SAP Integrated Business Planning
Functionality and Implementation
2nd Edition
Published on 28. May 2018
Book
Hardback
504 pages
978-1-4932-1693-2 (ISBN)
Description
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.
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
More details
Other editions
New editions
Sandy Markin | Amit Sinha | Sanchit Chandna
SAP Integrated Business Planning
Functionality and Implementation
Book
06/2021
3rd Edition
SAP PRESS
€79.95
Available immediately
Previous edition
Book
05/2017
1st Edition
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€79.95
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Persons
Author
Sandy Markin is the senior director of supply chain solutions at SAP and the solution owner of SAP Integrated Business Planning. Before SAP IBP, Sandy worked extensively as part of the design, development, and launch of SAP APO, among other supply chain solutions.
Amit Sinha is an expert in SAP APO and SAP IBP, with a focus on business process reengineering and supply chain solution modeling in sales and operations planning, demand forecasting, supply planning, detail production scheduling, inventory optimization, and supply chain analytics. He has more than twelve years of supply chain management experience doing solution architecting and project management for planning projects for clients in the pharmaceutical, high-tech, manufacturing, consumer goods, and chemical industries.
Content
... 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 ... 31
1.1 ... Supply Chain Complexity in the Digital World ... 31
1.2 ... The Evolution of Supply Chain Planning at SAP ... 37
1.3 ... SAP IBP at a Glance ... 40
1.4 ... SAP IBP Architecture ... 50
1.5 ... SAP S/4HANA and SAP IBP ... 51
1.6 ... SAP IBP and the Intelligent Digital Supply Chain ... 52
1.7 ... Summary ... 54
2 ... Navigation ... 55
2.1 ... SAP Fiori ... 55
2.2 ... SAP IBP Excel Planning View ... 66
2.3 ... Summary ... 80
3 ... Planning Data ... 81
3.1 ... Master Data in a Supply Chain Network ... 82
3.2 ... Transactional Data in a Supply Chain Network ... 93
3.3 ... Standard Data Models in SAP IBP ... 94
3.4 ... Data Integration ... 95
3.5 ... Data Visualization in SAP IBP ... 100
3.6 ... Summary ... 111
4 ... Building Blocks of a Planning Model ... 113
4.1 ... Attribute ... 114
4.2 ... Master Data Type ... 115
4.3 ... Time Profile ... 119
4.4 ... Planning Area ... 121
4.5 ... Planning Level ... 121
4.6 ... Key Figure ... 123
4.7 ... Key Figure Calculation Logic ... 125
4.8 ... Planning Operators ... 129
4.9 ... Version ... 132
4.10 ... Scenario ... 133
4.11 ... Reason Code ... 134
4.12 ... Global Configuration Parameters ... 135
4.13 ... Snapshot Configuration ... 136
4.14 ... Summary ... 137
5 ... Configuring an SAP IBP System ... 139
5.1 ... Managing Planning Attributes ... 139
5.2 ... Assigning the Master Data Type ... 141
5.3 ... Creating Time Profiles ... 145
5.4 ... Defining Planning Areas ... 148
5.5 ... Managing the Planning Level ... 152
5.6 ... Using Key Figures ... 154
5.7 ... Adding Calculation Logic to Key Figures ... 156
5.8 ... Assigning Planning Operators ... 157
5.9 ... Creating Reason Codes ... 157
5.10 ... Version Configuration ... 158
5.11 ... Creating Scenarios ... 160
5.12 ... Managing Global Configuration Settings ... 161
5.13 ... Copying from a Standard SAP-Delivered Planning Area ... 161
5.14 ... Activating the Planning Model ... 163
5.15 ... Deleting Active Objects ... 165
5.16 ... Summary ... 166
6 ... Sales and Operations Planning with SAP IBP ... 167
6.1 ... Objective of Sales and Operations Planning ... 167
6.2 ... Balancing Demand and Supply through Sales and Operations Planning ... 170
6.3 ... Managing Sales and Operations Planning Processes with SAP IBP ... 177
6.4 ... Planning and External Procurement Collaboration ... 185
6.5 ... What's Ahead for S&OP? ... 188
6.6 ... Summary ... 188
7 ... Implementing SAP IBP for Sales and Operations ... 189
7.1 ... Managing Master Data for Sales and Operations Planning ... 189
7.2 ... Building and Activating Sales and Operations Planning Models ... 193
7.3 ... Demand and Supply Planning for Sales and Operations Planning ... 202
7.4 ... Planning Views and Alerts through Sales and Operations Planning ... 212
7.5 ... Collaboration ... 218
7.6 ... Summary ... 220
8 ... Demand Planning and Forecasting with SAP IBP ... 221
8.1 ... Demand Forecasting, Demand Planning, and Demand Sensing ... 222
8.2 ... Performing Demand Forecasting and Demand Sensing ... 226
8.3 ... Preprocessing for Demand Forecasting ... 229
8.4 ... Forecasting ... 232
8.5 ... Postprocessing and Forecast Error ... 243
8.6 ... Promotion Planning and Management ... 246
8.7 ... What's Ahead for Demand Planning? ... 248
8.8 ... Summary ... 249
9 ... Implementing SAP IBP for Demand ... 251
9.1 ... Planning Model Configuration ... 252
9.2 ... Forecast Model Management ... 261
9.3 ... Promotion Planning ... 269
9.4 ... Demand Planning Run in SAP IBP ... 270
9.5 ... Demand Planning for a New Product ... 272
9.6 ... Planning Results ... 274
9.7 ... Summary ... 276
10 ... Response and Supply Planning with SAP IBP ... 277
10.1 ... Response and Supply Planning Overview ... 278
10.2 ... Supply Planning Methodology ... 280
10.3 ... Forecast Consumption ... 284
10.4 ... Gating Factor Analysis ... 285
10.5 ... Order Review and Analysis ... 286
10.6 ... Order Simulation and Scenario Planning ... 291
10.7 ... What's Ahead for Response and Supply Planning? ... 294
10.8 ... Summary ... 295
11 ... Implementing SAP IBP for Response and Supply ... 297
11.1 ... Basic Configuration ... 298
11.2 ... Integration ... 300
11.3 ... Planning Area Overview ... 302
11.4 ... Demand Prioritization Configuration ... 306
11.5 ... Response and Supply Management Planning Run ... 311
11.6 ... Order Simulation and Scenario Planning ... 317
11.7 ... Planning Review for Response and Supply ... 319
11.8 ... Gating Factor Analysis ... 320
11.9 ... Deployment Planning ... 322
11.10 ... Summary ... 325
12 ... Inventory Management with SAP IBP ... 327
12.1 ... Why Hold Inventory? ... 328
12.2 ... Inventory Types and Usage ... 330
12.3 ... Inventory Planning and Related Analytics ... 333
12.4 ... Inventory Optimization Calculations ... 339
12.5 ... SAP IBP for Inventory ... 343
12.6 ... Demand-Driven Material Requirements Planning ... 347
12.7 ... What's Ahead for Inventory? ... 349
12.8 ... Summary ... 350
13 ... Implementing SAP IBP for Inventory ... 351
13.1 ... Building Network Visualizations ... 351
13.2 ... Modeling Inventory Optimization ... 355
13.3 ... Forecast Error Calculation ... 359
13.4 ... Input-Output Data Objects and Key Figures ... 361
13.5 ... Planning Operators for Inventory Calculation ... 367
13.6 ... Performing and Reviewing Inventory Optimization ... 368
13.7 ... Summary ... 375
14 ... SAP Supply Chain Control Tower ... 377
14.1 ... Supply Chain Analytics and Dashboards ... 378
14.2 ... SAP Supply Chain Control Tower Alerts ... 380
14.3 ... The Networked Supply Chain ... 382
14.4 ... Root-Cause Analysis and Resolution ... 384
14.5 ... Analytics and Key Performance Indicators ... 386
14.6 ... Collaborative Supply Chain: SAP IBP and SAP Ariba ... 393
14.7 ... What's Ahead for Analytics? ... 397
14.8 ... Summary ... 399
15 ... Implementing SAP Supply Chain Control Tower with SAP IBP ... 401
15.1 ... Analytics Application ... 402
15.2 ... Process Modeling ... 406
15.3 ... Dashboard Creation ... 407
15.4 ... Key Performance Indicators ... 408
15.5 ... Case and Task Management ... 410
15.6 ... Collaboration ... 414
15.7 ... Custom Alerts ... 416
15.8 ... Business Network Collaboration ... 423
15.9 ... Summary ... 427
16 ... Unified Planning and User Roles ... 429
16.1 ... Unified and Integrated Planning Areas ... 429
16.2 ... Application Jobs ... 435
16.3 ... User and Business Roles ... 439
16.4 ... User Group Creation ... 444
16.5 ... Summary ... 445
17 ... Implementation Methodology ... 447
17.1 ... SAP IBP Project Implementation ... 448
17.2 ... Project Implementation Methodologies ... 449
17.3 ... Sprint Delivery and Team Framework ... 458
17.4 ... SAP Best Practices for SAP IBP ... 459
17.5 ... SAP Integrated Business Planning, Edge Edition ... 460
17.6 ... Implementation Recommendations ... 461
17.7 ... Summary ... 465
18 ... Customer Use Cases ... 467
18.1 ... Sales Planning ... 467
18.2 ... Collaborative Demand Management ... 469
18.3 ... Forecasting and Replenishment Planning ... 470
18.4 ... Multilevel Supply Planning ... 472
18.5 ... Cost-Optimized Supply Planning ... 474
18.6 ... Sales and Operations Planning ... 475
18.7 ... End-to-End Planning and Visibility ... 477
18.8 ... Integrated Business Planning ... 479
18.9 ... Response and Supply Planning ... 480
18.10 ... Supply Chain Collaboration ... 483
18.11 ... Summary ... 485
... Appendices ... 487
A ... Supply Chain Management Acronyms ... 487
B ... The Authors ... 491
... Index ... 493
... 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 ... 31
1.1 ... Supply Chain Complexity in the Digital World ... 31
1.2 ... The Evolution of Supply Chain Planning at SAP ... 37
1.3 ... SAP IBP at a Glance ... 40
1.4 ... SAP IBP Architecture ... 50
1.5 ... SAP S/4HANA and SAP IBP ... 51
1.6 ... SAP IBP and the Intelligent Digital Supply Chain ... 52
1.7 ... Summary ... 54
2 ... Navigation ... 55
2.1 ... SAP Fiori ... 55
2.2 ... SAP IBP Excel Planning View ... 66
2.3 ... Summary ... 80
3 ... Planning Data ... 81
3.1 ... Master Data in a Supply Chain Network ... 82
3.2 ... Transactional Data in a Supply Chain Network ... 93
3.3 ... Standard Data Models in SAP IBP ... 94
3.4 ... Data Integration ... 95
3.5 ... Data Visualization in SAP IBP ... 100
3.6 ... Summary ... 111
4 ... Building Blocks of a Planning Model ... 113
4.1 ... Attribute ... 114
4.2 ... Master Data Type ... 115
4.3 ... Time Profile ... 119
4.4 ... Planning Area ... 121
4.5 ... Planning Level ... 121
4.6 ... Key Figure ... 123
4.7 ... Key Figure Calculation Logic ... 125
4.8 ... Planning Operators ... 129
4.9 ... Version ... 132
4.10 ... Scenario ... 133
4.11 ... Reason Code ... 134
4.12 ... Global Configuration Parameters ... 135
4.13 ... Snapshot Configuration ... 136
4.14 ... Summary ... 137
5 ... Configuring an SAP IBP System ... 139
5.1 ... Managing Planning Attributes ... 139
5.2 ... Assigning the Master Data Type ... 141
5.3 ... Creating Time Profiles ... 145
5.4 ... Defining Planning Areas ... 148
5.5 ... Managing the Planning Level ... 152
5.6 ... Using Key Figures ... 154
5.7 ... Adding Calculation Logic to Key Figures ... 156
5.8 ... Assigning Planning Operators ... 157
5.9 ... Creating Reason Codes ... 157
5.10 ... Version Configuration ... 158
5.11 ... Creating Scenarios ... 160
5.12 ... Managing Global Configuration Settings ... 161
5.13 ... Copying from a Standard SAP-Delivered Planning Area ... 161
5.14 ... Activating the Planning Model ... 163
5.15 ... Deleting Active Objects ... 165
5.16 ... Summary ... 166
6 ... Sales and Operations Planning with SAP IBP ... 167
6.1 ... Objective of Sales and Operations Planning ... 167
6.2 ... Balancing Demand and Supply through Sales and Operations Planning ... 170
6.3 ... Managing Sales and Operations Planning Processes with SAP IBP ... 177
6.4 ... Planning and External Procurement Collaboration ... 185
6.5 ... What's Ahead for S&OP? ... 188
6.6 ... Summary ... 188
7 ... Implementing SAP IBP for Sales and Operations ... 189
7.1 ... Managing Master Data for Sales and Operations Planning ... 189
7.2 ... Building and Activating Sales and Operations Planning Models ... 193
7.3 ... Demand and Supply Planning for Sales and Operations Planning ... 202
7.4 ... Planning Views and Alerts through Sales and Operations Planning ... 212
7.5 ... Collaboration ... 218
7.6 ... Summary ... 220
8 ... Demand Planning and Forecasting with SAP IBP ... 221
8.1 ... Demand Forecasting, Demand Planning, and Demand Sensing ... 222
8.2 ... Performing Demand Forecasting and Demand Sensing ... 226
8.3 ... Preprocessing for Demand Forecasting ... 229
8.4 ... Forecasting ... 232
8.5 ... Postprocessing and Forecast Error ... 243
8.6 ... Promotion Planning and Management ... 246
8.7 ... What's Ahead for Demand Planning? ... 248
8.8 ... Summary ... 249
9 ... Implementing SAP IBP for Demand ... 251
9.1 ... Planning Model Configuration ... 252
9.2 ... Forecast Model Management ... 261
9.3 ... Promotion Planning ... 269
9.4 ... Demand Planning Run in SAP IBP ... 270
9.5 ... Demand Planning for a New Product ... 272
9.6 ... Planning Results ... 274
9.7 ... Summary ... 276
10 ... Response and Supply Planning with SAP IBP ... 277
10.1 ... Response and Supply Planning Overview ... 278
10.2 ... Supply Planning Methodology ... 280
10.3 ... Forecast Consumption ... 284
10.4 ... Gating Factor Analysis ... 285
10.5 ... Order Review and Analysis ... 286
10.6 ... Order Simulation and Scenario Planning ... 291
10.7 ... What's Ahead for Response and Supply Planning? ... 294
10.8 ... Summary ... 295
11 ... Implementing SAP IBP for Response and Supply ... 297
11.1 ... Basic Configuration ... 298
11.2 ... Integration ... 300
11.3 ... Planning Area Overview ... 302
11.4 ... Demand Prioritization Configuration ... 306
11.5 ... Response and Supply Management Planning Run ... 311
11.6 ... Order Simulation and Scenario Planning ... 317
11.7 ... Planning Review for Response and Supply ... 319
11.8 ... Gating Factor Analysis ... 320
11.9 ... Deployment Planning ... 322
11.10 ... Summary ... 325
12 ... Inventory Management with SAP IBP ... 327
12.1 ... Why Hold Inventory? ... 328
12.2 ... Inventory Types and Usage ... 330
12.3 ... Inventory Planning and Related Analytics ... 333
12.4 ... Inventory Optimization Calculations ... 339
12.5 ... SAP IBP for Inventory ... 343
12.6 ... Demand-Driven Material Requirements Planning ... 347
12.7 ... What's Ahead for Inventory? ... 349
12.8 ... Summary ... 350
13 ... Implementing SAP IBP for Inventory ... 351
13.1 ... Building Network Visualizations ... 351
13.2 ... Modeling Inventory Optimization ... 355
13.3 ... Forecast Error Calculation ... 359
13.4 ... Input-Output Data Objects and Key Figures ... 361
13.5 ... Planning Operators for Inventory Calculation ... 367
13.6 ... Performing and Reviewing Inventory Optimization ... 368
13.7 ... Summary ... 375
14 ... SAP Supply Chain Control Tower ... 377
14.1 ... Supply Chain Analytics and Dashboards ... 378
14.2 ... SAP Supply Chain Control Tower Alerts ... 380
14.3 ... The Networked Supply Chain ... 382
14.4 ... Root-Cause Analysis and Resolution ... 384
14.5 ... Analytics and Key Performance Indicators ... 386
14.6 ... Collaborative Supply Chain: SAP IBP and SAP Ariba ... 393
14.7 ... What's Ahead for Analytics? ... 397
14.8 ... Summary ... 399
15 ... Implementing SAP Supply Chain Control Tower with SAP IBP ... 401
15.1 ... Analytics Application ... 402
15.2 ... Process Modeling ... 406
15.3 ... Dashboard Creation ... 407
15.4 ... Key Performance Indicators ... 408
15.5 ... Case and Task Management ... 410
15.6 ... Collaboration ... 414
15.7 ... Custom Alerts ... 416
15.8 ... Business Network Collaboration ... 423
15.9 ... Summary ... 427
16 ... Unified Planning and User Roles ... 429
16.1 ... Unified and Integrated Planning Areas ... 429
16.2 ... Application Jobs ... 435
16.3 ... User and Business Roles ... 439
16.4 ... User Group Creation ... 444
16.5 ... Summary ... 445
17 ... Implementation Methodology ... 447
17.1 ... SAP IBP Project Implementation ... 448
17.2 ... Project Implementation Methodologies ... 449
17.3 ... Sprint Delivery and Team Framework ... 458
17.4 ... SAP Best Practices for SAP IBP ... 459
17.5 ... SAP Integrated Business Planning, Edge Edition ... 460
17.6 ... Implementation Recommendations ... 461
17.7 ... Summary ... 465
18 ... Customer Use Cases ... 467
18.1 ... Sales Planning ... 467
18.2 ... Collaborative Demand Management ... 469
18.3 ... Forecasting and Replenishment Planning ... 470
18.4 ... Multilevel Supply Planning ... 472
18.5 ... Cost-Optimized Supply Planning ... 474
18.6 ... Sales and Operations Planning ... 475
18.7 ... End-to-End Planning and Visibility ... 477
18.8 ... Integrated Business Planning ... 479
18.9 ... Response and Supply Planning ... 480
18.10 ... Supply Chain Collaboration ... 483
18.11 ... Summary ... 485
... Appendices ... 487
A ... Supply Chain Management Acronyms ... 487
B ... The Authors ... 491
... Index ... 493