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

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

SAP Integrated Business Planning - Agile Implementation

Posted by Ian Brister on 09-Feb-2017 13:36:59

There are many blogs on the topic of Agile, and there are many blog posts on the topic of SAP Integrated Business Planning (IBP). But not many blogs on the combined topic of Agile IBP Implementation! In this blog I intend to share my thoughts as to how a SAP IBP implementation is suited to an Agile approach. Really suited!

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Topics: IBP, IBP for demand, agile, S&OP

SAP Integrated Business Planning - Outlier Detection and Correction

Posted by Suresh Sellaiah on 22-Dec-2016 08:09:16

As SAP continue to enrich the functionality of Integrated Business Planning (IBP), in this blog I am going to describe the outlier detection and correction methods offered within IBP for demand (as at release 1608). I will not however be discussing which of these methods are the best, as from my experience I have found that the rules and methods vary depending on the organization’s perspectives and processes followed.

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Topics: IBP, IBP for demand

Attribute Transformations with SAP Integrated Business Planning

Posted by Jacky Jain on 30-Nov-2016 12:26:36

In this blog I will walk through the principles of ‘Attribute Transformations’ within SAP Integrated Business Planning (IBP) and discuss the basics of implementing such transformations.

We will also look at how some demand planning scenarios like displaying Year -1 data, Realignment (which is not currently offered as standard within SAP IBP), Distribution Centre closures and Product Substitutions can be achieved using Attribute Transformations.

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Topics: IBP, IBP for demand, S&OP

Financialising your plan in SAP Integrated Business Planning

Posted by Steve Rampton on 27-Oct-2016 18:48:05

For those of you exposed to the full force of SAP marketing for SAP Integrated Business Planning, I’m sure you will have heard the phrase ‘financialising the plan’. But have you ever stopped to think about why this is beneficial and what this means in practice when it comes to implementing it in SAP IBP?

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Topics: IBP, IBP for demand, S&OP

Options for implementing SAP Integrated Business Planning for demand

Posted by Ian Brister on 16-Sep-2016 07:00:00

It has become apparent to me during recent client conversations that the options available for implementing SAP Integrated Business Planning (IBP) for demand are unclear for many of our customers.  One of the underlying reasons for uncertainty in my opinion is however clear: SAP Advanced Planning and Optimisation (APO).  If you have already implemented APO, then your journey has probably been long and your system full of customisation, putting uncertainty as to what the timelines or benefits of actually implementing IBP for demand are.

In this blog I intend to highlight a number of different options on your journey to adopting IBP for demand.

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Topics: IBP, Demand, IBP for demand

SAP IBP for demand statistical forecasting. Is all that glisters gold?

Posted by Ian Brister on 08-Sep-2016 21:08:37

In a previous blog (Should you be Demanding IBP?), I highlighted some of the high level differences between SAP APO Demand Planning and SAP Integrated Business Planning (IBP) for demand. 

With the impending release of IBP v6.3 due later this year, I intend to go under the bonnet of the IBP for demand statistical forecasting engine to see if all that glisters is really gold.

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Topics: IBP, Demand, IBP for demand, Statistical Forecasing