May 18, 2026
•3 minute read
demand planning
From Protocol to Patient: How UST Is Supporting Clinical Supply Chain Modernization with SAP ICSMClinical supply chain management in life sciences demands real-time alignment between protocol-driven trial activity and SAP-based supply execution. UST implemented SAP Intelligent Clinical Supply Management (ICSM) at PTC Therapeutics, integrating IRT data with SAP S/4HANA to create a unified planning environment that reduces manual intervention and improves global site-level visibility.
Demand-Driven Planning – Step 5 – Visible and Collective ExecutionVisible and Collaborative Execution refers to the methodology employed by the Demand Driven Material Requirements Planning (DDMRP) system to manage and oversee open supply orders. It emphasizes the importance of transparency in the supply chain, allowing stakeholders to view and track the progress of orders in real-time. Furthermore, by fostering a collaborative environment, different players in the supply chain can work cohesively, making necessary adjustments based on prevailing conditions. This proactive and interconnected approach ensures timely deliveries, reduces excess inventory, and enhances the responsiveness of the entire supply chain.
MD04 is a frequently used standard transaction which gives planners an overview of demand, inventories, and goods received. SCM consulting solutions provide an advanced version of this transaction as an add-on, which features a range of additional functions including information for demand-driven approach. It uses color coding to indicate the status of materials, from dark red (highly critical), red (critical), yellow (low), and green (sufficient), to blue (overstocked) as seen in the image below.
Oct 4, 2023
•2 minute read
Building Demand-Driven Supply Chains with RevealBusinesses employ a push-based supply chain strategy, driven by historical data or plant production capacity rather than effectively managing inventory to align with actual market demand. This approach often results in inefficiencies such as surplus raw materials, low inventory turnover, unproductive usage of storage space and ultimately leads to crisis management, reactive communication, and contributes to a production plan that doesn't accurately reflect consumer demand.
In contrast, transitioning to a pull-based supply chain strategy enhances business efficiency by accurately responding to customer requirements. This method promotes business agility, optimizes operational planning, and allows the learning from discrepancies to improve forecast accuracy. Additionally, a pull system promotes a unified management approach, utilizing a single data set and assumptions for business decision-making. A pull supply chain can generate a number of benefits including production accuracy, real-time production, shorter lots/cycles, inventory optimization, waste reduction, insights-driven management and proactive communication. Reveal proprietary methodology, oVo®, centered around value creation, assists enterprises in fine-tuning their procurement and manufacturing procedures to satisfy market demands. This approach encourages organizations to rely on a unified, authoritative data source for improved decision-making and streamlined operations.
Jul 10, 2023
•3 minute read
Demand Driven Planning – Dynamic Adjustment – Step 3Buffers need to be re-calculated dynamically if material, market or company-related parameters change. This can be done with the consulting solution safety stock and buffer simulation. Buffers must be recalculated if the average daily usage changes and changed daily, weekly, or monthly depending on the analysis period. If the average daily usage is calculated based on the last three months, the key figure should be checked daily or weekly. If the base is more than six months, it is sufficient to recalculate the key figure monthly. With the SAP add-on safety stock and buffer simulation (TCODE: /SAPLOM/SSS), demand influencing factors like the average daily usage can be changed This article focuses on the third step identified by the Demand Driven Institute, called Dynamic Adjustments.
Apr 17, 2023
•3 minute read
Achieve the Unthinkable – World Class Demand Planning inside of SAP External events large and small can stress supply chain plans. The speed at which these stressors are identified have a big impact. The ability to recognize, adapt and respond has never been more important than now. Current events are powerful reminders that supply chain visibility, planning and execution need to be tightly coupled to […]
Jun 25, 2021
•1 minute read
Leveraging Machine Learning for Demand ForecastingUntil recently, conventional time series forecasting methods have been predominantly used for forecasting in demand planning. A majority of demand forecasting tools in the market leverage these methods in their solutions. With advances in technology and computing power, the sophistication of these time series algorithms has increased thereby increasing forecast accuracy.
However, with the advent of machine learning (ML) tools and increased interest in exploring them to improve forecasting approaches and methods, many vendors are increasingly incorporating ML-based forecasting methods in their tools. A key aspect to remember is that most of the frequently used ML algorithms have been around for decades now. Technology and computing power today allow us to leverage them easily in a variety of ways and applications. This article shares some Machine Learning approches that are being used by SAPinsiders.
May 23, 2021
•4 minute read
How to Setup Demand Planning in SAP Advanced Planning and OptimizationSAP Advanced Planning and Optimization, demand planning allows a business to perform forecasting of their materials while considering all the factors that affect the demand. Demand planning is periodic and contains multi-step processes such as data gathering, statistical analysis, reviewing market intelligence reports, and performing adjustments against budgeted forecast to drive material requirements planning. SAP Advanced Planning and Optimization, demand planning is designed as a platform so it must be tailored to an organization’s product types and nature of their business with various key figures, characteristics, data aggregations or disaggregation factors, planning object structures, planning areas, planning books, macros and data views to execute the process.
This article will provide steps for implementing the solution, along with reasoning behind the configurations, prerequisites, navigation with transactions codes, relevant SAP notes, and tips and tricks for troubleshooting issues during implementation.
In this article you will learn:
- The essential steps of SAP demand planning configurations including time series, planning books, statistical forecasting, background job set up, and demand plan release to ECC;
- Explanation of each configuration step involved with navigation path, transaction codes, and tables; and
- Tips and tricks on configurations, performance optimization, and error resolutions.
May 21, 2020
•21 minute read
5 Steps of S&OP to Achieve an Integrated Business PlanSales and operations planning (S&OP) is a set of decision-making processes that regulate and coordinate overall capacity, inventory levels, and lead times across engineering, projects, manufacturing, finance, supply chain, and operations based on forecast information about the market. S&OP focuses on changes from the previous plan and links that with the strategic goals of cost and lead time reduction to determine suitable capacity adjustment actions. This article will provide the framework and key concepts to using SAP Integrated Business Planning (IBP) for Supply Chain to effectively balance demand and supply and attain financial targets.
After reading this article you will be able to:
- List and define the five essential steps of S&OP
- Explain how S&OP fits into the larger manufacturing planning and control hierarchy
- Apply the components of S&OP to data gathering, demand and supply planning, and supplier collaboration
Apr 28, 2020
•14 minute read
Popular Insights
Research
View All
Events
SAPinsider New Orleans SummitNew Orleans, Louisiana, United States
SAPinsider Copenhagen 2026Copenhagen, Denmark
Mastering SAP Collaborate, an SAP TechEd on Tour eventSydney, New South Wales, Australia
