Our DDMRP solution of choice: Replenishment+

Posted by Jonathon Vaiksaar on 17-May-2016 17:55:11

Replenishment+ is Olivehorse’s chosen Demand Driven MRP solution for several reasons. Here's why..

R+ was the first DDMRP compliant solution and so has benefited from rigorous testing through numerous deployments globally. This means we have a tried, tested and stable solution. It also has the benefit of being incredibly simple and easy to integrate into existing ERP landscapes. Hence, it can run in parallel without having to change any of your existing configuration. This for us is an ideal scenario as it will allow APO/ECC to deliver the benefits of large scale analysis and execution required for mid/long term planning and continue to manage the execution of production recording, distribution management and procurement. At the same time, it means R+ can focus on the core value driver of making it simple and easy to interpret daily replenishment decisions without unnecessary additional requirements of the system.

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Topics: DDMRP

Collaborate with SAP Integrated Business Planning Sales and Operations

Posted by Steve Rampton on 16-May-2016 18:32:45

As conceived by the Oliver Wight International modern Integrated Business Planning (IBP) means breaking down the functional silos that exist in many enterprises today and truly working together to achieve common objectives. In this article I want to explore why collaborative working is important, the different tools available and the functionality that SAP Integrated Business Planning itself delivers in this area.

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Topics: IBP, S&OP, Collaboration, SAP Jam

SAP IBP Excel Views- A planner’s dream?

Posted by Steve Rampton on 24-Mar-2016 02:54:15

The main user interface for SAP Integrated Business Planning is Microsoft Excel using a special Excel Add-In provided with the product. In this article I want to explore if and why this interface will satisfy the needs of planners. Let’s start by having a look at where spreadsheets originated from, and then what planners need from the tools that support them.


The history of the spreadsheet

I’ve been around long enough to remember a world without electronic spreadsheets – a world that instead either involved pens, paper and calculators or punched cards, a mainframe and reams of printed output. In my first career as a Mechanical and Manufacturing Systems Engineer working for Dunlop, Chloride and Lucas, I had what in retrospect was the privilege of witnessing the birth of the personal computer and the early PC spreadsheet applications such as VisiCalc, SuperCalc and Lotus 1-2-3.

It is also worth pointing out that at that time in the mid 1980’s, I had a DEC micro-computer on my desk where the computer was contained inside the VDU (a screen to youngsters) and the operating system, application and data were all held in RAM. Said computer was used to control manufacturing machines in real time. So some concepts are perhaps not so new!

Figure 1: VisiCalc running on an Applell (source wikipedia)

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Topics: IBP, Excel Add-In

SAP Integrated Business Planning: The Future Executive S&OP Review

Posted by Steve Rampton on 15-Mar-2016 13:21:21

During the SAP SCM (R)evolution, the Olivehorse team reanacted what an "Executive Review of the Future" would look like using SAP Integrated Business Planning for Sales & Operations Planning.

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Topics: IBP, S&OP

SAP SCM (R)evolution: What is SAP Integrated Business Planning about?

Posted by Steve Rampton on 07-Mar-2016 12:02:39

On the 25th February 2016, SAP and Olivehorse hosted the first customer event in the UK covering a Supply Chain Planning cloud solution: SAP Integrated Business Planning. Held at SAP UK’s Maidenhead Offices, specialist areas such as SCM don’t usually attract large numbers but this event attracted nearly 50 attendees. Equally gratifying was that the attendees came from a wide range of industries: manufacturing, pharma, oil and gas, and consumer goods.

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Topics: IBP, SAP IBP

5 Key Considerations before implementing SAP IBP for Inventory

Posted by Fred Akuffo on 09-Feb-2016 08:40:20

From SAP Advanced Planning and Optimization (APO) safety stock planning, through SMART Ops, Enterprise Inventory and Service EIS on to SAP Integrated Business Planning (IBP) for inventory (IBP-I), safety stock planning has evolved from isolated single stage to multi-stage inventory optimization. In practice this means moving from planning safety stock at an individual location to optimizing safety stock for an entire demand stream. The value is now in network optimization as opposed to planning at the individual warehouse. 

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Topics: IBP, IBP for inventory

Group Planning & Cycle Based Scheduling: Get more from DDMRP

Posted by Jonathon Vaiksaar on 13-Jan-2016 17:37:49

Minimising MOQs- Group Planning & Cycle Based Scheduling

In order to optimise production, procurement and to reduce the MOQs of items, many organisations have implemented group planning. Group planning also known as campaign planning is when the forecast for a grouping of products is combined to trigger a single larger MOQ. This could be grouped by a raw material, semi-finished goods or some other shared attribute.

Other organisations have implemented cycle based scheduling. This is when a production rhythm is defined and planned production is pushed back or pulled forward into the appropriate planning bucket. This is to support with the sharing of MOQs and semi-finished batches, also to allow production to be optimised by manufacturing similar products together to reduce changeovers.

Both of these are excellent initiatives help to increase FLOW by minimising the MOQ of a single item by producing it with items which share the same components or characteristics. The downside of these processes is that they are still driven by forecasting. What is not so clear to many is how DDMRP can still support and operate in this environment. This blog shares how DDMRP can be applied to group planning and cycle based scheduling by using a ‘virtual Min/Max’ buffer logic.


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Topics: DDMRP

SAP Integrated Business Planning: Do you know your options?

Posted by Jim Houghton on 31-Dec-2015 12:54:03

The release of SAP IBP 6.0, just around the corner, will contain the first release of SAP Integrated Business Planning for Supply and Response.  This will be a landmark in the development of the IBP, introducing order level planning capability to the suite.   As a result SAP customers will, for the first time, be offered real choices in how they develop their planning application capability.  However with choice comes uncertainty, this is especially the case for those who currently run SCM-APO and have developed their supply chain planning processes around this tool set.  These organisations should not be alarmed, SAP has committed support of SCM-APO as a component of business suite until at least 2025. However customers should not expect widespread innovation or enhancement.

SAP’s vision for IBP however is far broader than delivering a turbo charged version of APO running on HANA.  When complete the toolset will, for the first time, provide the basis to integrate strategic, tactical and operational planning, facilitating “full business planning”.  IBP is constructed of five modules, two of which; IBP for Sales and Operations and Supply Chain Control Tower, provide end to end planning and monitoring capability. These tools are aimed at supporting management decision making and control, setting the direction for operational plans and supply chain execution. Unsurprisingly, these are also the two modules that SAP focused on first when developing the product.

IBP for Sales and Operations and Supply Chain Control Tower provide end to end planning and monitoring capability

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Topics: SAP APO, IBP

DDMRP vs MRP: Head to head, which wins?

Posted by Jonathon Vaiksaar on 19-Nov-2015 17:35:39

DDMRP as a methodology focusses on placing strategic buffers to enable lead time compression and by leveraging daily planning to react to daily sales orders. MRP has been commercialised since 1970 and has had minimal improvements since. DDMRP has its roots in Lean thinking and moves away from forecasting and having safety stocks to utilising buffers to absorb variability. This results in increased material availability as well as a reduction in working capital. This methodology has delivered phenomenal results in both service benefits and inventory reduction.

Companies who have adopted DDMRP found that they are able to increase their service levels and sales with the same amount of inventory. All that they are doing differently is leveraging strategically placed buffers to decouple the supply chain to react to only real demand orders.

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Topics: DDMRP

Should you be Demanding SAP IBP?

Posted by Ian Brister on 10-Nov-2015 16:38:36

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 Integrated Business Planning (IBP) 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 Demand can offer, in this post I intend to explain some key differences between SAP APO and IBP Demand.

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Topics: IBP, IBP for demand, Demand