Table of Contents

Open all
Close all
Foreword from Martin Barkman
19
Foreword from Tim Gaus
21
Preface
23
Target Audience
23
How to Read This Book
24
How This Book Is Organized
24
Conclusion
27
Acknowledgments
27
1 Introduction
29
1.1 Supply Chain Complexity in the Digital World
29
1.1.1 Customer Centricity
29
1.1.2 Individualized Products
31
1.1.3 The Sharing Economy
31
1.1.4 Sustainability
33
1.1.5 Supply Chain Resiliency
34
1.2 The Evolution of Supply Chain Planning at SAP
35
1.3 SAP Integrated Business Planning at a Glance
37
1.3.1 SAP Integrated Business Planning for Sales and Operations
38
1.3.2 SAP Integrated Business Planning for Inventory
39
1.3.3 SAP Supply Chain Control Tower
40
1.3.4 SAP Integrated Business Planning for Demand
42
1.3.5 SAP Integrated Business Planning for Response and Supply
43
1.3.6 SAP Integrated Business Planning for Demand-Driven Replenishment
45
1.4 SAP Integrated Business Planning and the Intelligent Digital Supply Chain
47
1.4.1 Design-to-Operate
47
1.4.2 Collaborative Enterprise Planning
48
1.4.3 Synchronized Planning
48
1.4.4 Intelligent Visibility
49
1.5 SAP Integrated Business Planning Architecture
49
1.6 Summary
51
2 Navigation
53
2.1 SAP Fiori
53
2.1.1 My Home
54
2.1.2 Administrator Apps
59
2.1.3 Configuration Apps
59
2.1.4 Planner Apps
61
2.1.5 Identity and Access Management Apps
65
2.2 SAP Integrated Business Planning Excel Planning View
65
2.2.1 Excel Add-In
65
2.2.2 Planning View Options
66
2.2.3 Data Input Options
70
2.2.4 Alerts
71
2.2.5 Master Data Options
72
2.2.6 Scenario and Version Options
73
2.2.7 Advanced Planning Options
75
2.2.8 Integration with Planning Collaboration
76
2.3 Summary
76
3 Planning Data
77
3.1 Master Data in a Supply Chain Network
77
3.1.1 Time Series-Based Planning
78
3.1.2 Order Series-Based Planning
85
3.2 Transactional Data in a Supply Chain Network
87
3.3 Standard Data Models in SAP Integrated Business Planning
88
3.4 Data Integration
89
3.4.1 Manual Data Integration
89
3.4.2 SAP Cloud Integration for Data Services
90
3.4.3 SAP HANA Smart Data Integration
93
3.4.4 OData Integration
94
3.5 Data Visualization in SAP Integrated Business Planning
95
3.5.1 Excel Planning Views
95
3.5.2 SAP Fiori Views
103
3.5.3 Web-Based Planning Views
104
3.6 Summary
106
4 Building Blocks of a Planning Model
107
4.1 Attributes
108
4.2 Master Data Types
109
4.3 Time Profiles
113
4.4 Planning Areas
114
4.5 Planning Levels
115
4.6 Key Figures
116
4.7 Key Figure Calculation Logic
119
4.8 Planning Operator Profiles
123
4.9 Versions
125
4.10 Scenarios
126
4.11 Reason Codes
127
4.12 Global Configuration Parameters
128
4.13 Snapshot Configuration Parameters
129
4.14 Summary
130
5 Configuring an SAP IBP System
131
5.1 Managing Planning Attributes
131
5.2 Assigning Attributes to a Master Data Type
133
5.3 Creating Time Profiles
136
5.4 Defining Planning Areas
139
5.5 Managing the Planning Level
142
5.6 Using Key Figures
145
5.7 Adding Calculation Logic to Key Figures
146
5.8 Attributes as Key Figures
148
5.9 Creating Reason Codes
148
5.10 Version Configuration
149
5.11 Creating Scenarios
150
5.12 Managing Global Configuration Settings
151
5.13 Copying a Standard SAP-Delivered Planning Area
153
5.14 Activating the Planning Model
155
5.15 Deleting Active Objects
157
5.16 Summary
158
6 Sales and Operations Planning with SAP IBP
159
6.1 Objective of Sales and Operations Planning
160
6.1.1 Sales and Operations Plan
160
6.1.2 Benefits of Sales and Operations Planning
161
6.2 Technical, Design, and Philosophical Requirements Supporting Sales and Operations Planning
163
6.2.1 Scalable and Flexible Data Model
164
6.2.2 Scenario Planning
165
6.2.3 Collaboration
167
6.3 Managing Sales and Operations Planning Processes with SAP Integrated Business Planning
169
6.3.1 Product/Portfolio Planning
170
6.3.2 Consensus Demand Planning
170
6.3.3 Supply Planning
173
6.3.4 Reconciliation and Preparation
176
6.3.5 Executive Review
178
6.4 Planning and External Procurement Collaboration
179
6.5 What’s Ahead for Sales and Operations Planning?
180
6.6 Summary
182
7 Implementing SAP IBP for Sales and Operations
183
7.1 Managing Master Data for Sales and Operations Planning
183
7.2 Building and Activating Sales and Operations Planning Models
186
7.2.1 Time Profiles and Planning Levels
187
7.2.2 Key Figures
188
7.2.3 Planning Area Activation and Related Settings
193
7.3 Demand and Supply Planning for Sales and Operations Planning
194
7.3.1 Demand Review Process Configuration
194
7.3.2 Supply Review Process Configuration
195
7.4 Planning Views and Alerts through Sales and Operations Planning
202
7.5 Collaboration
208
7.6 Obstacles to Sales and Operations Planning Success and Achievement
210
7.7 Summary
213
8 Demand Planning and Forecasting with SAP IBP
215
8.1 Demand Planning
216
8.1.1 Statistical Forecasting
217
8.1.2 Pre- and Postforecast Processing
231
8.1.3 Segmentation
232
8.2 Product Lifecycle Forecasting
233
8.3 Integrating Promotion Data in Forecasting
234
8.4 Realignment
235
8.5 Forecast Error Calculations in Demand Planning
236
8.6 Forecast Automation
238
8.7 Demand Sensing
239
8.8 What’s Ahead for Demand Planning?
241
8.9 Summary
241
9 Implementing SAP IBP for Demand
243
9.1 Planning Model Configuration
244
9.1.1 Master Data Types
244
9.1.2 Period Types
245
9.1.3 Planning Levels
246
9.1.4 Key Figures
247
9.1.5 Planning Areas, Models, and Planning Operators
250
9.2 Forecast Model Management
252
9.2.1 General Settings
252
9.2.2 Preprocessing Settings
253
9.2.3 Forecasting Settings
254
9.2.4 Postprocessing Settings
257
9.3 Promotion Planning
258
9.4 Demand Planning Run in SAP Integrated Business Planning
260
9.5 Demand Planning for a New Product
260
9.6 Summary
262
10 Response and Supply Planning with SAP IBP
263
10.1 Response and Supply Planning Overview
264
10.2 Supply Planning Methodology
265
10.2.1 Demand Prioritization
267
10.2.2 Supply, Allocation, and Response Planning
268
10.2.3 Deployment Planning
269
10.2.4 Synchronized Planning
270
10.3 Forecast Consumption
270
10.4 Gating Factor Analysis
271
10.5 Order Review and Analysis
272
10.5.1 SAP Integrated Business Planning Excel Planning Views
272
10.5.2 SAP Integrated Business Planning: SAP Fiori Views
273
10.6 Order Simulation and Scenario Planning
277
10.6.1 Simulation of Sales Order
278
10.6.2 Scenario Creation, Analysis, and Constraint Management
278
10.7 What’s Ahead for Response and Supply Planning?
280
10.8 Summary
281
11 Implementing SAP IBP for Response and Supply
283
11.1 Data Integration
284
11.2 Planning Area Overview
285
11.3 Basic Configuration
290
11.3.1 Planning Levels
291
11.3.2 Settings for Order-Based Planning
291
11.3.3 Forecast Consumption Profile
293
11.3.4 Product Allocation Profile
294
11.3.5 Fair-Share Set Profiles
294
11.3.6 Planning Run Profiles
295
11.4 Demand Prioritization Rule
298
11.4.1 Segment Definition and Segment Condition
299
11.4.2 Sorting Condition of a Segment
301
11.4.3 View Demand by Priority
302
11.5 Response and Supply Management Planning Run
303
11.5.1 Configure and Schedule Application Job
303
11.5.2 Constrained Forecast Run for Product Allocation and Supply Plan
306
11.5.3 Confirmation Planning Run
308
11.5.4 Gating Factor Analysis Run
308
11.6 Order Simulation and Scenario Planning
309
11.7 Planning Review for Response and Supply
310
11.8 Gating Factor Analysis
311
11.9 Deployment Planning
312
11.9.1 Order Series-Based Planning Deployment Run
312
11.9.2 Key Figures in Deployment Planning
314
11.9.3 Available-to-Deploy Profiles
314
11.10 Synchronized Planning
315
11.11 Summary
318
12 Inventory Management with SAP IBP
319
12.1 Why Hold Inventory?
319
12.2 Inventory Types and Usage
321
12.2.1 Inventory Types Based on the Product Property
321
12.2.2 Inventory Types Based on Inventory Planning and Optimization
322
12.3 Inventory Planning and Related Analytics
324
12.3.1 Supply Chain Network and Inventory Optimization
325
12.3.2 Basic Concepts and Analytics for Inventory Optimization
326
12.4 Inventory Optimization Calculations
329
12.5 SAP IBP for Inventory
333
12.5.1 Network Visualization and Inventory Calculation
333
12.5.2 Sales, Inventory, and Operations Planning and Analytics Applications
334
12.5.3 Planning Views for SAP Integrated Business Planning for Inventory
336
12.6 What’s Ahead for Inventory?
337
12.7 Summary
337
13 Implementing SAP IBP for Inventory
339
13.1 Building Network Visualizations
339
13.1.1 Supply Chain Nodes
339
13.1.2 Supply Chain Network App
340
13.1.3 Master Data Elements for Supply Chain Network App
340
13.2 Modeling Inventory Optimization
343
13.3 Manage Forecast Error Calculations App
347
13.4 Inventory Profiles App
349
13.5 Inventory Analysis App
349
13.6 Input/Output Data Objects and Key Figures
353
13.6.1 Input Data for Inventory Optimization
354
13.6.2 Output of the Inventory Optimization Engine
356
13.7 Planning Operators for Inventory Calculation
358
13.8 Performing and Reviewing Inventory Optimization
359
13.8.1 Executing Planning Runs
359
13.8.2 Review Inventory Optimization
361
13.9 Summary
364
14 SAP Supply Chain Control Tower
365
14.1 Supply Chain Analytics and Dashboards
366
14.2 SAP Supply Chain Control Tower Alerts
368
14.3 The Networked Supply Chain
369
14.4 Root-Cause Analysis and Resolution
370
14.5 Analytics and Key Performance Indicators
372
14.5.1 Key Performance Indicators for Order Fulfillment and Service Quality
375
14.5.2 Key Performance Indicators for Demand Forecasting
375
14.5.3 Key Performance Indicators for Supply, Response, and Transportation
376
14.5.4 Key Performance Indicators for Inventory
377
14.6 Business Network Collaboration
378
14.7 Intelligent Visibility
381
14.8 What’s Ahead for Analytics?
383
14.9 Summary
384
15 Implementing SAP Supply Chain Control Tower with SAP IBP
385
15.1 Analytics Application
386
15.2 Process Modeling
389
15.3 Dashboard Creation
391
15.4 Key Performance Indicators
392
15.5 Case and Task Management
393
15.6 Collaboration
396
15.7 Custom Alerts
398
15.7.1 Creating Custom Alert Definitions
398
15.7.2 Subscribing to Custom Alerts
400
15.7.3 Custom Alert Overview
401
15.7.4 Monitoring Custom Alerts
402
15.8 Business Network Collaboration
404
15.8.1 Creating a Communication System
404
15.8.2 Creating a Communication Arrangement
405
15.8.3 Setting Up Data Sharing Plan
406
15.8.4 Setting Up SAP Ariba Supply Chain Collaboration for Buyers
408
15.9 Intelligent Visibility
409
15.10 Summary
412
16 Demand-Driven MRP with SAP IBP
413
16.1 What Is Demand-Driven Material Requirements Planning?
414
16.1.1 History of Material Requirements Planning
414
16.1.2 Understanding Flow and Relevant Information
416
16.2 Position, Protect, and Pull
417
16.2.1 Strategic Positioning
418
16.2.2 Buffer Management
420
16.2.3 Planning in a Demand-Driven Environment
421
16.2.4 Execution in a Demand-Driven Environment
425
16.3 Demand-Driven Sales and Operations Planning
427
16.4 The Demand-Driven Adaptive Enterprise
428
16.5 Organizational Readiness
429
16.6 Summary
430
17 Implementing SAP IBP for Demand-Driven Replenishment
431
17.1 Master Data and Planning Area Configuration
431
17.2 Average Daily Usage Calculation
437
17.3 Strategic Inventory Positioning and Buffer Sizing
441
17.4 Managing Buffers
445
17.5 Demand-Driven Order Recommendations
447
17.6 Integration with SAP ERP
447
17.7 Visibility and Collaboration
449
17.8 Summary
451
18 Unified Planning and User Roles
453
18.1 Unified and Integrated Planning Areas
453
18.1.1 Unified Planning Area: SAPIBP1
453
18.1.2 Integrated Planning Area for Response and Supply: SAP7
458
18.2 Application Jobs
459
18.2.1 Application Job Templates
459
18.2.2 Application Jobs
461
18.2.3 Application Logs
462
18.3 User and Business Roles
463
18.3.1 Maintaining Employees and Business Users
464
18.3.2 Maintaining Business Roles
466
18.3.3 Role Assignment
468
18.4 User Group Creation
469
18.5 Summary
470
19 Implementation Methodology
471
19.1 SAP Integrated Business Planning Project Implementation
472
19.2 Project Implementation Methodology
472
19.2.1 Waterfall and the ASAP Methodology
472
19.2.2 Agile Methodology
476
19.2.3 SAP Activate Approach
479
19.3 Sprint Delivery and Team Framework
482
19.4 SAP Best Practices for SAP Integrated Business Planning
483
19.5 SAP Integrated Business Planning, Edge Edition
485
19.6 Implementation Recommendations
486
19.7 Summary
489
20 Customer Case Studies
491
20.1 Automotive
491
20.1.1 Situation and Objective
491
20.1.2 Solution and Benefits
492
20.2 Building Materials
492
20.2.1 Situation and Objective
492
20.2.2 Solution and Benefits
493
20.3 Chemicals
493
20.3.1 Chemicals for Water-Intensive Sectors
493
20.3.2 Crop Chemicals
494
20.4 Consumer Products
495
20.4.1 Beverage Company
495
20.4.2 Distilleries
496
20.4.3 Meat Production
496
20.4.4 Agricultural Supplies
497
20.4.5 Home Appliances
498
20.4.6 Spirit Maker
499
20.4.7 Seafood
499
20.4.8 Potato Products
500
20.4.9 Semi-Processed Cheese
501
20.5 Healthcare
501
20.5.1 Situation and Objective
501
20.5.2 Solution and Benefits
502
20.6 High Tech
502
20.6.1 Computers and Accessories
502
20.6.2 Imaging Machine Components
503
20.7 Industrial Machinery and Components
504
20.7.1 Situation and Objective
504
20.7.2 Solution and Benefits
505
20.8 Mill Products
505
20.8.1 Situation and Objective
505
20.8.2 Solution and Benefits
505
20.9 Retail
506
20.9.1 Situation and Objective
506
20.9.2 Solution and Benefits
506
20.10 Utilities
507
20.10.1 Situation and Objective
507
20.10.2 Solution and Benefits
507
20.11 Summary
507
A Supply Chain Management Acronyms
509
B The Authors
513
Index
515