Supply Chain Planning (based on SAP IBP)

Is your business operating in a highly competitive market where product life cycles are short, demand is volatile, and supply chain complexities are significant?

Are you looking for ways to respond to customer demand more effectively, improve supply chain visibility and achieve sustainable growth?

Then answer a few more questions.

Is your planning still manual and spreadsheet-based? Conducted in siloed systems, with key Departments having their own, disconnected plans?

To stand the competition in Industry 4.0, you need to make a step forward. You need to win the most important resource. Time. And the path to success starts with a connected, precise plan.

Meet SAP Integrated Business Planning! Cloud-based application, designed to enhance and streamline planning processes across various business functions like Sales, Finance, Inventory, Demand, and Supply.

Integrated, AI-empowered, and collaborative solution, enabling businesses to improve agility, responsiveness, and decision-making effectiveness across the supply chain. As a result – more efficiency, less human errors, and freed up time for strategic analysis and decision-making!

1.
Leverage historical sales data, market trends, and promotional activities to create accurate demand forecasts at various levels of granularity (product families, regions, and customer segments).
2.
Consider production capacities, inventory levels, lead time, and supplier constraints to create optimal supply plans, meeting customer demand while minimizing costs and maximizing resource utilization.
3.
Optimize your inventory levels for each product SKU at various stages of the supply chain, including raw materials, work-in-progress, and finished goods.
4.
Develop an integrated sales and operations plan, allowing your sales, production, finance, and operations departments to collaborate and align on a single version of truth
5.
Evaluate various what-if scenarios by simulating changes in demand, supply, pricing, promotions to understand the potential impact on key business metrics.

	Traditional Supply Chain Planning	Planning with SAP IBP:
Data	Stored in disparate systems and spreadsheets, hard to integrate from multiple sources.	A single version of truth for planning activities, data integration from ERP, CRM systems, demand signals, and other sources.
Collaboration	Each key department has its own plan, lack of communication and information exchange..	Unified platform, aligning strategic, financial, and operational plans across the entire enterprise. SCM, Sales, Finance, Procurement, Production Planning, Logistics and IT teams work together.
Information	Relies on historical data and periodic updates, making it almost impossible to respond quickly to rapid changes or disruptions in the supply chain.	Manages complex warehouse operations with multiple storage types, picking strategies, and value-added services. It can scale to support growing business needs and handle large volumes of inventory and orders efficiently.
Scenarios	Does’t include robust scenario planning and what-if analysis capabilities.	Simulates various planning scenarios and evaluates their potential impact on key business performance metrics.
Automation	Done manually, processes are labor-intensive. It takes a lot of time and effort to gather data, update spreadsheets, and perform calculations.	Automated planning, with streamlined demand forecasting, inventory optimization, production planning, and supply chain collaboration.

Matching Industries

Manufacturing to streamline production planning, optimize inventory levels, and improve supply chain efficiency.
FMCG to forecast demand, plan promotions, manage seasonal fluctuations, and optimize distribution networks.
Retail to forecast sales, optimize inventory replenishment, manage assortments, plan promotions and discounts, and ensure efficient store operations.
Chemical to manage raw material procurement, optimize production processes, forecast demand for specialty chemicals, ensure regulatory compliance, and optimize transportation logistics.
Pharma to manage demand for drugs and medical devices, optimize production schedules, ensure compliance with regulatory requirements, and manage distribution to healthcare providers and pharmacies.
Oil and Gas to optimize refinery operations, manage inventory levels of crude oil and refined products, forecast demand for petroleum products, and optimize transportation logistics
Automotive to manage complex supply chains, forecast demand for vehicles and components, optimize production schedules, and manage inventory levels across distribution networks.
Logistics and Transportation to optimize route planning, manage fleet capacity, forecast demand for transportation services, and optimize warehouse operations.

Key Users of SAP IBP:

1.
Supply Chain Managers: oversee end-to-end supply chain operations, optimize processes, improve efficiency, and reduce costs.
2.
Demand Planners: generate accurate demand forecasts, identify demand drivers, and improve forecast accuracy.
3.
Production Managers: optimize production processes and meet production targets by using tools for production planning, scheduling, capacity optimization, and shop floor control.
4.
Inventory Managers: determine optimal inventory levels across the supply chain and reduce stockouts.
5.
Logistics Managers: optimize logistics operations and reduce transportation costs.
6.
Sales and Operations Planning (S&OP) Teams: develop integrated sales and operations plans, align demand and supply plans, optimize resource allocation across the business.
7.
Finance Managers: align financial plans with operational plans and optimize financial performance.
8.
Executive Leadership: CEOs, CFOs, and COOs – for strategic decision-making and performance monitoring by getting visibility into key business metrics and strategic insights.

Main advantages of SAP IBP Implementation:

Returns of Investments:

Increased Revenue:

Improved demand forecasts and streamlined Supply Chain processes allow to capture additional sales opportunities and reduce stockouts.
Cost Reductions:

Less costs associated with excess inventory, expedited shipments, and inefficient production scheduling due to optimized resource utilization.
Improved Working Capital:

By optimizing inventory levels, businesses free up working capital that was previously tied up in there.
Operational Efficiency Boost:

After digitizing the planning with SAP IBP companies achieve productivity gains, process automation, and cycle time reductions, improving their overall efficiency.
Enhanced Customer Service:

By aligning supply with demand, reducing lead times, and improving order fulfillment capabilities, businesses enhance service levels and satisfaction. As a result – more repeat purchases, increased customer loyalty and lifetime value.