SAP Integrated Business Planning (IBP) is a leading supply chain planning tool. SAP makes regular enhancements to update the solution. SAP released the latest version of SAP IBP in February 2023. This article reviews some key enhancements in the 2302 SAP IBP release.
Demand Planning and Forecasting
Improving forecast accuracy by incorporating external data
SAP IBP’s robust pre-processing feature can handle typical data outliers. However, atypical outliers cannot always be embedded in the data. An example is an unexpected snowstorm in a state that typically does not see snow at all in winter. Such unprecedented events may cause demand variations that cannot be explained by the parameters embedded within the data.
Release 2302 introduces the capability to maintain a new key figure for “outlier markers” and functionality that allows the end-user to flag outlier periods at granular or aggregate levels manually. This feature improves forecast accuracy.
A new forecast measure
A new forecast error measure, “Stock-keeping-oriented Prediction Error Costs” (SPEC), has been introduced. SPEC is a good fit for forecasting where demand is intermittent, as it factors the duration of the error instead of calculating individual period errors. When using SPEC, the end-user can configure the priority in the model between inventory costs or avoiding stockouts. Overall, SPEC increases forecast accuracy in case of intermittent demand.
Supply Chain Risk Management
Developing supply chain resiliency to address supply chain risks has consistently emerged as a critical business imperative in SAPinsider’s research,
Building Resilient and Agile Supply Chains Leveraging Data, Analytics, and Automation.
SAP IBP 2302 release introduces supply chain risk visualization dashboard.
This dashboard leverages underlying supply chain planning data to assign supply chain risk scores. These scores can help incorporate risk factors in supply chain planning and help plan and execute resilient supply chain operations. This feature has been introduced as an SAP best practices scope item.
Supply Chain Collaboration
Microsoft Teams (MS Teams) is now integrated with SAP Integrated Business Planning for Supply Chain, enabling people, processes, and data interconnectedness and collaboration. This integration reduces the costs of collaboration and enhances decision-making across the supply chain. The integration offers additional ways to manage and monitor tasks in SAP IBP and helps shorten the response time.
Interactive Transportation Load Planning
Within the planner workspace app, load planners can see loadable distribution receipts. These receipts are visible in the component transportation load building of the planner workspaces app. Planners can leverage these to create a transportation load for selected distribution receipts and equipment types. Planners will be able to add further distribution receipts to a load or delete items from a load.
This new feature helps reduce transportation costs by interactively optimizing the utilization of planned transportation loads. It also improves the quality of the distribution plan by making interactive changes to planned transportation loads to react to short-term events.