SAP IBP External Forecasting for Demand Accuracy

⇨ SAP Integrated Business Planning (IBP) is a powerful solution that enables companies to efficiently manage their supply chain operations.

⇨ The external forecasting feature in SAP IBP allows businesses to integrate custom forecasting algorithms alongside standard SAP IBP models.

⇨ With External Forecasting in SAP IBP, CloudPaths enables companies to integrate their own custom algorithms alongside SAP's built-in models, providing a flexible and precise approach to demand planning.

SAP Integrated Business Planning (IBP) is a powerful solution that enables companies to efficiently manage their supply chain operations by providing key functionalities for demand forecasting, inventory optimization, and strategic planning—all within a single platform. With real-time analytics, SAP IBP helps businesses gain deeper visibility into market conditions, allowing for more informed decision-making and better alignment of supply chain activities.

SAP IBP includes over 20 built-in demand forecasting algorithms that companies can use directly. These models offer a great starting point, but in many cases, businesses need a more tailored approach to achieve high forecasting accuracy. Standard forecasting algorithms are useful, but they may not always capture the unique, industry-specific factors that are crucial for precise demand predictions.

This is where External Forecasting in SAP IBP comes into play.

What is External Forecasting in SAP IBP?

The external forecasting feature in SAP IBP allows businesses to integrate custom forecasting algorithms alongside standard SAP IBP models. This integration enables organizations to develop tailored forecasting models that incorporate specific data variables, trends, and patterns, and leverage advanced techniques such as Artificial Intelligence (AI) and Machine Learning (ML). The result is more accurate and relevant forecasts that are better aligned with the company’s specific business objectives.

One of the standout features of external forecasting is its integration capability. Custom algorithms can be deployed on any external machine—whether cloud-based or on-premise—across various platforms such as AWS, Microsoft Azure, Google Cloud, and more. This broad compatibility ensures that businesses can leverage their existing infrastructure while utilizing the advanced capabilities of SAP IBP.

External forecasting also ensures an automated data flow between SAP IBP and external platforms. This seamless integration eliminates the need for manual data handling, reducing errors and increasing the efficiency of the forecasting process. By leveraging real-time data and applying advanced machine learning techniques, businesses can create more precise and dynamic forecasts, better suited to their unique business needs.

SAP IBP also accommodates the running of multiple custom or standard algorithms simultaneously and a best-fit approach can be used to select the most accurate model. The communication scenario provides secure data exchange between SAP IBP and external systems, enabling real-time processing in a protected environment.

CloudPaths: Supporting Seamless Integration

CloudPaths, an SAP partner, specializes in providing tailored SAP IBP solutions to help businesses optimize their demand forecasting. While SAP IBP includes powerful standard forecasting tools, many businesses need guidance on custom solutions to improve accuracy and better meet their specific needs.

With External Forecasting in SAP IBP, CloudPaths enables companies to integrate their own custom algorithms alongside SAP’s built-in models. This provides a flexible and precise approach to demand planning, helping organizations align their forecasts with specific business goals. By integrating custom forecasting solutions, companies can go beyond standard methods and ensure more accurate predictions that result in customer satisfaction and positive bottom line impacts.