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.Read Article
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)Read Article
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.Read Article
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.Read Article
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.Read Article
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 capabilityRead Article
In our discussions with customers around the world, it is clear that following the introduction of SAP’s Integrated Business Planning (IBP) there, is still a great deal of uncertainty and confusion around SAP’s SCM roadmap.
Where do the various Supply Chain Products fit with each other?
Does the new suite of SAP HANA based products replace SAP Advanced Planning and Optimization (APO)?
In this post I intend to focus on Sales & Operations Planning (S&OP), but in subsequent posts I plan to cover the other products in IBP.
For SAP to stay in the game, the ability to react to the huge changes taking place in business is critical. In particular, those resulting from customer expectations regarding rapid product innovation and speed of delivery as well as customer knowledge about alternatives (via Social Networks and the Web). SAP’s software has to enable businesses to transform what were previously Supply Chains into Demand Networks to respond faster to customer needs.
So where does S&OP sit?
Well to start, it is useful to look at how SAP categorise their Supply chain portfolio:Read Article
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
- Link high level strategic plans with day-to-day operations