Introducing Demand-Driven Replenishment Planning and Execution (2QI)

1. Navigate to SAP Best Practices for SAP S/4HANA Cloud, public edition for Enterprise Management.
2. Select a country localization from the Version dropdown list.
3. If necessary, select the Login icon in the upper left corner to log in.
4. Go to the Accelerators section and, under General Documents, select the link SAP Best Practices content library.
5. Select the relevant scope option checkboxes to filter information and locate scope item test scripts and process flows.

Note

Ignore the BPMN2 version of process flows.

Demand-driven replenishment (DD) helps you efficiently plan and manage supply chains based on customer demand, rather than through traditional MRP procedures. It forms the basis for a reliable material flow by defining buffers at strategically important points and adjusting these buffers regularly.

Dedicated apps provide views for replenishment planning and execution. With replenishment planning, an overview of the buffer information sorted by planning priority is shown. With this, you can trigger replenishment on time to avoid stock shortages and delays in the completion of production or sales orders due to insufficient stock. With replenishment execution, you can view the current stock situation for each product and check that sufficient on-hand stock is available for production. You can expedite replenishment directly, and by using readily available contact details, such as contacting the supplier of a purchase order or the production supervisor of the component production order.

Key process steps of Demand-Driven Replenishment Planning and Execution (2QI) include the following:

Replenishment Planning:

• Review replenishment planning status of buffered components
• Create demand for buffered component via finished good (optional)
• Create supply for buffered component after change of planning status

Replenishment Execution:

• Review replenishment execution status of buffered components after conversion of supply into production execution
• Reduce on-hand stock to stimulate replenishment need (optional)
• Expedite supply and run production execution to bring replenishment execution status to green

Benefits of Demand-Driven Replenishment Planning and Execution (2QI) include the following:

• Avoid the bullwhip effect in production by providing decoupling points with strategic stock positions
• Ensure highest service levels at lowest possible inventory along all BOM levels
• Relieve users of manual supply creation for demand-driven materials
• Support users in identifying issues with current stock levels and in prioritizing the issues as a starting point for taking the right action