SAP integrated business planning: functionality and implementation

Foreword from Martin Barkman......Page 19
Foreword from Tim Gaus......Page 21
 Target Audience......Page 23
 How This Book Is Organized......Page 24
 Acknowledgments......Page 27
 1.1 Supply Chain Complexity in the Digital World......Page 31
  1.1.1 Customer-Centricity......Page 32
  1.1.2 Individualized Products......Page 33
  1.1.3 The Sharing Economy......Page 34
  1.1.4 Sustainability......Page 36
 1.2 The Evolution of Supply Chain Planning at SAP......Page 37
 1.3 SAP IBP at a Glance......Page 40
  1.3.2 SAP IBP for Inventory......Page 42
  1.3.3 SAP Supply Chain Control Tower......Page 44
  1.3.4 SAP IBP for Demand......Page 46
  1.3.5 SAP IBP for Response and Supply......Page 47
 1.4 SAP IBP Architecture......Page 50
 1.5 SAP S/4HANA and SAP IBP......Page 51
 1.6 SAP IBP and the Intelligent Digital Supply Chain......Page 52
 1.7 Summary......Page 54
 2.1 SAP Fiori......Page 55
  2.1.1 My Home......Page 56
  2.1.2 General Maintenance......Page 62
  2.1.3 Demand Planner......Page 64
  2.1.4 General Response Planner......Page 65
 2.2 SAP IBP Excel Planning View......Page 66
  2.2.2 Planning View Options......Page 67
  2.2.3 Data Input Options......Page 72
  2.2.4 Alerts in the SAP IBP Excel Planning View......Page 73
  2.2.5 Master Data Option in SAP IBP Excel Planning View......Page 74
  2.2.6 Scenario and Version Options in the SAP IBP Excel Planning View......Page 76
  2.2.7 Advanced Planning Options in SAP IBP Excel Planning View......Page 77
  2.2.8 Integration of the Planning View with Planning Collaboration......Page 78
 2.3 Summary......Page 80
3  Planning Data......Page 81
  3.1.1 Time Series Planning......Page 82
  3.1.2 Order Series-Based Planning......Page 90
 3.2 Transactional Data in a Supply Chain Network......Page 93
 3.3 Standard Data Models in SAP IBP......Page 94
 3.4 Data Integration......Page 95
  3.4.2 SAP Cloud Platform......Page 96
  3.4.3 SAP HANA Smart Data Integration......Page 99
 3.5 Data Visualization in SAP IBP......Page 100
  3.5.1 Excel Planning View: Master Data......Page 101
  3.5.2 Excel Planning View: Transactional Data......Page 108
  3.5.3 SAP Fiori View......Page 109
 3.6 Summary......Page 111
4  Building Blocks of a Planning Model......Page 113
 4.1 Attribute......Page 114
 4.2 Master Data Type......Page 115
 4.3 Time Profile......Page 119
 4.5 Planning Level......Page 121
 4.6 Key Figure......Page 123
 4.7 Key Figure Calculation Logic......Page 125
 4.8 Planning Operators......Page 129
 4.9 Version......Page 132
 4.10 Scenario......Page 133
 4.11 Reason Code......Page 134
 4.12 Global Configuration Parameters......Page 135
 4.13 Snapshot Configuration......Page 136
 4.14 Summary......Page 137
 5.1 Managing Planning Attributes......Page 139
 5.2 Assigning the Master Data Type......Page 141
 5.3 Creating Time Profiles......Page 145
 5.4 Defining Planning Areas......Page 148
 5.5 Managing the Planning Level......Page 152
 5.6 Using Key Figures......Page 154
 5.7 Adding Calculation Logic to Key Figures......Page 156
 5.9 Creating Reason Codes......Page 157
 5.10 Version Configuration......Page 158
 5.11 Creating Scenarios......Page 160
 5.13 Copying from a Standard SAP-Delivered Planning Area......Page 161
 5.14 Activating the Planning Model......Page 163
 5.15 Deleting Active Objects......Page 165
 5.16 Summary......Page 166
 6.1 Objective of Sales and Operations Planning......Page 167
  6.1.1 Sales and Operations Plan......Page 168
  6.1.2 Benefits of Sales and Operations Planning......Page 169
 6.2 Balancing Demand and Supply through Sales and Operations Planning......Page 170
  6.2.1 Complete Scalable Model......Page 171
  6.2.2 Scenario Planning......Page 173
  6.2.3 Collaboration......Page 174
  6.2.5 Intuitive User Interface......Page 176
  6.3.1 Demand Review......Page 177
  6.3.2 Supply Review......Page 179
  6.3.3 Pre-Sales and Operations Planning Review......Page 182
  6.3.4 Executive Review......Page 183
 6.4 Planning and External Procurement Collaboration......Page 185
 6.6 Summary......Page 188
 7.1 Managing Master Data for Sales and Operations Planning......Page 189
 7.2 Building and Activating Sales and Operations Planning Models......Page 193
  7.2.1 Time Profile and Planning Level......Page 194
  7.2.2 Key Figures......Page 195
  7.2.3 Planning Area Activation and Related Settings......Page 201
  7.3.1 Demand Review Process Configuration......Page 202
  7.3.2 Supply Review Process Configuration......Page 204
 7.4 Planning Views and Alerts through Sales and Operations Planning......Page 212
 7.5 Collaboration......Page 218
 7.6 Summary......Page 220
8  Demand Planning and Forecasting with SAP IBP......Page 221
 8.1 Demand Forecasting, Demand Planning, and Demand Sensing......Page 222
 8.2 Performing Demand Forecasting and Demand Sensing......Page 226
 8.3 Preprocessing for Demand Forecasting......Page 229
 8.4 Forecasting......Page 232
 8.5 Postprocessing and Forecast Error......Page 243
 8.6 Promotion Planning and Management......Page 246
 8.7 What’s Ahead for Demand Planning?......Page 248
 8.8 Summary......Page 249
9  Implementing SAP IBP for Demand......Page 251
  9.1.1 Master Data Types......Page 252
  9.1.2 Period Type......Page 253
  9.1.3 Planning Level......Page 254
  9.1.4 Key Figures......Page 255
  9.1.5 Planning Area, Model, and Planning Operator......Page 259
  9.2.1 General Settings......Page 261
  9.2.2 Preprocessing......Page 262
  9.2.3 Forecasting......Page 263
  9.2.4 Postprocessing......Page 268
 9.3 Promotion Planning......Page 269
 9.4 Demand Planning Run in SAP IBP......Page 270
 9.5 Demand Planning for a New Product......Page 272
 9.6 Planning Results......Page 274
 9.7 Summary......Page 276
10  Response and Supply Planning with SAP IBP......Page 277
 10.1 Response and Supply Planning Overview......Page 278
 10.2 Supply Planning Methodology......Page 280
  10.2.1 Demand Prioritization......Page 281
  10.2.2 Supply, Allocation, and Response Planning......Page 283
 10.3 Forecast Consumption......Page 284
 10.4 Gating Factor Analysis......Page 285
  10.5.1 SAP IBP Excel Planning View......Page 286
  10.5.2 SAP IBP: SAP Fiori View......Page 288
  10.6.1 Simulation of Sales Order......Page 291
  10.6.2 Scenario Creation, Analysis, and Constraint Management......Page 292
  10.6.3 Collaboration, Decision, and Data Update to the Live System......Page 293
 10.7 What’s Ahead for Response and Supply Planning?......Page 294
 10.8 Summary......Page 295
11  Implementing SAP IBP for Response and Supply......Page 297
 11.1 Basic Configuration......Page 298
 11.2 Integration......Page 300
 11.3 Planning Area Overview......Page 302
  11.4.1 Rule Creation and Segment Sequence......Page 306
  11.4.2 Segment Definition and Segment Condition......Page 308
  11.4.3 Sorting Condition of a Segment......Page 309
 11.5 Response and Supply Management Planning Run......Page 311
  11.5.1 Constrained Planning Run for Product Allocation and Supply Plan......Page 314
  11.5.3 Response Management: Gating Factor Analysis Run......Page 316
 11.6 Order Simulation and Scenario Planning......Page 317
 11.7 Planning Review for Response and Supply......Page 319
 11.8 Gating Factor Analysis......Page 320
  11.9.1 Order Series-Based Planning Deployment Run......Page 322
  11.9.3 Available-to-Deploy Profiles......Page 324
 11.10 Summary......Page 325
12  Inventory Management with SAP IBP......Page 327
 12.1 Why Hold Inventory?......Page 328
  12.2.1 Inventory Types Based on the Product Property......Page 330
  12.2.2 Inventory Types Based on Inventory Planning and Optimization......Page 331
  12.3.1 Supply Chain Network and Inventory Optimization......Page 333
  12.3.2 Basic Concepts and Analytics for Inventory Optimization......Page 335
 12.4 Inventory Optimization Calculations......Page 339
  12.5.1 Network Visualization and Inventory Calculation......Page 343
  12.5.2 Sales, Inventory, and Operations Planning and Analytics Applications......Page 344
  12.5.3 Planning Views for SAP IBP for Inventory......Page 346
 12.6 Demand-Driven Material Requirements Planning......Page 347
 12.7 What’s Ahead for Inventory?......Page 349
 12.8 Summary......Page 350
 13.1 Building Network Visualizations......Page 351
  13.1.3 Master Data Elements for Supply Chain Network App......Page 352
 13.2 Modeling Inventory Optimization......Page 355
 13.3 Forecast Error Calculation......Page 359
 13.4 Input-Output Data Objects and Key Figures......Page 361
  13.4.1 Input Data for Inventory Optimization......Page 362
  13.4.2 Output of the Inventory Optimization Engine......Page 365
 13.5 Planning Operators for Inventory Calculation......Page 367
  13.6.1 Executing Planning Runs......Page 368
  13.6.2 Review Inventory Optimization......Page 370
 13.7 Summary......Page 375
14  SAP Supply Chain Control Tower......Page 377
 14.1 Supply Chain Analytics and Dashboards......Page 378
 14.2 SAP Supply Chain Control Tower Alerts......Page 380
 14.3 The Networked Supply Chain......Page 382
 14.4 Root-Cause Analysis and Resolution......Page 384
 14.5 Analytics and Key Performance Indicators......Page 386
  14.5.2 KPIs for Demand Forecasting......Page 390
  14.5.3 KPIs for Supply, Response, and Transportation......Page 391
  14.5.4 KPIs for Inventory......Page 392
 14.6 Collaborative Supply Chain: SAP IBP and SAP Ariba......Page 393
  14.7.1 Supply Chain Segmentation......Page 397
  14.7.3 Digital Supply Chain and Internet of Things......Page 398
 14.8 Summary......Page 399
15  Implementing SAP Supply Chain Control Tower with SAP IBP......Page 401
 15.1 Analytics Application......Page 402
 15.2 Process Modeling......Page 406
 15.3 Dashboard Creation......Page 407
 15.4 Key Performance Indicators......Page 408
 15.5 Case and Task Management......Page 410
 15.6 Collaboration......Page 414
 15.7 Custom Alerts......Page 416
  15.7.1 Defining and Subscribing to Custom Alerts......Page 417
  15.7.2 Custom Alert Overview......Page 420
  15.7.3 Monitoring Custom Alerts......Page 421
  15.8.2 Create a Communication Arrangement......Page 423
  15.8.3 Setting Up SAP Ariba Supply Chain Collaboration......Page 426
 15.9 Summary......Page 427
  16.1.1 Unified Planning Area: SAPIBP1......Page 429
  16.1.2 Integrated Planning Area for Response and Supply: SAP74......Page 434
  16.2.1 Application Job Templates......Page 435
  16.2.2 Application Jobs......Page 437
  16.2.3 Application Logs......Page 438
 16.3 User and Business Roles......Page 439
  16.3.1 Maintaining Employees and Business Users......Page 440
  16.3.2 Maintaining Business Roles......Page 441
  16.3.3 Role Assignment......Page 443
 16.4 User Group Creation......Page 444
 16.5 Summary......Page 445
17  Implementation Methodology......Page 447
 17.1 SAP IBP Project Implementation......Page 448
  17.2.1 Waterfall and ASAP Methodology......Page 449
  17.2.2 Agile Methodology......Page 452
  17.2.3 Agile Add-On to ASAP Methodology......Page 456
 17.3 Sprint Delivery and Team Framework......Page 458
 17.4 SAP Best Practices for SAP IBP......Page 459
 17.5 SAP Integrated Business Planning, Edge Edition......Page 460
 17.6 Implementation Recommendations......Page 461
 17.7 Summary......Page 465
  18.1.1 Situation and Objectives......Page 467
  18.1.3 Conclusions......Page 468
  18.2.2 Solution and Benefits......Page 469
  18.3.2 Solution and Benefits......Page 470
  18.3.3 Conclusions......Page 471
  18.4.2 Solution and Benefits......Page 472
  18.4.3 Conclusions......Page 473
  18.5.2 Solution and Benefits......Page 474
 18.6 Sales and Operations Planning......Page 475
  18.6.2 Solution and Benefits......Page 476
  18.7.1 Situation and Objectives......Page 477
  18.7.2 Solution and Benefits......Page 478
  18.8.2 Solution and Benefits......Page 479
 18.9 Response and Supply Planning......Page 480
  18.9.2 Solution and Benefits......Page 481
  18.10.2 Solution and Benefits......Page 483
  18.10.3 Conclusions......Page 484
 18.11 Summary......Page 485
 A  Supply Chain Management Acronyms......Page 487
 B  The Authors......Page 491
Index......Page 493