Preface

21

Target Audience

22

How to Read This Book

22

How This Book Is Organized

22

Conclusion

25

Acknowledgments

26

1 Introduction to Sales and Operations Planning

29

1.1 Market Drivers

29

1.1.1 Supply Chain Disruptions

29

1.1.2 Globalization

30

1.1.3 Market Volatility

32

1.2 Process Drivers

34

1.2.1 Sales and Operations Planning: Process Definition

34

1.2.2 Planning Horizons

35

1.2.3 Sales and Operations Planning: Process Decomposition

36

1.3 Technology Drivers

38

1.3.1 Interactive Planning with In-Memory Computing

39

1.3.2 Data Visualization

41

1.3.3 Collaboration

42

1.4 SAP Integrated Business Planning

43

1.4.1 An Integrated Approach

43

1.4.2 Better Algorithms

51

1.4.3 User Experience

53

1.4.4 More Agility

60

1.4.5 SAP Integrated Business Planning Modules

61

1.5 Summary

66

2 SAP IBP Model and Navigation

67

2.1 SAP Integrated Business Planning Architecture

67

2.2 Planning Model

68

2.2.1 Attributes

69

2.2.2 Master Data Types

70

2.2.3 Time Profiles

71

2.2.4 Planning Areas

71

2.2.5 Planning Levels

72

2.2.6 Key Figures

73

2.2.7 Versions and User-Defined Scenarios

74

2.2.8 Multilanguage Support for Modeling Objects

75

2.3 Navigating the Planning Model

75

2.3.1 Excel User Interface

75

2.3.2 Web-Based SAP Fiori Applications

81

2.3.3 Social Collaboration

89

2.4 Summary

96

3 Demand Planning

97

3.1 Demand Planning at a Glance

97

3.1.1 Demand Forecasting Approach

99

3.1.2 Demand Planning Strategy

101

3.1.3 Demand Planning Process

102

3.2 Forecasting Input with Historical Data

105

3.3 Forecast Generation through Statistical Modeling

107

3.3.1 Statistical Models

107

3.3.2 Configuring and Executing Forecasting Models

113

3.4 Driver-Based Planning

119

3.5 Collaborative Financial Modeling of Demand Forecast

121

3.5.1 Income Statement Financial Model in SAP IBP

122

3.5.2 Financial Ratios and Analytics in SAP IBP

124

3.6 Review, Collaboration, and Finalization of the Demand Plan

125

3.7 Summary

127

4 Unconstrained Supply Planning

129

4.1 Unconstrained Planning at a Glance

129

4.2 The Sales and Operations Planning Heuristic

131

4.3 Supply Network Design

132

4.3.1 Products, Locations, and Customers

133

4.3.2 Sourcing Rules

134

4.3.3 Supply Network Accuracy and Check Mode

138

4.3.4 Subnetworks

138

4.4 Forecast Consumption

139

4.4.1 Forecast Consumption Methods

139

4.4.2 Forecast Consumption Profile

140

4.5 Propagating Demand

143

4.5.1 Sample Supply Network

143

4.5.2 Consensus Demand

144

4.5.3 Customer Sourcing

145

4.5.4 Net Demand Calculation

147

4.5.5 Location Sourcing

149

4.5.6 Production Sourcing

150

4.5.7 Lot Sizes

153

4.6 Propagating Supply

155

4.6.1 External Receipts

156

4.6.2 Production Component

157

4.6.3 Production Receipts

158

4.6.4 Transport Receipts

158

4.6.5 Constrained Demand

159

4.6.6 Minimum and Adjusted Key Figures

160

4.7 Rough-Cut Capacity Planning

162

4.7.1 Production Resources

163

4.7.2 Handling and Storage Resources

163

4.7.3 Capacity Key Figures

164

4.8 Parameters of the Heuristic

165

4.8.1 Processing Mode

166

4.8.2 Heuristic Type

167

4.8.3 Planning Level of the Heuristic

169

4.8.4 Quota Check Parameters

169

4.8.5 Carryforward Negative Projected Inventory

172

4.8.6 Balanced Receipts

173

4.8.7 Initialize Lead Time Horizon

175

4.8.8 Compute Expected Supply

176

4.8.9 Use of Validity Dates

176

4.9 Shelf-Life Planning

176

4.9.1 Shelf-Life Planning Infinite Heuristic

178

4.9.2 Shelf-Life Distribution Planning Heuristic

179

4.10 Summary

180

5 Constrained Supply Planning

183

5.1 Constrained Supply Planning at a Glance

183

5.2 Sales and Operations Planning Optimizer

184

5.3 Optimization Constraints

186

5.3.1 Hard Constraints

187

5.3.2 Pseudo-Hard Constraints

187

5.3.3 Soft Constraints

188

5.4 Financial Modeling of the Supply Chain

188

5.4.1 Financial or Cost Key Figures

188

5.4.2 Optimizer Parameters

192

5.5 Advanced Optimizer Features

197

5.5.1 Late-Demand Fulfillment

197

5.5.2 Minimum Resource Consumption

199

5.5.3 Fair-Share Distribution

200

5.5.4 Aggregate Constraints

201

5.5.5 Multiple Demand Category

201

5.5.6 Product Substitution

202

5.5.7 Subnetworks

203

5.5.8 Optimizer Explanation

204

5.6 Finite Heuristic

206

5.7 Summary

209

6 Consolidation

211

6.1 Consolidation at a Glance

211

6.1.1 Integrated Reconciliation Review

212

6.1.2 Executive Review

212

6.1.3 Operationalize the Approved Constrained Plan

214

6.2 Financial Projections and Review

215

6.2.1 Financial Projections of the Plan

215

6.2.2 Integrated Reconciliation Review

219

6.2.3 Management Business Review

222

6.3 Operationalizing the Plan

226

6.3.1 Plan Integration Overview

226

6.3.2 Integration between SAP IBP for Sales and Operations and SAP IBP for Demand

229

6.3.3 Integration between SAP IBP for Sales and Operations and SAP IBP for Inventory

230

6.3.4 Integration between Tactical Time-Series-Based and Order-Based Plans

232

6.3.5 Integration between Tactical Sales and Operations Planning with Financial Planning

232

6.4 Summary

234

7 Collaboration and Management by Exception

235

7.1 Collaboration Using SAP Build Work Zone

236

7.1.1 Navigation

237

7.1.2 SAP Integrated Business Planning Integration

240

7.1.3 Excel Planning View Integration

242

7.2 Custom Alerts

244

7.2.1 SAP Fiori Applications

244

7.2.2 Using Custom Alerts

247

7.2.3 Configuring Custom Alerts

251

7.3 Case Management

255

7.4 Tasks

258

7.5 Summary

260

8 Planning Simulations

261

8.1 Simulation Planning at a Glance

261

8.1.1 Demand Factors

262

8.1.2 Supply Feasibility Factors

263

8.1.3 Simulation Examples

264

8.2 Simulations

266

8.3 Versions

269

8.3.1 Manage Versions

270

8.3.2 Version Comparison

271

8.3.3 Version Configuration

272

8.4 Scenarios

274

8.4.1 Scenario Creation

274

8.4.2 Scenario Comparison

275

8.4.3 Manage Scenario

276

8.4.4 Version and Scenario Comparison

277

8.5 Summary

278

9 Process Management

279

9.1 Process Management in Practice

280

9.2 Setting Up Process Templates and Automations

283

9.2.1 Process Roles

284

9.2.2 Time Zone, Workday, and Duration Settings for Process Steps

284

9.2.3 Tasks Assignment

285

9.2.4 Process Steps Automation

287

9.2.5 Process Orchestration of Application Jobs

289

9.2.6 Gantt Chart View of Sequential and Parallel Processes

290

9.3 Manage Processes

291

9.3.1 What Is a Process?

291

9.3.2 Creating a Process

292

9.3.3 Managing Process Lifecycle

293

9.3.4 Monitoring Process Status

296

9.3.5 Process Dashboards

297

9.4 Task Management

299

9.4.1 Tasks Assignments and Completions

300

9.4.2 Tasks Completion from SAP Integrated Business Planning, Add-In for Microsoft Excel

302

9.4.3 Process Progress Based on Tasks Completion

302

9.5 Process Management with SAP Build Work Zone

304

9.6 Application Programming Interfaces for Process Management

306

9.7 Summary

306

10 Configuring SAP IBP for Sales and Operations

307

10.1 Planning Areas and Time Profiles

308

10.1.1 Planning Areas

309

10.1.2 Time Profile

312

10.2 Attributes and Master Data Types

316

10.2.1 Attributes

316

10.2.2 Master Data Types

317

10.3 Planning Levels

325

10.4 Key Figures

328

10.4.1 What Are Key Figures?

328

10.4.2 Creating Key Figures

329

10.4.3 Key Figure Types

330

10.4.4 Key Figure Aggregations

334

10.4.5 Disaggregation

335

10.4.6 Key Figure Calculations

336

10.5 Planning Operators

339

10.5.1 Creating a Copy Operator

340

10.5.2 Data Lifecycle Management

342

10.6 History Report

343

10.7 Advanced Configuration

346

10.8 System Performance Recommendations

346

10.9 Summary

349

11 Building Planning Views

351

11.1 Planning Views, Templates, and Favorites with Excel

351

11.1.1 Planning View Creation

352

11.1.2 Templates and Favorites

362

11.2 Planning Views, Custom Alerts, and Analytics Charts with Planner Workspaces

364

11.3 Formatting Planning Views

370

11.3.1 Basic Layout Tips

370

11.3.2 Sheet Options and Local Members

372

11.3.3 SAP Integrated Business Planning: Formatting Sheet

375

11.4 Using Charts

377

11.5 Master Data Worksheets

380

11.5.1 Master Data Workbooks

380

11.5.2 Planning Object Creation

381

11.5.3 Master Data App

383

11.6 Using Microsoft Visual Basic for Applications

387

11.6.1 VBA for Formulas in Local Members

387

11.6.2 Visual Basic for Applications: Hooks

388

11.7 Summary

388

12 Key Performance Indicators and Performance Monitoring

391

12.1 Key Performance Indicators in SAP IBP

392

12.1.1 How Key Performance Indicators Work

392

12.1.2 Using Key Performance Indicators in SAP IBP

393

12.1.3 Demand Review Key Performance Indicators

395

12.1.4 Supply Review Key Performance Indicators

398

12.1.5 Operating Review Key Performance Indicators

402

12.1.6 Executive Review Key Performance Indicators

403

12.2 Key Performance Indicators for Supply Chain Sustainability

405

12.3 Monitoring and Continuous Improvement

407

12.3.1 Balanced Scorecard

407

12.3.2 Root-Cause Analysis

408

12.3.3 Define, Measure, Analyze, Improve, and Control

410

12.4 Summary

411

13 Dashboards and Analytics

413

13.1 Advanced Analytics

414

13.1.1 Types of Analytics and Charts

415

13.1.2 Creating Advanced Analytics Charts

419

13.1.3 Managing Advanced Analytics Charts

424

13.2 Advanced Dashboards

428

13.2.1 Creating Advanced Dashboards

428

13.2.2 Using Advanced Dashboards

430

13.2.3 Managing Advanced Dashboards

435

13.3 Summary

436

14 Integrating SAP IBP for Sales and Operations

437

14.1 Data Integration Scenarios

437

14.2 Integration for Tactical Planning

438

14.2.1 SAP Cloud Integration for Data Services

440

14.2.2 Manual Data Integration Using Web Interface

445

14.2.3 Export of Key Figure Data Using OData Services

450

14.3 Integration for Operational Planning

451

14.4 Other Integrations

454

14.4.1 Financial Integration with SAP Analytics Cloud

454

14.4.2 Opportunities Integration with SAP Cloud for Customer

454

14.5 Summary

455

15 Roles and Security

457

15.1 Security Management

457

15.2 User Management

460

15.2.1 Creating Users

460

15.2.2 User Groups

464

15.3 Business Roles Management

465

15.4 Permission Filters

467

15.4.1 Read Criteria

467

15.4.2 Write Criteria

469

15.4.3 Permission Filters in the Process Stage

470

15.5 Infrastructure Management

471

15.6 Summary

473