SAP integrated business planning (IBP)

SAP IBP Overview

SAP IBP is a market leader in supply chain planning recognized by Gartner.

The idea behind this innovative solution was to optimize the sales and operational planning. Later, SAP decided to incorporate all of its supply chain processes, demand, forecasting analytics in one place. Hence the name SAP integrated business planning.

It’s an all in one solution for the supply chain process which runs on SAP HANA in-memory DB cloud-based solution and uses machine learning technologies to forecast the future demand of supply chain operations. So with SAP IBP supply planning, customers can easily leverage the solution to make strategic decisions for their supply chain operations.

SAP IBP user-interface is a more powerful, and easy-to-use cloud-based solution.

SAP IBP

What innovative solutions are available in SAP IBP?

  • Sales and Operational Planning
  • Forecasting and demand management
  • Inventory planning and Optimization
  • Response and supply planning
  • Demand-driven replenishment
  • Supply chain monitoring

SAP integrated business planning is a single source of truth for the entire supply chain process which provides meaningful information in real-time from sales & operations planning to inventory planning.

It enables customers to make informed-decision by integrating people and processes in one place.

Get a glimpse of SAP integrated business planning solutions and what’s in it

Sales and Operational Planning (S & OP)
  • SAP IBP is a well-integrated financial and operational planning solution which helps organizations optimize their demand & supply planning better.
  • HANA has an extensive predictive library which is used by S&OP predictive forecasting algorithms.
  •  SAP HANA predictive library includes:
    1. Clustering (K-means, anomaly decision) algorithm
    2. Classification e.g.: C4.5 tree, KNN algorithm
    3. Time-series – exponential smoothing algorithm
    4. Preprocessing and others: Binning, and ABC classification algorithm
  • Ease of using excel for various users, ex: sales planner, demand planner, and business analyst
  • Organizations can easily simulate their real-time information by comparing their historical data, meaning they can do what-if analysis on the fly.
  • Easy collaboration with logistics, operational and financial teams to remove operational silos and make efficient planning processes.
  • There are statistical forecasting in S&OP which includes 
    1. Long-term forecasting
    2. Quantity forecasting
    3. Price/Revenue Forecasting
    4. Scenario forecasting
    5. Attach rate forecasting
Forecasting and demand management
  • The SAP IBP provides forecasting and demand planning to predict and analyze the current demand plans using machine learning algorithms.
  • It helps anticipate upcoming demands and refines short-term forecast plans while reducing inventory replenishment.
  • Robust statistical models provide accuracy of inventory replenishment using pre and post-processing algorithms.
  • Businesses can easily classify their products based on the product-pattern using classification algorithms.
Inventory planning and Optimization
  • Every large organization has a multi-echelon process which will give a holistic view of their inventory across the whole supply chain.
  • SAP IBP provides a robust statistical model to predict uncertainty and forecast error management with proven algorithms.
  • Embedded analytics helps to visualize supply chain networks and quickly gain insights into inventory drivers.
Response and supply planning
  • It helps multi-level planning to detect multi-level bills of materials across the supply chain process in order to meet the inventory target without any hassle while ensuring customer success.
  • Creates a strategic rough-cut planning to identify the capacity of the machine and material availability simultaneously.
  • Response management ensures consistency across end-to-end supply chain processes based on orders or operational prioritization rules.
Demand-driven replenishment
  • SAP IBP ensures that organization’s materials flow flawlessly and better manage customers demands in the time of disruptions in the supply chain.
  • IBP helps to remove unwanted replenishment forecasting plans to maximize the ROI.
  • It enables collaboration with the operations and sales team to plan a smooth material flow and information flow and resists the bullwhip effect in your supply chain.
Supply chain monitoring
  • SAP IBP provides end-to-end visibility across the entire supply chain process and detects potential failures in the supply chain network.
  • It provides intelligent visibility into the supply chain process without missing customer demands and operational planning
  • Enables easy simulations and comparison scenarios on the fly to help planners identify potential disruption in the supply chain.
  • Improves the supply chain planning and easily collaborates with the suppliers and outsourcing manufacturers for accurate supply chain planning.

Maximize your ROI with the best supply chain planning capabilities with LMTEQ’s SAP IBP best practices.