Enhancing Supply Chain Efficiency with SAP IBP and CloudPaths—Part 1

Supply chain management has become a critical focus for organizations that aim to stay competitive in a fast-paced and ever-evolving business landscape.

In 2024, almost half of the organizations surveyed by SAPinsider stated that fragmented data sources and data quality issues inhibit them from optimally utilizing existing data analytics and automation solutions. A significant portion also noted a lack of internal skill sets available to make the best use of these tools.

However, the survey’s results revealed a technological shift in available solutions. In 2023, respondents identified poor integration capabilities as the primary inhibiting factor, accounting for 47% of the responses. However, this factor improved considerably in 2024 at 27%, indicating that data analytics and automation tools have likely enhanced integration capabilities with other systems.

These tools, available within platforms like SAP Integrated Business Planning (IBP), have proven to be a game changer for many businesses. Irene Jones, VP of Customer Success for CloudPaths and a leading expert in SAP Supply Chain solutions, spoke with SAPinsider about how SAP IBP and related tools are helping organizations optimize their supply chain processes.

In the first of this two-part interview, we discuss how SAP IBP has helped organizations manage their data and how CloudPaths works with their teams to ensure users are not overwhelmed by their data projects.

Jones explained that to understand how CloudPaths helps companies strengthen their supply chain operations using SAP IBP, one must first understand the platform’s purpose. CloudPaths helps customers implement and mature their SAP IBP modules.

Understanding SAP IBP

“SAP IBP is a cloud-based solution designed to streamline supply chain planning by integrating demand, supply, inventory, and financial planning into a single platform,” Jones noted. According to Jones, the customer’s journey often begins with demand planning and supply network planning (SNP). Still, as organizations mature, they expand into more advanced modules like supply planning, inventory optimization, and order-based planning.

One of the standout features of SAP IBP is its ability to handle both Greenfield (new implementations) and Brownfield (existing implementations undergoing transformation) scenarios. Jones explains the key difference between the two- “For Greenfield customers, the primary challenge lies in the unknowns of their data—ensuring data stability and integrity before it can be integrated into IBP. For Brownfield customers, the challenge is revising existing processes and incorporating new modules without disrupting ongoing operations.”

Overcoming Data Challenges

Jones detailed the flexible and agile methodology that CloudPaths adopts to address the significant pain points of data quality and integration for organizations transitioning to SAP IBP. “By breaking down the solution build and integration development process into Sprints, the team can work with customers to qualify and prioritize data availability and cleanliness,” she said. “For instance, manual data may suffice during the initial configuration phase, while more extensive data integration is deferred to later Sprints.” This approach ensures that customers are not overwhelmed and can gradually adapt to the new system and data input needs.

Jones gives the example of a few customers who recently implemented the SAP IBP platform but faced data integration issues due to its limited in-house expertise on this platform. “They needed to integrate their data from multiple sources in SAP IBP to get an accurate supply chain picture,” she explained. When the company approached CloudPaths, they supported it by providing data services like data mapping, maintenance  management, and transformation to ensure smooth integration into the SAP IBP system as prescribed by Sprint and before major test cycles

“Our services helped the company get more accurate and reliable data, which led to better business supply chain planning and execution decisions,” Jones said.

What This Means for SAP Insiders

Prioritizing data quality is a critical element to a smooth implementation of SAP IBP. SAPinsider research shows that generating actionable insights from data in a timely and accurate manner is a key requirement to ensure a resilient and agile supply chain. This makes data integrity critical for successful SAP IBP implementations. CloudPaths, an expert implementation partner, works with SAP customers to identify data gaps early and develop a phased approach to data integration into IBP and back to the execution systems, such as S4 or for reports and analytics.

Start small, scale gradually, and know which approach works best for you. Incremental implementation is recommended for all users who want to use SAP IBP to strengthen their supply chain. Jones notes, “Whether you’re new to SAP IBP or transitioning from an existing system, focus on incremental implementation. Begin with core modules like demand planning and gradually expand into advanced areas like inventory optimization, ” said Irene Jones.

SAP IBP is a comprehensive solution for supply chain optimization. SAP IBP integrates demand, supply, inventory, and financial planning into a single cloud-based platform, making it a powerful tool for both Greenfield and Brownfield scenarios. It supports organizations in scaling from basic demand and supply planning to more advanced modules like order-based planning or inventory optimization.

In the second part of this interview to be published next month, Jones discusses inventory optimization with SAP IBP and the evolving landscape of this technology.