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

Are you maximising returns from your investment in planning software?

Over 40% of supply chain executives believe they are not making the best use of the functionality available within their planning software. (Supply Chain Digest) This indicates that a significant proportion of supply chain leaders believe the capability of their toolset is not their primary challenge – the issue is with how their processes are modelled and the tools capability is deployed.

In order to ensure you are getting the maximum return on your supply chain management investment, it will be necessary to assess all of the following five elements of your organisation’s supply chain planning capability.

The task of supply chain leaders is not easy.

In the last decade they have had to deal with increased variability in demand, an explosion in SKU portfolios, extended supply networks, and fast changing routes to market.  All in a period where they have been tasked to slash operational costs in order to free up cash for expansions or product investments to satisfy the ever more informed and demanding consumer.

It's a big day for Demand Driven Thinking at Olivehorse today as we take two steps towards launching our DDMRP service.  We are delighted that Jonathon Vaiksaar has joined us to lead the DDMRP practice, and that we have teamed up with US based Demand Driven Technologies to be their channel partner in the UK.

Are you delivering on your supply chain management objectives?

Possibly your trigger for embarking on this investment was an ERP based transformation or a supply chain restructure. However, regardless of the original driver it is almost certain that the end game was an improvement in one or more of your core supply chain performance measures: customer service, inventory, asset performance, planning efficiency or speed of response.

How can you maximise the return on your supply chain management investment?

APO and other planning solutions can bring a wealth of benefits to your supply chain processes and impact on your bottom line, however many organisations have made the investment in these tools but have failed to unlock their potential.

In particular, organisations should be striving for improvements in the following 5 value drivers:

The constant challenge for all supply chain leaders is how to drive a constant improvement in performance from their assets. However with tightening market conditions and the reality of global competition hitting home the task has never been harder than it has been in the last decade.

The response has been extensive and varied. Initiatives aimed at supply chain collaboration, organisational restructure and rationalisation, ERP consolidation, and implementation of advanced planning and analytical tools have all been undertaken under the banner of “supply chain transformation”.

Regardless of the objectives many of the techniques required to achieve a successful outcome are common. Here I have attempted to identify what I believe are the 6 most influential. This is by no means a one approach fits all business. Therefore there is no prescription for success, but by considering how your programme measures up you give yourself the best chance of smooth passage on your own supply chain journey.