SAP Integrated Business Planning: Sales & Operations Planning

Posted by Steve Rampton on 22-Sep-2015 16:00:00

What is SAP IBP Sales and Operations Planning?

Sales and Operations Planning is now part of the SAP Integrated Business Planning (IBP) suite from SAP, powered by HANA.  It is a critical process which helps engage key stakeholders in an efficient and integrated planning process, delivering aligned and profitable demand and supply plans. This next generation planning solution provides a unified model to;

  • Facilitate demand and supply balance
  • Integrate financial and operational planning to maximize
    bottom-line impact
  • Link high level strategic plans with day-to-day operations

IBP S&OP goes beyond traditional supply chain planning to produce an
integrated plan and provides the following business benefits;

  • Reduce inventory costs
  • Improvement in reaction time, agility and accuracy
  • Identifies tactics to drive revenue growth and increase market share
  • Higher customer service
  • Less volatility in production plans
  • Higher margins when product supply is constrained
  • Optimizes product profitability, customer profitability and product mix

Current S&OP Painpoints and Business Challenges

  • Complex supply chains and increasingly volatile demand
  • Inability to analyse amounts of data for planning
  • Manual process for compiling data that consume time and introduce errors
  • Difficulty driving consensus demand a single “plan of truth”
  • Too hard to simulate and compare planning scenarios
  • Planning decisions made without considering supply chain constraints and profitability
  • Hard to share and disconnected S&OP information against planning tools

IBP S&OP powered by HANA

SAP’s IBP S&OP tool is based on HANA technology, and purpose built to support advanced S&OP processes. It is available both as a “cloud” solution hosted by SAP, and as an “on premise” solution hosted by the customer. S&OP is a “big data” problem, where millions of records needs to be processed quickly. S&OP powered by HANA provides high computation power speed and high scalability with in-memory computing ability.

SAP  IBP Sales & Operations features


IBP S&OP powered by HANA can help businesses improve their S&OP process and help gain business benefits to;

  • Precisely balance demand and supply
  • Avoid capacity and material shortages
  • Improving customer service
  • Minimize inventory levels (and associated costs)
  • Decide on optimal product mix considering the supply and financial constraints
  • Drive revenue growth and increase market share

Ask us about any SAP IBP queries you have or about our range of IBP services

Click here for a full list of Olivehorse IBP blogs.

Read more on: IBP, S&OP