SAP Best Practices for SAP IBP

Objectives

After completing this lesson, you will be able to:

  • Leverage SAP Best Practices for SAP IBP

SAP Best Practices for SAP IBP

The tool to access the SAP Best Practices content up from SAP IBP 2305 is SAP Signavio Process Navigator. SAP Best Practices for SAP IBP will be updated and enhanced every quarter and gives you everything you need to run Planning processes in the following applications:

  • SAP IBP for sales and operations
  • SAP IBP for response and supply
  • SAP IBP for demand
  • SAP IBP for inventory
  • SAP IBP for demand-driven replenishment
  • SAP Supply Chain Control Tower
Note
For more information, please consult https://me.sap.com/processnavigator/SolS/EARL_SolS-034 (direct link to SAP Best Practices for SAP Integrated Business Planning) or https://me.sap.com/processnavigator (general link).

All scope items are based on a comprehensive data model, which enables you to execute an integrated, end-to-end business process. SAP Best Practices comprises Planning View templates for interactive simulations and what-if analyses, predefined dashboards for embedded analytics, alert definitions for exception-based Planning, integration for context-aware social collaboration, and sample data to showcase the end-to-end process.

Business Benefits

  • Reduce Sales and Operations Planning costs
  • Improve demand forecast accuracy and react more quickly to changes in demand
  • Increase sales forecast accuracy
  • Reduce inventory carrying costs 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 Microsoft Excel for interactive Planning and by integrating social collaboration

Important covered Process Steps

  • 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 integrated Planning areas, allowing you to operate and end-to-end process across all SAP IBP applications
Note

You can use the unified Planning area (SAPIBP1) to jump-start the implementation in case your business process requires integration across different SAP IBP applications. The unified Planning area is a comprehensive sample Planning area that supports an integrated Planning process covering all of the applications listed above. Just like any other sample Planning area, this Planning area delivers an out-of-the-box integration scenario, which you can customize to fit your unique requirements.

For the integrated Planning process based on the unified Planning area, the SAP Best Practices for SAP IBP provides sample data, Planning View templates, predefined dashboards, configuration guides, test scripts and more. Customer test tenants and SAP Integrated Business Planning for Supply Chain, starter edition instances include an activated copy of the unified Planning area with sample content.

Visibility, Alerts, and Case Management

The SAP Supply Chain Control Tower provides visibility over the end-to-end Planning process, offers alerting capability for exception-based Planning and enables effective issue resolution with the collaborative case management functionality.

Periodicities and Aggregation levels

The following table lists the periodicities and the aggregation levels per Process:

ProcessPeriodicityAggregation Level
Sales and Operations Planning and Supply PlanningMonthly

From Product Family / Customer Region to Product / Location

Resource / Location

Demand PlanningWeeklyProduct / Customer / Location
Inventory OptimizationWeekly

Product / Location

Resource / Location

Demand SensingDailyProduct / Customer / Location
Supply and Allocations PlanningWeeklyDays / Product / Location / Customer
Response PlanningDailyDays / Product / Location / Customer
Deployment PlanningDailyDays / Product / Location / Customer
Analyzing visibility, alerts, and case managementOn demandAll Levels
Note

These periodic and aggregation levels represent general guidelines and they can be adjusted for specific requirements as needed.

For additional content related to the unified Planning area, see https://me.sap.com/processnavigator/SolS/EARL_SolS-034.

For general information about Planning areas, see the model configuration guide on SAP Help Portal at http://help.sap.com/ibp. Choose your release and then choose Model Configuration Guide.

The SAP IBP web client provides access to sample SAP Planning areas, which are shipped with SAP IBP. You can use sample Planning areas as a basis for creating your own Planning areas. You can copy one of the Planning areas and extend it as necessary to meet your particular business needs. You can add your own Master Data types, key figures, calculations, and attributes.

Planning Processes and Model Entities

Note
The following link provides an overview of SAP IBP features: SAP Help → SAP Integrated Business Planning for Supply Chain → Applications and Features of SAP Integrated Business Planning for Supply Chain. This site presents the available application licenses. Consider this note for system sizing SAP Note: 2423668

The main objective with DDMRP implementations is to enable material and information flow through a Supply Chain. In DDMRP, flow is achieved in the following three ways:

  • By dampening the effect of variation across the Supply Chain by decoupling lead times and identifying where to buffer quantities of inventory, and how much to buffer to ensure the shortest possible lead time and the optimum amount of inventory.

  • By driving replenishment based on actual demand, rather than forecasts.

  • By exposing downstream inventory and demand status to upstream sources to facilitate demand-driven prioritization of supply.

SAP Integrated Business Planning for demand-driven replenishment supports Demand Driven Materials Requirement Planning (DDMRP) as defined by the Demand-Driven Institute.

The five components of DDMRP are as follows:

  1. Buffer positioning
  2. Buffer sizing
  3. Dynamic adjustments
  4. Demand-driven Planning
  5. Visible and collaborative execution.

As shown in the figure, these five steps are being supported by SAP IBP.

Note

As well as these Planning areas, small sample Planning areas with examples of advanced configuration to meet different business requirements are provided in SAP Notes, together with information on how to request L-code if configuration can't meet your requirements.

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