GitaCloud Webinar - SAP Integrated Business Planning IBP for Make To Order MTO Industries - Dec 8th, 2020

1© 2020 GitaCloud, Inc. All Rights Reserved.
Integrated Business Planning for MTO Industries
8th December 2020
GitaCloud Webinar Series

Webinar Launch
• Housekeeping Items:
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panelist responses, and upvote unanswered questions.
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• This webinar is being recorded. Recording will be posted on GitaCloud website and SAP website later this week.
Webinar Moderator: Gabrielle Brignetti, GitaCloud
• SAP IBP Pre-Sales Consultant
• Helping manage GitaCloud Knowledge Asset Library (ValueNow)
• Majored in Business Administration from San Francisco State University (SFSU)
• Passionate about SAP IBP and SAP SAC solution stack; recipient of Undergraduate SAP Recognition Award from SFSU
Welcome to this webinar focused on Integrated Business Planning IBP for Make To Order MTO Industries

Panelists
Markus Vogel, IT Lead for Business Transformation SCM & PLM, Varian Medical Systems
• Results driven SAP professional and leader with experience in implementing and rolling out ERP solutions.
• Expert in procure to pay manufacturing and process re-engineering and solution design around those
processes.
• Project manager and facilitator.
• SAP technology and supply chain process expert who loves to design processes with a diverse and global
business team and drive continuous improvement initiatives.
Kevin Lau, Director Global S&OP, Varian Medical Systems
• Experienced Operations Executive with a proven track record of achievements in the medical device, capital
equipment, laser and contract manufacturing industries.
• Responsible for ushering in strategic and operations initiatives including: DFT/Lean transformation, direct cost
reductions, MBO programs, continuous improvement programs - including Lean Six Sigma, staff development and
succession planning, NPI/time-to-market strategies, and organizational structure optimization and synchronization.
• Highly effective at fostering collaboration and cooperation cross-functionally to achieve enterprise-wide strategic
and financial objectives.
• A well-rounded, hands-on, data-driven leader who is best at leading highly complex manufacturing environments.

Panelists
Eric Simonson, Director SCM Solution Management, SAP
• Eric Simonson is a Director of Solution Management at SAP, with overall experience of 25+ years in Supply Chain
Management.
• His current focus is within the Supply Chain Planning area with emphasis on Integrated Business Planning,
specifically Response and Supply.
• Eric held the role of Product Owner for APO-PPDS for 4 years before transitioning to Solution Management 7
years ago.
• This current role includes working with partners, customers, and internal SAP organizations across many
industries in order to bring the next generation of SAP’s Supply Chain Planning solutions to the market.
Ashutosh Bansal, President & CEO, GitaCloud
• 25 years of SAP Supply Chain experience spanning from selling to delivering large scale SAP SCM/IBP transformation
engagements across High-Tech, Consumer Products, Industrial Machinery & Components, Automotive, Process, and other
industries working with clients globally.
• Founded GitaCloud in 2015, 14K+ followers on LinkedIn.
• Leadership roles at SAP for 10 years 2006-2015. Helped IBP product launch and customer adoption while at SAP.
• Led 5 IBP engagements in US in 2020. IBP driven Transformation & Value Architect with a track record of delivering
innovative solutions across customers globally

Agenda
S&OP Maturity
Journey at Varian
Medical
Wrap-up
Q&A
10 min
Kick-off
5 min 10 min
Gabrielle Kevin All
IBP for MTO: Solution Showcase
40 min
Ashutosh
Make To Order
Products Planning
Challenges
10 min
Markus
SAP IBP Roadmap
15 min
Eric

Agenda
S&OP Maturity
Journey at Varian
Medical
Wrap-up
Q&A
10 min
Kick-off
5 min 10 min
Gabrielle Kevin All
40 min
Ashutosh
Make To Order
Products Planning
Challenges
10 min
Markus
SAP IBP Roadmap
15 min
Eric

hat
hy
Key Results by 2022
• Increase our customer NPS from 53% to 70%
• Increase employee engagement from 73 to 79
• Double the cancer patients we impact to 6M
• Build a $4B cancer company with $0.5B outside
Radiation Oncology
A world without the fear of cancer
Worldwide cancer burden is growing
Focus on all cancer patient treatments
Varian Overview

2019: Global Leader in Radiation Therapy, AND
Building a Multi-Modality Cancer Company
Focus driving strong operational execution
Varian Overview
Realizing our long-term growth and strategy
$1,527M
(47%)
AMERICAS EMEA
$1,073M
(33%)
APAC
$624.3M
(19%)
Geographic Footprint (FY19 Revenue)
8% 3Y Oncology
Orders CAGR
8,500+ 9%*
Linac Installed Base
4M+ 40%+*
Patients Touched
5,500+ 22%*
Software Installs
Oncology Systems Proton Solutions
79
NPS Score**
Interventional Solutions
$3.2B 23%*
FY19 Revenue
Chief Growth Office
Oncology Software
Solutions
Note: Data as of FY2017, excluding Varex.
* Comparison of FY19 to FY17
** According to IMV ServiceTrak in U.S. Radiation Oncology Systems Report

Enable sustainable and profitable growth
Aligned with Customer expectations
Sales & Operations Planning (S&OP) – Key Elements
New Products & GEO
Forecasting
Ownership from Product
Marketing & GEOs
Supply Planning
(MPS)
Translate demand into factory
requirements
Integrated Financial
Reconciliation
Align demand/supply to
financial plan. Identify and
assess gaps
Executive
S&OP Review
Scenarios, trade-offs, decision-
making, and contingency
planning
Demand Forecast Planning
(LRDF)
Demand signals: goal of rolling
24 month forecast
InventorySupply
Demand

Sales & Operations Planning (S&OP) – Key Elements
• Revenue Recognition
aligned via Integrated
Financial Reconciliation
• Ship demand
coordination with
Logistics Team
• Master Production
Scheduling
• Manufacturing Execution
• Demand Profiling – Two
year rolling horizon
• Supply Recommendations
• Rough Cut Capacity
Planning
• Inventory Planning and
Projections
Plan Make
InstallDeliver

Varian’s S&OP Transformation Charter
Solution: Integrated Business Process (IBP) to Integrate and Synchronize a Comprehensive S&OP Process
• Aggregate and analyze ERP, CRM, Financial Projections and Commercial Intelligence Data
• Provide additional analytical capabilities:
• Statistical Forecasting and Extrapolation to drive longer horizons
• Scenario generation and planning
• Single source of truth
• Drive data and fact-based decision making
• Elimination of waste and improve process efficiency/productivity through automation
Primary Business Need and Driver: Immature S&OP Process
• Compartmentalized, disconnected, and fragmented management of key process elements
• Poor demand data integrity – insufficient for decision-making
• Limited demand inputs and forecasting capabilities - not representative of key stakeholders
• Lacked key and relevant metrics to monitor effectiveness of process
• Manual, offline, and resource intensive process
• No system of record
• Overall credibility deficiency

Agenda
S&OP Maturity
Journey at Varian
Medical
Wrap-up
Q&A
10 min
Kick-off
5 min 10 min
Gabrielle Kevin All
40 min
Ashutosh
Make To Order
Products Planning
Challenges
10 min
Markus
SAP IBP Roadmap
15 min
Eric

Varian’s Make-To-Order Challenges
Varian’s
Challenges
FG Product and
Sales Order
Complexity
Demand
Uncertainty and
Volatility
Disconnected
Data and
Planning
Processes

TrueBeam SAP Super BOM
Sales BOM Header
~300 components & options
(Software/Hardware/Services)
Production BOM header for Kitting
~20 Machine variations made to stock
~150 Accessories make or buy
One Product 2500 Product Variants
Varian’s Sample Product Structure

Varian’s Planning Complexities
Revenue Forecast vs. Ship Forecast & Date Uncertainty
• Contractual title transfer agreements shift Revenue Forecast into different periods than Ship Forecast
• Inconsistent date management across the globe based on Incoterms
• Pre-ship line items with different delivery dates and revenue implications as the main machine
High Variability of Product
• A single configurable (KMAT) part can represent a multitude of machines and accessory combinations
• 5 Main hardware products that need to be broken down into ~100 machine & main assembly part numbers as well as long lead-
time procured items
Complicated Sales Order Structure
• Sales orders with hundreds of line items broken into various categories:
• Revenue relevant items
• Shippable items
• Software (intangibles)
• Multi level Variant Configuration structure in Sales Orders with KIT-To-Order concept

Varian’s Planning Complexities
CRM and SAP S/4 Systems Operate with Disconnected Data Sets
• CRM (SFDC) operating on sub-set of data and lacking granularity compared to S/4
• CRM quotes contain features Varian sells, but no manufacturing part number details
• Different quoting processes globally in CRM
• Inconsistent global use of probability & forecast percentages to qualify opportunities
Supply Planning
• Supply planning constrained by ‘bad’ sales order dates and largely spreadsheet & tribal knowledge driven and limited to
machines only
• Machine and options mix calculations all manual
• Options utilize planning BOM updated manually twice a year
• Capacity information in SAP not used and not perceived as valuable

July 2019
March 2020
April 2020
July 2020
September 2020
January 2021
Initialization
• Agile Build of Solution Capabilities
• IBP Model Configuration
• S/4HANA and SFDC Interface
Development
• Excel Template Development
Build Phase
• Solution in Parallel Use with Legacy
S&OP Process
• Data Cleanup (Demand and supply)
• Set up of Executive Dashboards
Operational Go-live
• IBP Setup and Onboarding
• Launch Explore Phase Together
with GitaCloud
• Requirements & Design Workshops
• IBP Prototypes & Sprint Demos
Project Kickoff
• SIT & UAT Phases
• Multiple Test Cycles of the S&OP
process
Test phase
• S&OP on IBP will Replace Legacy
Excel driven S&OP process
• Inbound Supply Interfaces (PIRs)
fully live
S&OP on IBP
• Business Case & Business
Requirements Gathering
• Tool & System Integrator Evaluation
2022 and beyond..
IBP Roadmap
• SAP IBP Response and Supply for
Order Based Supply Planning
• SAP IBP Inventory
Varian’s IBP S&OP Project Journey with GitaCloud

Success Drivers & Lessons Learned
Lessons Learned
• Start a master data track early and in parallel to the process implementation
• SAP does not support Variant configuration in the standard yet, creative approaches needed in S/4-IBP interface to make it work
• Plan extra for interface development / IBP Modeling effort required to deliver the right level of visibility
• Factor in enough time for change management
Success Drivers
• Management support and buy-in for a fully integrated and global S&OP process
• Flexibility and Willingness to change the process as you go along
• A knowledgeable implementation partner that can innovate rapidly to deliver high fit to business requirements
• Prototype early & demonstrate often: keep business engaged and following along
• Single Point Of Contact from IT Team for all Source Systems

Agenda
S&OP Maturity
Journey at Varian
Medical
Wrap-up
Q&A
10 min
Kick-off
5 min 10 min
Gabrielle Kevin All
40 min
Ashutosh
Make To Order
Products Planning
Challenges
10 min
Markus
SAP IBP Roadmap
15 min
Eric

GitaCloud Overview
Digital Supply Chain Innovation at Scale
WHO WE ARE WHERE WE ARE WHOM WE SERVE
Competency
WHAT WE OFFER
SAP Services and Sell Partner globally: focused
on Digital Supply Chain, Digital Core
Specialists in Planning & Scheduling: SAP IBP,
S/4 PPDS, MRP, SAC, etc.
Niche expertise in SAP IBP Response & Supply:
Order based Planning
Foundation &
Philosophy
Founded in 2015 by Ashutosh Bansal
Philosophy: Deliver significant economic value
from integrated business planning& scheduling
transformation powered by innovative and
highly tailored solutions
Headquarters
Headquartered in San Francisco Bay Area
Global Presence
Incorporated in United States | Canada |
India
Helped customers globally: North America,
Latin America, Europe, Middle East, and
Asia Pacific
Industries
Offerings
Discrete
High-Tech and Semiconductor | Industrial
Machinery & Components | Automotive
Consumer
Consumer Products | Life Sciences |
Agribusiness
Energy and Natural Resources
Chemical | Oil & Gas | Mining
Discovery Services: Value Discovery Pilot & Business Case,
Project Audit / Design Review
Implementation Services: SAP IBP Global Templates /
Rollouts, S/4 PPDS (Synchronized Planning with SAP IBP),
SAP MRP, SAC, S/4 AATP, S/4 or IBP based DDMRP
Managed Services: Planning as a Service (Demand
Forecasting / Sensing, Inventory Optimization, Supply
Optimization, S&OP Analytics Package), IBP Support &
Enhancements
Customer engagements in 2020

IBP for MTO
Design Showcase
1. IBP Process Map & Solution Architecture for MTO
2. Dynamic Attach Rates Based Planning
3. Sales Opportunity Qualification & Range Forecasting
4. Sales Order Based Revenue Forecasting
5. Purchase Order Based Supplier Collaboration
6. Demand Management (Planner Override of Sales Order Dates)
7. GitaCloud ValueNow MTO Extension & Key Takeaways

IBP for MTO
Monthly S&OP Planning Cycle Supported by Weekly S&OE Planning Cycle
Marketing Forecasting:
Configurable FG Options
Forecast with Attach
Rate Forecasting
Sales Forecasting:
Sales Pipeline Qualification
& Range Forecasting
Consensus Demand
Planning:
Forecast Value Add Based
Consensus
Inventory Optimization:
Sub-Assembly /
Component Safety Stock
Calculation & Review
Forecast Consumption:
Generate & Release Open
Forecast to Order Based
Supply Planning
Inbound Demand
Management:
Planners override Backlog
Requested Dates
Order Based
Unconstrained Supply
Planning:
Sales Orders, Qualified
Opportunities, Forecasts
Supply Plan Review:
View Confirmations,
Pegging, Gating Factors,
Raise Action Messages for
PO Collaboration
Supplier Collaboration:
PO Expedite / Delay /
Reduce using Web Based
Planning & S/4 PO Mass
Updates
Order Based
Constrained Response
Planning:
Constrain based on
Supplier Commits
Outbound Demand
Management:
Sales Order Confirmation
Overrides and publish to
S/4
Finance Reconciliation:
Revenue Forecast Per
Scheduled Backlog and
RevRec Rules, Review Gaps
vs. Targets, What-If
Simulation
Management Review:
Performance Trends &
Forecasts
Monthly Tactical Planning Cycle
(S&OP) with IBP S&OP
Weekly Operational Planning Cycle
(S&OE) with IBP Response & Supply
Quarterly Inventory Optimization
Cycle with IBP Inventory

SAP Analytics Cloud
SAP Add-On for IBP
IBP Response & SupplyIBP S&OP
MTO Solution Architecture
Unified Planning Processes across SAP S/4HANA, IBP, PPDS, SAC, and CRM
SAP S/4HANA
Time Series
Based Forecast
Consumption
What-If
Simulation (Big
Deal / Rush
Order Simulation)
Statistical
Forecasting
Open Forecast
Explosion Using
Attach Rates
Outbound Demand
Management: Refine Dates
& Publish Confirmations
ABC/XYZ
Segmentation
Integrated
Reconciliation
(Revenue Range
Forecasting)
IBP Inventory
Multi-Stage Inventory
Optimization
Production Order
Execution with Mass
Confirmation
NPI/Marketing
Forecasting
Consensus
Demand Planning
using Forecast
Value Add
Inventory Analytics,
What-If Simulation
Sales Order
Processing
Embedded PPDS
Shipment
Processing
Purchase Order
Processing
Review &
Release Open
Forecast for
Supply
Planning
Order Based
Supply
Planning
(Unconstrained)
Intelligent
Alerting &
Action
Messages
View
Confirmations,
Gating Factors,
and Pegging
Order Based
Collaboration
with Suppliers
& Shop Floor
Order Based
Response
Planning
(Constrained)
Order Based Response & Supply Planning
Vendor
Master
Material
Master
Customer
Master
BOM
Work
Center
Routing
Sales
Forecasting
Forecast Consumption & Release
Unconstrained Demand Planning
Gross Forecast
Explosion using
Attach Rates
Inbound
Demand
Management
Safety Stock
Review
& Approval
Sales Order Specific
Material Variant
CRM
Sales
Opportunities
Quote
Configuration
View
Confirmations
KMAT material
Reverse Translation
View Projected
Stock
Publish
Planned
Orders,
Purchase Reqs,
Stock
Transport Reqs
Planned Orders
Purchase
Reqs
Management
Business Review
Bottoms-Up
Performance
Forecasts
Performance
Trends
Revenue & Margin Forecasting
Sales Pipeline Management
Attach Rate
Calculation
Mass Update
Purchase
Orders,
Production
Orders
GitaCloud ValueNow
MTO Extension
SAP IBP Standard
Capabilities

IBP for MTO
Design Showcase

IBP for MTO
Dynamic Attach Rate Generation based on S/4 Sales History
Problem Statement:
• Sales Orders have unique configurations resulting into a
sub-set of the Super-BOM in every sales order. This
makes it difficult to convert MTO Finished Goods level
forecast to Make To Stock MTS sub-assembly or
component level requirements.
• These attach rates of MTO Finished Good to next level
MTS sub-assemblies vary as order mix changes monthly.
Any planning based on static attach rates results in
excess inventory or stock-outs at MTS levels of the BOM.
Time Series
Planning
Implemented at
Varian Medical

IBP for MTO
Demand Forecast for Sub-Assemblies with Planning BOMs and Attach Rates
Solution & Value:
• Planning BOMs modeled per
Configurable FG (KMAT) in IBP
S&OP based on attach rates
calculated dynamically in IBP
from SAP S/4HANA Shipment
History
• Marketing Teams or Demand
Planners can forecast MTS sub-
assembly level requirements
accurately with period specific
attach rates and Planning BOMs
Time Series
Planning
Implemented at
Varian Medical

IBP for MTO
Design Showcase

IBP for MTO
Sales Forecast Using Opportunity Qualification Problem Statement:
• Sales opportunity win probabilities evolve over its life cycle.
Copying all opportunities into sales forecast does not work.
• Opportunities also have specific configurations. Some
opportunities have thin or even negative margins. Need to
forecast revenue and margin with respect to the win
probability.
• Sales opportunities close date in CRM is a point forecast. The
large uncertainty band around the close date makes it
challenging to know when to pull the trigger on buying
components needed to build corresponding BOM.
Time Series
Planning

IBP for MTO
Sales Forecast Using Range Forecasts for Close Date in IBP S&OP
Solution & Value:
• Load sales opportunity with a
specific BOM for accurate
costing and margin forecast.
• Dynamic generation of Product
(Variant) ID in IBP S&OP through
enhancements in S/4 Add-On for
IBP.
• Weigh opportunity quantity and
revenue down in-sync with the
win probability.
• Close date uncertainty modeling:
Turn point projections on
revenue into range forecasts.
This is based on analysis of close
date volatility and variance of
final value from initial close date.
• Enable Supply Planning and
Finance teams to see close date
risk and make plans accordingly.
• Consider high-quality sales
opportunities into revenue
forecast. Understand
Opportunity Revenue & Margin
risks upfront.
Time Series
Planning
Implemented at
Varian Medical

IBP for MTO
Design Showcase

IBP for MTO
Revenue Forecast Using Range Forecasting
Problem Statement:
• MTO businesses must also
consider post-production
constraints like customer-site
installation schedules and
customer funds availability.
• Installation Project Managers
and Contract Administrators
may have independent ranges
of the revenue realization risk.
Hard to capture this diversity
in simple date fields, e.g.,
planned ship date or install
date.
• Factory Production Plan based
Shipment Confirmed Date
does not provide visibility into
the revenue risk due to
downstream activities.
• Incoterms and transit times
also play into when the
revenue will be realized and
may cross quarter boundaries
resulting into a revenue
surprise.
Time Series
Planning
Implemented at
Varian Medical

IBP for MTO
Revenue Forecast Using Range Forecasting
Solution & Value:
• Dynamic revenue projection
based on the production &
installation scheduled of the
current sales order backlog.
• Precise calculations at sales
order item level factoring
complex revenue recognition
rules (performance
obligations, Incoterms, Transit
Times, etc.)
• Full transparency into
revenue risk from multiple
stakeholders. Project revenue
numbers to Executives and to
the Street with confidence.
• What-if Simulation capability
to model revenue risk
scenarios for large sales
orders.
Time Series
Planning
Implemented at
Varian Medical

IBP for MTO
Design Showcase

IBP for MTO
Purchase Order Based Supplier Collaboration (Using Web Based Planning)
Problem Statement:
• MTO businesses cannot
predict FG level demand and
often need to buy
corresponding components
within lead time to fulfill sales
orders (unforecasted
demands, or unusual
configurations).
• Production plans need to be
developed unconstrained by
procurement as first pass.
• Buyers need to work with
Suppliers on procurement
plans to support the
production plan. Only the
hard procurement
constraints post the supplier
collaboration should
constrain Production Plan
and corresponding sales
order confirmation dates.
• Supplier collaboration
process needs to manage
Purchase Order Expedite /
Delay / Reduce scenarios.
Order Based
Planning

IBP for MTO
Purchase Order Based Supplier Collaboration (Using Web Based Planning)
Solution & Value:
• IBP Order Based Planning
generates a Production Plan
unconstrained by
procurement lead times for
the components.
• Pegging data is examined to
raise Purchase Order specific
action messages (expedite /
delay / reduce) in sync with
current requirements.
• Supplier Collaboration
process leverages Web
Based Planning or IBP Excel
templates.
• Purchase Orders are mass
updated in S/4 based on
Supplier Response.
• Supplier Response
constrains the Production
Plan and Sales Order
Confirmations are adjusted
accordingly.
• Dynamic process to buy
sales order specific BOMs
and manage PO exceptions
in a fully automated loop.
Order Based
Planning

IBP for MTO
Design Showcase

IBP for MTO
Demand Management (Planner Override of IBP Requested / Confirmed Dates)
Problem Statement:
• Planners need to plan in IBP
Order Based Planning with
earlier dates than per
Requested Ship Date on the
Sales Order (to create a time
buffer).
• Planners may also want to
publish more conservative
confirmed date to S/4 to be
communicated to customers.
Planned Orders raised as per
IBP production Plan, sales
order confirmed per Planner
override.
• Currently, SAP IBP standard
does not have hooks for
planners to override sales
order requested date or
confirmed date.
• On Time Delivery (OTD)
metric is challenging to
understand and analyze
given all the Sales Order
Requested Date changes and
Factory Schedule changes.
Order Based
Planning
Manual Override

IBP for MTO
Demand Management (Planner Override of IBP Requested / Confirmed Dates)
Solution & Value:
• GitaCloud ValueNow MTO
Extension enables planners to
override requested date or
confirmed dates on sales
orders in IBP.
• Enable granular tracking of
On-Time Delivery (OTD)
metric and performance
trends in IBP Analytics &
Dashboards.
• This First Commit Date is reset
only in the case of a
Requested Ship Date change
from the Customer. Actual
Ship Date is measured against
the First Commit Date in IBP
to generate On Time Delivery
(OTD) metric by sales order
item.
• OTD performance trends can
be aggregated & reported at
higher levels (Location /
Month) as a waterfall chart.
Alert Raised: First Commit Date at Risk
On Time Delivery Issue Resolved
Order Based
Planning
Manual Override

IBP for MTO
Design Showcase

IBP for MTO
GitaCloud ValueNow MTO Extension
Tactical / Operational
Demand Planning
Tactical / Operational
Supply Planning
Finance Reconciliation
/Management Review
SAP IBP Standard Capabilities for MTO GitaCloud ValueNow MTO Extension
 Sub-Assembly Statistical Forecasting (Point Forecasts)
 Sales Forecasting using Opportunities
 Consensus Demand Planning
 Dynamic Attach Rates Based Planning
 Range Forecasting for Close Dates & Qualification of Sales Pipeline
 Forecast Value Add based Consensus Planning
 Time Series Forecast Consumption
 Operational Supply Planning Heuristic / Optimizer
 Multi-Stage Inventory Optimization
 Sales Order Confirmation with Demand Prioritization
 Pegging, Gating Factors
 View Projected Stock
 Web Based Planning
 Sales Order Simulation
 Intelligent Visibility
 Make To Order MTO Products: Dynamic Product Variants
 Sales Opportunities & Sales Orders with multi-level Configuration in IBP
 MTO based IBP Planned Order Publish back to S/4
 Forecast Consumption & Release via S/4 Add-On for OBP
 Planning Model Extension to show Sales Order Item level Excel Add-In views
 Order Based Supplier Collaboration with Mass PO Updates
 Order Based Shop Floor Collaboration with Mass Production Order Updates
 Business Rules and Pegging Based Intelligent Alerting
 Demand Management (Planner Override of Dates)
 Intercompany PO Support and Date Change Propagation
 MTO Sales Order Simulation
 Period Lot Sizing support in IBP OBP
 Mass Confirmation of MTO Production Orders based on IBP
 Driver Based Planning
 What-if Simulation
 Analytics & Dashboards
 Revenue Range Forecasting for Sales Orders
 Performance Obligations, Incoterms based Revenue Forecasting
 Performance Trends (On-Time Delivery with Business Rules on Date
Management)

IBP for MTO
Key Takeaways
MTO presents complex challenges. Standard IBP does not cover all the scenarios.
• Business Challenges: Highly uncertain sales pipeline, volatile sales order backlog, complex revenue recognition, etc.
• Order Based Planning: Varian Configuration based sales orders not supported in IBP interface
• Time Series Planning: range forecasting, revenue recognition ruleset, etc.
GitaCloud ValueNow MTO extension enables coverage across MTO scenarios
• GitaCloud’s ValueNow MTO Extension dynamically generates unique product variants
• Plan VC sales orders with sales order BOMs using IBP Time Series or Order Based Planning
• Generate revenue forecast taking installation / commercial risks into account
GitaCloud can help MTO customers implement with SAP IBP or S/4 MRP
• SAP IBP S&OP - Time Series Planning: Order Based granular Planning Model
• SAP IBP Response & Supply - Order Based Planning: Order Based Planning & Supplier Collaboration
• SAP S/4 or ECC MRP: Characteristics Planning (MRP Strategy 56)

Agenda
S&OP Maturity
Journey at Varian
Medical
Wrap-up
Q&A
10 min
Kick-off
5 min 10 min
Gabrielle Kevin All
40 min
Ashutosh
Make To Order
Products Planning
Challenges
10 min
Markus
SAP IBP Roadmap
15 min
Eric

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of personal data to an identified data subject, restricted access to personal data, masking of personal data, read access logging to special
categories of personal data, change logging of personal data, and consent management mechanisms.

Official roadmap timing by feature, can now be found in the Roadmap Explorer at link below.
The following slides are for reference only and not published externally anymore.
https://roadmaps.sap.com/board?PRODUCT=67838200100800006742
Official IBP Roadmap

1. This is the current state of planning and may be changed by SAP at any time without notice.
• V2011 – Recent innovations • V2102 – Planned Q1/20211 • V2105 – Planned Q2/20211 • V2108 – Planned Q3/20211
Order-based planning
 Deployment cost generation
 Display configurable master data for any
master data type in one harmonized Fiori
App
 Include OBP settings during planning
area copy
 Interactive planning: Order creation/delete
 Transportation resource
 Last Period Aggregation in Projected
Stock Calculation
 Location Product substitution for
optimizer (supersession)
 Create/change configurable master data
in Fiori App
Tactical supply planning
 Aggregated constraints as soft constraints
 Aggregated constraints in time dimension
 Create fixed supply in key figure
 Planning with subnetworks (upstream
planning)
 Switchable constraints on object level
 Location Product substitution for heuristics
(supersession)
 New planning run: Supply Planning
 Non-stocking location-products in
finite heuristic
 Freeze horizon
 Fair-share demand fulfillment for finite
heuristic
 Order-based DDMRP: order-creation and
integration
 Synchronized Planning: Tight integration
between order-based planning in IBP and
short-term Production Planning in
S/4HANA PP/DS
 Demand Cost Key Figures for Optimizer
 Product decomposition for optimizer
 Support lead-times in daily time-granularity
 Repeat Resources on production source of
supply
 Planning run data monitor
 Elastic planning runs for Optimizer and
Finite heuristic algorithms
 Support of transportation and
production capacity usage
aggregated
constraints for normalized planning
area
 Late-demand delivery for inter-
subnetwork demand
SAP Integrated Business Planning for response and supply
Product road map overview – Key innovations

Enhancements in order-based planning
• Periodic lot sizes
• Multiple activities in planned orders
• Near-real-time integration from SAP S/4HANA and SAP ERP to SAP
Integrated Business Planning
• MRP areas
• Scheduling agreement support
• Production in another plant
• Coproducts and by-products
• MRP segments for make-to-order and project segments
• Characteristics-based planning and shelf-life planning
• Telescopic buckets
• Subcontracting
Supply and allocations planning
• Delta planning, enhanced parallel planning
Response planning
• Allocation on components and aggregate levels
Deployment planning
• Handling resources
• Storage resources
• Push deployment (heuristic)
• Outbound quotas
• Load consolidation
Operational supply planning
• Capacity leveling on infinite planning result
Product Direction update1

• 2023+ - Outlook• 2022 - Outlook
Generic Supply Planning
• Supply Chain Sub-Networks
• Switchable constraints for infinite
planning
• Create/ delete version dependent
master data
• Order Visibility
• Control Tower to order data navigation
Distribution Planning
• Transportation resources
Order-based Optimization
• Deployment Optimization (for Push)
• Fair Share in Optimization
• Supply Optimization
Process Integration
• Production Planning Integration:
Integration between IBP and S/4 with
ePP/DS
• Subcontracting
Integration with S/4 and ERP
• Integration of single ERP to multiple IBPs
• Near real-time integration
• Configurable data model for master and
transactional data
• Extensible supply chain – for priorities and UI
• Stock segments, MRP Areas
• Interactive planning on order level
• Delta Planning, Repair Planning
• Infinite MRP-like heuristics
• Re-order point planning
• Order-based planning support for DDMRP
• Shipping/Receiving resources
• Product Substitution on finished products
• Storage resources (Optimization)
• Outbound quotas
Order-based Optimization
• Telescopic buckets
• Results monitor
Process Integration
• Production Planning Integration: further
integration scenarios
• Make-to-order segments
• Scheduling agreements
• Production in another plant
• Co-products, recursive BOMs
• Initial use case for charact.-based planning
• 2020 – Planned Innovations • 2021 - Outlook
• Cross system STR integration
• Combined Data Model for
Supply&Response
• Capacity Leveling
• Intelligent Alert
• Load Consolidation Service linked to IBP
• Vendor-Managed Inventory
Process Integration
• Batches
• Shelf Life Propagation
• Further use cases for characteristics-
based planning
• Product substitution on components
• Planning of configured products
• Enhancements to scalability and usability
• Component Allocation, Supply
Segmentation
• Algorithmic Extensibility
Process Integration
• Project Orders
• Further use cases for Characteristics-
based Planning
• Location substitution
Long-term Product road map overview for order-based planning – key themes and capabilities

55366enUS (20/02)
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No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
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In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
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Follow us

Agenda
S&OP Maturity
Journey at Varian
Medical
Wrap-up
Q&A
10 min
Kick-off
5 min 10 min
Gabrielle Kevin All
40 min
Ashutosh
Make To Order
Products Planning
Challenges
10 min
Markus
SAP IBP Roadmap
15 min
Eric

Call To Action
Q&A
• Please fill the survey at the end of this webinar
• GitaCloud is offering a 4-hour complimentary discovery
workshop. Send us an email at connect@gitacloud.com if you are
interested
• GitaCloud can help you further your digital supply chain strategy,
powered by SAP IBP or S/4 capabilities (S/4 PPDS, S/4 MRP, etc.)
• GitaCloud can implement SAP IBP or S/4 MRP in 3-4 months. We
deliver innovation with speed in a cost-effective manner (80%+
offshore model)
• GitaCloud can help you excel in all phases of your digital
transformation journey: IBP discovery, implementation, support, or
planning as a service (Forecasting, IO)
• Visit www.gitacloud.com to learn more

Ashutosh Bansal
President & CEO, GitaCloud
+1 925-519-5965
6200 Stoneridge Mall Road, 3rd Floor, Pleasanton, CA
ashutosh@gitacloud.com
www.GitaCloud.com

GitaCloud Webinar - SAP Integrated Business Planning IBP for Make To Order MTO Industries - Dec 8th, 2020

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