
Analytics
▪ 1 predefined dashboard for Supply Chain Planners comprising 4
charts
Collaboration
▪ No predefined process management, no SAP Work Zone
integration
55
SAP Integrated Business Planning for demand-driven replenishment
Additional remarks
Three scope items for
▪ IBP for demand-driven replenishment - strategic buffer positioning
▪ IBP for demand-driven replenishment - buffer setup and adjustment
▪ IBP for demand-driven replenishment - planning
support an approach known as Demand-Driven MRP* or simply DDMRP*. This approach includes concepts
like material flow, decoupling points, and inventory buffers to support a replenishment strategy based on actual
demand and not on forecasts.
The scope items for SAP Integrated Business Planning run with planning area called SAP8 which completely
covers the DDMRP concept. The scope items are neither integrated into the Best Practices unified planning
process nor into SAPIBP1. They don‘t have any dependencies to other scope items but stand for themselves.
SAP provides templates for integration with SAP ECC, but these are not included in the Best Practices
content.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
56
Time-series-based planning
•
•
•
•
•
•
•
•
•
•
IBP – Time-series-based inbound integration with SAP S/4HANA
IBP – Integration of planned independent requirements to SAP S/4HANA
IBP for sales and operations – demand review
IBP for sales and operations – time-series-based forecast consumption
IBP for sales and operations – supply review – heuristic
IBP for response and supply – supply review – optimizer
IBP for sales and operations – reconciliation review
IBP for sales and operations – management business review
IBP for sales and operations – forecast error calculation and analysis
IBP for sales and operations – footprint analysis
•
IBP for demand – demand planning
IBP for demand – demand sensing
IBP for demand – forecast error calculation and analysis
IBP for demand – time-series analysis
IBP for demand – new product introduction
IBP for inventory
IBP for inventory – scenario planning
•
IBP – ABC-XYZ Segmentation
•
•
•
•
•
•
Scope in detail
IBP – Time-series-based inbound integration with SAP
S/4HANA
IBP – Time-series-based inbound integration with SAP S/4HANA
Description
Building the integration between SAP S/4HANA and SAP Integrated Business Planning for time-series-based planning is a key part of every implementation project.
Implementation efforts and costs are reduced significantly by new extractors in SAP S/4HANA, the supply chain integration add-on for SAP IBP, and new templates
in SAP Cloud Integration for data services (CI-DS). This scope item uses the available extractors and templates to transfer selected master data types and key
figures to the unified planning area for time-series-based planning in SAP IBP. It describes the complete integration process, from setting up the integration in SAP
S/4HANA, performing the necessary configuration in CI-DS including datastore creation, system configuration, projects, and tasks, to running the integration and
finally checking the results.
Scope
Technical details
Use Case
Inbound Integration – Objects
•
Integration of selected master data types and key
figures from SAP S/4HANA with SAP IBP for timeseries-based planning
Benefits
•
New extractors and new templates reduce
implementation efforts and costs
Participants
•
Time-series-based planning administrator
•
Integration developer (CI-DS)
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Master Data
▪ Location: Plant, DC
▪ Product
▪ Location Product
– NEW in 2111: Footprint per Unit
▪ Resource
▪ Location Resource
▪ Subnetwork
▪ Customer
▪ Production Source Header
▪ Production Source Item
▪ Location Source
▪ Customer Source
▪ Target UoM
▪ UoM Conversion factor
▪ Currency
▪ Exchange Rate
▪ Production Resource
Key Figures
▪ Capacity Supply
▪ Stock on Hand
▪ Minimum External Receipts
▪ Minimum Production Receipts
▪ Exchange Rate
▪ Actuals Quantity
59
Scope in detail
IBP – Integration of planned independent requirements
to SAP S/4HANA
IBP – Integration of planned independent requirements to SAP S/4HANA
Description
Building the integration between SAP S/4HANA and SAP Integrated Business Planning for time-series-based planning is a key part of every implementation project.
Implementation efforts and costs are reduced significantly by the supply chain integration add-on for SAP IBP, and a new template in SAP Cloud Integration for data
services (CI-DS).
This scope item uses available templates to transfer planning results (planned independent requirements, PIRs) created in the demand review process back to SAP
S/4HANA. It describes the complete integration process from performing the necessary configuration in CI-DS, creating a planning filter in SAP IBP, creating an
application job template to run the integration from the SAP IBP, add-in for Microsoft Excel or the Application Jobs app, and checking the results in SAP S/4HANA.
Scope
Technical details
Use Case
Outbound Integration – Objects
•
Integration of planning results (PIRs) from SAP IBP
to SAP S/4HANA for time-series-based planning
▪ PIR (using key figure Consensus Demand Plan Quantity)
Benefits
•
New template reduces implementation efforts and
costs
Participants
•
Time-series-based planning administrator
•
Integration developer (CI-DS)
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
61
Scope in detail
IBP for sales and operations – demand review
IBP for sales and operations – demand review
Process flow
Sales
Planning
Sales
Forecast
ABC-XYZ
Segmentation
Segmented
Products
Review
Sales Forecast
Sales
Forecast
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Marketing
Planning
Marketing
Plan
Review
Marketing Forecast
Marketing
Forecast
Demand Review
Financial
Planning
Annual
Operating Plan
Review
Annual Operating Plan
Annual
Operating Plan
SAP IBP Process
Demand
Planning
Global
Demand Plan
Create
Consensus Demand
Consensus
Demand Plan
External Process
New Product
Introduction
Consensus
Demand Plan
Supply Review –
Heuristic
Constrained
Demand Plan
Supply Review –
Optimizer
Constrained
Demand Plan
63
IBP for sales and operations – demand review
Description
The demand review is the first phase of the sales and operations planning process. Representatives from sales, finance,
marketing, and demand planning prepare and review their input data for the new S&OP planning cycle. They agree on a
single consolidated consensus demand plan which measures the current volume and respects corporate financial targets.
This consensus demand plan is then used as a basis in the succeeding supply review phase to create a complete supply
plan.
.
Scope
Technical details
User interaction
Use Case
Input
▪ Align supply chain planning with corporate financial
targets
▪ Collaboratively define a consensus demand plan
▪
▪
▪
▪
Fiori Apps
▪ Manage Processes
▪ Dashboards - Advanced
▪ Application Jobs
▪ Manage Realignment Rules
▪ Web-Based Planning – Customer
▪ Manage Tasks
▪ Manage Processes
Benefits
▪ Create the ideal business plan to drive revenue growth
and increase market share
▪ Improve the speed, agility, and accuracy of sales and
operations planning
Frequency
▪ Monthly
Participants
▪ Director of finance, sales manager, marketing
manager, demand planner
▪ S&OP coordinator
▪ Key customers
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Annual operating plan
Sales forecast
Marketing forecast
Global demand plan
Output
▪ Unconstrained consensus demand plan
Planning Level
▪ Months / Product family / Customer group
Planning Operator
▪
No planning operator
Planning Views
▪ Sales Forecast, 1 worksheet
▪ Marketing Forecast, 1 worksheet
▪ Annual Operating Plan, 1 worksheet
▪ Consensus Demand Plan, 2 worksheets
▪ Planning view for Web UI
Alerts
▪ No predefined alerts
Analytics
▪ 1 predefined ‘Demand Review’ dashboard with 6 charts
Collaboration
▪ 1 step with 4 tasks in predefined S&OP process management
template with SAP Work Zone task integration
64
IBP for sales and operations – demand review
New product introduction
Business purpose
▪
▪
Include a new product in your sales and operations planning and evaluate how it
contributes to revenue growth and impacts your supply plan
Obtain executive management decision about introducing the new product
Prerequisites
▪
▪
▪
▪
In contrast to the new product introduction process in demand planning where the master
data is imported from the leading master data system, the master data and planning
objects for the new product are created in SAP IBP.
Realignment functions are used to automate the creation of compound master data for the
new product, together with the creation of planning objects for all related key figures.
The new product is created in a dedicated version of the planning area called PVSMD
(Planning Version with Version-Specific Master Data).
Consensus demand for the new product is copied from an existing product with a similar
demand pattern (it’s not in scope to create a statistical forecast based on a reference
product).
Process flow
1.
2.
3.
4.
Demand review: The demand planner creates the simple master data and triggers the
automatic creation of the compound master data and the planning objects for the new
product via realignment.
Supply review: The supply planner creates a supply plan that includes the new product.
Reconciliation review: The PLM status attribute is used in various charts to analyze the
impact of the new product on revenue, gross profit, and supply.
Management business review: Finally, all new product-related data is deleted in SAP IBP.
If the business decision is positive, the master data is later created in the leading master
data system (for example, ERP), and the new product introduction process in demand
planning is continued.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
65
Scope in detail
IBP for sales and operations – time-series-based
forecast consumption
IBP for sales and operations – time-series-based forecast consumption
Process flow
Demand
Review
Consensus
Demand Plan
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Forecast Consumption
Run
Forecast Consumption
Total Demand
Output
SAP IBP Process
Copy to
Consensus Demand
Consensus
Demand
External Process
Supply Review
Constrained
Demand
67
IBP for sales and operations – time-series-based forecast consumption
Description
Time-series-based forecast consumption is an optional step within the S&OP supply review phase to make sure that sales orders reduce
or consume the forecast by the sales order quantity for defined periods. This prevents the planning algorithm from including the demand
quantity twice (once as the forecast and once as the actual sales order). As a supply planner, you decide how to calculate the
consumption of the forecast based on business needs. Using the S&OP forecast consumption algorithm, you can generate the open
forecast and the total demand, and then copy the latter to the consensus demand. The forecast consumption results can be used as input
for the supply optimizer or heuristics.
Scope
Technical Details
Use Case
Input
▪ Create consensus demand considering sales orders
▪ Consensus demand plan quantity as forecast
▪ Total open order quantity as sales order
Benefits
▪ Improve forecast accuracy
▪ Reduce overproducing
Frequency
▪ Monthly
Participants
▪ Supply planner
▪ S&OP coordinator
Fiori Apps
▪ Dashboards – Advanced
▪ Manage Tasks
Output
Planning Views
▪ Forecast open output
▪ Total demand output
▪ Consensus demand
▪ Forecast Consumption, 2 worksheets
Planning Level
Alerts
▪ No predefined alerts
▪ Product / Location / Customer
Analytics
Planning Operator
Collaboration
▪
▪
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
User Interaction
S&OP operator: time-series-based forecast
consumption
Disaggregation operator: copy total demand output to
consensus demand
▪ No predefined analytics
▪
One optional task in predefined S&OP process
management template (supply review) with SAP Work
Zone task integration
68
Process Management (IBP for sales and operations)
Review Sales Forecast
Review Supply Scenarios
Run Forecast Consumption
Review Executive Proposal
(if you implement 3RT)
Review Marketing Forecast
Review Annual Operating Plan
Approve Final Plan
Create Supply Plan
Prepare Supply Scenarios
Create Consensus Demand Plan
Start Step
Start Step
➢
On Start Date
➢
➢
Start Step
Start Step
When End Application Job of Previous
Step is Completed or
When Previous Step is Completed
➢
When Previous Step is Completed
➢
➢
On Start Date or
When Previous Step is Completed
(if you implement 3RT)
Start Job
➢
End Step
➢
➢
On End Date or
When Tasks are Completed
Copy of Final Safety Stock (from IO)
End Step
End Step
➢
When Tasks are Completed
➢
➢
On End Date or
When Tasks are Completed
End Step
➢
End Job
➢
➢
End Job
Copy Consensus Demand Plan or
Blank (if you implement 3RT)
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
When Tasks are Completed
➢
Task
Copy Constrained Demand Plan to
Final Consensus Demand Plan
69
Scope in detail
IBP for sales and operations – supply review –
heuristic
IBP for sales and operations – supply review – heuristic
Process flow
ABC-XYZ
Segmentation
Segmented
Products
Demand
Review
Consensus
Demand Plan
Run
Supply Heuristic
Constrained
Demand Plan
Check
Capacity Alerts
Constrained
Demand Plan
Carry Out
Capacity Leveling
Constrained
Demand Plan
Prepare
Supply Scenarios
Constrained
Demand Plan
Reconciliation
Review
Constrained
Demand Plan
Inventory
Optimization
Inventory
Plans
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Supply Review – Heuristic
SAP IBP Process
External Process
71
IBP for sales and operations – supply review – heuristic
Description
The supply review is the second phase of the sales and operations planning process. The supply planner creates a complete supply plan for
the consensus demand. This plan defines for each product how much to purchase, produce, or ship at each location in the supply chain and
in which period of the planning horizon. Using the S&OP heuristic planning algorithm, the supply planner can generate an infinite supply plan
with no shortages to identify supply and capacity bottlenecks. By performing manual capacity leveling, the planner can then resolve potential
supply issues and create a feasible constrained demand plan. The supply planner simulates different solutions and provides them as
scenarios to the participants of the reconciliation review.
Scope
Technical details
Use Case
Input
▪ Create an infinite supply plan with no shortages to
identify capacity bottlenecks
▪ Perform manual capacity leveling to create a feasible
constrained demand plan
▪ Consensus demand plan (from demand review)
▪ Resource capacities
▪ Safety stock
Benefits
▪ Constrained consensus demand plan
▪ Effectively balance demand and supply
Frequency
▪ Monthly
Participants
▪ Supply planner
▪ S&OP coordinator
Output
Planning Level
▪ Weeks / Product / Location / Customer
(worksheets have different planning levels, for
example, Capacity: Resource / Component;
Production: Source / Ship-To; Transportation: Ship-To
/ Ship-From)
Planning Operator
▪
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Time-Series-Based Supply Planning Heuristic
User interaction
Fiori Apps
▪ Dashboards – Advanced
▪ Manage Tasks
Planning Views
▪ Supply Plan Heuristic, 9 worksheets
Alerts
▪ The ‘Supply Plan Heuristic’ planning view includes 1
alert definition for capacity overload
Analytics
▪ 1 predefined ‘Supply Review’ dashboard with 5 charts
Collaboration
▪
1 step with three tasks in predefined S&OP process
management template with SAP Work Zone task
integration
72
Scope in detail
IBP for response and supply – supply review –
optimizer
IBP for sales and operations – supply review – optimizer
Process flow
ABC-XYZ
Segmentation
Segmented
Products
Demand
Review
Consensus
Demand Plan
Run
Supply Optimizer
Constrained
Demand Plan
Prepare
Supply Scenarios
Constrained
Demand Plan
Reconciliation
Review
Constrained
Demand Plan
Inventory
Optimization
Inventory
Plans
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Supply Review – Optimizer
SAP IBP Process
External Process
74
IBP for sales and operations – supply review – optimizer
Description
The supply review is the second phase of the sales and operations planning process. As a supply planner, you create a complete supply
plan for the consensus demand. This plan defines for each product how much to purchase, produce, or ship at each location in the supply
chain and in which period of the planning horizon. Using the S&OP optimizer planning algorithm, you generate a cost-optimized production,
distribution, and procurement plan for the entire supply chain network, resulting in a feasible constrained demand plan that is maximized
either for profit or for delivery. You provide the optimizer results to the participants of the reconciliation review.
Scope
Technical details
Use Case
Input
▪ Create a feasible cost-optimized supply plan for the
entire supply chain based on constraints
▪
▪
▪
▪
Benefits
▪ Effectively balance demand and supply, and achieve a
cost-optimized plan for production, distribution, and
procurement
Consensus demand plan (from demand review)
Resource capacities
Safety stock
Cost per unit
User interaction
Fiori Apps
▪ Dashboards – Advanced
▪ Manage Tasks
▪ Collaboration
Planning Views
▪ Constrained consensus demand plan
▪ Supply Plan Optimizer, 10 worksheets
▪ Supply Plan Cost Rate, 6 worksheets
Frequency
Planning Level
Alerts
▪ Monthly
▪ Weeks / Product / Location / Customer
(worksheets have different planning levels, for
example, Capacity: Resource / Component;
Production: Source / Ship-To; Transportation: Ship-To
/ Ship-From)
▪ No predefined alerts
Participants
▪ Supply planner
Output
Planning Operator
▪
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Time-Series-Based Supply Planning Optimizer
Analytics
▪ 1 predefined ‘Supply Review’ dashboard with 5 charts
Collaboration
▪
1 step with 1 task in predefined S&OP process
management template with SAP Work Zone task
integration
75
Scope in detail
IBP for sales and operations – reconciliation review
IBP for sales and operations – reconciliation review
Process flow
Supply Review –
Heuristic
Constrained
Demand Plan
Supply Review –
Optimizer
Constrained
Demand Plan
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Review
Supply Scenarios
Constrained
Demand Plan
Reconciliation Review
SAP IBP Process
Agree on
Executive Proposal
Constrained
Demand Plan
External Process
Management
Business Review
Final Consensus
Demand Plan
77
IBP for sales and operations – reconciliation review
Description
The reconciliation review is the third phase of the sales and operations planning process. Representatives from sales, finance, marketing,
production, and demand planning discuss deviations between constrained demand and consensus demand. They agree on one executive
proposal, and prepare a list of issues that must be resolved urgently. Afterwards, the executive management decides on an executive
proposal during the management business review.
Scope
Technical details
Use Case
Input
▪ Evaluate constrained demand scenarios and prepare
an executive proposal for demand, supply, and finance
alignment
▪ Constrained consensus demand plan
Benefits
▪ Better align your strategic long-term supply chain
planning with your operational short-term planning
▪ Improve the speed, agility, and accuracy of sales and
operations planning
Frequency
▪ Monthly
Participants
▪ Director of finance, sales manager, marketing
manager, demand planner, supply planner
▪ S&OP coordinator
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
User interaction
Fiori Apps
▪ Dashboards – Advanced
▪ Manage Tasks
Output
▪ Constrained consensus demand plan
Planning Level
▪ Months / Product Family / Customer Group
Planning Operator
▪
No planning operator
Planning Views
▪ Version Comparison, 1 worksheet
Alerts
▪ No predefined alerts
Analytics
▪ 1 predefined ‘Reconciliation Review’ dashboard with
12 charts
Collaboration
▪
1 step with 2 tasks in predefined S&OP process
management template with SAP Work Zone task
integration
78
Scope in detail
IBP for sales and operations – management business
review
IBP for sales and operations – management business review
Process flow
S&OP – forecast error
calculation and analysis
Forecast
Errors
Reconciliation
Review
Constrained
Demand Plan
Review
Executive Proposal
Constrained
Demand Plan
Approve
Final Plan
Final Consensus
Demand Plan
Demand
Planning
Global
Demand Plan
Operational Planning &
Execution Processes
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Management
Business Review
SAP IBP Process
External Process
80
IBP for sales and operations – management business review
Description
The management business review is the fourth phase of the sales and operations planning process. The executive management of the
business units involved determines if the proposal presented aligns with the company's financial targets and key performance indicators.
They assess and decide on the presented list of issues that must be resolved urgently. This results in an approved final consensus demand
and supply plan ultimately designed to drive revenue growth and increase market share, optimize product and customer profitability,
minimize inventory costs, and overcome capacity constraints.
Scope
Technical details
Use Case
Input
▪ Achieve executive agreement on final consensus
demand plan across functional business units
▪ Constrained consensus demand plan
Benefits
▪ Final consensus demand plan
▪ Increased product and customer profitability by given
supply and financial constraints
▪ Optimized business plan to drive revenue growth and
increase market share
▪ Improve the speed, agility, and accuracy of sales and
operations planning
Frequency
▪ Monthly
Participants
▪ Executive management of the involved lines of
business
▪ S&OP coordinator
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Output
Planning Level
▪ Months / Product Family / Customer Group
Planning Operator
▪
No planning operator
User interaction
Fiori Apps
▪
▪
▪
▪
Dashboards - Advanced
Manage Processes
Manage Realignment Rules
Manage Tasks
Planning Views
▪ No predefined Excel template
Alerts
▪ No predefined alerts
Analytics
▪ 1 predefined ‘Management Business Review’
dashboard with 4 charts
Collaboration
▪
1 step with 2 tasks in predefined S&OP process
management template with SAP Work Zone task
integration
81
Scope in detail
IBP for sales and operations – forecast error
calculation and analysis
IBP for sales and operations – forecast error calculation and analysis
Process flow
Management
Business Review
Final Consensus
Demand Plan
Sales &
Distribution
Open,Confirmed,Delivered
Sales Orders
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
S&OP – forecast error
calculation and analysis
Run Forecast
Error Calculation
Forecast
Errors
SAP IBP Process
Analyze
Forecast Errors
Forecast
Accuracy
External Process
83
IBP for sales and operations – forecast error calculation and analysis
Description
As an S&OP coordinator, you use the results of forecast error calculations to evaluate and monitor the forecasting accuracy of your sales
and operations planning. With the help of predefined forecast error profiles and dedicated analytics, you can check the forecast error for
consensus demand and final consensus demand, identify areas where forecasting accuracy needs to be improved, calculate forecast
accuracy at product-location-customer level, and set appropriate forecasting accuracy goals for various types of products.
Scope
Technical details
Use Case
Input
▪ Analyze the accuracy of past consensus demand
forecasts by calculating error measures based on
actual sales data
▪ Unconstrained consensus demand plan
▪ Final consensus demand plan
▪ Sales history
Benefits
Output
▪ Insight into forecast accuracy
▪ Increased forecast quality
▪ Forecast error values
Frequency
▪ Months / Product / Location / Customer
▪ Monthly
Participants
▪ S&OP process expert
▪ S&OP coordinator
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Planning Level
Planning Operator
▪
Forecast Error Calculation
User interaction
Fiori Apps
▪ Application Jobs
▪ Dashboards - Advanced
Planning Views
▪ No predefined Excel template
Alerts
▪ No predefined alerts
Analytics
▪ 1 predefined ‘SOP Forecast Error’ dashboard with 6
charts
Collaboration
▪
No predefined process management or SAP Work
Zone integration
84
Scope in detail
IBP for sales and operations – footprint analysis
IBP for sales and operations – footprint analysis (5LG)
Process Flow
Supply Review –
Heuristic
Constrained
Demand Plan
Supply Review –
Optimizer
Constrained
Demand Plan
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Check Footprint
Analysis
Footprint on
Product/Location Level
Create Alternative
Supply Plan
Supply Plan Scenario
Run Supply
Heuristic
Footprint on
Product/Location Level
Footprint Analysis
SAP IBP Process
86
IBP for sales and operations – footprint analysis
Description
As a global supply chain planner, you use the results of the supply planning run to monitor the greenhouse gas emissions of your plants on
a geographic map. You use the Intelligent Visibility app to analyze the footprint calculated based on the production receipts of the long-term
production plan multiplied by the footprint of the product/location. Alerts show you where the footprint is above a predefined threshold.
Charts allow you to drill down to the detailed level of information to get a comprehensive view. You create a scenario in Planner Workspace
app to see how the results change if you adjust the production receipts in the plants.
Technical details
User interaction
▪ Monitor and evaluate footprint information based on a
given supply plan
Planning Level
Fiori Apps
Benefits
Planning Operator
Scope
Use Case
▪ Provide visibility regarding greenhouse gas emissions
for long-term production plan
Frequency
▪ Week / Product / Location
▪ Prerequisite: Time-Series-Based Supply Planning
Heuristic / Optimizer
▪
▪
▪
▪
▪
Intelligent Visibility Profiles
Intelligent Visibility
Web-Based Planning
Application Jobs
Planner Workspaces
Planning Views
▪ On demand
▪ No predefined Excel template
▪ Web-based planning views for Planner Workspace
Participants
Alerts
▪ Supply planner
▪ CO2e (Procurement and Production) Above Threshold
Analytics
▪ 5 charts: “CO2e by Plant”, “CO2e Distribution by Product”,
”CO2e Distribution by region”, “CO2e Heatmap by Product
and Plant”, “CO2e Scenario”
Collaboration
▪
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
No predefined process management or SAP Work Zone
integration
87
Architecture – Where does the footprint data come from?
SAP Integrated Business Planning
Sample Planning Area SAPIBP1
Supply Plan
CO2
Reporting
SAP Product Footprint Management
API
SAP S/4HANA
SAP
CI-DS
SAP CI-DS
Agent
SAP S/4HANA, supply chain integration
add-on for SAP IBP
CI-DS templates enhanced with footprint per unit
Cloud
On Premise
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
88
Scope in detail
IBP for demand – demand planning
IBP for demand – demand planning
Process flow
Sales
Planning
Sales
Forecast
Sales &
Distribution
Open,Confirmed,Delivered
Sales Orders
New Product
Introduction
New Products
Gather and Cleanse
Historical Data
Adjusted
Actuals
Time-Series
Analysis
Distribution of Change
Points and Analysis
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Run Statistical
Forecasting
Statistical
Forecast
Create Local
Demand Plan
Local
Demand Plan
Management
Business Review
Final Consensus
Demand Plan
Create Global
Demand Plan
Global
Demand Plan
Demand
Review
Consensus
Demand Plan
Demand
Sensing
Sensed
Demand
Demand – Forecast Error
Calculation and Analysis
Forecast
Errors
Supply and
Allocations Planning
Supply Proposals.
Product Allocations
Operational Planning &
Execution Processes
Inventory
Optimization
Inventory
Plans
ABC-XYZ
Segmentation
Segmented
Products
Demand Planning
SAP IBP Process
External Process
90
IBP for demand – demand planning
Description
During demand planning, you use statistical forecasting methods to gain full demand transparency for mid- and long-term forecasts,
resulting in an adopted global demand plan at the end of each week. As the demand planning process expert, the local demand planner, or
the global demand planner, you collaborate in a globally distributed demand planning team and align on your decisions using SAP Work
Zone. You can combine automated, exception-based planning processes as well as manual planning capabilities and execute role-based
local and global demand planning.
.
Scope
Technical details
Use Case
Input
▪ Mid- or long-term demand planning
▪ Advanced statistical forecasting
▪ Role-based local and central planning
▪ Order-based or time-series-based sales history
▪ Approved consensus demand plan from the last S&OP
cycle
▪ Additional input: sales forecast, final sensed demand*
User interaction
Fiori Apps
Benefits
▪ Improved forecast accuracy with automatic forecast
models based on historical data
▪ Increased efficiency through automated exceptionbased planning, embedded analytics, and
collaboration capabilities
Output
Frequency
▪ Weeks / Product / Location / Customer
▪ Weekly
▪ New global demand plan at the end of every week
Planning Operator
Participants
▪ Local demand planner, global demand planner,
demand planning process expert
▪ Global demand plan
▪ Combined final demand = global demand plan + last
final sensed demand*
Planning Level
▪
Statistical forecasting based on forecast models that
support a broad range of forecasting algorithms and
any combinations thereof
▪
▪
▪
▪
▪
Data Integration Jobs
Dashboards - Advanced
Monitor Custom Alerts
Planner Workspaces
Manage Planning Notes
Planning Views
▪
▪
▪
▪
▪
Historical Data Cleanse, 1 worksheet
Statistical Forecast, 1 worksheet
Local Demand Plan, 1 worksheet
Global Demand Plan, 2 worksheets
2 Web-based planning views
Alerts
▪ 2 predefined custom alerts: Global Demand Planner,
Statistical Fcst Error Measures
Analytics
▪ 1 predefined ‘Demand Planning’ dashboard with 4 charts +
2 alert overviews
Collaboration
▪
No predefined process management or SAP Work Zone
integration
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
*only if the IBP for demand – demand sensing scope item is implemented
91
Scope in detail
IBP for demand – new product introduction
IBP for demand – new product introduction
Process flow
Define Product
Lifecycle
Reference Product /
Manual Forecast
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Run Statistical
Forecasting
Statistical
Forecast
Demand Planning
Check Results
Statistical
Forecast
SAP IBP Process
Demand
Planning
Global
Demand Plan
External Process
93
IBP for demand – new product introduction
Description
Companies introduce new products into their portfolio on a regular basis. When you start planning for a new product, there’s usually no historical data available. You
can search for similar products and use their historical data to obtain reliable forecasts for the future demand of the new product. This scope item shows three
different variants for the new product introduction process – using a reference product with substitution, using a reference product without substitution, and using
manual forecasting without a reference product. It covers the following tasks: creating the planning objects, defining the reference product or manual forecast,
executing the statistical forecast run, and finally checking the result.
Scope
Technical details
Use Case
Input
▪ Mid- or long-term demand planning of new products
▪ Advanced statistical forecasting
▪ Time-series-based sales history (needed for reference
product variant)
▪ Additional parameters: base value, trend, seasonality
(needed for manual forecast)
Benefits
▪ Improved forecast accuracy both for new and obsolete
products
▪ Reliable forecast for new products without sales
history
▪ Reliable forecast for products during phase-out period
▪ Manage global product launch with different phasein/phase-out dates
Frequency
▪ On demand
Participants
Output
▪ Statistical forecast
Planning Level
▪ Weeks / Product / Location / Customer
Planning Operator
▪
Statistical forecasting based on forecast models that
support a broad range of forecasting algorithms and
any combinations thereof, or on manual forecast
patterns defined in the Manage Product Lifecycle app
User interaction
Fiori Apps
▪ Data Integration Jobs
▪ Manage Product Lifecycle
▪ Manage Master Data
Planning Views
▪ Statistical Forecast, 1 worksheet
Alerts
▪ No predefined alerts
Analytics
▪ No predefined analytics
Collaboration
▪
No predefined process management or SAP Work
Zone integration
▪ Local demand planner, global demand planner,
demand planning process expert
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
94
Scope in detail
IBP for demand – demand sensing
IBP for demand – demand sensing
Process flow
Demand
Planning
Global
Demand Plan
ABC-XYZ
Segmentation
Segmented
Products
Sales &
Distribution
Open,Confirmed,Delivered
Sales Orders
Run Demand
Sensing
Sensed
Demand
Manage Demand
Sensing Issues
Final
Sensed Demand
Inventory
Optimization
Inventory
Plans
Demand – forecast error
calculation and analysis
Forecast
Errors
Supply and
Allocations Planning
Supply Proposals.
Product Allocations
Operational Planning &
Execution Processes
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Demand Sensing
SAP IBP Process
External Process
96
IBP for demand – demand sensing
Description
Demand sensing helps you refine short-term forecasts and drive better fulfillment and inventory reduction. As a demand planner, you
schedule the demand sensing job on a daily basis to identify demand patterns based on granular demand signals such as demand planning
quantity, requested quantity, and completed deliveries. Alerts help you detect potential issues caused by deviations between the final sensed
demand quantity and the demand planning quantity. You can also include the demand sensing forecast into the collaborative demand
planning process, enabling you to adjust your demand plans.
User interaction
Scope
Technical details
Use Case
Input
▪ Short-term statistical forecasting with algorithms based
on pattern recognition
▪ Confirmed sales orders with future material availability
date (only order-based data)
▪ Global demand plan
▪
▪
▪
▪
Output
Planning Views
Benefits
▪ React faster to short-term demand changes
▪ Drive more accurate deployment of products based on
short-term demand
Frequency
▪ Sensed demand (result of algorithm)
▪ Final sensed demand (contains manual adjustments to
sensed demand, otherwise equals sensed demand)
▪ Daily batch run
▪ Manual interaction only in case of alerts
Planning Level
Participants
Planning Operator
▪ Demand planner
▪
▪ Days / Product / Location / Customer
▪
▪
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Demand sensing algorithm can be applied in forecast
models of the Statistical Forecasting operator
Demand Sensing with Gradient Boosting
Daily disaggregation optimization for the update run
Fiori Apps
Manage Forecast Models
Application Jobs
Monitor Custom Alerts
Web-Based Planning
▪ 1 predefined ‘Demand Sensing’ web-based planning
view
Alerts
▪ 1 custom alert to inform the demand planner about
large deviations between global demand plan and
sensed demand
Analytics
▪ No predefined chart
Collaboration
▪
Typically no collaboration involved during the process,
therefore no SAP Work Zone integration
97
Scope in detail
IBP for demand – forecast error calculation and
analysis
IBP for demand – forecast error calculation and analysis
Process flow
Demand
Planning
Global
Demand Plan
Sales &
Distribution
Open,Confirmed,Delivered
Sales Orders
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Demand – Forecast error
calculation and analysis
Run Forecast
Error Calculation
Forecast
Errors
SAP IBP Process
Analyze
Forecast Errors
Forecast
Accuracy
External Process
99
IBP for demand – forecast error calculation and analysis
Description
As a demand planner, you use the results of forecast error calculations to evaluate and monitor the forecasting accuracy of your demand
planning. With the help of predefined forecast error profiles and dedicated analytics, you can check the forecast error for the statistical
forecast and the combined final demand plan, identify areas where forecasting accuracy needs to be improved, calculate forecast accuracy
at product-location-customer level, and set appropriate forecasting accuracy goals for various types of products.
Scope
Technical details
Use Case
Input
▪ Analyze the accuracy of past demand forecasts by
calculating error measures based on actual sales data
▪ Statistical forecast
▪ Combined final demand
▪ Sales history
Benefits
▪ Insight into forecast accuracy
▪ Increased forecast quality
Output
Frequency
Planning Level
▪ Monthly
▪ Months / Product / Location / Customer
Participants
Planning Operator
▪ Demand planning process expert
▪
▪ Forecast error values
Forecast Error Calculation
User interaction
Fiori Apps
▪ Application Jobs
▪ Dashboards - Advanced
Planning Views
▪ No predefined Excel template
Alerts
▪ No predefined alerts
Analytics
▪ 1 predefined ‘Demand Planning Forecast Error’
dashboard with 11 charts
Collaboration
▪
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
No predefined process management, no SAP Work
Zone integration
100
Scope in detail
IBP for demand – time-series analysis
IBP for demand – time-series analysis
Process flow
Calculation of
Forecast Error
Forecast
Error
ABC-XYZ
Segmentation
Run
Time-Series Analysis
Result of Segmentation
Time Series Property
Analyze
Time Series Pattern
Distribution of
Time Series Property
Run Change Point
Detection
Change Points
Review Change Point
Detection Results
Distribution of Change
Points and Analysis
Demand
Planning
Global Demand Plan
ABC-XYZ
Segmentation
Result of Segmentation
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Demand – time-series analysis
SAP IBP Process
External Process
102
IBP for demand – time-series analysis
Description
Time-series analysis and change point detection are powerful tools. They help you as a demand planning process expert identify patterns in
individual time series such as Trend, Seasonality, Continuous, and Irregular as well as significant changes, for example, level shifts where
the mean of the time series values alters significantly or trend changes where the direction or slope of a trend alters significantly. Based on
these insights, you can select the most suitable forecast algorithms. You can further analyze these results together with those from ABC
segmentation and demand forecast accuracy to better understand the structure of the underlying data.
Scope
Technical details
Use Case
Input
▪ Analyze time series and record time series properties
▪ Time Series
▪ ABC Segmentation
▪ Demand Forecast Accuracy
Benefits
▪ Provide domain and business knowledge to forecast
automation
▪ Insight into behavior and characteristics of time series
User interaction
Fiori Apps
▪ Application Jobs
▪ Dashboards - Advanced
▪ Manage Forecast Automation Profiles
Output
Planning Views
▪ Time Series Properties
▪ No predefined Excel template
Frequency
Planning Level
Alerts
▪ 3-Monthly
▪ Customer / Location / Product / Week
▪ No predefined alerts
Participants
Planning Operator
Analytics
▪ Demand planning process expert
▪
Forecast Automation
▪ 1 predefined ‘time-series analysis’ dashboard with 3
charts
Collaboration
▪
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
No predefined process management, no SAP Work
Zone integration
103
Scope in detail
IBP for inventory
IBP for inventory
Process flow
ABC-XYZ
Segmentation
Segmented
Products
Demand
Planning
Global
Demand Plan
Validate
Data Inputs
Demand
Forecast
Run and Review
Inventory Plan
Inventory
Plans
Finalize
Inventory Plan
Inventory
Plans
What-If
Analysis
Inventory
Plans
Demand
Sensing
Sensed
Demand
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Inventory Optimization
SAP IBP Process
External Process
Supply Review –
Heuristic, Optimizer
Constrained
Demand Plan
Operational Planning &
Execution Processes
105
IBP for inventory
Description
Inventory optimization helps you balance your customer service and inventory investment levels. Considering uncertainties in demand
forecasts, lead times, and supply quantities, SAP Integrated Business Planning optimizes your entire supply chain network and determines
the optimum safety stock for each stocking location. As an inventory planner, you validate your input data and then create an inventory plan
by running several planning operators calculating the safety stock levels and the inventory components for each location. Using dashboards
and planning view, you can review the optimization results. You can also execute a what-if analysis to see how changed demands affect
inventory component levels.
Scope
Use Case
▪ Multi-stage inventory optimization across all stages of
the supply chain, compensating for uncertainties in
demand forecasts, supply timing, and supply quantity
▪ Prescribe inventory targets to minimize inventory costs
while buffering for uncertainty and meeting customer
service targets
▪ Execute a what-if analysis to identify supply chain
improvement opportunities
Benefits
▪ Maximize the utilization of inventory
▪ Improve customer service levels
Frequency
▪ Weekly
Participants
▪ Inventory planner
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Technical details
User interaction
Input
Fiori Apps
▪ Global demand plan
▪ Final sensed demand
▪ Target service levels
Output
▪
▪
▪
▪
▪
▪
▪
Safety stock
Cycle stock
On-hand stock
In-process stock
Vendor-in-transit stock
Merchandising stock
Inventory position
Planning Level
▪ Weeks / Product / Location
Planning Operator
▪
Used algorithms of the Inventory Optimization
operator: Multi-Stage Inventory Optimization and
Target Inventory Components, Forecast Error
Calculation
▪ Dashboards - Advanced
Planning Views
▪
▪
▪
▪
Input Data Review, 5 worksheets
Planning Results, 4 worksheets
Scenario Comparison, 1 worksheet
Inventory Component Review, 3 worksheets
Alerts
▪ The ‘Planning Results’ planning view includes 2 alert
definitions for recommended safety stock and safety
stock delta
Analytics
▪ 3 predefined dashboards: Validate Data Inputs (7
charts), Review Inventory Plan (9 charts), Finalize
Inventory Plan (5 charts)
Collaboration
▪
No predefined process management or SAP Work
Zone integration
106
Scope in detail
IBP for inventory – scenario planning
IBP for inventory – scenario planning
Process flow
Inventory
Optimization
Create
Scenario
Edit
Scenario
Run Scenario
Inventory Plan
Scenario for demand /
transportation
Target Service Level /
Transportation Leadtime
Inventory
Plans
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Scenario Planning
SAP IBP Process
View
Results
Recommended
Safety Stock
108
IBP for inventory – scenario planning
Description
Inventory scenario planning allows you to spontaneously create scenarios for inventory-related changes to demand, transportation, production,
and policy input variables.​​ This helps you better understand how these changes affect your inventory plans.
As an inventory analyst, you first create a scenario which defines the analysis type, either demand or transportation. In the next step, you can
change the input key figures specific to your analysis type. The inventory optimization operator creates a simulation and you can then compare
the analysis results to the baseline plan.
Scope
Technical details
User interaction
Use Case
Input
Fiori Apps
▪ Simulate strategic decisions, e.g. changes to key
inputs for inventory plans
▪ Understand the impact of inventory input variables on
inventory plans
▪ Inventory plan
▪ Demand, transportation variables, e.g. target service
level, transportation leadtime
▪ Inventory Analysis
Benefits
▪ Recommended safety stock
▪ Demand, supply, service variability safety stock
▪ Zero lot size additional safety stock
Alerts
Planning Level
Analytics
▪ Evaluate the impact of certain scenarios compared to
baseline planning outputs
▪ Better understand the impact of demand and
transportation variables
▪ Determine the sensitivity of input variables with regard
to baseline planning outputs
Frequency
▪ On demand
Output
▪ Weeks / Product / Location
Planning Operator
▪
Used algorithm of the Inventory Optimization operator:
Multi-Stage Inventory Optimization and Target
Inventory Components
Planning Views
▪ No predefined Excel template
▪ No predefined alerts
▪ No predefined dashboards / charts
Collaboration
▪ No predefined process management, no SAP Work
Zone integration
Participants
▪ Inventory analyst
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
109
Scope in detail
IBP – ABC-XYZ Segmentation
IBP – ABC-XYZ Segmentation
Process flow
Sales &
Distribution
Open,Confirmed,Delivered
Sales Orders
Run ABC/XYZ
Segmentation
Segmented
Products
Review Segmentation
of Products
Segmented
Products
Demand
Planning
Global
Demand Plan
Demand
Sensing
Sensed
Demand
Inventory
Optimization
Inventory
Plans
Demand
Review
Consensus
Demand Plan
Supply Review –
Heuristic, Optimizer
Constrained
Demand Plan
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
ABC-XYZ Segmentation
SAP IBP Process
External Process
111
IBP – ABC-XYZ Segmentation
Description
You use different types of segmentation to group your planning objects based on the values of a selected key figure. ABC segmentation
prioritizes your objects based on their relative importance, for example, the revenue contribution of your products, whereas XYZ
segmentation classifies your objects based on the demand volatility of your products, for example constant or seasonal demand. The result
of the segmentation is used in almost every scope item for specific analytics and custom alerts, but also helps you generate more accurate
results for demand planning, inventory planning, and sales and operations planning.
Scope
Technical details
User interaction
Use Case
Input
Fiori Apps
▪ Group products based on sales history
▪ Sales history
Benefits
Output
▪ Application Jobs
▪ Dashboards - Advanced
▪ Tailor your forecast strategy and inventory
optimization to the characteristics of segments
▪ Analyze forecast accuracy by product segments
▪ Identify inventory items that require closer attention
▪ Define alerts for specific segments only
▪ View analytic charts with regards to specific segments
▪ Segmented products
Planning Level
▪ Product
Planning Operator
▪
Segmentation
Planning Views
▪ No predefined Microsoft Excel template
Alerts
▪ No predefined alerts
Analytics
▪ Monthly
▪ 1 predefined ‘ABC-XYZ Segmentation’ dashboard with
2 charts
Participants
Collaboration
▪ Process expert
▪
Frequency
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
No predefined process management, no SAP Work
Zone integration
112
IBP – ABC-XYZ Segmentation
▪
ABC/XYZ segmentation lets you group planning objects based
on the values of a selected key figure
▪
A sample segmentation profile is delivered with SAPIBP1 that
categorizes products by historical sales revenue with a 70-2010 distribution (A-B-C) and by coefficient of variation in
historical sales quantity (X-Y-Z) in the past 12 months
▪
The ABC-XYZ Segmentation scope item describes how to run
the segmentation operator and analyze the result; it’s a
preceding process to all other scope items
▪
Segmentation is used in every scope item for specific analytics
and custom alerts to guide the user to the most relevant
segments, thereby increasing user efficiency and generating
more accurate planning results
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
113
Order-based planning
•
•
•
•
•
•
•
•
•
•
Sample process flow of response management including SAP S/4HANA processes
Sample process flow of deployment planning including SAP S/4HANA processes
IBP for response and supply – supply and allocations planning – heuristic
IBP for response and supply – supply and allocations planning – optimizer
IBP for response and supply – response planning
IBP for response and supply – deployment planning – optimizer
IBP for response and supply – transportation load building
IBP – order-based planning inbound integration with SAP S/4HANA
IBP – order-based planning inbound integration for deployment planning
IBP – order-based planning outbound integration with SAP S/4HANA
Real-Time Integration – SAP Best Practices specific notes
For technical reasons, the following assets/scope items will not be available since 2202:
-
IBP - Business Network Collaboration - supplier commit with SAP Ariba (2P2) scope item
-
Sample data loaded using the Data Provisioning Agent and the file adapter (see Tips&Tricks
document - Setup Instructions for File Adapter in Order-Based Planning) not available for RTI
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
115
Supply and Allocations Planning Heuristic / Optimizer / Response Planning
Sample process flow of response management including SAP S/4HANA processes
SAP IBP
SAP S/4HANA
SO Confirm
Sell from Stock
(BD9)
Create Initial Stock, SO,
Delivery
OBP Inbound
Integration (2S4)
Supply and Alloc.
Plann. Heu/Opt
(2I0/42C)
Converting PR-> PO
PO processing
Converting Pl.O -> ProdO
ProdO processing
Make-to-Stock
Production (BJ5)
Procurement of
Direct Materials
(J45)
Manage STR
Pl.O
PR
SO Confirm
OBP Outbound
Integration (2S6)
Pl.O, PR, STR
SO Confirm
LEGEND
SAP IBP Process
(Scope Item)
SAP S/4HANA Process
(Scope Item)
SO
Sales Order
Pl.O
Planned Order
ProdO
Production Order
PR
Purchase Requisition
PO
Purchase Order
Stock Transfer
Requisition
STR
Intercompany
Stock Transfer
STR
Stock Transfer
with Delivery
STR
Stock Transfer
without Delivery
STR
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Response
Planning (2P0)
Prerequisite for sample product
master data:
MRP Type X0, no MRP in S/4
116
Deployment Planning - Optimizer
Sample process flow of deployment planning including SAP S/4HANA processes
SAP IBP
SAP S/4HANA
SO Confirm
Sell from Stock
(BD9)
Create Initial Stock, SO,
Delivery
OBP Inbound
Integration for
Deployment (4VA)
Run MRP for
Production
Planning
Convert
PR -> PO
Run MRP
for
Purchasing
Make-to-Stock
Production (BJ5)
Procurement of
Direct Materials
(J45)
Material
Requirements
Planning (J44)
Manage STR
Prerequisite for sample product
master data:
MRP Type X1, MRP in S/4
SO Confirm
STR, DSTR
OBP Outbound
Integration For
Deployment (5JD)
LEGEND
Deployment
Planning Opt.
(4UT)
Requires extending Best
Practices sample
product master data
with MRP-enabling data
STR, DSTR, SO Confirm
SAP IBP Process
(Scope Item)
SAP S/4HANA Process
(Scope Item)
STR, DSTR
STR, DSTR
SO
Sales Order
PR
Purchase Requisition
PO
Purchase Order
Stock Transfer
Requisition
Deployment Stock
Transfer Requisition
STR
DSTR
Intercompany
Stock Transfer
STR, DSTR
Stock Transfer
with Delivery
STR, DSTR
Stock Transfer
without
Delivery
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
STR, DSTR
117
Scope in detail
IBP for response and supply – supply and allocations
planning – heuristic
IBP for response and supply – supply and allocations planning – heuristic
Process flow
Demand
Planning
Global
Demand Plan
Demand
Sensing
Sensed
Demand
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Response
Planning
Supply Proposals,
Sales Order Confirmations
Review Priority Rules,
Forecast and Constraints
Unconstrained
Forecast
Run
Constrained Forecast
Constrained
Forecast
Check Alerts and
Identify Bottlenecks
Constrained
Forecast
Create Product
Allocation Plan
Product
Allocation Plan
Analyze Supply and
Allocations Planning
Constrained Forecast,
Product Allocation Plan
Available-to-Promise
Check
Sales Order
Confirmations
Operational Planning &
Execution Processes
Supply and
Allocations Planning
SAP IBP Process
External Process
119
IBP for response and supply – supply and allocations planning – heuristic
Description
Using a dedicated planning version, you create a supply plan and product allocation plan based on prioritized forecast demands and supply
chain constraints, for example, resource capacity or safety stock targets. As a supply planner, you run a supply planning for your dedicated
planning version. What-if and root cause analyses as well as simulation functions help you identify any gating factors and remove them by
adjusting the constraints and rerunning the constrained forecast. Once your new constrained forecast is ready, the account planner uses it
as input for the new product allocation plan in the dedicated version and copies all new data and adjusted constraints to the base planning
version. Running the constrained forecast again in your base version provides you with a new feasible supply plan and a new product
allocation plan.
Scope
Technical details
User interaction
Use Case
Input
Fiori Apps
▪ Create a finite supply plan based on prioritized
demand and supply chain constraints
▪ Create a product allocation plan for available-topromise (ATP) checks and confirmation of sales
orders
▪ Global demand plan, sensed demand
▪ Resource capacities
Benefits
▪ Reduce inventory carrying costs
▪ Avoid capacity and material shortages
▪ Ability to quickly react to exceptions in the supply
chain with fast simulations
Frequency
Output
▪ Constrained forecast
▪ Product allocations
Planning Level
▪
▪
▪
▪
▪
▪
Application Jobs
Planning Run Profiles
Dashboards - Advanced
Monitor Custom Alerts
View Gating Factors
Manage Versions and Scenarios
Planning Views
▪ Days / Product / Location / Customer
▪ Forecast and Constraints, 4 worksheets
▪ Forecast and Product Allocations, 1 worksheet
Planning Operator
Alerts
▪
Order-based planning: Supply Planning Run
▪ ‘Forecast Deviation Above or Below Threshold’ custom alert
Analytics
▪ Weekly
▪ 1 predefined ‘Supply and Allocations Planning’ dashboard with
6 charts + 1 alert overview
Participants
Collaboration
▪ Supply planner
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
▪
No predefined process management, no SAP Work
Zone integration
120
Scope in detail
IBP for response and supply – supply and allocations
planning – optimizer
IBP for response and supply – supply and allocations planning – optimizer
Process flow
Demand
Planning
Global
Demand Plan
Demand
Sensing
Sensed
Demand
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Response
Planning
Supply Proposals,
Sales Order Confirmations
Review
Planning Run Profile
Cost Rules
Run Constrained
Forecast using Optimizer
Constrained
Forecast
Create Product
Allocation Plan
Product
Allocation Plan
Analyze Supply and
Allocations Planning
Constrained Forecast,
Product Allocation Plan
Available-to-Promise
Check
Sales Order
Confirmations
Operational Planning &
Execution Processes
Supply and
Allocations Planning
SAP IBP Process
External Process
122
IBP for response and supply – supply and allocations planning – optimizer
Description
Using a dedicated planning version, you as a supply planner create a supply plan and product allocation plan based on given capacities,
supply chain constraints, and cost rules. These rules consider costs such as inventory holding costs, safety stock violation costs,
transportation costs, procurement costs, production costs, and demand costs. You run a supply planning for your dedicated planning
version. Alerts help you identify any deviations, and you can also check the supplier delivery and capacity consumption to detect potential
bottlenecks. Once your new constrained forecast is ready, the account planner uses it as input for the new product allocation plan in the
dedicated version and copies all new data and adjusted constraints to the base planning version. Running the constrained forecast again in
your base version provides you with a new feasible supply plan and a new product allocation plan.
Scope
Technical Details
User Interaction
Use Case
Input
Fiori Apps
▪ Create a finite supply plan based on cost rules and
supply chain constraints
▪ Create a product allocation plan for available-topromise (ATP) checks and confirmation of sales
orders
▪ Global demand plan, sensed demand
▪ Resource capacities
Benefits
▪ Reduce inventory carrying costs
▪ Avoid capacity and material shortages
▪ Ability to quickly react to exceptions in the supply
chain with fast simulations
Frequency
Output
▪
▪
▪
▪
▪ Constrained forecast
▪ Product allocations
Planning Views
Application Jobs
Planning Run Profiles
Dashboards - Advanced
Monitor Custom Alerts
Planning Level
▪ Forecast and Constraints, 4 worksheets
▪ Forecast and Product Allocations, 1 worksheet
▪ Days / Product / Location / Customer
Alerts
Planning Operator
▪
Order-based planning: Supply Planning run Using
Optimizer
▪ ‘Forecast Deviation Above or Below Threshold’
custom alert
Analytics
▪ Weekly
▪ 1 predefined ‘Supply and Allocations Planning’
dashboard with 6 charts + 1 alert overview
Participants
Collaboration
▪ Supply planner
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
▪
No predefined process management, no SAP Work
Zone integration
123
Scope in detail
IBP for response and supply – response planning
IBP for response and supply – response planning
Process flow
Supply and Allocation
Planning
Product Allocation
Supply Proposals
Sales Order
Processing
Open,Confirmed,Delivered
Sales Orders
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Review Demands
by Priority
Run and Check
Order Confirmation Run
Create and Simulate
Scenario
Ranked Demand
Sales Order Confirmation
Adjusted Allocation
Response Planning
SAP IBP Process
Order Confirmation
for Adjusted Allocation
Supply Plan
Sales Order Confirmations
External Process
Execution on Orders
Sales Order
Confirmations
Available-to-Promise
Processing
Sales Order
Confirmations
125
IBP for response and supply – response planning
Description
By creating order confirmations and an adopted supply plan based on prioritized demands, allocations, and supply chain constraints,
response planning allows you to quickly respond to incoming customer orders. As an account planner, you check how demand is prioritized
based on a specific rule and then execute the supply planning run to calculate a new supply plan, confirm sales orders, and consume
product allocations. Using analysis and simulation features, you evaluate confirmations and identify and remove any issues and gating
factors to finalize your supply plan. Once you are satisfied with your scenario, you copy the data to your base planning version.
Scope
Technical details
User interaction
Use Case
Input
Fiori Apps
▪
▪
▪
▪
▪ Product allocation
▪ Supply constraint
▪ Orders
Adjust supply plan
Respond to incoming customer orders
Confirm sales orders
Plan allocation for constrained supply
Benefits
▪
▪
▪
▪
Flexible short-term response to market reality
Detailed end-to-end visibility
Root cause analysis through gating factor analysis
Maximize service level using what-if analysis for a
potential opportunity or risk scenario without impacting
the live data
Frequency
▪ Daily
Participants
▪ Account planner
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Output
▪
▪
▪
▪
Confirmed sales orders
Planned orders
Purchase requisitions for components
Stock transfer requisitions
Planning Level
▪
▪
▪
▪
▪
▪
▪
View Demands by Priority
Application Jobs
Intelligent Visibility
Manage Versions and Scenarios
Projected Stock
View Confirmations
Planner Workspaces
Planning Views
▪ No predefined Microsoft Excel planning views
▪ Planning view for Web UI
Alerts
▪ Day / Product / Location / Customer
▪ No predefined alerts
Planning Operator
Analytics
▪
Order-based planning: Supply Planning Run
▪ No predefined analytics
Collaboration
▪
No predefined process management, no SAP Work Zone
integration
126
Scope in detail
IBP for response and supply – deployment planning –
optimizer
IBP for response and supply – deployment planning – optimizer
Process flow
Production /
Procurement
Stock
Sales Order
Processing
Open,Confirmed,Delivered
Sales Orders
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Run and Check
Deployment Run
Check Alerts for
Central & Local DC
Distribution Plan
Safety Stock Violation
Deployment Planning
Create New Short-Term
Demand
Forecast
SAP IBP Process
Run and Check
Deployment Run
Check Alerts for
Central & Local DC
Distribution Plan
Safety Stock Violation
External Process
Execution on Orders
Stock Transfer
Requisitions
128
IBP for response and supply – deployment planning – optimizer
Description
Deployment planning helps you create a reliable short-term deployment plan by distributing available supply to demand. As a distribution planner, you first schedule
the deployment run job and then check the alerts for each location product where safety stock violations occur to identify potential issues. Considering all customer
demands and safety stock, the optimizer tries to find the globally best solution to satisfy the demands with the existing supply elements. Cost parameters, fair share
stock segments, and the available-to-deploy profile are used as the input for the run.
Note: This scope item and the two scope items for supply and allocations planning and response planning are mutually exclusive because the deployment optimizer
run does not consider product allocations (see SAP Note 2640432).
Scope
Technical details
User interaction
Use Case
Input
Fiori Apps
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪ Plan the distribution of available supply to demand
▪ Respond to unforeseeable events in the supply chain
Benefits
▪ Flexible short-term response considering
unforeseeable events in the supply chain
▪ Detailed end-to-end visibility
▪ Optimized solution based on predefined costs for
supply alternatives and demands
▪ Maximize service level using available supply from
central to downstream locations
Frequency
▪ Daily
Sales orders
Forecast
Safety stock / maximum stock
Transportation costs / demand costs / inventory costs
Fair share stock segments
Output
▪ Deployment Stock Transfer Requisitions
Planning Level
▪ Day / Product / Location / Customer
Planning Operator
▪ Order-based planning: Deployment Run using
optimizer
Planning Run Profiles
Application Jobs
Projected Stock
Planner Workspaces*
Planning Views
▪ No Microsoft Excel planning views
▪ Web-based planning views for Planner Workspace
Alerts
▪ Safety Stock Violation
Analytics
Participants
▪ 1 predefined ‘Deployment Planning’ dashboard with 1
alert overview and 1 supply chain network
▪ Distribution planner
Collaboration
▪
No predefined process management, no SAP Work
Zone integration
129
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
*only available in normalized planning areas
Scope in detail
IBP for response and supply – transportation load
building
IBP for response and supply – transportation load building
Process flow
Deployment
Planning
Stock Transfer
Requisitions
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Schedule transportation
load building Run
Load Stock Transfer
Requisitions
Deployment Planning
Analyse transportation
load building results
Load Stock Transfer
Requisitions
SAP IBP Process
Execution on Orders
Stock Transfer
Orders
External Process
131
IBP for response and supply – transportation load building
Description
Transportation load building (TLB) helps you to group planned distribution receipts for products with the same transportation lane,
transportation group, and delivery data. TLB is a subsequent planning step after deployment planning. As a distribution planner, you first
schedule the transportation load building run job. This job generates transportation loads for deployable products that are to be transported
between locations, and consolidates deployment requisitions into loads. In a next step, you can review the loads in the Planner Workspace.
Scope
Technical details
User interaction
Use Case
Input
Fiori Apps
▪ Deployment Stock Transfer Requisitions
▪ Application Jobs
▪ Planner Workspaces
▪ Group planned distribution receipts with the same
transportation lane, transportation group, and delivery
data into transportation loads
▪ Choose the optimal equipment type for each load
Benefits
▪ Reduce transportation costs by building optimal loads
that best utilize given equipment types
▪ Real-time integration of multi-item load requisitions to
SAP S/4HANA / tight order-level integration to SAP
ECC and SAP S/4HANA
Output
▪ Load Stock Transfer Requisitions
Planning Views
▪ Day / Lane / MOT / Load
▪ No Microsoft Excel planning views
▪ Web-based planning views for Planner Workspace
Planning Operator
Alerts
Planning Level
▪ Transportation load building run
▪ No alerts
Analytics
▪ Version and scenario management for master data
and transactional data
▪ No analytics / dashboard
Frequency
▪
▪ Daily
Collaboration
No predefined process management, no SAP Work
Zone integration
Participants
▪ Distribution planner
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
132
Scope in detail
IBP – order-based planning inbound/outbound
integration with SAP S/4HANA
IBP – order-based planning inbound integration with SAP S/4HANA
Description
Order-based planning requires the automatic synchronization of the SAP S/4HANA execution system and the SAP IBP planning system with
reconciliation. The built-in near real-time integration from the source to the target system using asynchronous functions ensures the
consistency of the master data and the transactional data.
Covering the complete integration process, this scope item describes the relevant master data and transactional objects and provides
references to SAP Best Practices for SAP S/4HANA which explain how you maintain this data in SAP S/4HANA. You’ll also find information
on how to carry out the initial and delta load and check the imported data with the help of SAP Fiori apps.
Scope
Technical details
Use Case
Inbound Integration – Objects
▪ Order-based planning in IBP with master and
transactional data from SAP S/4HANA
Benefits
▪ Built-in integration reduces implementation efforts and
costs
▪ Granular selection of the planning-relevant data that
must be transferred through the integration model
▪ Push-based delta integration providing up-to-date
planning data in SAP IBP
▪ Real-time integration ensures consistent data in both
systems and allows you to quickly react to demand
changes through sales orders
Configuration Data
▪ UOM, Calendar, Currency
Master Data
▪ Locations: Plant, DC, supplier, customer
▪ Materials
▪ Location Material
▪ Transportation Lane
▪ Work Centers
▪ Production Data Structures
Transactional Data
▪ Sales Orders
▪ Outbound Deliveries
▪ Initial Stock/Inventory
▪ Planned Orders
▪ Production Orders
▪ Purchase Requisition
▪ Purchase Orders
▪ Stock Transfer Requisitions/Stock
Transfer Orders
Participants
▪ Order-based planning administrator
▪ General response planner
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
134
IBP – order-based planning outbound integration with SAP S/4HANA
Description
Order-based planning requires a dynamic data integration across the SAP S/4HANA execution system and the SAP IBP system. The orderbased planning results can be transferred periodically back to the execution system which can then quickly and efficiently react to planning
changes, for example in production planning or purchasing. This process ensures that order information such as order numbers and order
quantities are consistent in both systems.
Scope
Technical details
Use Case
Outbound Integration – Objects
▪ Order-based planning in SAP IBP with master and
transactional data from SAP S/4HANA
▪ Sales order confirmation proposals (only after
response planning)
▪ Purchase requisitions
▪ Planned orders
▪ Stock transfer requisitions
Benefits
▪ Built-in integration reduces implementation efforts and costs
▪ Granular selection of the planning-relevant data that
must be transferred through the integration model
▪ Real-time integration ensures consistent data in both
systems and allows you to quickly react to demand changes
through sales orders
Participants
▪ Order-based planning administrator
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
135
IBP – order-based planning inbound integration for deployment planning
Description
Order-based planning requires the automatic synchronization of the SAP S/4HANA execution system and the SAP IBP planning system with reconciliation. The
built-in near real-time integration from the source to the target system using asynchronous functions ensures the consistency of the master data and the
transactional data.
Covering the complete integration process, this scope item describes the relevant master data and transactional objects and provides references to SAP Best
Practices for SAP S/4HANA which explain how you maintain this data in SAP S/4HANA. You’ll also find information on how to carry out the initial and delta load and
check the imported data with the help of SAP Fiori apps.
NOTE: This integration process scope item is a variation of the IBP – order-based planning inbound integration with SAP S/4HANA scope item adapted to the IBP
for response and supply – deployment planning – optimizer scope item.
Scope
Technical details
Use Case
Inbound Integration – Objects
▪ Deployment planning in IBP with master and
transactional data coming from SAP S/4HANA
Benefits
▪ Built-in integration reduces implementation efforts and
costs
▪ Granular selection of the planning-relevant data that
must be transferred through the integration model
▪ Push-based delta integration providing up-to-date
planning data in SAP IBP
▪ Real-time integration ensures consistent data in both
systems and allows you to quickly react to demand
changes through sales orders
Configuration Data
▪ UOM, Calendar, Currency
Master Data
▪ Locations: Plant, DC, customer
▪ Materials
▪ Location Material
▪ Transportation Lane
Transactional Data
▪ Sales Orders
▪ Outbound Deliveries
▪ Initial Stock/Inventory
▪ Planned Orders
▪ Production Orders
▪ Stock Transfer Requisitions/Stock
Transfer Orders
Participants
▪ Order-based planning administrator
▪ Distribution planner
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
136
IBP – order-based planning outbound integration for deployment planning
Description
Order-based planning requires a dynamic data integration across the SAP S/4HANA execution system and the SAP IBP system. The order-based planning results
can be transferred periodically back to the execution system which can then quickly and efficiently react to planning changes, for example in production planning or
purchasing. This process ensures that order information such as order numbers and order quantities are consistent in both systems.
NOTE: This integration process scope item is a variation of the IBP – order-based planning outbound integration with SAP S/4HANA scope item adapted to the IBP
for response and supply – deployment planning – optimizer scope item.
Scope
Technical details
Use Case
Outbound Integration – Objects
▪ Deployment planning / transportation load building in SAP
IBP with master and transactional data from SAP S/4HANA
▪ Sales order confirmation proposals
▪ Stock transfer requisitions (deployment stock transfer
requisitions and stock transfer requisitions)
▪ Load stock transfer requisitions
Benefits
▪ Built-in integration reduces implementation efforts and costs
▪ Granular selection of the planning-relevant data that
must be transferred through the integration model
▪ Real-time integration ensures consistent data in both
systems and allows you to quickly react to demand changes
through sales orders
Participants
▪ Order-based planning administrator
▪ Distribution planner
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
137
SAP IBP Real-Time Integration Architecture
SAP ECC/S4HANA and SAP IBP
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
138
Appendix
System landscape
System landscape
SAP Best Practices
SAP Integrated Business Planning
for Supply Chain
SAP Best
Practices
Sample Data Files
SAP IBP, Add-in for MS Excel
SAP Best Practices
Application Content
SAP S/4HANA
SAP Work Zone
SAP Enterprise
Product
Development
Integration
Methods &
Tools
SAP Fiori Launchpad in Browser
Sample Planning Areas
SAPIBP1, SAP7F, SAP8
SAP Best Practices
Application Content
SAP S/4HANA
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
140
SAP IBP Architecture Overview
* Integrated IAS-tenant now
reachable via tile in IBP-floorplan
System Landscape
SAP IBP, Add-In
Web User Interface
for MS Excel
IBP Fiori
SAP CoPilot
Cloud NW
IBP Applications
Applications
SC Control Tower
Collaboration
S&OP
Demand Driven Demand Response
Replenishment Inventory & Supply
Configuration
HANA Database
Data Model
OData Services
IAM
SAP Qualtrics
(for IBP-questionnaires)
SAP Business Technology
Platform
Customer build
Apps
(IBP internal service)
SAP Built-In
Support
SAP Cloud IPS
SAP Ariba
SAP
Enterprise Product
Development
SAP HANA
Spatial Services
Customer
Cloud Solutions
SAP JAM /
Workzone
SAP
Enable Now
SAP Analytics
Cloud (SAC)
SAP Cloud
ALM
Customer
Forecast Engine
SAP Cloud
IAG
SAP BTP
SAP Data
Custodian
SAP Launchpad
Service
SAP Logistics
Business Network
SAP Cloud IAS
Frontend
Backend
REST APIs
External MapProvider
(IBP internal service)
Theme
Designer
Job Scheduling
SAP Cloud
Connector
Data Integration
for SDI
SAP SDI
DP Agent
Data Integration
for CI-DS
Calculations and
Algorithms
SAP
CI-DS
SAP S/4HANA, TM or ECC
Supply chain
integration add-on
ECC only:
Core Interface (CIF)
Demand Driven
Replenishment
IBP Inbound & Outbound
SAP CI-DS
Agent
Other
(BW, …)
SAP
Customer
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
For more information on the integration scenarios in SAP IBP, see the documentation
Cloud
On Premise
Firewalls
141
Appendix
Scope item flow
What is a scope item flow vs. a unified planning process flow?
Using a sample sequence, the scope item flow guides the
user through all scope items available with the SAP Best
Practices for SAP Integrated Business Planning for Supply
Chain. This is mainly intended for test purposes to have a
complete walkthrough for all scope items.
The unified planning process flow (see slides 6, 7, 11,
and 21) shows the relationship of the key planning
steps and the main output of each step. It does not
include processes like segmentation, forecast error
calculation, integration, and so on – it focuses only on
the major planning steps without a direct reference to
the scope items.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
143
Scope item flow (1/3)
Planning Area SAPIBP1
10
Tactical
Frequency: Monthly
Horizon: 1-3 years
Buckets: Months, Weeks
S&OP
Demand Review
(2BQ)
12
11
M - Copy Final Safety Stock (for
IO) to Safety Stock (SOP)
Mid-Term
Operational
1
Time-Series-Based
Inbound Integration
with SAP S/4HANA
(3OF)
Frequency: Weekly
Horizon: 1-12 months
Buckets: Weeks, Days
Integration of
planned independent
requirements to
SAP S/4HANA (4NO)
ABC-XYZ
Segmentation
(1S6)
M – Segmentation
3
Time-Series Analysis
(34Y)
13
b
Supply Review –
Optimizer
(18N)
4
New Product
Introduction
(5OZ)
5
Demand
Planning
(11V)
W– Statistical Forecast
7
Demand Forecast Error
Calculation and Analysis
(2BM)
M – Forecast Error Calculation
M - DP Forecast Error: Create
1M Lag Data
M - DP Forecast Error: Create
3M Lag Data
3M – Forecast Automation
Short-Term
Operational
Frequency: Daily
Horizon: 1-12 weeks
Buckets: Days
15
S&OP Reconciliation
Review
(2BU)
17
S&OP Forecast Error
Calculation and Analysis
(2C4)
M – Forecast error calculation
16
M – Time-series-based supply
planning optimizer
W– Statistical Forecast
2
S&OP Supply
Review
- Heuristic
(2BS)
13
a
M – Time-series-based supply
planning heuristic
M - Copy Demand Planning Qty
to Global Demand Plan Qty
(SOP)
M - Copy Consensus Demand
Plan Qty to Consensus Demand
S&OP
Time-Series-Based
Forecast
Consumption (3RT)
S&OP Management
Business Review
(2BW)
M - Copy Customer Receipts to
Consensus Demand Final
8
IBP for Inventory
(11Z)
W – Copy combined final
demand to Demand Forecast
(IO)
W- Global (multi-stage) inventory
optimization
W – Calculate target inventory
components operator
M – Copy + Disaggregate key figure
operators
M - S&OP Forecast Error: Create
1M Lag Data
M - S&OP Forecast Error: Create
3M Lag Data
Inventory Scenario
Planning
(4YI)
9
W- Global (multi-stage) inventory
optimization
14
S&OP footprint
analysis
(5LG)
W – Copy final safety stock (for
IO) to final safety stock last cycle
(for IO)
W– IO Forecast error CV
calculation
Demand
Sensing
(11X)
6
D – Demand Sensing
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
IBP for demanddriven
replenishment
144
Scope item flow (2/3)
18
Order-Based Planning
Inbound Integration
(2S4)
19
a
Supply and
Allocations Planning
– heuristic
(2I0)
W– Order-based planning
constrained forecast run
Mid-Term
Operational
Frequency: Weekly
Horizon: 1-12 months
Buckets: Weeks, Days
19
b
Supply and
Allocations Planning
- optimizer
(42C)
W– Order-based planning
constrained forecast run
using optimizer
Short-Term
Operational
20
Response
Planning (2P0)
21
Order-Based Planning
Outbound Integration
(2S6)
D – Order-based planning
confirmation run
Frequency: Daily
Horizon: 1-12 weeks
Buckets: Days
22
Order-Based Planning
Inbound Integration for
deployment planning
(4VA)
23
Deployment
Planning –
Optimizer
(4TU)
24
Transportation
Load Building
(6NV)
D – Order-based planning
deployment run - optimizer
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
IBP for demanddriven
replenishment
25
Order-Based Planning
Outbound Integration for
deployment planning
(5JD)
Planning Area SAP7F
145
Scope item flow (3/3)
Planning Area SAP8
1
Strategic
Frequency: quarterly. biannual
Horizon: 1-3 years
Short-Term
Operational
Frequency: Daily
Horizon: decoupled lead-time
Buckets: Days
DDR
strategic buffer
positioning (40U)
Q - ADU CoV Calculation
Using Historical CoV of
Actuals
Q - Recommend Decoupling
Points
2
DDR
buffer setup and
adjustment (40V)
D - ADU CoV Calculation
Using Historical CoV of
Actuals
D - Calculate DDR buffer
levels
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
3
DDR
planning (40W)
D - DDMRP Buffer Status
Snapshot
IBP for demanddriven
replenishment
146
Appendix
Sample data overview
Legend
Sample Data – Supply chain network
(used for time-series-based planning scope items)
Suppliers
RM20, SG25
Plants
1310
APJ
6210: HK
Product
3710: NL
Resource
1010: DE
Customers
DCs
FG126, SG25,
SG124, RM20
0013300001
Location
1310: CN
FG126
6210
APJ
FG126
0062100001
0062100003
ASSEMBLY1310001
PACK01 1310001
TECHNIC 1310001
TESTING 1310001
RM20, SG25
FG126, SG25,
SG124, RM20
1010
EU
0010300001
FG126
3710
EU
FG126
0037100001
0037100002
ASSEMBLY1010001
PACK01 1010001
TECHNIC 1010001
TESTING 1010001
FG126
1710
US
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
FG126
0017100002
148
Legend
Sample Data – Supply chain network
(additional materials for time-series-based planning scope items)
Subcontractor
Plants
All products
13300003
Subassembly
0013300003
Suppliers
IBP-101-R, IBP-103-R, IBP-112-R, IBP-121-R,
IBP-123-R, IBP-202-R, IBP-211-R, IBP-212-R,
IBP-221-R, IBP-223-R, IBP-301-R, IBP-302-R,
IBP-311-R, IBP-313-R, IBP-322-R, IBP-191-R
0013300001
IBP-102-R, IBP-111-R, IBP-113-R, IBP-122-R,
IBP-201-R, IBP-203-R, IBP-213-R, IBP-222-R,
IBP-303-R, IBP-312-R, IBP-321-R, IBP-323-R
1710
AME Mfg
All products
1010
EU Mfg
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
1310 Assembly,
1310 Pack,
1310 Subassembly
3710: NL
Resource
1010: DE
0017100001
0017100003
0017100002
IBP-200, IBP-210,
IBP-220
All final products
IBP-100, IBP-110,
IBP-120
3710
EU DC
IBP-300, IBP-310,
IBP-320
1010 Assembly,
1010 Pack,
1010 Subassembly
All products
Product
IBP-300, IBP-310,
IBP-320
IBP-100, IBP-110,
IBP-120
1720
AME DC
1710 Assemby,
1710 Pack,
1710 Subassembly
1310
1310
APJ
APJMfg
Mfg
0013300002
All final products
6210: HK
Customers
DCs
IBP-111-S
Location
1310: CN
All final products
IBP-200, IBP-210,
IBP-220
0010100001
0011100001
IBP-300, IBP-310,
IBP-320
IBP-200, IBP-210,
IBP-220
0061100001
6210
6210
APJ
APJDC
DC
0012100001
0013100001
0018100001
IBP-100, IBP-110,
IBP-120
149
Legend
Sample Data – Supply chain network
Location
Product
Used for order-based planning scope items:
IBP for response and supply – supply and allocations planning – heuristic
IBP for response and supply – supply and allocations planning – optimizer
IBP for response and supply – response planning
Plants
Suppliers
2
days
Customers
DCs
FG126, SG25,
SG124, RM20
RM20, SG25
13300001
Resource
1310
CN
FG126
2
days
6210
HK
FG126
62100001
ASSEMBLY1310001
PACK01 1310001
TECHNIC 1310001
TESTING 1310001
62100003
Customer Classification: A
2
days
FG126, SG25,
SG124, RM20
RM20, SG25
10300001
2
days
1010
DE
ASSEMBLY1010001
PACK01 1010001
TECHNIC 1010001
TESTING 1010001
FG126
2
days
3710
NL
FG126
37100001
37100002
Customer Classification: B
FG126, SG124: Production Lead Time=1 day
(5 working days per week)
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
150
Sample Data – Supply chain network
Used for order-based planning scope item:
IBP for response and supply – deployment planning – optimizer
Central DCs
Plants
Local DCs
Customers
62100001
1310
CN
2
days
6210
HK
2
days
14
days
2510
BE
25100001
TLB – hier
ergänzen /
Produktinfo
2
days
12100001
3710
NL
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
2
days
1210
FR
12100002
151
Sample Data – Supply chain network
Used for order-based planning scope item:
IBP for response and supply – transportation load building
Central DCs
Plants
Local DCs
Customers
62100001
1310
CN
2
days
6210
HK
2
days
2510
BE
14
days
25100001
2
days
A_FG126,
B_FG126
This part of the network
is used for the TLB
scope item.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
3710
NL
A_FG126,
B_FG126
2
days
12100001
1210
FR
12100002
152
Sample Data - TLB Master Data Types
Transportation Group
Equipment Type
Equipment Type ID
Equipment Type Description
Transportation Group ID
ET01_TRUCK_SMALL
Small Truck 10 PAL
TG01_3710_1210_ROAD
Transportation Group
Description
ROAD from 3710 to 1210
Equipment Type Limit
Equipment Type ID
Transportation Group Equipment Type Assignment
Equipment
Limit Unit
Equipment
Limit
Description
Equipment
Upper Limit
KG
M3
PAL
Weight
Volume
Pallet
10000
25
10
ET01_TRUCK_SMALL
ET01_TRUCK_SMALL
ET01_TRUCK_SMALL
Equipment Type ID
Fixed Cost
TG01_3710_1210_ROAD
ET01_TRUCK_SMALL
100
Transportation Lane
Product Unit
Product ID Target UoM
A_FG126
A_FG126
A_FG126
A_FG126
B_FG126
B_FG126
B_FG126
B_FG126
Transportation Group ID
EA
KG
M3
PAL
EA
KG
M3
PAL
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
UoM Conversion
Denominator
1
5
1
1
1
5
1
1
UoM Conversion
Numerator
1
1
40
50
1
1
40
50
Product ID
A_FG126
B_FG126
Ship-from
Location
3710
3710
Ship-to Means of
Transportation Group ID
Location Transport
1210
ROAD
TG01_3710_1210_ROAD
1210
ROAD
TG01_3710_1210_ROAD
153
Sample Data – Bill of materials (IBP-100)
IBP-100
IBP-101-S
IBP-101-R
Semi-finished
product
IBP-102-R
PRODUCTIONSOURCEHEADER.CSV
Finished product
IBP-103-R
Raw material
Raw materials
PRODUCTIONSOURCEITM.CSV
Alternative BOM
(only relevant for 18N-IBP for response and supply – supply review – optimizer scope item)
IBP-100
IBP-191-R
Raw materials
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Finished product
IBP-103-R
154
Sample Data – Bill of materials (IBP-110 / -120)
Same BoMs repeat for locations 1010 and 1310
IBP-110
IBP-111-S
IBP-111-R
Semi-finished
product
IBP-112-R
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Finished product
IBP-113-R
Raw materials
IBP-120
Raw material
IBP-121-S
IBP-121-R
Semi-finished
product
IBP-122-R
Finished product
IBP-123-R
Raw material
Raw materials
155
Sample Data – Bill of materials (IBP-200 / -210 / -220)
IBP-200
IBP-201-S
IBP-201-R
Semi-finished
product
IBP-202-R
IBP-203-R
IBP-221-R
Semi-finished
product
IBP-222-R
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
IBP-210
Raw material
Raw materials
IBP-220
IBP-221-S
Finished product
IBP-211-S
IBP-211-R
Semi-finished
product
IBP-212-R
Finished product
IBP-213-R
Raw material
Raw materials
Finished product
IBP-223-R
Raw material
Raw materials
156
Sample Data – Bill of materials (IBP-300 / -310 / -320)
IBP-300
IBP-301-S
IBP-301-R
Semi-finished
product
IBP-302-R
IBP-303-R
IBP-321-R
Semi-finished
product
IBP-322-R
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
IBP-310
Raw material
Raw materials
IBP-320
IBP-321-S
Finished product
IBP-311-S
IBP-311-R
Semi-finished
product
IBP-312-R
Finished product
IBP-313-R
Raw material
Raw materials
Finished product
IBP-323-R
Raw material
Raw materials
157
Sample Data – Bill of materials (IBP-100) and routing (LOCID 1010)
Production Source Header
Finished Product
IBP-100
SOURCEID
1010_IBP-100
PRDID
IBP-100
LOCID OUTPUTCOEFFICIENT
1010
1
SOURCEID
1010_IBP-101-S
PRDID
LOCID OUTPUTCOEFFICIENT
IBP-101-S
1010
1
Packaging
Production Source Item
SOURCEID
1010_IBP-100
1010_IBP-100
Assembly
Semi-finished Product
Raw Material
IBP-101-S
IBP-103-R
PRDID
SOURCEITMID COMPONENTCOEFFICIENT
IBP-101-S
10
1
IBP-103-R
20
1
SOURCEID
PRDID
SOURCEITMID COMPONENTCOEFFICIENT
1010_IBP-101-S IBP-101-R
10
1
1010_IBP-101-S IBP-102-R
20
1
Production Source Resource
Subassembly
Raw Materials
IBP-101-R
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
SOURCEID
1010_IBP-100
1010_IBP-100
RESID
1010 Pack
1010 Assembly
CAPACONSUMPTION
1
1
SOURCEID
1010_IBP-101-S
RESID
1010 Subassembly
CAPACONSUMPTION
1
IBP-102-R
158
Sample Data – Bill of materials (FG126) – Production source
PRODUCTION SOURCE
Planned in IBP
FG126
Finished
product
PRODUCTION SOURCE ITEM
SG124
SG25
Semi-Finished products
RM20
RM27
Raw Material
Raw Material
RM124
Raw Material
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
159
Demand-Driven Replenishment Sample Data – Supply chain network
Location
Product
PLT = Production Lead Time (days)
TLT = Transportation Lead Time (days)
LTCT = Lead Time Customer Tolerance (days)
Regional DC
Plants
F-10A
1010
DE
Local DCs
F-10A
TLT=7
LTCT=21
3710
NL
PLT=3
12100001
FR
F-10A
3711
DE
LTCT=21
10100001
DE
TLT=7
3712
GB
LTCT=0
10100002
GB
TLT=25
3713
DE
LTCT=21
11100001
DE
TLT=6
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Customers
160
Appendix
Dashboards and Charts available in SAPIBP1 / SAP7F
Copy Analytics and Alerts
•
New copy option for the SAPIBP1 planning area as of 2002
•
Content available for SAP7F as of 2202
•
When copying the unified planning area (SAPIBP1 or SAP7F) using the
Create New with Dependencies option, you can select the Copy Analytics and
Alerts option to copy sample analytics, alerts, and web-based planning
views.
•
The following content types are copied:
•
Sample alert definitions
•
Sample alert subscriptions
•
Sample alert overviews
•
Sample dashboards
•
Sample analytics charts
•
Sample supply chain network charts
•
Web-based planning views
•
Procedure Playbook
•
Planner Workspace
•
Reduces manual configuration effort for the Best Practices processes and
replaces previous configuration guides
•
List of available content available as part of Technical assets for SAPIBP1
resp. SAP7F
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
SAPIBP1
SAP7F
162
Appendix
New scope and changes in past versions
New scope and changes in V25.2111
▪
Technical upgrade to product version 2111 of the SAP Integrated Business Planning for
Supply Chain solution
▪
The SAPIBP1 sample planning area has been simplified and enhanced as follows:
additional helper key figure in demand sensing required for the new settings related to
sensed demand balancing for past days; new attribute and key figure for product
footprint information; adjusted time profile settings for default horizon in the past and
future.
▪
The new IBP for sales and operations – footprint analysis scope item describes how to
monitor the greenhouse gas emissions of your plants based on the results of the supply
planning heuristic run. The IBP – time-series-based inbound integration with SAP
S/4HANA scope item now integrates footprint information from SAP S/4HANA on
product location level.
▪
The IBP for demand – new product introduction scope item has been enhanced with a
variant for manual forecasting that you can use if no reference product is available.
▪
The IBP – time-series-based inbound integration with SAP S/4HANA and the IBP –
Integration of planned independent requirements to SAP S/4HANA scope items now
use a new connection type based on WebSocket RFC.
▪
New SAP Analytics Cloud content* for integrated financial planning is now available. In
this financial integration scenario, SAP IBP forecast data is transferred to SAP Analytics
Cloud and combined with financial data from SAP S/4HANA to improve the quality of
sales and profitability planning. The planning results are sent back to SAP IBP where
they are used to increase the accuracy of the S&OP management business review.
▪
The content for SAP Digital Boardroom & Analytics Cloud* providing a high-level overview of
the financial targets and S&OP-related key performance indicators has been updated.
IBP for sales and operations – footprint analysis: Intelligent Visibility app
SAP Analytics Cloud content for integrated financial planning
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
*SAP Analytics Cloud content is not part of SAP Best Practices for SAP Integrated Business Planning but works together with the sample planning area SAPIBP1.
Please note that due to different release schedules of the products involved, this integration is only available productively as of 13 November 2021.
164
New scope and changes in V26.2202
▪
Technical upgrade to product version 2202 of the SAP Integrated Business Planning for
Supply Chain solution
▪
The SAPIBP1 sample planning area has been simplified and enhanced as follows:
▪
▪
New forecast model for demand sensing with gradient boosting considering the information gained from
each independent variable when calculating the sensed demand;
▪
New forecast model for advanced forecasting with gradient boosting and new key figures to analyze the
impact of independent variables on the statistical forecast;
▪
Changed unit of measure conversion for product components: the UoM conversion factor for the
component is now used instead of the UoM conversion factor for the product;
▪
New attributes and master data types to support resource substitution for the supply optimizer;
▪
Additional key figure to consider the high-velocity forecast error input in inventory optimization.
The scope items for order-based planning now use the SAP7F sample planning area
which supports the flexible master data model: IBP for response and supply – supply and
allocations planning – heuristic, IBP for response and supply – supply and allocations
planning – optimizer, IBP for response and supply – response planning, IBP for response
and supply – deployment planning – optimizer.
▪
The integration scope items for order-based planning now describe real-time integration
(RTI) using the Core Interface (CIF) functions to capture data changes in real time and
asynchronously integrate master and transactional data into SAP IBP (IBP – order-based
planning inbound integration with SAP S/4HANA, IBP – order-based planning outbound
integration with SAP S/4HANA, IBP – order-based planning inbound integration for
deployment planning, and IBP – order-based planning outbound integration for
deployment planning
▪
The IBP for sales and operations – footprint analysis scope item has been enhanced with
new features and functions in the Planner Workspace.
▪
The IBP for demand – demand planning scope item has been enhanced with a Planner
Workspace for global demand planners and now also contains an example for variable
impact analysis.
Planner Workspace: footprint analysis
Variable impact analysis
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
165
New scope and changes in V27.2205
▪
Technical upgrade to product version 2205 of the SAP Integrated Business Planning for
Supply Chain solution
▪
The SAPIBP1 sample planning area has been enhanced as follows:
– The new S&OP operator profile “TS-Based Planning Compute Quotas” allows you to calculate
quotas from a supply plan such as the computed location sourcing ratio.
– For XYZ segmentation, you can now use Replace Leading Nulls with Zeros and Always
Include Items with Some Missing Values to better handle null values.
– The detailed SAPIBP1 presentation has been restructured and reworked.
▪
The Quick Guide now describes the configuration steps needed to connect the Cloud
Connector to your SAP IBP system. This is required if you use real-time integration.
▪
The integration scope items for order-based planning (IBP – order-based planning
inbound integration with SAP S/4HANA, IBP – order-based planning outbound
integration with SAP S/4HANA, IBP – order-based planning inbound integration for
deployment planning, and IBP – order-based planning outbound integration for
deployment planning) have been enhanced with detailed steps on how to use the
reconciliation job to view and resolve data inconsistencies during real-time integration.
▪
The IBP for demand – demand planning scope item has been enhanced with new
Planner Workspace features for global demand planners.
▪
The IBP for response and supply – supply review – optimizer scope item has been
enhanced with an example for alternative BOMs.
▪
The S&OP scope items have been enhanced with information on how to use the Manage
Tasks app to confirm tasks without using SAP Work Zone as a collaboration tool.
▪
New help content is available which explains how to enhance the SAPIBP1 sample
planning area with shelf-life functionality.
▪
The Tips&Tricks document “How to enable Multiple Modes of Transport (MOT) in Your
Planning Area” was moved to the application help.
IBP_2205_for_Cross_Topics_SAPIBP1_Planning_Model_Template.pptx
S&OP: Manage Tasks app
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
166
New scope and changes in V28.2208
▪
Technical upgrade to product version 2208 of the SAP Integrated Business Planning for
Supply Chain solution
▪
The SAPIBP1 sample planning area has been enhanced as follows:
▪
New version with version-specific master data
▪
Use JF expression to simplify the defaulting calculation (capacity overload)
▪
Enhancements to forecast models: Croston TSB as forecast algorithm for intermittent demand, daily
disaggregation optimization (for demand sensing), seasonal linear regression
▪
The integration scope items IBP – order-based planning inbound integration with SAP
S/4HANA and IBP - order-based planning inbound integration for deployment planning
have been improved, for example, by adding separate integration model for plants.
▪
The integration scope items IBP – time-series-based inbound integration with SAP
S/4HANA, IBP – order-based planning inbound integration with SAP S/4HANA, IBP –
order-based planning inbound integration for deployment planning have been enhanced
with detailed steps on how to check master data consistency after an import using
machine learning algorithms.
Manage Planning Notes app
New merged configuration guides as a central part of the SAP Best Practices for SAP
IBP content replace the existing configuration guides:
▪
•
6M9 Configuration Guide for Implementing Time-Series-Based Planning
•
6MA Configuration Guide for Implementing Order-Based Planning
•
6MB Configuration Guide for Implementing Demand-Driven-Replenishment
▪
The IBP for demand – demand planning scope item has been enhanced with an
example of how to manage planning notes using the Manage Planning Notes app.
▪
The scope item IBP for response and supply – supply review – optimizer has been
enhanced with steps on how to present supply issues and prepare recommendations for
reconciliation review.
▪
The scope item IBP for response and supply – response planning now uses the Planner
Workspace.
▪
A new tips& tricks document titled Enhance sample planning area SAPIBP1 with
Economic Order Quantity (EOQ) and Sustainable Economic Order Quantity (SEOQ) for
inventory optimization is now available.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
Planner Workspace for Response Management
167
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