SAP IBP

Supply Chain Management: SAP IBP

Disruptive events are rapidly changing global supply chains. It is essential to create a new blueprint designed for agility and proactive response, ensuring unified planning, faster response, and visibility.

What Exactly Is SAP IBP?

SAP Integrated Business Planning (IBP) is cloud-based planning software for supply chain management. Using real-time information, it helps companies respond more quickly to market and business volatility. The objective is a process to translate desired outcomes into financial and operational requirements, maximizing profit and cash flow while minimizing risk.

SAP IBP consists of several modules which can be used independently as well:

• IBP for Demand
• IBP for Inventory
• IBP for Response and Supply
• IBP for Sales and Operations Planning (for fully integrated S&OP processes)
• IBP Supply Chain Control Tower (for real-time control, analysis, and management of supply chains)

Key features include:

Supply Chain Management: SAP IBP

Disruptive events are rapidly changing global supply chains. It is essential to create a new blueprint designed for agility and proactive response, ensuring unified planning, faster response, and visibility.

What Exactly Is SAP IBP?

SAP Integrated Business Planning (IBP) is cloud-based planning software for supply chain management. Using real-time information, it helps companies respond more quickly to market and business volatility. The objective is a process to translate desired outcomes into financial and operational requirements, maximizing profit and cash flow while minimizing risk.

SAP IBP consists of several modules which can be used independently as well:

• IBP for Demand
• IBP for Inventory
• IBP for Response and Supply
• IBP for Sales and Operations Planning (for fully integrated S&OP processes)
• IBP Supply Chain Control Tower (for real-time control, analysis, and management of supply chains)

Key features include:

• Supply Chain Control Tower: A visual dashboard of data and KPI’s across the enterprise supply chain.
• Demand Management: Full transparency with options for time series forecasting using algorithms and models.
• Stock Management: Optimize target inventory to exceed customer service levels, while balancing costs and risk.

The most important functions of SAP IBP are:

• Real-time planning for balancing supply and demand
• Forecasting functions
• Strong performance based on the SAP HANA platform
• User friendly with vivid visuals
• Ability to test and compare scenarios
• Connection with Microsoft Excel.

The Difference Between SAP IBP and APO

SAP IBP is the next-generation planning tool for supply chain management. It has new innovative features and functions compared to SAP Advanced Planning and Optimization (APO). SAP IBP offers a multi-echelon inventory solution that APO does not carry. Many of the aggregation/disaggregation features of IBP for S&OP are only theoretically possible in APO. It is estimated that SAP APO will be maintained until 2025, then SAP IBP will replace it.

Technical resource partners for consideration might be –SAP,  Gib or Reveal.

Further Insights for SAPinsiders

• How to Build a Resilient and Efficient Supply Chain with Robust Sales and Operations Planning Using SAP IBP_S4HANA. Ulaganathan Balakrishnan, shares an article detailing experiences around implementing S&OP across many diverse industries.
• Leverage SAP Integrated Business Planning for Forecasting. John Yuva of SAPinsider and  Marco Sisfontes-Monge, Managing Partner of Arellius Enterprises, conduct a Q & A with insights about how a robust system can adjust forecasting needs quickly based on changing market conditions.
• 5 Steps of S&OP to Achieve an Integrated Business Plan. Venkata Ramana Nethi from Schlumberger discusses understanding the framework, key activities, inputs, and outputs of S&OP with the SAP IBP