sap integrated business planning
TRANSCRIPT
Supply Chain Excellence
SAP Integrated Business Planning
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Confidential
IBP
One Harmonized Data ModelAvoid any latency due to integration efforts and leverage the SAP ERP data model
Cloud First ApproachThe solutions will be provided in the SAP Cloud but also be made available on-premise
Enhanced User ExperienceIntroduce state-of-the art user experience with communication capabilities (SAP JAM) and MS Excel Spreadsheets
Built on SAP HANADemand Networks require real-time monitoring and a focus on short-term planning
New Planning AlgorithmLeverage predictive analytics (e.g. demand sensing) algorithm in combination with optimization SAP Business Network
Supply Inventory Response Demand
Sales & Operations Planning
Enhanced User Experience
Supply Chain Control Tower
SAP HANA Platform
SAP Integrated Business PlanningSpeeding up the Supply Chain requires a new Supply Chain Planning approach
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
S&OP Customer Testimonial
“”Colgate Business Planning (CBP) is our integrated business planning process focused on accelerating profitable growth. We have engaged with SAP as an co-innovation partner and collaborator to utilize their S&OP tool to enable our integrated monthly CBP process to synchronize demand and supply.
The S&OP capabilities on HANA include the real time simulation and analysis of demand opportunities during planning sessions. The tool’s contextual social collaboration capabilities have facilitated more timely communication and updates of demand changes across the organization. It has also streamlined the preparation and information exchange leading up to key consensus meetings by providing one tool and repository for information.”
Jim Davis
Global Director of Demand Planning and Customer Service
Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its products in over 223 countries and territories around the world.
The IBP Pillars
IBP: Plan in Real-time With a Unified Data Model
Capabilities: Plan in real-time, using a unified model of your demand,
supply chain and financial data within a single data model, allowing planning on qty or value
Analyze massive volumes of complex data instantly at any level of granularity, aggregation, and dimension
Import massive amounts of detailed data directly from SAP and non-SAP sources
Benefits: Optimize product/customer profitability and product mix,
considering supply and financial constraints Adjust inventory levels to reduce cost, while meeting
target customer service levels
Manage capacity utilization to avoid capacity and material shortages
QtyValueUser-driven embedded analytics
User-defined process templateAlert management
IBP: Run Simulations and Scenarios Instantly
Capabilities: Rapidly run simulations of demand, supply and
financial changes using your full data model to support what-if analysis
Compare planning scenarios and their impact on key performance indicators in real-time
Drill down into simulated data to perform detailed analysis without the need for manual disaggregation
Benefits: Identify optimal set of tactics to drive revenue growth
and increase market share
Uncover opportunities to reduce supply chain cost
Prepare for potential changes in demand and supply before they happen
Plan on select key figures Plan on select hierarchy level and disaggregate
Select quantity or value
Create own master data for simulationAddresses NPI and invisible demand
Embedded alerts
IBP: Enable Rich, Contextual Social Collaboration
Capabilities: Track progress of your business process, including
assignment and monitoring of action items and the stakeholders responsible
Collaborate quickly and easily using embedded role and context-aware social tools
Plan using user-friendly web and Microsoft Excel interfaces
Benefits: Increase speed and agility of planning
Drive greater engagement and improve input from users across your organization
Improve precision of demand and supply balancing
Messenger to key stakeholders
Collaborate and share analysis
Wealth of collaboration tools
SAP Integrated Business Planning (IBP)
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13
• Consider an airport control tower’s real time visibility of all airlines events in the region.
• The air traffic controllers has all the relevant information presented to them in real time and are able to analyze, interpret and act on the information presented.
• They have a single interface to manage actions, corrective actions and communication with stakeholders.
• Taking these lessons learned into supply chain planning… reacting to events in your supply chain timeously helps to prevent losses and increase profit.
• SAP enables global visibility of the supply chain linked to sales, operations and inventory planning in real time through the SAP Integration Business Planning solution delivered in the SAP Managed Cloud
SAP Supply Chain Control Tower
SAP Supply Chain Control TowerUnderstand current supply chain status with flexible dashboards
Enable supply chain professionals to navigate, analyze and profitably manage the end-to-end supply chain in real-time• Increase end-to-end visibility• Provides historical and forward looking
KPIs in a single view• Drive visibility and action with user
configurable dashboards and analytics• Monetized impact of exception conditions
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
SAP SUPPLY CHAIN CONTROL TOWER
KPI dashboard Global visibility
Task and Case management Alerting to Action
SAMPLE USE CASES
SAP Integrated Business Planning for sales and operations
Deliver a cross departmental sales & operations plan balancing the impact on inventory, service levels and profitability• Create the optimal business plan to drive
revenue growth and increase market share
• Effectively balance demand and supply and attain financial targets
• Increase speed and agility of planning and drive most profitable responses
• Improve forecast accuracy and on-time delivery
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
SAP Integrated Business Planning for sales and operations
S&OP process management Simulation
Collaboration Dashboard analytics
Supporting different Business Models and Challenges
Net Business Impact
Value Proposition with S&OP powered by HANA Benefits
Real-time Planning
Plan in real-time, using a unified model of your demand, supply chain and financial data
Analyze massive volumes of complex data instantly at any level of granularity, aggregation, and dimension
Import massive amounts of detailed data directly from SAP and non-SAP sources
Optimize product/customer profitability and product mix
Single business plan for all stakeholders
Avoid shortages
Instant Simulations & Scenarios
Rapidly run “what-if” simulations of demand, supply and financial changes using your full S&OP data model (30 to 40% improved response time)
Compare planning scenarios and their impact on key performance indicators in real-time
Drill down into simulated data to perform detailed analysis without the need for manual disaggregation
Become prepared to seize opportunities or deal with imminent threats
Lower safety buffers without raising risk
Social Collaboration
Track progress of the S&OP process, including assignment and monitoring of action items and the stakeholders responsible
Collaborate quickly and easily using embedded role and context-aware social tools
Plan using user-friendly web and Microsoft Excel interfaces
Improve forecast accuracy through a faster and collaborative S&OP process
Greater accountability & adoption from stakeholders
Net Business Impact
Value Proposition with S&OP powered by HANA Business Impact
Standardize Process
• Standardize process with automated workflow and task management
• Enable collaboration with field providing ability for customer program managers to directly input forecast data
• Integration and consolidated data provides single version of the truth
Participation &
Accountability
Optimize Demand
Plan
• Optimize demand planning by leveraging historical data (previous forecast, actuals, etc.) and current backlog data
• View different demand inputs to create a single consensus
Forecast Accuracy (%)
BalanceSupply-
Demand
• Run financial impact simulations, e.g. revenue impact based on supply plan
• Perform constraint based supply planning
• Perform material and capacity analysis to balance supply-demand
Inventory Costs
Real-time Data
Refresh
• Real-time refresh of data fields including: product family, part number, ASP, customer master, form factor
• Run simulations in real-time to make better business decisions, faster
• Paradigm shift from time spent on data gathering to data analysis to uncover opportunities for improvement
Time for Data Analysis
vs. Gathering
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21
CompanySMART Modular Technologies Inc.
HeadquartersNewark, California
IndustryHigh tech
Products and ServicesDesign, development, and deployment of current and next-generation memory products
Employees1,400
Web Site www.smartm.com
PartnerIntrigo Systemswww.intrigosys.com
Business challenges Planning processes that could not be scaled to keep up with fast company
growth Lack of capabilities to support a value-driven and profitability-oriented sales and
operations planning process that is linked to business strategy
Technical implementation Implemented the SAP® Sales and Operations Planning application powered by the SAP HANA® platform
Key benefits Standardized, optimized, and automated the sales and operations planning
process, substantially reducing planning cycle times and workload Increased efficiency and accuracy of the forecasting process, and enabled the
identification of critical component shortages Enabled integrated business planning
“SAP Sales and Operations Planning powered by SAP HANA helps SMART Modular manage our sales and operations planning in a collaborative and efficient manner. We see a single version of the plan from sales to planning to materials to the factory, all of which can be correlated to financial performance. The result is true integrated business planning.”Srini Tanikella, Director IT Solutions, SMART Modular Technologies Inc.
Planning More Effectively with SAP® IBP for sales and operations planning
UnifiedPicture of sales, profits, and share targets, all in one system
FastCycle times with fewer manual and labor-intensive sales and operations planning processes
IntuitiveUser interfaces and embedded collaboration tools that help boost user productivity
SAP Integrated Business Planning for demand
Gain full Demand Transparency for short-, mid- and long-term forecasting by leveraging demand sensing and statistical forecasting methods• Develop more accurate mid-term
statistical forecasts• React faster to short term demand
changes with pattern recognition based algorithms
• Drive more accurate deployment of product based on short term demand
• Manage multiple demand signals• Collaborate to ensure the most
accurate forecast
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
SAP Integrated Business Planning for demand
Demand Sensing Scenario planning for demand
Issue Resolution Fiori appDefining a forecast model
SAP Integrated Business Planning for inventory
Optimize multi stage Inventory Targets to most efficiently meet or exceed customer service levels, fully considering uncertainties like forecast error and supply uncertainty.• Improve customer service levels• Maximize the efficiency of inventory and
working capital• Improve planner productivity,
standardize planning processes• Standardize the inventory target-setting
process at each tier within the supply chain to feed operational plans
• Determine right amount, right place, and right time for inventory to carry while meeting plan objectives
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
SAP Integrated Business Planning for inventory
Inventory positioning in network Inventory & Service optimization
‘What if’ analysis on inventoryDrivers of inventory
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 28
CompanyMcKesson Corporation
HeadquartersSan Francisco, CA, US
IndustryPharmaceuticals
ProductsPharmaceuticals, Healthcare products, Medical technology
Employees43,500
RevenueUS$ 122.455 billion
Web Site McKesson.com
PartnerSAP Consulting
Business challenges Spreadsheet-based planning approach prevented achieving aspired business
growth targets Limited to no possibility to gain insight / analyze vast amounts of relevant data on
the required levels of granularity Growing and enabling business organization quickly to fulfill growth targets
Implementation Integrated solution for sales & operations planning and inventory
optimization/replenishment planning SAP HCI pivotal piece of integrating IBP for s&o, EIS, ECC and BW One Business Unit globally first, subsequent Roll-out
Key benefits Improved confidence in and integrity of the S&OP process Optimal inventory positioníng and level setting in complex supply chain
environment Simplification of planning and fully exception-based procedures enabled scaling
up the business organization quickly Aggregation/disaggregation „on the fly“ through millions of relevant data records
for rapid insight for business users Generation of optimal constrained and balanced business plan in line with
corporate financial targets
“Simplification of sales and operations planning, the introduction of an optimized inventory positioning and replenishment process, and the rapid enablement of the human organization was key for scaling up the business according to the business growth targets.”Jim Smith, Director of Solution Management, McKesson Corporation
Mastering complex hub & spoke supply chain model with SAP® IBP for sales and operations and SAP® EIS
IncreasedUser acceptance through centralized analytics and alerting
DecreasedWorking capital through optimized invetory targets and levels
GreaterSpeed, efficiency and effectiveness of planning process
SAP Integrated Business Planning for supply
Create tactical level supply planning simulations for S&OP based on forecasts, orders, and inventory or safety stock targets.
• Simulate either constrained or unconstrained production and distribution plan, using heuristics or optimization based algorithms
• Multi level sourcing determination for both distribution and Bills of Material
• Development of rough cut capacity plan in a times series bucketed supply plan
• Gain visibility for projected stock or shortages at relevant levels of aggregation
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
Fast, flexible supply planning supporting a variety of approaches, suitable for many industries, including:
• Support of tactical (time-bucketed, rough cut) supply planning in conjunction with IBP for sales and operation
• Create specific orders for production and procurement in short – mid term, in alignment with tactical plan
• Constrained optimization and priority rules-driven algorithms. Unconstrained demand propagation and heuristics options as well
• Make short-term supply adjustments
• What-if analysis of actual or hypothetical changes to demand and / or supply
• Pegging and gating-factor analysis
• Optionally generate and provide allocations to ATP, and reschedule sales orders
SAP Integrated Business Planning for response and supply
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
SAP Integrated Business Planning for supply & response
Entry screen – KPIs and alerts overview Back order processing and confirmation simulation
Demand supply pegging analysisStock projection
SAP Integrated Business Planning for supply & response
Entry screen – KPIs and alerts overview
Demand supply pegging analysisStock projection
SAP Integrated Business Planning for supply & response
Entry screen – KPIs and alerts overview
Demand supply pegging analysisStock projection
Customers
Integrated Business Planning for sales and operationsCustomers and Industries
High Tech
Pharma
Chemicals
Manufacturing
Mill Products & Mining
Consumer Products
ServicesRetail
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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