Forecast Consumption in SAP IBP for Supply

Posted by Sarath Suryadevara on 19-Jul-2018 13:44:51

Forecast consumption is a core to most Planning systems, and is based on the assumption that the actual sales orders consume the forecasted quantities. This approach ensures that incoming sales orders are not treated as additional demand to the forecast during a planning period.

It has always been somewhat of a surprise that forecast consumption has previously not been part of SAP Integrated Business Planning (IBP) for supply as standard, and has only been introduced (time series based) as part of the recent 1805 release.

Prior to 1805, only a very simplistic forecast consumption method could be configured using key figure calculations within the week time bucket. In this blog I will explain the functionalities available within SAP IBP.

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Topics: IBP, SAP IBP, IBP for supply, Forecast Consumption

Personalise your SAP IBP Excel Add-In

Posted by Jacky Jain on 16-Jul-2018 15:47:26

In today’s fast moving world, there is an ever increasing demand for customisation and personalisation, whether it be initials stitched on to your running shoes or a bespoke paint colour for your car. Everyone likes to have a personal touch in their day to day activities, so why should SAP Integrated Business Planning (IBP) be any different?

If you haven’t seen the SAP IBP Excel Add-In, or want to know more about the various functionalities offered, please take a read of this blog from Steve Rampton “SAP IBP Excel Views – A Planners dream?”. I will split this blog as to how Planners can create their own personalised views within SAP IBP in two;

  • Basic formatting of the Excel Add-In
  • The advanced Olivehorse way!
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Topics: IBP, Excel Add-In, SAP IBP

A planner’s Excel sheet loaded to SAP IBP using CPI-DS

Posted by Steve Rampton on 06-Jul-2018 07:05:01

In our experience, most customers have planning data held on spreadsheets, with e.g. ProdLoc or ProdCust by row and a time dimension in each column, similar to the view below;

But! In order to send the above forecast data into SAP Integrated Business (IBP) via Cloud Platform Integration – Data Services (CPI-DS), there can only be a single row per time period, similar to the view below (note that the data is loaded in to a staging table prior to committing to the HANA database);

Obviously such manual reformatting of data every time a load is required for SAP IBP is a waste of planner time and effort.

 

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Topics: Integration Services, SAP IBP, CPI-DS

Should you be Demanding SAP IBP?

Posted by Ian Brister on 05-Jul-2018 15:06:00

It has been a while since I first published this Blog. In the 2+ years that have gone by, a lot of functionality has been delivered with each upgraded version of SAP Integrated Business Planning (IBP), especially with the Demand application. 

In the world of ‘Internet of Things’ and Digital Transformation, where companies want to respond faster to customer needs, we have all read about SAP’s vision to enable businesses to transform from what were previously Supply Chains into Demand Networks.

But where does SAP Integrated Business Planning (IBP) for Demand fit in to this?  And as a Planner, should you be Demanding IBP?

In order to remove some of the uncertainty and puzzlement as to what exactly IBP for Demand can offer, in this post I intend to explain some key differences between SAP Advanced Planning & Optimisation (APO) and SAP IBP for Demand.

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Topics: IBP, IBP for demand, Demand

Can you see clearly now with the SAP IBP 'Supply Chain Network' app?

Posted by Matt Gilbey on 14-Jun-2018 07:30:00

Everyone says it, and almost every Supply Chain related blog states it as its raison d’etre – our supply chains are complex, covering the globe and existing at multiple levels of finished goods, raw materials, work in progress etc. Being able to see this complexity is notoriously difficult, and many specialist tools exist to provide better insight to your Supply Chain network – but they are often standalone software packages, not linked to the day to day operations and so only provide a static snapshot view.

SAP Integrated Business Planning (IBP) version 1708 added the next generation tool for visualising your Supply Chain network – a Fiori app which replaced the old analytics Network Visualisation chart. The old told tool was very basic and provided only a simple view of your network. Great for validating models, but added very little value add and wasn't user friendly or flexible.

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Topics: SAP IBP, Network Optimisation, Supply Chain Network

Group Planning in APO SNP Optimiser

Posted by Adriana de Oliveira Alves on 07-Jun-2018 07:50:00

Business Drivers

In the many SAP Advanced Planning & Optimisation (APO) Supply Network Planning (SNP) implementations that Olivehorse has been involved with over the years, we have identified a common mid-term production planning issue – especially in the consumer products and food industries.

The standard APO planning solution will plan to demand, however, such a plan will usually not be efficient to produce due to cost of changeovers and reduced capacity utilisation etc. There is therefore, a requirement to group production orders of different SKUs together into the same period to ensure that a more feasible and efficient plan is created in the mid-term. The standard solution in APO, whether it be Heuristics, Capable-to-Match or Optimiser, does not support the concept of Group Planning.

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Topics: SAP APO, SCM Optimisation, snp, supply network planning, Group Planning

Post Master's life in a niche consultancy

Posted by Charles Nti on 07-Nov-2017 11:37:06

When coming to the end of my full-time master's programme at Cranfield University, the focus began to shift back towards the next step of my career and preparing myself to enter the challenging world of the job market. Keeping one eye on possible career opportunities while trudging through thesis research seemed like a daunting task which caused widespread panic across the students in my course, nightmares of sieving through online applications for various companies in tandem with hours of daily thesis research. Sounds like a wonderful way to spend your spring and summer right?

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Topics: Master's, Recruitment, Supply Chain, Analyst, Olivehorse, Career, Graduate

Are you adding value to your forecast?

Posted by Jacky Jain on 06-Nov-2017 15:59:54

In today’s fast moving world of growing customer expectations, shrinking lead times, reduced profit margins and inventories, Demand Planners have a big responsibility to act as the first gatekeeper to be able to foresee changes in Demand Signals and accurately make predictions for future. The margin for error is continuously decreasing, as any errors cause a major rippling effect on downstream processes. For example, a change of forecast bias by 5% may induce the following risks;

  • Reduced customer service levels
  • Increased lead times
  • Improper mix of inventory levels leading to possibility of stock outs or over stocked DCs
  • Added costs due to firefighting production builds and expediting fulfilment (air freight)

To cope up with this fast-paced supply chains, new metric must be adopted by demand planners all over the world. One of those is Forecast Value Add. I am going to take you thru details of Forecast Value add and explain how we can use this to improve the forecasting process. I would also be explaining examples using SAP Integrated Business Planning.

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Topics: IBP for demand, SAP IBP, Demand Planning, Integrated Business Planning, Forecast Value Add, FVA

Leveraging VBA to enhance the user experience in SAP Integrated Business Planning

Posted by Steve Rampton on 06-Nov-2017 11:17:18

SAP Integrated Business Planning (IBP) is SAP’s next-generation planning application, which uses the computational power of SAP HANA to enable a truly integrated and collaborative planning process.

SAP have also recognised their past problems with somewhat un-intuitive user interfaces and have invested a great deal of thought into the underlying technology and implementation of the interfaces with which users interact with the system. Of course supply planners are not an easy group to please: they usually work in high pressure environments where time is limited and ease of use vital. To further complicate the issue, the user community for an IBP process is much wider than just Demand & Supply Planning and brings in the Finance and Sales departments among others

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Topics: Excel Add-In, SAP IBP, Integrated Business Planning, VBA

Space: the final frontier – Using SAP IBP Inventory Optimisation to understand your warehousing requirements

Posted by Matt Gilbey on 31-Oct-2017 08:47:50

Warehouse space is one of those things that nearly all supply chains can’t live without. We talk a lot about getting our inventory targets correct, but how often are our targets driven by other constraints such as warehouse space at certain nodes in our network? 

Should such a commodity such as warehouse space drive our inventory decisions, and potentially put customer service at risk? These are big, philosophical supply chains questions which S&OP processes are in place to address – but we can help this process by providing the best information we can. 

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Topics: SCM Optimisation, SAP IBP, Inventory Optimisation, Warehousing, Warehouse Space