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Planning, forecasting, acting: How SAP Integrated Business Planning takes corporate management to a new level

Dozens of Excel documents. Loosely linked. No clear picture – let alone a holistic one – of the planning situation. And on top of that, opaque processes. All in all, a labyrinth of ignorance, as complex as the infinite expanses of the universe. Sounds like a scenario straight out of the 1990s, doesn’t it? In your mind’s eye, you immediately picture dusty desks, bulky monitors, mountains of cables and paper, and a team in oversized suits. Nice. Vintage. But definitely passé. Or is it?

Because for a few years now, the 90s have not only been making a comeback in fashion, but are also defending their territory with a vengeance in many an office. Especially when it comes to business planning tools. However, such scenarios are not only outdated but also present a number of other disadvantages for companies in today’s world: they make it impossible to react to changing market dynamics or unforeseen events, let alone act proactively. Nor can they cope with increasingly complex supply chains and growing volumes of data. And there’s certainly no question of precise analyses and forecasts.

So what does a modern approach look like? It involves using an intelligent, integrated planning tool. For example, SAP Integrated Business Planning, or SAP IBP for short. And that’s what we’re introducing today.

What is SAP Integrated Business Planning?

SAP Integrated Business Planning, or SAP IBP for short, is a cloud-based solution that combines interactive, collaborative planning and forecasting functions with state-of-the-art tools for automated planning support. The programme can take into account operational, tactical, strategic and financial aspects alike, and is therefore now far more than just a supply chain planning tool from SAP.

Nevertheless, the focus remains specifically on the supply chain, as this enables it to be viewed holistically. Precise real-time planning – across plant and departmental boundaries – is therefore of such great importance because it subsequently enables shorter response times to fluctuations in the market or within the company. And this is becoming increasingly important in turbulent times such as these.

So, organisations that rely on such a planning tool can gain competitive advantages and achieve greater resilience, transparency and sustainability. In addition to optimisation and machine learning functionalities, SAP Integrated Business Planning also offers robust analysis and reporting options and enables hands-on ‘what-if’ simulations. Furthermore, comprehensive alerting functions facilitate the early identification of challenging situations, thereby laying the foundation for proactive action. In short, it is a modern, integrated solution for medium- and long-term logistics planning – and beyond. What’s more, it is universally applicable and is therefore not limited to any specific sector.

Key points at a glance:

Cloud solution:

SAP IBP is cloud-based and serves as a perfectly integrated complement to SAP S/4HANA.

Single point of truth:

The ‘i’ in ‘IBP’ stands for ‘integrated’. This means it is an integrated planning solution that spans departmental and plant boundaries, rather than relying on sluggish, disconnected planning silos and stand-alone solutions. As a result, everyone accesses the same database.

Scope of functions:

The tool combines sales and production rough-cut planning, forecasting and demand planning, response and procurement planning, demand-driven replenishment and inventory planning in a single solution. It also enables interactive, collaborative planning across the entire supply chain.

Automation:

SAP IBP is characterised by automated, closely coordinated processes for supply chain planning and also features advanced algorithms as well as planning and analysis options.

Simulation options:

A major strength of the tool is its ability to perform ‘what-if’ analyses, thereby enabling a wide range of scenarios to be simulated with minimal effort.

Visualisation:

A state-of-the-art user interface with attractive dashboards and a wide range of reporting options is another advantage of this solution.

Working with SAP IBP can be compared to the lighting situation when driving: IBP acts as the full-beam headlights rather than the dipped headlights. When I drive with it, I spot problem situations sooner. And I can respond to them sooner. Or I can use it to gain more time – for example, to increase capacity, prepare for a peak in demand, or undertake a structured selection process when the purchase of a new plant or machine is on the cards. In short: I have a tool at my disposal that enables me to act proactively, rather than just engaging in reactive ‘firefighting’.

Tobias Kreiter

Line of Business Manager Supply Chain Management

One solution, six modules

SAP Integrated Business Planning is divided into six different modules. The module most widely used by our Austrian customers – which also includes core functionalities from ‘Demand’ and ‘Response & Supply’ – is ‘Sales & Operations’. This is because it already enables rough planning across the entire supply chain. Similarly, the heuristics highlight shortfalls and indicate where bottlenecks or other problems might arise in the medium or long term. The ‘what-if’ simulations mentioned earlier can also be created using this module. ‘Inventory’, in turn, enables multi-stage stock optimisation. The aim here is to develop the best possible buffer strategies based on fluctuations in delivery times or customer ordering behaviour. ‘Demand’, on the other hand, automates sales planning and generates forecasts for future demand scenarios. And ‘Response & Supply’ ensures even more refined sales and operations planning.

An overview of the modules:

IBP Sales & Operations

IBP Demand

IBP Inventory

IBP Response & Supply

IBP Demand-Driven Replenishment

IBP Supply Chain Control Tower

scc supports you throughout the decision-making and implementation process

There is no one-size-fits-all answer to the question of which modules are right for your business. We’d be delighted to support you through this decision-making process – whether through an informal initial meeting or our in-depth ‘scoping workshops’, which have already proven their worth in practice on numerous occasions. We’ll bring best practices, potential applications and ideas to the table. This gives you a better insight and helps you understand what’s possible.

Because one thing is clear: the tool is powerful, and the greatest benefit is only realised when the solution is implemented in a way that’s perfectly tailored to your business. As your partner, we’re naturally happy to support you even after implementation with the continuous improvement and further development of your solution.

Be open to new ideas

The basic prerequisite for this is that you are prepared to set aside working methods you may have grown fond of and to fundamentally rethink things. A major benefit is that the time saved through automated tools can be used in a more targeted way – a fundamental factor in times of skills shortages.

And in general, we believe that wherever there is potential for automation and increased efficiency, this should be realised.

It is clear that this tool involves sharing a great deal of information within the company – and you have to be willing to do that in the first place. Yet it is precisely this transparency that is important nowadays, as it is the only way a company can react quickly to changing conditions. Another major strength lies in the heuristics and optimisation tools. These allow problem areas to be tackled in a targeted manner, whilst also enabling the simulation of future scenarios.

Raphael Husch

Consultant at scc with key user experience in a manufacturing company

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