Speeding up the Supply Chain requires a new Supply Chain Planning approach - Enhanced User Experience
Introduce state-of-the art user experience with communication capabilities (SAP JAM) and MS Excel Spreadsheets.
Built on SAP HANA
Demand Networks require real-time monitoring and a focus on short-term planning
3. One Harmonized Data Model
Avoid any latency due to integration efforts and leverage the SAP
ERP data model
Cloud First Approach
The solutions will be provided in the SAP Cloud but also be made
available on-premise
Enhanced User Experience
Introduce state-of-the art user experience with communication
capabilities (SAP JAM) and MS Excel Spreadsheets
Built on SAP HANA
Demand Networks require real-time monitoring and a focus on
short-term planning
New Planning Algorithm
Leverage predictive analytics (e.g. demand sensing) algorithm in
combination with optimization
SAP Business Network
Supply Inventory Response Demand
Sales & Operations Planning
Enhanced User Experience
Supply Chain Control Tower
SAP HANA Platform
SAP Integrated Business Planning
Speeding up the SupplyChain requires a new SupplyChain Planning approach
6. IBP: Plan in Real-time With a Unified Data Model
Capabilities:
Plan in real-time, using a unified model of your demand,
supply chain and financial data within a single data
model, allowing planning on qty or value
Analyze massive volumes of complex data instantly at
any level of granularity, aggregation, and dimension
Import massive amounts of detailed data directly from
SAP and non-SAP sources
Benefits:
Optimize product/customer profitability and product mix,
considering supply and financial constraints
Adjust inventory levels to reduce cost, while meeting
target customer service levels
Manage capacity utilization to avoid capacity and
material shortages
8. IBP: Run Simulations and Scenarios Instantly
Capabilities:
Rapidly run simulations of demand, supply and
financial changes using your full data model to
support what-if analysis
Compare planning scenarios and their impact on key
performance indicators in real-time
Drill down into simulated data to perform detailed
analysis without the need for manual disaggregation
Benefits:
Identify optimal set of tactics to drive revenue growth
and increase market share
Uncover opportunities to reduce supply chain cost
Prepare for potential changes in demand and supply
before they happen
9. Plan on select key figures Plan on select hierarchy level and disaggregate
Select quantity or value
Create own master data for simulation
Addresses NPI and invisible demand
Embedded alerts
10. IBP: Enable Rich, Contextual Social Collaboration
Capabilities:
Track progress of your business process, including
assignment and monitoring of action items and the
stakeholders responsible
Collaborate quickly and easily using embedded role
and context-aware social tools
Plan using user-friendly web and Microsoft Excel
interfaces
Benefits:
Increase speed and agility of planning
Drive greater engagement and improve input from
users across your organization
Improve precision of demand and supply balancing
11. Messenger to key stakeholders
Collaborate and share analysis
Wealth of collaboration tools
12. SAP Integrated Business Planning (IBP)
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
14. SAP Supply Chain Control Tower
Understand current supply chain status with flexible dashboards
Enable supply chain professionals to
navigate, analyze and profitably manage
the end-to-end supply chain in real-time
• Increase end-to-end visibility
• Provides historical and forward looking
KPIs in a single view
• Drive visibility and action with user
configurable dashboards and analytics
• Monetized impact of exception conditions
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
15. SAP SUPPLY CHAIN CONTROL TOWER
KPI dashboard Global visibility
Task and Case managementAlerting to Action
SAMPLE USE CASES
16. SAP Integrated Business Planning for sales and operations
Deliver a cross departmental sales &
operations plan balancing the impact on
inventory, service levels and profitability
• Create the optimal business plan to drive
revenue growth and increase market
share
• Effectively balance demand and supply
and attain financial targets
• Increase speed and agility of planning
and drive most profitable responses
• Improve forecast accuracy and on-time
delivery
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
17. SAP Integrated Business Planning for sales and operations
S&OP process management Simulation
Collaboration Dashboard analytics
19. Net Business Impact
Value Proposition with S&OP powered by HANA Benefits
Real-time Planning
Plan in real-time, using a unified model of your demand, supply chain and financial
data
Analyze massive volumes of complex data instantly at any level of granularity,
aggregation, and dimension
Import massive amounts of detailed data directly from SAP and non-SAP sources
Optimize product/customer profitability
and product mix
Single business plan for all
stakeholders
Avoid shortages
Instant Simulations
& Scenarios
Rapidly run “what-if” simulations of demand, supply and financial changes using
your full S&OP data model (30 to 40% improved response time)
Compare planning scenarios and their impact on key performance indicators in real-
time
Drill down into simulated data to perform detailed analysis without the need for
manual disaggregation
Become prepared to seize opportunities
or deal with imminent threats
Lower safety buffers without raising risk
Social Collaboration
Track progress of the S&OP process, including assignment and monitoring of action
items and the stakeholders responsible
Collaborate quickly and easily using embedded role and context-aware social tools
Plan using user-friendly web and Microsoft Excel interfaces
Improve forecast accuracy through a
faster and collaborative S&OP process
Greater accountability & adoption from
stakeholders
20. Net Business Impact
Value Proposition with S&OP powered by HANA Business Impact
Standardize
Process
• Standardize process with automated workflow and task management
• Enable collaboration with field providing ability for customer program managers to directly
input forecast data
• Integration and consolidated data provides single version of the truth
Participation
&
Accountability
Optimize
Demand
Plan
• Optimize demand planning by leveraging historical data (previous forecast, actuals, etc.) and
current backlog data
• View different demand inputs to create a single consensus
Forecast
Accuracy (%)
Balance
Supply-
Demand
• Run financial impact simulations, e.g. revenue impact based on supply plan
• Perform constraint based supply planning
• Perform material and capacity analysis to balance supply-demand
Inventory
Costs
Real-time
Data
Refresh
• Real-time refresh of data fields including: product family, part number, ASP, customer master,
form factor
• Run simulations in real-time to make better business decisions, faster
• Paradigm shift from time spent on data gathering to data analysis to uncover opportunities
for improvement
Time for Data
Analysis
vs.
Gathering
1
2
3
4
22. SAP Integrated Business Planning for demand
Gain full Demand Transparency for short-,
mid- and long-term forecasting by
leveraging demand sensing and statistical
forecasting methods
• Develop more accurate mid-term
statistical forecasts
• React faster to short term demand
changes with pattern recognition based
algorithms
• Drive more accurate deployment of
product based on short term demand
• Manage multiple demand signals
• Collaborate to ensure the most
accurate forecast
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
23. SAP Integrated Business Planning for demand
Demand Sensing Scenario planning for demand
Issue Resolution Fiori appDefining a forecast model
24. SAP Integrated Business Planning for inventory
Optimize multi stage Inventory Targets to
most efficiently meet or exceed customer
service levels, fully considering
uncertainties like forecast error and supply
uncertainty.
• Improve customer service levels
• Maximize the efficiency of inventory
and working capital
• Improve planner productivity,
standardize planning processes
• Standardize the inventory target-setting
process at each tier within the supply
chain to feed operational plans
• Determine right amount, right place,
and right time for inventory to carry
while meeting plan objectives
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
25. SAP Integrated Business Planning for inventory
Inventory positioning in network Inventory & Service optimization
‘What if’ analysis on inventoryDrivers of inventory
27. SAP Integrated Business Planning for supply
Create tactical level supply planning
simulations for S&OP based on forecasts,
orders, and inventory or safety stock
targets.
• Simulate either constrained or
unconstrained production and distribution
plan, using heuristics or optimization
based algorithms
• Multi level sourcing determination for
both distribution and Bills of Material
• Development of rough cut capacity plan
in a times series bucketed supply plan
• Gain visibility for projected stock or
shortages at relevant levels of
aggregation
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
28. Fast, flexible supply planning supporting a variety of
approaches, suitable for many industries, including:
• Support of tactical (time-bucketed, rough cut) supply
planning in conjunction with IBP for sales and operation
• Create specific orders for production and procurement
in short – mid term, in alignment with tactical plan
• Constrained optimization and priority rules-driven
algorithms. Unconstrained demand propagation and
heuristics options as well
• Make short-term supply adjustments
• What-if analysis of actual or hypothetical
changes to demand and / or supply
• Pegging and gating-factor analysis
• Optionally generate and provide allocations
to ATP, and reschedule sales orders
SAP Integrated Business Planning for response and supply
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA
29. SAP Integrated Business Planning for supply & response
Entry screen – KPIs and alerts overview Back order processing and confirmation simulation
Demand supply pegging analysisStock projection
30. SAP Integrated Business Planning for supply & response
Entry screen – KPIs and alerts overview
Demand supply pegging analysisStock projection
31. SAP Integrated Business Planning for supply & response
Entry screen – KPIs and alerts overview
Demand supply pegging analysisStock projection
33. Integrated Business Planning for sales and operations
Customers and Industries
High Tech
Pharma
Chemicals
Manufacturing
Mill
Products &
Mining
Consumer
Products
Services
Retail
Now let’s talk about SAP’s Integrated Business Planning
Sales and Operations Planning is the core of Integrated Business Planning. This process of aligns demand and supply to drive a business outcome. It has become more important to power growth, improve resiliency and drive efficiency improvements. Several maturity models have been developed by industry analyst companies to determine the different stages of S&OP:
Create a feasible plan
Match demand with supply
Drive most profitable response
Build demand-driven supply chain capabilities
Orchestrate through market driven value networks
SAP is providing solutions to cover all 5 stages.
We have introduced a completely new approach, based on five key principles:
It’s not only about collaboration of data between the parties involved in the S&OP process, it’s about communication! People need to have the possibility to comment on the plan to avoid miscommunication and to speed up the process
Analytical capabilities are embedded into the process, so that users can directly see and analyze the impact of different demand & supply scenarios and don’t need to jump between systems
Simplicity in the User Interface – leveraging Microsoft Excel Spreadsheets, which are embedded into the solution, instead of up- and down-loads or different spreadsheet technology
Real-time scenario planning – S&OP has been natively built on SAP HANA
Integration to the SAP Business Suite and external 3rd party tools to upload master data and to bring back the results of the S&OP plans
We leveraged the same principles of S&OP and build on this platform
The heart of the Supply Chain Control Tower is a Big-Data analytics application, which allows to acquire, cleans and harmonize data from the entire demand network in real-time. We will leverage predictive analytics methods to provide real-time what-if simulations and we will provide an open environment which allows to connect also 3rd party tools
Inventory & Service-level Optimization: This will allow to directly create multi-tier inventory targets based on the S&OP decisions – it is based on the same data model and no transfer of data is needed. This will immediately improve the reduction of inventory and has a major impact in achieving profitability goals
Predictive Demand Management: This new application will create full demand transparency for all products and timeframes. We directly include predictive analytics capabilities for Demand Sensing and statistical Forecasting methods to increase forecast accuracy. Not only will that reduce inventory but it also introduces more flexibility and speed in the supply chain. And again, no data transfer will be necessary between S&OP, Inventory and Service-level Optimization and Predictive Demand Management – it’s all based on the same data model, powered by SAP HANA
The first release of SAP Integrated Business Planning for Supply can be used as an extension of the sales and operations planning process. It can show visibility in the supply network across locations and through levels of the BOM. It can provide a constrained demand plan as an output for further supply processing in another planning system like APO or ECC.
These solutions are provided in the Cloud for easy and fast adoption.
Pharma Division of McKesson
2012: business was looking for a way to have a lot more input to their forecast
A lot more abiltity to influence that forecast
A lot more ability to see their analytics on what happens when they inpouts that forecast
2012: SAPPHIRE discovered S&OP
Gives ability to aggr/disaggr and analyze forecast at various hierarchy levels
Planning area worked really well
Key figures are very powerful. Help you be flexible on how you use SOP relative to forecast, but really helped us set up alerts
We want to manage many many SKUs but only look at SKUs that fall outside of alerts
Analytics was another key differentiator. The key users really use the analytics in their daily business to review alerts and derive actions out of this, and we do some „wild stuff“ in there wrt alerts.
Cloud: HCI gave the ability to control and see alerts of managing the interfaces. HCI is functioning fantastic
Currently at a weekly forecast
We run stat fcst, 4 different stat methods, runs once a week on weekend
Delta load for all the forecastable products
We grab sales data (ship-to) level and run stat forecast
Master data come from ECC, inventory
Challenge was how to replenish to this forecast
The answer was SmartOps (SAP EIS)
Forecast from S&OP into EIS. Result of EIS as replenishment signals back into ECC to generate PO and/or STOs
Required on Hand (ROP) numbers from EIS into S&OP
Users live and work in S&OP, so also reviewing EIS numbers in S&OP
Powerful analytics in EIS, but need was simpler and is done in S&OP
Huge advantage of S&OP was the ability for a new planner to come in and being up to speed almost immediately, due to the intuitive nature of the overall interface.