SAP Integrated Business Planning: Functionality and Implementation (2nd Edition) (SAP PRESS)

What does it mean to move your supply chain to the cloud? With this guide to SAP Integrated Business Planning, get the complete S&OP, demand, response and supply, and inventory planning picture and then learn to monitor and control these processes. You'll understand how to set up and use your SAP IBP system, from planning models to user roles. Using industry case studies, see what it takes to ensure a successful adoption of SAP IBP. 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 What does it mean to move your supply chain to the cloud? With this guide to SAP Integrated Business Planning, get the complete S&OP, demand, response and supply, and inventory planning picture-and then learn to monitor and control these processes. You'll understand how to set up and use your SAP IBP system, from planning models to user roles. Using industry case studies, see what it takes to ensure a successful adoption of SAP IBP. Highlights include: Configuration and deployment, Implementation methodology, Planning model, Sales and operations planning (S&OP), Demand planning and forecasting, Supply planning, Response management, Inventory management, SAP Supply Chain Control Tower Case studies. This book provides you with the tools to: Configure and use the S&OP, demand, response and supply, and inventory planning applications, Measure your progress with the SAP Supply Chain Control Tower, Deploy SAP IBP and set it up in your landscape Résumé : With this guide to SAP Integrated Business Planning, get the complete S & OP, demand, response and supply, and inventory planning picture and then learn to monitor and control these processes. -- Edited summary from book