Benefits and Key Performance Indicators (KPIs) Improved through SAP Integrated Business Planning for Supply Chain


After completing this lesson, you will be able to:

  • Identify SAP IBP benefits

Benefits and KPIs Improved Through SAP Integrated Business Planning

Benefits from Logistical Complexity and Volatility

A company can benefit from logistical complexity and volatility by gaining an advantage over their competitors. The following exemplary factors can influence this competitive advantage:

  • In recent years, Supply Chains have become more volatile due to major geographic and demographic trends.

  • Market power has shifted towards the end consumer, which was amplified by the financial crisis.

  • Maturity of the millennial generation who require individualized products that are delivered immediately and purchased through new channels.

  • Emerging middle class in the developing markets, which has resulted in a global rebalancing across geographies.

  • Complexity of growing logistics requirements.

  • An automotive service parts wholesaler guarantees their dealers and end-customers a 30 minute replenishment cycle.

  • Suppliers such as Amazon have introduced a distribution center strategy, which allows them to deliver products ordered through their website within two hours.

  • Retailers such as Walmart have introduced a process to deliver directly from the closest store to a customer when an order is placed online. This requires an excellent replenishment process between the distribution center and the store to avoid stock-out or an out-of-shelf situation.

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