Challenges and Solutions

Within Supply Chain Planning, the most common challenges occur when companies focus their efforts to integrate functional Planning areas. Integrated Business Planning, as a general term within Supply Chain Management, refers to macro processes as Demand Planning, Inventory Planning and Optimization, Supply Planning and Exception Management.

Maximize Profit

Traditional Supply Chain Planning is done on quantities that are relevant for the operations, for example material pieces, metric tons, machine hours, or worker hours. Introducing monetary figures to the Planning process supports two outcomes with high business impact: profit-driven decision making and Planning based on a single set of numbers.

Business Benefits

• Reduce Sales and Operations Planning costs
• Improve demand forecast accuracy and react more quickly to changes in demand
• Increase sales forecast accuracy
• Reduce inventory carrying costs and increase inventory turnover/reduce days in inventory
• Improve on-time delivery performance
• Increase revenue and reduce revenue loss due to stock-outs
• Increase user productivity by using Microsoft Excel for interactive Planning and by integrating social collaboration

Benefits and KPIs Improved Through SAP Integrated Business Planning

Benefits from Logistical Complexity and Volatility

SAP IBP addresses every macro process listed before, that is, it combines Supply Chain monitoring, Sales and Operations Planning, Demand Management, Inventory Planning, and Supply Planning into a comprehensive solution, which also supports the integration of data from external systems such as SAP ERP or SAP Advanced Planning and Optimization. SAP IBP provides applications to facilitate the following key differentiators:

• Balancing of demand and supply
• Harmonization of Planning across corporate functions through organizational visibility and alignment
• Responsive Planning with advanced algorithms, optimization, and what-if scenario simulation Planning
• Demand-driven Supply Chain Planning based on Demand Sensing, analysis, and predictive forecasting
• Multi-stage Inventory Optimization and improved customer service levels
• End-to-end Supply Chain visibility with real-time monitoring, Analytics, alerting, and exception management
• Creation of product allocation and supply plans, and ability to respond to changes with simulations and gating factor analysis

Planning Levels with a Unified Process Flow

Harmonized Data Model

One harmonized data model facilitates your organization's planning.

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