SAP Best Practices for SAP

Integrated Business Planning

for Supply Chain
V34.2402

SAP
February, 2024

INTERNAL – SAP and Partners Only

INTERNAL – SAP and Partners Only 1

Agenda

Scope overview

Scope in detail

Appendix
• System landscape
• Solution process flow
• Sample data overview
• New scope and changes in past versions

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New scope and changes in V34.2402
 Technical upgrade to product version 2402 of the SAP Integrated Business Planning
for Supply Chain solution
 The SAPIBP1 sample planning area has been enhanced as follows:
• New key figures and attributes to store risk information
• New key figures in inventory to support supply lead time recommendation
• Preconfigured analytics stories for demand and risk
 The IBP for demand – demand planning solution process now uses the
preconfigured analytics stories for the demand planning process expert, the global
demand planner, and the local demand planner.
 The IBP – supply chain risk management solution process now uses the Preconfigured Analytics Stories: Demand Planning Process Expert
preconfigured analytics stories called IBP Best Practices – Supply Chain Risk
Analysis.
 We‘ve added a new solution process called IBP for demand – demand forecast for
SAP S/4HANA Cloud, public edition. It describes how to use the advanced
forecasting algorithms in SAP IBP as input for material requirements planning in
SAP S/4HANA Cloud. It covers the integration of master and transactional data
from SAP S/4HANA Cloud using SAP Integration Suite, Cloud Integration to SAP
IBP, and the integration of planned independent requirements back to SAP
S/4HANA Cloud.
 The IBP for maintenance, repair, and operations (MRO) solution process now
includes master data maintenance rules as part of the segmentation process and now
uses a planning view to analyze the expected project activities in SAP IBP.

Preconfigured Analytics Stories: Supply Chain Risk Analysis

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Key information about SAP Signavio Process Navigator

 The new tool to access the SAP Best Practices content is SAP Signavio Process Navigator.

 SAP continues to build and deliver SAP Best Practices.

 SAP Best Practices for SAP Integrated Business Planning for Supply Chain (SAP IBP) will be updated
and enhanced every quarter in the usual quality and scope.

 Access to SAP Best Practices and usage of the assets will remain free of charge for customers and partners.

 SAP Best Practices for SAP IBP 2305 and all future releases are only available in the SAP Signavio
Process Navigator.

Link to all solution scenarios: https://me.sap.com/processnavigator

Link to SAP IBP solution scenario: https://me.sap.com/processnavigator/SolS/EARL_SolS-034
INTERNAL – SAP and Partners Only 4
SAP Best Practices for SAP Integrated Business Planning available in
Cloud Application Lifecycle Management (Cloud ALM)

​Starting
with 2302, the solution processes of SAP
Best Practices for SAP Integrated Business
Planning are available in Cloud ALM.
​Cloud ALM will be updated every quarter with the
latest version.

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SAP Best Practices for SAP Integrated Business Planning for Supply Chain

Jump start SAP IBP with SAP Best Practices

Leverage SAP Best Practices for SAP Integrated Business Planning for Supply
Chain to get an entry scope of the planning processes for sales and operations
planning, response and supply planning, demand planning, demand sensing,
inventory optimization, and demand-driven replenishment.

Key benefits of SAP Best Practices

 Comprehensive sample planning areas that support planning on different time and
data granularity to reduce modeling effort
 Preconfigured and validated application content including planning views in
Microsoft Excel, Planner Workspaces, dashboards, alerts, sample data, and more
allows you to run the integrated business processes right from the beginning
 Extensive documentation on solution configuration and process execution allows
you to run tests, build demos, support education, and accelerate implementations
 Extendable to cover specific customer-specific needs

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SAP Best Practices for SAP Integrated Business Planning for Supply Chain
What it can do for you
Sample Documentation Technical content Implementation
Use case planning area Test scripts, Sample data,
service
configuration guides planning views

Educate yourself and leverage

Study reference material. Not relevant

Train project members, key users,

Training and end-users. Not relevant

Sell it to your clients and demonstrate the

Demonstration capabilities of SAP Integrated Business Not relevant
Planning in a process-oriented way.

Evaluate SAP Integrated Business

Proof of concept
or pilot project Planning and build a solution that
fits your client’s requirements.
Roll out SAP Integrated Business
Implementation
project Planning in your client’s organization
and put it into productive use.

Use as a starting point,

Use as delivered
adjust to your needs

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SAP Best Practices for SAP Integrated Business Planning for Supply Chain
What it can do for you
Documentation Technical content
Sample Implementation
Use case Test scripts, Sample Data,
planning area service
Setup Instructions Planning View Templates

Examine solution process Review the layout of the

Study Educate yourself and use Review the configuration of
simulations, test scripts, and planning views and the data Not required.
reference material. SAPIBP1.
setup instructions. structure of the CSV files.

Use the pre-installed planning Execute the test scripts and

Training Train project members, key Use the delivered sample data
area in the Starter edition and explore the configuration of the Not required.
users, and end-users. and planning views.
test systems. planning area.

For quick demos, use the

Sell it to your clients and Use the pre-installed planning delivered sample data and
Demonstration Use test scripts to create your
demonstrate IBP capabilities in area in the Starter Edition and planning views. Adjust sample Not required.
(shortened) demo script.
a process-oriented way. test systems. data and planning views as
needed for a tailored demo.
Use sample data CSV files as
Activate a new copy of As a starting point, leverage test
Evaluate IBP and build a templates to provide custom
Proof of concept SAPIBP1 or use the pre- scripts for process design and Could be leveraged to configure
solution that fits your client‘s data. Adjust the planning view
or pilot project installed planning area in the setup instructions for custom proof-of-concept system.
requirements. templates to the client’s
Starter Edition and test systems. configuration.
requirements.
Use sample data CSV files as
As a starting point, leverage test Choose the predefined
Roll out IBP in your client‘s templates to provide custom
Implementation Activate a new copy of scripts for process design and implementation service for a
organization and put it into data. Adjust the planning view
project SAPIBP1. setup instructions for custom reliable implementation of SAP
productive use. templates to the client’s
configuration. IBP.
requirements.

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Scope overview

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Unified planning process flow

Financial
Tactical Planning
Frequency: Monthly Demand
Annual Supply Review – Reconciliation Management
Horizon: 1-3 years Review
Operating Plan Heuristic, Optimizer Review Business Review
Buckets: Months, Weeks
Consensus Constrained Constrained Final Consensus
Marketing Demand Plan Demand Plan Demand Plan Demand Plan
Planning
Marketing
Plan

Mid-Term Inventory
Operational Optimization
Frequency: Weekly Inventory Plans
Horizon: 1-12 months Sales
Buckets: Weeks, Days Planning Demand
Sales Planning
Forecast Global Demand Plan
Supply and
Allocations Planning
(Heuristic) / Supply planning – OBP
Optimizer)
Supply Proposals.
Product Allocations

Short-Term
Demand Deployment Transportation Load
Operational Sensing
Response
Planning
Planning Building
Frequency: Daily Transportation
Sensed Demand Supply Proposals, Distribution Plan
Horizon: 1-12 weeks Load Requisitions
Buckets: Days Sales Order Confirmations

Execution Sales Order Procurement Available-to-Promise Stock Production

Processing Processing Transfer
Open,Confirmed,Delivered Purchase Sales Order (Deployment/Load) Stock Production
Sales Orders Orders Confirmations Transfer Requisitions Orders

INTERNAL – SAP and Partners Only

SAP IBP Process External Process 10
Unified planning process flow: Internal and external processes

Financial
Tactical Planning
Frequency: Monthly
Annual Demand Supply Review – Reconciliation Management
Horizon: 1-3 years
Operating Plan Review Heuristic, Optimizer Review Business Review
Buckets: Months, Weeks
Consensus Constrained Constrained Final Consensus
Marketing Demand Plan Demand Plan Demand Plan Demand Plan
Planning
Marketing
Plan

Mid-Term Inventory
Optimization
Operational Inventory
Frequency: Weekly Plans
Horizon: 1-12 months Sales Demand
Buckets: Weeks, Days Planning Planning
Sales Global
Forecast Demand Plan
Supply and
Allocations Planning
(Heuristic) / Supply planning – OBP
Optimizer)
Supply Proposals.
Product Allocations

Short-Term
Demand Response Deployment Transportation Load
Operational Sensing Planning Planning Building
Frequency: Daily Sensed Supply Proposals, Transportation
Distribution Plan
Horizon: 1-12 weeks Demand Sales Order Confirmations Load Requisitions
Buckets: Days

Execution Sales Order Available-to-Promise Stock Production

Procurement
Processing Processing Transfer
Open,Confirmed,Delivered Purchase Sales Order (Deployment) Stock Production
Sales Orders Orders Confirmations Transfer Requisitions Orders

INTERNAL – SAP and Partners Only

SAP IBP Process External Process 11
Detailed process flows available in SAP Signavio Process Navigator
You can find the process flows and test scripts here: https://me.sap.com/processnavigator

INTERNAL – SAP and Partners Only 12

 Time-series-based planning and order-based planning
Maintenance,
Process S&OP and Demand Planning / Inventory Demand-Driven Supply and Allocations Response Deployment Transportation
repair, and
Supply Planning Sensing Planning Replenishment operations Planning Planning Planning Load Building

Sample Planning SAP4(C/S) SAP6 SAP3 SAP8 SAP9 SAP7F (as of 2202)
Area
SAPIBP1

S&OP Operator /
Planning Supply Planning
Inventory
Calculate DDMRP
Buffer Levels
Statistical
Deployment Run Heuristic + Transportation Load
Optimizer Statistical Forecasting Forecasting / MRO Supply Planning Run
Operator + Heuristic
Optimization Recommend Inventory Optimizer Building Run
Decoupling Points Optimization

Time Series SAP7F

Data Model Customizable internal master data types • Orders
Restricted by planning operators • Flexible master data model

SAP7F
SAP Cloud Integration for data services (CI-DS) for integration with SAP S/4HANA • Real-Time Integration (RTI)
Integration
Tools • SAP Cloud Integration for data services for time-series data
SAP Integration Suite
for integration with
SAP S/4HANA Cloud,
public edition (only
demand planning)

Best SAP7F (as of 2202)

Practices • IBP – time-series-based inbound integration with
• IBP – order-based planning inbound integration with SAP S/4HANA (2S4)
Solution SAP S/4HANA (3OF)
• IBP – integration of planned independent • IBP – order-based planning outbound integration with SAP S/4HANA (2S6)
Processes for
requirements to SAP S/4HANA (4NO) • IBP – order-based planning inbound integration for deployment planning (4VA)
Integration • IBP for demand – demand forecast for SAP • IBP – order-based planning inbound integration for shelf life planning (6Z1)
S/4HANA Cloud, public edition (78P)

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Unified Planning
Sample planning areas used in SAP Best Practices for SAP Integrated Business Planning

Planning Area Processes Running in this Application Content Integration / Data Sample Data
Planning Area Available Available
SAPIBP1 Time-series-based planning Yes 1) Sample data loaded using Data Integration app (see Setup Yes
(unified planning area) processes Instructions for Implementing Time-Series-Based Planning
Dashboards, charts, alerts, (TSP_IBPxxxx_setup))
procedure playbook, Planner 2) Integration to SAP S/4HANA using SAP Cloud Integration
Workspace* available as part of for data services (CI-DS) (see test script 3OF - IBP – time-
SAPIBP1 series-based inbound integration with SAP S/4HANA)
3) Integration to SAP S/4HANA Cloud, public edition using
SAP Integration Suite (see test script 78P – IBP for demand
– demand forecast for SAP S/4HANA Cloud, public
edition)
SAP7F Order-based planning Yes 1) Integration to SAP S/4HANA using real-time integration Yes
(response and supply) processes and Data Integration app (see test script 2S4 - IBP – order-
Dashboards, charts, alerts, based planning inbound integration with SAP S/4HANA,
procedure playbook, Planner 4VA - IBP - order-based planning inbound integration for
Workspaces available as part of deployment planning)
SAP7F

SAP8 Demand-driven replenishment Yes 1) Sample data loaded using Data Integration app (see Setup Yes
(demand-driven replenishment) process Instructions for Implementing Demand-Driven
Replenishment (DDR_IBPxxxx_setup))

SAP9 Maintenance, repair, and Yes 1) Sample data loaded using Data Integration app (see Setup Yes
(maintenance, repair, and operations (MRO) processes Instructions for Implementing maintenance, repair and
operations) operations (MRO) (MRO_IBPxxxx_setup))

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SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Explanatory chart
Preconfigured Content in Non-Productive Systems

IBP Starter Edition Cloud Test & Demo for Customer Test
for Customers Partners Systems

SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Available at
https://me.sap.com/pr
ocessnavigator

Planning Analytics Process Test Scripts, Process Flow Task Tutorials

Sample Data
Views Content* Management Setup Instructions Diagrams
*For SAP8

SAPIBP1, SAP7F, SAP8, SAP9 SAPIBP1, SAP7F

SAPIBP1
Sample Planning Areas

Delivered
Forecast
in SAP
Attributes Master Time Segmentation
Model Alerts Charts and Dashboards Tables
Data Types Profile Profile
Planning Analytics Stories
Operators

Planning Key Versions Forecast

Procedure Planner Workspace
Levels Figures Error Profile
Playbook

IBP for sales and IBP for response and IBP for IBP for IBP for demand-driven Supply Chain
operations
INTERNAL – SAP and Partners Only supply demand inventory replenishment Control Tower 15
 Solution process overview

Integrated Business Planning for sales and operations Integrated Business Planning for response and supply
 IBP for sales and operations – demand review  IBP for response and supply – supply review – TS-based supply optimizer
 IBP for sales and operations – supply review – heuristic  IBP for response and supply – supply and allocations planning – heuristic
 IBP for sales and operations – reconciliation review  IBP for response and supply – supply planning – OBP optimizer
 IBP for sales and operations – management business review  IBP for response and supply – response planning
 IBP for sales and operations – forecast error calculation and analysis  IBP for response and supply – deployment planning - optimizer
 IBP for sales and operations – time-series-based forecast consumption  IBP for response and supply – transportation load building
 IBP for sales and operations – footprint analysis  IBP – order-based planning inbound integration with SAP S/4HANA
 IBP – order-based planning outbound integration with SAP S/4HANA
 IBP – order-based planning inbound integration for deployment planning
Integrated Business Planning for demand
 IBP – order-based planning inbound integration for shelf life planning
 IBP for demand – demand planning
 IBP for response and supply – shelf life planning
 IBP for demand – demand sensing
 IBP for demand – forecast error calculation and analysis
 IBP for demand – time-series analysis Integrated Business Planning for inventory
 IBP for demand – new product introduction  IBP for inventory

W  IBP for demand – demand forecast for SAP S/4HANA Cloud, public edition  IBP for inventory – scenario planning
NE

Integrated Business Planning for demand-driven replenishment Cross-application solution processes

 IBP for demand-driven replenishment – strategic buffer positioning  IBP – ABC-XYZ segmentation
 IBP for demand-driven replenishment – buffer setup and adjustment  IBP – time-series-based inbound integration with SAP S/4HANA
 IBP for demand-driven replenishment – planning  IBP – integration of planned independent requirements to SAP S/4HANA
 IBP – supply chain risk management
 IBP for maintenance, repair, and operations (MRO)

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 SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Solution Process status (1/3) – V34.2402

IBP Application Solution Process SID Status Short Description and What’s New

Integrated Business Planning IBP for sales and operations – demand review 2BQ Technical upgrade Collect demand input from various sources like sales, marketing, and finance, and generate a single consensus demand
for sales and operations plan for measuring the current volume and financial target achievement.

IBP for sales and operations – supply review – heuristic 2BS Technical upgrade Generate an infinite supply plan with no shortages for your consensus demand, and identify supply and capacity
bottlenecks. Carry out manual capacity leveling to solve potential supply issues and to create a feasible constrained
demand plan.
IBP for sales and operations – reconciliation review 2BU Technical upgrade Evaluate constrained demand scenarios and prepare an executive proposal for demand, supply and finance alignment.

IBP for sales and operations – management business review 2BW Technical upgrade Decide on demand, supply and finance alignment, and approve final consensus demand plan.

IBP for sales and operations – forecast error calculation and 2C4 Technical upgrade Analyze the accuracy of your past consensus demand forecasts by calculating error measures based on actual sales data.
analysis

IBP for sales and operations – time-series-based forecast 3RT Technical upgrade Ensure that sales orders - even if they are not in the current period - reduce or consume the forecast by the sales order
consumption quantity.
IBP for sales and operations – footprint analysis 5LG Technical upgrade Gain insight into the greenhouse gas emissions of your plants based on the results of the supply planning run.

Integrated Business Planning IBP for demand – demand planning 11V Technical upgrade Gain full demand transparency for mid- and long-term forecasts by leveraging statistical forecasting methods.
for demand with enhancements - Preconfigured analytics stories for the demand planning process expert, global demand planner, and local demand
planner
IBP for demand – demand sensing 11X Technical upgrade Refine short-term forecasts to drive better fulfillment and inventory reduction. Get a better sense of demand by identifying
with changes demand patterns based on daily granular demand signals.
- Remove web-based planning view and replace it with Excel planning view
IBP for demand – forecast error calculation and analysis 2BM Technical upgrade Analyze the accuracy of your past demand forecasts by calculating error measures based on actual sales data.

IBP for demand – time-series analysis 34Y Technical upgrade Detect and record patterns in time series which help the customer select the ideal forecasting algorithms.
Including sample data adjustment to have different types of demand.

IBP for demand – new product introduction 5OZ Technical upgrade Provide a reliable forecast for new products without sales history

IBP for demand – demand forecast for SAP S/4HANA Cloud, 78P New Use the result of advanced forecasting algorithms in SAP IBP as input for material requirements planning in SAP
public edition S/4HANA Cloud, public edition

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 SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Solution Process status (2/3) - V34.2402
IBP Application Solution Process SID Status Short Description and What’s New

Integrated Business Planning IBP for response and supply – supply and allocations planning 2I0 Technical upgrade Create an operational supply plan and product allocations based on prioritized forecast demand and supply chain
for response and supply – heuristic constraints.

IBP for response and supply – supply planning – OBP 42C Technical upgrade Create an operational supply plan and product allocations based on given demand, supply chain constraints, and
optimizer cost rules
IBP for response and supply – supply review – TS-based 18N Technical upgrade Generate a feasible cost-optimized supply plan for your consensus demand based on finite capacities, lead times,
supply optimizer lot sizes, and other supply chain constraints.
IBP for response and supply – response planning 2P0 Technical upgrade Create order confirmations and adopt the supply plan based on prioritized demand, allocations, and supply chain
constraints.
IBP for response and supply – deployment planning – 4UT Technical upgrade Create an optimum reliable short-term distribution plan to satisfy demand with the existing supply elements
optimizer based on predefined costs for supply alternatives and demand.

IBP – order-based planning inbound integration with SAP 2S4 Technical upgrade Order-based planning requires dynamic data integration between the execution system and the SAP IBP system
S/4HANA to allow a quick response to demand changes triggered by sales orders.
IBP – order-based planning outbound integration with SAP 2S6 Technical upgrade To enable execution processes (for example, in production planning) to leverage the output of order-based
S/4HANA planning, dynamic data integration between the SAP IBP system and the execution system is needed to exchange
order information on a detailed level.
- Includes now also deployment planning
IBP – order-based planning inbound integration for 4VA Technical upgrade Order-based planning requires dynamic data integration between the execution system and the SAP IBP system
deployment planning to allow a quick response to demand changes triggered by sales orders. This solution process covers the
integration required for IBP for response and supply – deployment planning – optimizer.

IBP for response and supply – transportation load building 6NV Technical upgrade with Group planned distribution receipts for products with the same transportation lane, transportation group, and
changes delivery date into loads to reduce transportation costs and optimally use given equipment types.
- Additional step to unload items from a transportation load
IBP for response and supply – shelf life planning 6WZ Technical upgrade Create an operational supply plan considering the minimum remaining shelf life

IBP – order-based planning inbound integration for shelf life 6Z1 Technical upgrade Order-based planning requires dynamic data integration between the execution system and the SAP IBP system
planning to allow a quick response to demand changes triggered by sales orders. This solution process covers the
integration required for IBP for response and supply – shelf life planning.

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 SAP Best Practices for SAP Integrated Business Planning for Supply Chain
Solution Process status (3/3) - V34.2402

IBP Application Solution Process SID Status Short Description and What’s New

Integrated Business Planning IBP for inventory 11Z Technical upgrade Optimize multi-stage inventory targets to most efficiently meet or exceed customer service levels, fully
for inventory considering uncertainties like forecast errors and supply uncertainty.
IBP for inventory – scenario planning 4YI Technical upgrade Create scenarios for inventory-related changes to demand, transportation, production, and policy input variables
to determine the sensitivity of these variables with regard to baseline planning outputs.

Cross-application IBP – ABC-XYZ Segmentation 1S6 Technical upgrade Group your planning objects based on data and thereby increase user efficiency and planning accuracy.

IBP – time-series-based inbound integration with SAP 3OF Technical upgrade Integrate selected master data types using available extractors and templates with the unified planning area for
S/4HANA time-series-based planning.
IBP - integration of planned independent requirements to SAP 4NO Technical upgrade Integrate planning results (planned independent requirements) from SAP IBP to SAP S/4HANA
S/4HANA
IBP – supply chain risk management 6S7 Technical upgrade with Example of how the new analytics stories embedded in SAP IBP can be used. The story used in this solution
enhancements process helps supply chain leads to analyze typical supply chain risks and collaborate with planners to eliminate
them.
- preconfigured analytics story
IBP for maintenance, repair, and operations (MRO) 75C Technical upgrade with Provide full transparency for mid-term and long-term MRO parts and resource requirements by leveraging
enhancements statistical forecasting methods as well as inventory and supply planning algorithms
- additional planning view: MRO 160 Project Network
- master data maintenance rules as part of segmentation process
- best fit algorithm for parts with continuous demand
Integrated Business Planning IBP for demand-driven replenishment – strategic buffer 40U Technical upgrade Simultaneously determine decoupling points across the end-to-end supply chain network.
for demand-driven positioning
replenishment IBP for demand-driven replenishment – buffer setup and 40V Technical upgrade Size and maintain the inventory level for the buffers to make sure that inventory remains at optimum stocking
adjustment levels.
IBP for demand-driven replenishment – planning 40W Technical upgrade Calculate the net flow position for relevant location-product combinations and generate supply orders.

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Unified planning process flow: Mapped to IBP applications

Financial
IBP for sales and operations
Tactical Planning
Frequency: Monthly
Annual Demand Supply Review – Reconciliation Management
Horizon: 1-3 years
Operating Plan Review Heuristic, Optimizer Review Business Review
Buckets: Months, Weeks
Consensus Constrained Constrained Final Consensus
Marketing
Demand Plan Demand Plan Demand Plan Demand Plan
Planning IBP for response and supply
Marketing
Plan

IBP for demand IBP for inventory

Mid-Term Inventory
Optimization
Operational Inventory
Frequency: Weekly Plans
Horizon: 1-12 months Sales Demand
Buckets: Weeks, Days Planning Planning
Sales Global
Forecast Demand Plan IBP for response and supply
Supply and Shelf Life Planning
Allocations Planning (Heuristic)
(Heuristic) / Supply planning – OBP
Optimizer) Supply Proposals
Supply Proposals. Sales Order Confirmation
Product Allocations

Short-Term
Demand Response Deployment Transportation Load
Operational Sensing Planning Planning Building
Frequency: Daily Sensed Supply Proposals, Transportation
Distribution Plan
Horizon: 1-12 weeks Demand Sales Order Confirmations Load Requisitions
Buckets: Days

Execution Sales Order Procurement Available-to-Promise Stock Production

Processing Processing Transfer
Open,Confirmed,Delivered Purchase Sales Order Stock Transfer Production
Sales Orders Orders Confirmations Requisitions Orders

INTERNAL – SAP and Partners Only

SAP IBP Process External Process 20
Unified planning process flow: Mapped to IBP applications

Financial
Tactical Planning
SAPIBP1 time-series based, internal master data
Frequency: Monthly
Annual Demand Supply Review – Reconciliation Management
Horizon: 1-3 years
Operating Plan Review Heuristic, Optimizer Review Business Review
Buckets: Months, Weeks
Consensus Constrained Constrained Final Consensus
Marketing
Demand Plan Demand Plan Demand Plan Demand Plan
Planning
Marketing
Plan

Mid-Term Inventory
Optimization
Operational Inventory
Frequency: Weekly Plans
Horizon: 1-12 months Sales Demand
Buckets: Weeks, Days Planning Planning
Sales Global
Forecast Demand Plan SAP7F order-based
Supply and Shelf Life Planning
Allocations Planning (Heuristic)
(Heuristic) / Supply planning – OBP
Optimizer) Supply Proposals
Supply Proposals. Sales Order Confirmation
Product Allocations

Short-Term
Demand Response Deployment Transportation Load
Operational Sensing Planning Planning Building
Frequency: Daily Sensed Supply Proposals, Transportation
Distribution Plan
Horizon: 1-12 weeks Demand Sales Order Confirmations Load Requisitions
Buckets: Days

Execution Sales Order Procurement Available-to-Promise Stock Production

Processing Processing Transfer
Open,Confirmed,Delivered Purchase Sales Order Stock Transfer Production
Sales Orders Orders Confirmations Requisitions Orders

INTERNAL – SAP and Partners Only

SAP IBP Process External Process 21
Demand-driven replenishment flow: Mapped to sample planning areas

SAP8 Demand-driven replenishment

Material
Strategic Management Strategic Buffer
Positioning
Frequency: Quarterly. biannual On-Hand
Horizon: 1-3 years Stock Decoupling Points

Sales Order
Processing
Open,Confirmed,Delivered
Sales Orders

Sales
Planning
Sales
Short-Term Forecast Buffer Setup and
Planning
Adjustment
Operational Material Buffer Levels
Supply Order
Frequency: Daily Recommendation
Management/Production
Horizon: Decoupled lead time
Buckets: Days Open Confirmed Supply
Orders

Procurement Stock
Production
Transfer
Purchase Stock Transfer Production
Execution Orders Requisitions Orders

IBP for demand-driven

External Process
INTERNAL – SAP and Partners Only replenishment 22
How can SAP Best Practices help you with using time-series integration with SAP S/4HANA?

Use Case Study & Training Demonstration & PoC Implementation project

Solution Load Best Practices sample data using Data Load your own data using Data Integration CI-DS integration from SAP S/4HANA to SAP IBP
Integration Jobs app Jobs app

Integration
Supply chain
Landscape integration add- CI-DS SAP IBP
CSV files (time profile, master SAP IBP
data, key figure data) Data Integration Jobs app on

SAP S/4HANA

Data Use sample data from Use sample data from Connect your SAP S/4HANA system with SAP S/4HANA
https://me.sap.com/processnavigator https://me.sap.com/processnavigator as Best Practices sample data or your company data to SAP IBP
template for your own data. This can help you
Accelerators  Implementation  Technical to create consistent data.
Assets for SAPIBP1

Documentation Setup Instructions Guide 6M9 – Setup Instructions for Implementing Time-Series-Based Planning Test script IBP – time-series based inbound integration with
SAP S/4HANA (3OF)

Benefit Get access to a system with demo data Experience SAP IBP with your own data Test SAP IBP business processes end-to-end with your
S/4HANA data

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 Where to get it

​http://help.sap.com/ibp
https://me.sap.com/processnavigator
​
Download the following assets:
 Test scripts
 Process flow charts
 Solution process recordings
 Setup instructions
 Excel planning view templates
 Sample data CSV files

INTERNAL – SAP and Partners Only 24

Past webinars

 SAP IBP Best Practices 2305: Fundamentals & Process Navigator

 SAP IBP Best Practices 2205: Real-Time Integration
 SAP IBP Best Practices 2105: Fundamentals to jump-start your implementation
project (Demand) PDF | Recording
 SAP IBP Best Practices 2011: Fundamentals to jump-start your implementation
project (OBP) PDF | Recording​

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SAP Integrated Business Planning starter edition, non-production
SAP Best Practices  The starter edition contains an activated copy of sample planning areas SAPIBP1 and
SAP8 with SAP Best Practices content configured and all sample data uploaded
 Immediately execute the sample end-to-end planning process in SAP IBP without
manual configuration
 Learn about the capabilities of SAP IBP in a process-oriented way using illustrative
sample data and click-by-click instructions provided in test scripts
 Activated SAP Best Practices solution processes in the Starter edition:
 IBP for sales and operations – demand review
 IBP for sales and operations – supply review – heuristic
 IBP for response and supply – supply review – optimizer
 IBP for sales and operations – reconciliation review
 IBP for sales and operations – management business review
 IBP for sales and operations – time-series-based forecast consumption
 IBP for sales and operations – forecast error calculation and analysis
 IBP for sales and operations – footprint analysis
 IBP for demand – demand planning
 IBP for demand – demand sensing
 IBP for demand – forecast error calculation and analysis
 IBP for demand – time-series analysis
 IBP for demand – new product introduction
 IBP for inventory
 IBP for inventory – scenario planning
 IBP – ABC-XYZ Segmentation
The starter edition in the SAP Store  IBP for demand-driven replenishment - strategic buffer positioning
 IBP for demand-driven replenishment - buffer setup and adjustment
 IBP for demand-driven replenishment - planning
INTERNAL – SAP and Partners Only 26
 Cloud Test & Demo for SAP Integrated Business Planning
SAP Best Practices for Partners

 SAP Starter Edition version for

Partners

 Same content as SAP Starter Edition

 Available for all SAP PartnerEdge

Partners

 Link Partneredge Portal rs

e
artn
r P
Fo

INTERNAL – SAP and Partners Only 27

How SAPIBP1 and UNIPA Differ

​Unified sample planning area SAPIBP1 ​Planning area UNIPA

 Delivered as part of the SAP IBP solution, like all other  Created as an active planning area by copying SAPIBP1
sample planning areas (SAP3/4/6/7/8)  Pre-installed in newly deployed non-productive systems /
 Available in all SAP IBP systems starter edition / partner test, demonstration, and development
systems
 Used as a basis for creating custom planning areas • Copy SAPIBP1
 Includes additional configuration and sample data
 Not an active planning area that can be directly used to load • Activate
data or execute planning processes; must be copied to your • Customize
 Can be directly used for process testing, demo, and evaluation
own custom planning area • Add sample data  Not automatically updated with each IBP release if pre-
 Covers the time-series planning processes for sales and
operations, demand, inventory, and supply chain control
tower

installed or added to your SAP IBP system
See also the following FAQ !
 Updated with every release
 Find more information on changes and enhancements on
SAP Help portal:
 What‘s New in SAP IBP for Supply Chain, search for SAPIBP1
 What‘s New in the Unified Planning Area?

INTERNAL – SAP and Partners Only 28

Overview of Machine Learning in SAP Best Practices for SAP IBP
Embedded machine learning capabilities in IBP significantly drived planning accuracy and automation

​Machine Learning Use Cases ​Benefits:

 Automated cluster and threshold proposal in segmentation (K-means) =>  Embedded machine learning capabilities in IBP
used in IBP – ABC-XYZ segmentation (1S6) significantly drive planning accuracy and
automation
 Forecasting (Gradient Boosting, ARIMAX) => used in IBP for demand
– demand planning (11V)
 Free up capacity of planners
 Master Data Anomaly Detection => used in IBP – order-based planning
inbound integration with SAP S/4HANA (2S4) / IBP – order-based  Lower safety stocks
planning inbound integration for deployment planning (4VA)
 Reduce stock-outs
 Next-generation demand sensing (xGBoost) => Used in IBP for demand
– demand sensing (11X)  Improve forecast quality
 Detect level shifts & trend changes in sales quantity and use information  Improve master data quality
in forecasting / change point detection) => used in IBP for demand –
time-series analysis (34Y)  Reduce manual efforts in preparing data
 SAP Data Intelligence – Extension use case (=> Forecasting in SAP
Integrated Business Planning with an external algorithm based on
Prophet)
INTERNAL => Only
– SAP and Partners see the following slides 29
Forecasting in SAP Integrated Business Planning
with an external algorithm based on Prophet
INTERNAL – SAP and Partners Only 30
Forecasting in SAP Integrated Business Planning with an external algorithm

 Enhance the existing forecasting capabilities of SAP IBP for

demand by using custom-built forecasting algorithms in a tightly
integrated process within SAP IBP

 Use cases include use of additional algorithms (for example,

machine learning algorithms), customized implementation of
existing algorithms, and use of additional data not present in the
SAP IBP system.

 The custom algorithm can be written in R, Python or any other

suitable tool. Data is exchanged between SAP IBP and the custom
system using a new OData service.

INTERNAL – SAP and Partners Only 31

 Forecasting in SAP Integrated Business Planning with an external algorithm based on
Prophet – Sample Content
The example showing how to extend the SAP IPB forecasting capabilities by using a custom forecasting algorithm is
delivered as a mission in the SAP Discovery Center. Missions offer step-by-step guidance on how to implement a
specific solution, in this case, how to implement a custom forecasting algorithm built in SAP Data Intelligence (SAP DI)
based on Prophet. Prophet is a forecasting procedure implemented in Python.

​In this mission, the following two instances are used:

 The demand planning process with statistical forecasting

using an external forecasting algorithm is driven by the cloud-
based solution, SAP IBP. OData services are used to establish
a connection between SAP IBP and SAP DI.

 Data transformation and analysis, machine learning models,

and predictions via algorithms are performed in SAP Data
Intelligence Cloud. SAP DI is part of the SAP BTP SAP IBP external forecast
application suite. A large part of the mission is set up in the
SAP DI instance. Link Discovery Center

Link Mission

INTERNAL – SAP and Partners Only 32

Forecasting in SAP Integrated Business Planning with an external algorithm based on
Prophet - How it works

SAP IBP for demand SAP Data Intelligence (SAP DI) via SAP
Business Technology Platform (SAP BTP)

Public cloud
Start job or Prepare data and Get data from
Send notification to
interactive pre-processing IBP via OData
SAP DI
forecasting (optional) Service

Post-processing
Get forecast result Compute Forecast
Forecast (optional) and save
via OData service (Python)
data
Custom
algorithm
(Prophet)

INTERNAL – SAP and Partners Only 33

.

SAP Data Intelligence (SAP DI) offered in SAP Business Technology Platform (SAP BTP)

SAP Business Technology Platform (SAP BTP) enables you to turn data
into business value, set up end-to-end business processes, and quickly
build and extend existing SAP solutions.
SAP Data Intelligence Cloud (SAP DI) is a comprehensive data
management solution. As the data orchestration layer of SAP Business
Technology Platform, it transforms distributed data sprawls into vital data
insights, supporting innovation and business growth.

Benefits
 Enhance business processes with data orchestration
 Discover, understand, and classify your data
 Perform hyprid data management

Key capabilities
 Integrate and orchestrate large data volumes and streams at scale
 Streamline, operationalize, and govern innovation driven by machine learning
 Optimize governance and minimize compliance risk with comprehensive metadata Please check out another SAP IBP related mission:
management rules  Improve Plan Quality with Intelligent Lead Time Prediction

INTERNAL – SAP and Partners Only 34

SAP Integrated Business Planning &
SAP Analytics Cloud
INTERNAL – SAP and Partners Only 35
 SAP Analytics Cloud

The SAP Analytics Cloud solution combines Business Intelligence, Augmented and Predictive Analytics, and Enterprise Planning
capabilities in a single cloud environment.

Benefit
 Respond dynamically and focus on strategy by combining transactions,
analytics, and planning SAP Analytics Cloud Links:
 Understand your business today and tomorrow with predictive forecasting and
 www.sapanalytics.cloud
machine learning tools
 Content Network Release Information Guide
 Leverage best-in-class connectivity to SAP solutions to link enterprise
applications and all lines of business to ensure strategic alignment and reliable
 Content Network Getting Started Guide
decision-making  Content Package User Guide

Key capabilities

 Comprehensive in-memory data management and analytics

 Contextual delivery of smart insights through natural language processing
 Faster, more reliable decision-making without expert intervention
 Affordable, available, and scalable analytics
INTERNAL – SAP and Partners Only 36
SAP Integrated Business Planning & SAP Analytics Cloud - Available Content 1/2

​Content for SAP Digital Boardroom & SAP Analytics ​Integrated Financial Planning with SAP Analytics Cloud
Cloud & SAP IBP
​Thiscontent provides a high-level overview of the financial targets and ​Inthis financial integration scenario, SAP IBP forecast data is transferred to
shows relevant key performance indicators which can be used during the SAP Analytics Cloud and combined with financial data from SAP
sales and operations planning (S&OP) process in the management S/4HANA to improve the quality of sales and profitability planning. The
business review. Actual revenue, gross profit, and consensus demand planning results are sent back to SAP IBP where they are used to increase
figures help executive management decide if the S&OP plan is aligned the accuracy of the S&OP management business review.
with the company’s financial targets and also shows future trends.
 S/4HANA On Premise: Integrated Financial Planning for SAP S/4HA
 Overview SAP Analytics Cloud Content for SAP IBP NA

 Architecture and abstract  Integration of SAP Integrated Business Planning with Financial Planni
ng in SAP Analytics Cloud
 Setting up the connection between SAP Analytics Cloud and SAP
Integrated Business Planning

SAP Analytics Cloud content is not part of SAP Best Practices for SAP Integrated Business Planning but works together with the sample planning area SAPIBP1.
INTERNAL – SAP and Partners Only 37
SAP Integrated Business Planning & SAP Analytics Cloud - Available Content 2/2

Commercial Planning with SAP Analytics Cloud

In this integration scenario, SAP IBP baseline volume forecast data is transferred to SAP Analytics Cloud (SAC) where it is used as the basis for
commercial planning (in particular for sales and marketing planning). The marketing and sales spend is sent back to SAP IBP where it can be used as an
additional input for the overall statistical volume forecast.

• SAP Analytics Cloud - Business Content Packages

• Business Content Package: Commercial Planning

SAP Analytics Cloud content is not part of SAP Best Practices for SAP Integrated Business Planning but works together with the sample planning area SAPIBP1.
INTERNAL – SAP and Partners Only 38
Content for SAP Digital Boardroom & SAP Analytics Cloud
Highlights of SAP Integrated Business Planning - Analytics

This content provides a high-level overview of the financial targets and shows relevant
key performance indicators which can be used during the sales and operations planning
(S&OP) process in the management business review. Actual revenue, gross profit, and
consensus demand figures help executive management decide if the S&OP plan is
aligned with the company’s financial targets and also shows future trends.

Overview of Revenues:
This content provides a detailed overview of revenue figures on different levels down to the product level, allowing
you to better understand how revenue is allocated to different customer groups or product families, for example.

Overview of Quantities:
This content provides insights on a quantitative basis at product family and product level, allowing you to identify
top contributors.

Data Connectivity:
Loading master data and transactional data from SAP IBP to SAP Analytics Cloud using an OData service.

INTERNAL – SAP and Partners Only 39

Integrated Financial Planning with SAP Analytics Cloud and SAP Integrated Business Planning

In this financial integration scenario, SAP IBP forecast data is transferred to

SAP Analytics Cloud and combined with financial data from SAP S/4HANA to
improve the quality of sales and profitability planning. The planning results are
sent back to SAP IBP where they are used to increase the accuracy of the
S&OP management business review.

Benefits:
 A single approved plan
 Better alignment between financial planning and supply chain planning
 Consistent quantities and calculated values
 Increased accuracy of S&OP management business review

INTERNAL – SAP and Partners Only 40

Financial planning with SAP Analytics Cloud and SAP Integrated Business Planning

Financial Planning in SAP Analytics Cloud SAP Integrated Business Planning – Best Practices Processes

CAPEX Planning P&L, Balance Sheet, Cash Flow

Control Tower and Business Network Collaboration
Planning Consensus
Demand
Plan
Quantity

Sales and Profitability Planning SAP IBP for sales and operations

Sales Deduction
Planning Demand Supply Review – Reconciliation Management
Annual
Review Heuristic, Optimizer Review Business Review
Sales Quantity Profitability Operating Consensus Constrained Constrained Final Consensus
Planning Planning Plan Demand Plan Demand Plan
Demand Plan Demand Plan
Sales Price Revenue
Planning
COGS

SAP IBP for SAP IBP for response SAP IBP for
Product Cost Planning Demand
Planning inventory and supply demand-driven
Global replenishment
Demand Plan

SAP IBP for demand

Cost Object Planning (Cost Centers, Projects)

SAP S/4HANA
Transactional Data (Finance) Master Data (Product, location, customer,..) Transactional Data (Supply Chain)

INTERNAL – SAP and Partners Only 41

SAP IBP Architecture Overview for Financial Planning
System Landscape
Model for SAP
Digital Boardroom &
SAP Analytics Cloud

SAP Integrated Business Planning SAP Analytics Cloud

Model for
Model financial
OData SAP_COM_0143 planning with
Sample Planning Area SAPIBP1 SAP__IBP_SOP_IM_MANAGEMENTBUSI SAC & IBP
NESSREVIEW
Sales and Operations Planning
Model SAP_FI_IFP_IM_Profitability
OData SAP_COM_0143

oData services

SAP S/4HANA
SAP S/4HANA, supply chain integration
SAP SAP CI-DS
Agent add-on for SAP IBP
CI-DS

Cloud
On Premise
INTERNAL – SAP and Partners Only 42
Commercial Planning with SAP Analytics Cloud and SAP Integrated Business Planning

In this integration scenario, SAP IBP baseline volume forecast data is

transferred to SAP Analytics Cloud (SAC) where it is used as the basis for
commercial planning (in particular for sales and marketing planning). The
marketing and sales spend is sent back to SAP IBP where it can be used as
an additional input for the overall statistical volume forecast.

Benefits:
 Better and closer alignment between commercial
planning and supply chain planning
 Consistent quantities and calculated values
 Increase of accuracy in demand planning through
additional driver information

INTERNAL – SAP and Partners Only 43

Commercial Planning with SAP Analytics Cloud (SAC) and SAP Integrated Business
Planning (SAP IBP)
Commercial Planning with SAP Analytics Cloud SAP Integrated Business Planning – Best Practices Processes

SAP IBP for sales and operations

Portfolio Planning
Demand Supply Review – Reconciliation Management
Review Heuristic, Optimizer Review Business Review
Consensus Constrained Constrained Final Consensus
Demand Plan Demand Plan Demand Plan Demand Plan

Sales Planning
Sales Spend
Demand SAP IBP for SAP IBP for response SAP IBP for
Planning inventory and supply demand-driven
Baseline Forcast Qty Global replenishment
Demand Plan

SAP IBP for demand

Marketing Planning
Marketing Spend

Control Tower and Business Network Collaboration

SAP S/4HANA
Transactional Data (Finance) Master Data (Product, location, customer,..) Transactional Data (Supply Chain)

INTERNAL – SAP and Partners Only 44

SAP IBP Architecture Overview for Commercial Planning
System Landscape

SAP Integrated Business Planning SAP Analytics Cloud

Models for
Sample Planning Area SAPIBP1 OData SAP_COM_0720 Models: commercial
planning
SAP Cloud Integration - SAP_SD_IM_SalesPlanning
- SAP_MKT_IM_MarketingPlanning
Demand Planning OData SAP_COM_0720

OData services

SAP S/4HANA
SAP S/4HANA, supply chain integration
SAP SAP CI-DS
Agent add-on for SAP IBP
CI-DS

Cloud
On Premise
INTERNAL – SAP and Partners Only 45
SAP Integrated Business Planning &
other SAP solutions
INTERNAL – SAP and Partners Only 46
SAP Build Work Zone, advanced edition

SAP Build Work Zone, advanced edition enables you to build digital
workplace solutions to increase user productivity and engagement. It
centralizes access to relevant business applications, processes,
information, and communication through a single unified entry point that
your users can access from any device.

Benefits
 Increase user productivity by enabling them to quickly access apps, processes, and information
 Harmonize user experience across SAP and third-party applications
 Increase user engagement by providing integrated information and collaboration tools
 Speed up decision-making by providing an integrated environment for collaboration,
workflows, business apps, reports, and information

Key capabilities
 Central access to apps, tasks, notifications, information, and communication
Check out the details in the
 Integrated collaboration capabilities
IBP for sales and operations
 Seamless SAP and third-party apps integration solution processs
 Extensible framework for development, customization, and branding

INTERNAL – SAP and Partners Only 47

SAP Enterprise Product Development

SAP Enterprise Product Development empowers your enterprise to

innovate, iterate, and introduce new products faster by connecting
insights, processes, and people.

Benefits
 Develop high-quality, connected, compliant, and sustainable products through
innovative development processes
 Enable enterprise collaboration including all relevant information, insights, and
stakeholders to accelerate product development
 Create closed-loop enterprise processes to synchronize the digital thread from
design-to-operate and design-to-consume.

Key capabilities
 Collaborative development across the enterprise
 Drive efficiency in collaboration with utilities such as workflows, task management, Check out the details in the
built-in 3D viewer support, and redlining IBP for sales and operations –
 Connect 3D CAD data with ERP and master data to deliver a model-based footprint analysis
enterprise solution process
 Enable Industry 4.0 in your product lifecycle
INTERNAL – SAP and Partners Only 48
SAP Sustainability Footprint Management
SAP Sustainability Footprint Management enables you to run footprint
assessments for your products across business activities. You can source Screenshot
reference content for your products and materials from external content providers
like Life Cycle Assessment (LCA) databases. Using the applications and APIs
included in the service, you can then map this content to your business data and
provide the results to SAP Sustainability Footprint Management
for footprint calculations.

Benefits
 Vast reuse of existing business data and structures from SAP S/4HANA

 Vast reuse of business logic: Inventory Management, Costing Structures

 Monthly calculation of all products in the system handling a high amount of data

 Provide inbuild integration back to S/4HANA systems

 Emission factor management to help customers to upload Sustainability Content

Check out the details in the

Key capabilities IBP for sales and operations –
 Based on SAP’s business data and application logic footprint analysis
 Consistent in the calculated product footprints
solution process

 Integrated with the operational processes covering all relevant business users in every department
INTERNAL – SAP and Partners Only 49
Solution Processes

INTERNAL – SAP and Partners Only 50

 Demand-driven replenishment
 Overview
 IBP for demand-driven replenishment – strategic buffer positioning
 IBP for demand-driven replenishment – buffer setup and adjustment
 IBP for demand-driven replenishment – planning

INTERNAL – SAP and Partners Only 51

SAP Integrated Business Planning for demand-driven replenishment
Related solution processes

Strategic Buffer Buffer Setup and Planning

Positioning Adjustment
Decoupling Points Buffer Levels Supply Order
Recommendation

Source: Demand Driven Institute

INTERNAL – SAP and Partners Only 52
Scope in detail

IBP for demand-driven replenishment – strategic buffer

positioning

INTERNAL – SAP and Partners Only 53

IBP for demand-driven replenishment – strategic buffer positioning
Process flow

App

Average Daily Usage Create Buffer Positioning Analyze Buffer Setup

(ADU) Calculation Recommendation DDMRP Scenario and Adjustment
Recommended Decoupling Points Buffer Levels
ADU
Decoupling Points

INTERNAL – SAP and Partners Only

Strategic buffer positioning SAP IBP Process External Process 54
 IBP for demand-driven replenishment – strategic buffer positioning
Description
During the demand-driven replenishment process, you carry out strategic buffer positioning as a regional supply chain planning lead to determine decoupling points across your
end-to-end supply chain network. Decoupling points are quantities of inventory allowing you to compress the lead time between the buffer and the customer, as well as to mitigate
the demand signal distortion and supply continuity variability. In the first step, you use historical sales data and forecast key figures to calculate the average daily usage (ADU)
which is a key component for determining buffer zones and levels. You then use this result to create a buffer positioning recommendation and check the impact on decoupled lead
times. For simulation purposes, you can create a scenario to show how the results change if the buffer positioning changes. In a last step, you strategically determine the decoupling
points.

​Scope ​Technical Details ​User Interaction

​Use Case Main Input Fiori Apps
• Determine where to decouple and strategically position • Average daily usage • DDMRP Buffer Analysis
buffers in the supply chain • Customer tolerance time • Dashboards - Advanced
• Simulate and compare different scenarios
Main Output
​Benefits
Planning Views
• Decoupling points
• One combined planning view for demand-driven
• Dampen the effect of demand & supply variation on the • Decoupled lead time
replenishment processes
supply chain by decoupling – ADU Calculation Review worksheet
• Define the most suitable buffer positions to reduce
Planning Level
• Day / Product / Location – Buffer Level Calculation worksheet
decoupled lead time and on-hand inventory
​Frequency
​Planning Operator Alerts
 Calculate Average Daily Usage • No predefined alert
• Quarterly/ half-yearly
 Recommend Decoupling Points
​Participants
Analytics
• 2 predefined dashboards, one for Supply Chain Analysts
• Regional Supply Chain Planning Lead
comprising 13 charts, and one for Supply Chain Directors
comprising 2 charts
​Collaboration
 No predefined process management, no SAP Build Build
Work Zone integration
INTERNAL – SAP and Partners Only 55
Scope in detail

IBP for demand-driven replenishment – buffer setup and

adjustment

INTERNAL – SAP and Partners Only 56

IBP for demand-driven replenishment – buffer setup and adjustment
Process flow

Strategic Buffer Buffer Adjustment Planning

ADU Calculation Buffer Level Calculation
Positioning
Adjusted Buffer Levels Supply Order
Decoupling Points Average Daily Usage Buffer Levels
Recommendation

INTERNAL – SAP and Partners Only Buffer setup and External Process 57
adjustment SAP IBP Process
IBP for demand-driven replenishment – buffer setup and adjustment
Description
During the demand-driven replenishment process, you set up and adjust buffers as a regional supply chain planning lead. Buffers are levels of inventory
that are sized and maintained in a way that ensures optimum stocking levels for inventory. Demand-driven replenishment uses a dynamic three-zone
color-coded buffer for planning and execution. In the first step, you use historical sales data and forecast key figures to calculate the average daily usage
(ADU) which is a key component to determining buffer zones and levels. Using location-specific buffer profiles with individual item properties and
group settings, you calculate the buffer levels and then adjust them dynamically, either by modifying the adjusted ADU or by directly adjusting the
individual buffer zones using adjustment key figures.

​Scope ​Technical details ​User interaction

​Use Fiori App
Case Main Input
• No Fiori app used
• Determine and maintain the optimum buffer size • Average Daily Usage
• Demand adjustment factor
​Benefits Planning Views
• Flow protection Main Output • One combined planning view for demand-driven
• Optimum buffer size • Decoupled lead time replenishment processes:
• Buffer levels – ADU Calculation Review worksheet
​Frequency
– Buffer Level Calculation worksheet
• Daily Planning Level – Buffer Adjustment Planning worksheet
• Day / Product / Location
​Participants
​Planning
Alerts
• Regional Supply Chain Planner Operator • No predefined alert
 Calculate Average Daily Usage
 Calculate DDMRP buffer levels Analytics
• No predefined analytics
​Collaboration
 No predefined process management, no integration with
SAP Build Work Zone, advanced edition

INTERNAL – SAP and Partners Only 58

Scope in detail

IBP for demand-driven replenishment – planning

INTERNAL – SAP and Partners Only 59

IBP for demand-driven replenishment – planning
Process flow

Buffer Setup Check Review Manage Projected

Check Signal Integrity Check Buffer Integrity
and Adjustment Order Recommendation Confirmed Supply Orders On-hand Inventory Issues
Decoupling Point
Buffer Levels Order Recommendation Net Flow Status On-Hand Status Net Flow Integrity Status
Integrity Status

INTERNAL – SAP and Partners Only

Planning SAP IBP Process External Process 60
IBP for demand-driven replenishment – planning
Description
During the demand-driven replenishment process, as a regional supply chain planning lead, you must ensure that the daily planning and execution
process runs smoothly and doesn’t affect the material and signal flow. You use the net flow position which is calculated for relevant location-product
combinations and reflects on-hand inventory, open supply, and qualified demand orders. First, you check the order recommendation which is generated
only if the net flow position drops into the yellow buffer zone. If buffers are maintained accurately, on-hand inventory remains within stable boundaries
within the green and sometimes yellow zones. Alerts inform you if the projected on-hand status becomes very low or negative within the decoupled lead
time. You can react by expediting the supply order if possible. The signal integrity status and the buffer integrity status provide a historical view on how
well the buffers behaved.

​Scope ​Technical Details ​User Interaction

​Use Case Input

• Generate supply orders to keep the buffers in the green • Open supply Fiori Apps
• DDMRP Buffer Status Monitoring
zone • Qualified demand
• Dashboards - Advanced
• Manage open supply orders • On-hand inventory
​Benefits Output Planning Views
• Drive replenishment at strategic decoupling points on • Supply order recommendation • One combined planning view for demand-driven replenishment
actual demand, not forecasts processes:
• Achieve visibility and demand-driven prioritization of
Planning Level – Net Flow Equation worksheet
• Days / Product / Location – On-Hand Status Projection worksheet
supply based on buffer status at decoupling points
– Signal Integrity Status worksheet
• Protect the signal and material flow ​Planning Operator – Buffer Integrity Status worksheet
​Frequency
 DDMRP Buffer Status Snapshot
Alerts
• Daily • 1 predefined alert: lowest projected on-hand status
​Participants
Analytics
• Regional Supply Chain Planner • 1 predefined dashboard for Supply Chain Planners comprising 4 charts

Collaboration
 No predefined process management, no integration with SAP Build
INTERNAL – SAP and Partners Only 61
Work Zone, advanced edition
SAP Integrated Business Planning for demand-driven replenishment
Additional remarks

​Three solution processes for

• IBP for demand-driven replenishment - strategic buffer positioning
• IBP for demand-driven replenishment - buffer setup and adjustment
• IBP for demand-driven replenishment - planning
​supportan approach known as Demand-Driven MRP* or simply DDMRP*. This approach includes concepts like
material flow, decoupling points, and inventory buffers to support a replenishment strategy based on actual demand and
not on forecasts.

​Thesolution processes for SAP Integrated Business Planning run with planning area called SAP8 which completely
covers the DDMRP concept. The solution processes are neither integrated into the Best Practices unified planning
process nor into SAPIBP1. They don‘t have any dependencies to other solution processes but stand for themselves.

​SAP provides templates for integration with SAP ECC, but these are not included in the Best Practices content.

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 Time-series-based planning
• IBP – time-series-based inbound integration with SAP S/4HANA
• IBP – ABC-XYZ segmentation
• IBP – integration of planned independent requirements to SAP S/4HANA
• IBP – supply chain risk management
• IBP for maintenance, repair, and operations (MRO)
• IBP for sales and operations – demand review
• IBP for sales and operations – time-series-based forecast consumption
• IBP for sales and operations – supply review – heuristic
• IBP for response and supply – supply review – TS-based supply optimizer
• IBP for sales and operations – reconciliation review
• IBP for sales and operations – management business review
• IBP for sales and operations – forecast error calculation and analysis
• IBP for sales and operations – footprint analysis
• IBP for demand – demand planning
• IBP for demand – demand sensing
• IBP for demand – forecast error calculation and analysis
• IBP for demand – time-series analysis
• IBP for demand – new product introduction
• IBP for demand – demand forecast for SAP S/4HANA Cloud, public edition
• IBP for inventory
• IBP for inventory – scenario planning

INTERNAL – SAP and Partners Only 63

Scope in detail

IBP for maintenance, repair, and operations (MRO)

INTERNAL – SAP and Partners Only 64

IBP for maintenance, repair, and operations (MRO)
Process flow

Historical MRO Parts Historical MRO Parts & Preventative

Consumption Resource Consumption Maintenance plan
Confirmed Consumption Confirmed Consumption Maintenance Activities
with Task List Data

Run Demand Run Statistical Forecast Run Run MRO Inventory Review and Approve
Run Supply Heuristic Review Supply Plan
Classification Job Segmentation Planning Operator Maintenance Costs
Part usage Corrective Segments of MRO Parts Inventory Plan for MRO Supply Plan Reviewed Supply Plan Long-Term Maintenance
demand pattern Maintenance Forecast Parts Cost Plan

MRO Process

INTERNAL – SAP and Partners Only 65

IBP for maintenance, repair, and operations (MRO)
Description
The purpose of integrated maintenance, repair, and operations planning is to provide full transparency for mid-term and long-term MRO parts and resource requirements by
leveraging statistical forecasting methods, inventory and supply planning algorithms. In a first step, the inventory planner needs to check the updated MRO parts usage history at the
beginning of each planning cycle. During this task, the planner also run the demand classification job. The maintenance planner then creates MRO part and resource consumption
corrective maintenance forecasts for a period of 12 months for mid-term forecasting. After that, the inventory planner carries out an MRO part segmentation analysis in which parts
are segmented based on their costs and usage volumes as well as their lead time risk. Once the service levels are defined, the inventory planner creates an inventory plan and
determines the new safety stock, reorder point or target inventory position for MRO parts being planned. After the inventory parameters are defined, the maintenance planner can
create a supply plan for MRO parts and labor resources for the mid- to long-term horizon. Upon completion of the supply plan, the financial calculations are populated in the planning
area which can be reviewed by a finance manager. Finally, the finance manager can approve the expected maintenance expenditures and complete the cycle of the integrated
business plan for maintenance, repair, and operations.
​Scope ​Technical details ​User interaction
​Use Case Input
• Corrective/reactive maintenance: MRO parts & resources historical Fiori Apps
• Preventive/proactive Maintenance consumption
• ABC/XYZ Segmentation Profiles
• Corrective/reactive Maintenance • Preventative maintenance plans with task list data
• Manage Forecast Automation Profiles
• Maintenance, Repair, and Operations Profiles
​Benefits Output • S&OP Operator Profiles
• Optimize inventory levels • Safety stock, reorder points and target inventory position for MRO • Forecast Models
• Visibility at the current and projected MRO parts stock parts • Copy Operator Profiles
• Projected stock for MRO parts that considers demand from the • Application Jobs
levels
• Increase asset availability and reliability preventive maintenance activities and forecasted MRO parts
Planning Views
demand for the corrective maintenance activities
• Highlight overutilization of labor resources • Mid- to long-term estimated maintenance costs overview
• Corrective Maintenance Overview with 4 worksheets
• Preventative Maintenance Overview with 2 worksheets
​Frequency Planning Level • Inventory Planning Overview with 3 worksheets
• Monthly • Weekly / Maintenance activity / Location / Asset / Campaign • Total Maintenance Supply Overview with 2 worksheets
• Weekly / Product / Location • Financial Planning Overview with one worksheet
​Participants • Weekly / Resource / Location Alerts
• Inventory Planner • No predefined alerts
​Planning Operators
• Maintenance Planner
• MRO Demand Classification Analytics
• Finance Manager • • No predefined analytics
Statistical Forecasts
• Segmentation ​Collaboration
• Maintenance, Repair, and Operations: Inventory Planning Operator  No predefined process management and no integration with SAP Build Work
INTERNAL – SAP and Partners Only • S&OP Operator Zone, advanced edition 66
Scope in detail

IBP – supply chain risk management

INTERNAL – SAP and Partners Only 67

IBP – supply chain risk management
Process flow

Inventory
Planning
Inventory Plans

Demand
Planning
Global
Demand Plan
Analyze Analyze Analyze Create
Supply Chain Risks Inventory Risks Demand Risks Inventory Scenario
Supply Review –
Heuristic / Optimizer Risk Scores
Constrained
Demand Plan

Footprint Analysis
CO2e aggregated unit
values & shares

INTERNAL – SAP and Partners Only

Demand Review SAP IBP Process 68
IBP – supply chain risk management
Description
This solution process contains a preconfigured example of how you can use the new analytics stories embedded in SAP IBP. The story used in this
solution process helps supply chain leads analyze typical supply chain risks and collaborate with planners to eliminate them. The scores illustrate risks
resulting from low forecast accuracy, inaccurate safety stock levels, resource bottlenecks, and excess CO2 emissions.

​Scope Technical details User interaction

​Use Case Business Conditions Fiori Apps
• Discover and subsequently eliminate risks throughout the The following business conditions must be met before this • Manage Analytics Stories
supply chain network solution process can be tested:
​Benefits • Demand Planning Planning Views
• No predefined planning views
• Leverage best-in-class analysis and visualization capabilities • Demand Forecast error calculation and analysis
Alerts
• Support reporting from within the business application • No predefined alerts
• Supply Review – heuristic or optimizer
• Offer a consistent reporting experience across SAP Analytics
applications • Inventory
• Preconfigured Analytics Story “IBP Best Practices – Supply
• Footprint Analysis Chain Risk Analysis”
​Participants Collaboration
• No predefined process management and no integration with
• Head of Supply Chain
SAP Build Work Zone, advanced edition
• Supply Planner
• Demand Planner
• Inventory Planner
• Supply Planner
INTERNAL – SAP and Partners Only 69
Scope in detail

IBP – time-series-based inbound integration with SAP

S/4HANA

INTERNAL – SAP and Partners Only 70

IBP – time-series-based inbound integration with SAP S/4HANA
Description
Building the integration between SAP S/4HANA and SAP Integrated Business Planning for time-series-based planning is a key part of every implementation project.
Implementation efforts and costs are reduced significantly by new extractors in SAP S/4HANA, the supply chain integration add-on for SAP IBP, and new templates in SAP Cloud
Integration for data services (CI-DS). This solution process uses the available extractors and templates to transfer selected master data types and key figures to the unified planning
area for time-series-based planning in SAP IBP. It describes the complete integration process, from setting up the integration in SAP S/4HANA, performing the necessary
configuration in CI-DS including datastore creation, system configuration, projects, and tasks, to running the integration and finally checking the results.

​Scope ​Technical details

​Use Case Inbound Integration – Objects
• Integration of selected master data types and key figures
Master Data
from SAP S/4HANA with SAP IBP for time-series- • Location: Plant, DC Key Figures
based planning • Product • Capacity Supply
​Benefits • Location Product • Stock on Hand
– NEW in 2111: Footprint per Unit • Minimum External Receipts
• New extractors and new templates reduce • Resource • Minimum Production Receipts
implementation efforts and costs • Location Resource • Exchange Rate
• Subnetwork • Actuals Quantity
• Customer
​Participants • Production Source Header
• Time-series-based planning administrator • Production Source Item
• Location Source
• Integration developer (CI-DS) • Customer Source
• Target UoM
• UoM Conversion factor
• Currency
• Exchange Rate
• Production Resource
INTERNAL – SAP and Partners Only 71
Scope in detail

IBP – integration of planned independent requirements to

SAP S/4HANA

INTERNAL – SAP and Partners Only 72

 IBP – integration of planned independent requirements to SAP S/4HANA
Description
Building the integration between SAP S/4HANA and SAP Integrated Business Planning for time-series-based planning is a key part of every implementation project.
Implementation efforts and costs are reduced significantly by the supply chain integration add-on for SAP IBP, and a new template in SAP Cloud Integration for data services (CI-
DS).
This solution process uses available templates to transfer planning results (planned independent requirements, PIRs) created in the demand review process back to SAP S/4HANA.
It describes the complete integration process from performing the necessary configuration in CI-DS, creating a planning filter in SAP IBP, creating an application job template to
run the integration from the SAP IBP, add-in for Microsoft Excel or the Application Jobs app, and checking the results in SAP S/4HANA.

​Scope ​Technical details

​Use Case Outbound Integration – Objects
• Integration of planning results (PIRs) from SAP IBP to
SAP S/4HANA for time-series-based planning • PIR (using key figure Consensus Demand Plan Quantity)
​Benefits

• New template reduces implementation efforts and costs

​Participants

• Time-series-based planning administrator

• Integration developer (CI-DS)

INTERNAL – SAP and Partners Only 73

Scope in detail

IBP for sales and operations – demand review

INTERNAL – SAP and Partners Only 74

IBP for sales and operations – demand review
Process flow

Sales Marketing Financial Demand

Planning Planning Planning Planning
Sales Marketing Annual Global
Forecast Plan Operating Plan Demand Plan
Supply Review –
Heuristic
ABC-XYZ Review Review Review Create New Product Constrained
Segmentation Sales Forecast Marketing Forecast Annual Operating Plan Consensus Demand Introduction Demand Plan
Segmented Sales Marketing Annual Consensus Consensus Supply Review –
Products Forecast Forecast Operating Plan Demand Plan Demand Plan Optimizer
Constrained
Demand Plan

INTERNAL – SAP and Partners Only

Demand Review SAP IBP Process External Process 75
IBP for sales and operations – demand review
Description
The demand review is the first phase of the sales and operations planning process. Representatives from sales, finance, marketing, and
demand planning prepare and review their input data for the new S&OP planning cycle. They agree on a single consolidated consensus
demand plan which measures the current volume and respects corporate financial targets. This consensus demand plan is then used as a
basis in the succeeding supply review phase to create a complete supply plan.

.
​Scope ​Technical details ​User interaction
​Use Case Input Fiori Apps
• Align supply chain planning with corporate financial • Annual operating plan • Manage Processes
• Dashboards - Advanced
targets • Sales forecast • Application Jobs
• Collaboratively define a consensus demand plan • Marketing forecast • Manage Master Data
• Global demand plan • Manage Realignment Rules
​Benefits • Manage Tasks
• Create the ideal business plan to drive revenue growth and Output • Manage Processes
increase market share • Unconstrained consensus demand plan • Planner Workspaces
• Improve the speed, agility, and accuracy of sales and Planning Views
Planning Level
operations planning • Sales Forecast, 1 worksheet
• Months / Product family / Customer group • Marketing Forecast, 1 worksheet
​Frequency • Annual Operating Plan, 1 worksheet
​Planning Operator • Consensus Demand Plan, 2 worksheets
• Monthly
 No planning operator • 4 predefined Planner Workspaces (Sales Manager, Marketing Manager, Finance
​Participants Manager, Demand Planner)
• Director of finance, sales manager, marketing manager, Alerts
• No predefined alerts
demand planner
• S&OP coordinator Analytics
• 1 predefined ‘Demand Review’ dashboard with 6 charts
• Key customers
​Collaboration
 1 step with 4 tasks in predefined S&OP process management template with task
integration for SAP Build Work Zone, advanced edition
INTERNAL – SAP and Partners Only 76
IBP for sales and operations – demand review
New product introduction
​Business purpose
• Include a new product in your sales and operations planning and evaluate how it contributes to
revenue growth and impacts your supply plan
• Obtain executive management decision about introducing the new product

​Prerequisites
• In contrast to the new product introduction process in demand planning where the master data is
imported from the leading master data system, the master data and planning objects for the new
product are created in SAP IBP.
• Realignment functions are used to automate the creation of compound master data for the new
product, together with the creation of planning objects for all related key figures.
• The new product is created in a dedicated version of the planning area called PVSMD (Planning
Version with Version-Specific Master Data).
• Consensus demand for the new product is copied from an existing product with a similar demand
pattern (it’s not in scope to create a statistical forecast based on a reference product).

​Process flow
1. Demand review: The demand planner creates the simple master data and triggers the automatic
creation of the compound master data and the planning objects for the new product via realignment.
2. Supply review: The supply planner creates a supply plan that includes the new product.
3. Reconciliation review: The PLM status attribute is used in various charts to analyze the impact of
the new product on revenue, gross profit, and supply.
4. Management business review: Finally, all new product-related data is deleted in SAP IBP. If the
business decision is positive, the master data is later created in the leading master data system (for
example, ERP), and the new product introduction process in demand planning is continued.

INTERNAL – SAP and Partners Only 77

Scope in detail

IBP for sales and operations – time-series-based forecast

consumption

INTERNAL – SAP and Partners Only 78

IBP for sales and operations – time-series-based forecast consumption
Process flow

Demand Run Copy to

Review Forecast Consumption Supply Review
Consensus Demand
Consensus Total Demand Consensus Constrained
Demand Plan Output Demand Demand

INTERNAL – SAP and Partners Only

Forecast Consumption SAP IBP Process External Process 79
IBP for sales and operations – time-series-based forecast consumption
Description
Time-series-based forecast consumption is an optional step within the S&OP supply review phase to make sure that sales orders reduce or consume
the forecast by the sales order quantity for defined periods. This prevents the planning algorithm from including the demand quantity twice (once as
the forecast and once as the actual sales order). As a supply planner, you decide how to calculate the consumption of the forecast based on business
needs. Using the S&OP forecast consumption algorithm, you can generate the open forecast and the total demand, and then copy the latter to the
consensus demand. The forecast consumption results can be used as input for the supply optimizer or heuristics.

​Scope ​Technical Details ​User Interaction

​Use Fiori Apps
Case Input
• Dashboards – Advanced
• Create consensus demand considering sales orders • Consensus demand plan quantity as forecast
• Manage Tasks
• Total open order quantity as sales order
​Benefits
• Improve forecast accuracy Output Planning Views
• Reduce overproducing • Forecast open output • Forecast Consumption, 2 worksheets
• Total demand output
​Frequency Alerts
• Consensus demand
• Monthly • No predefined alerts
​Participants
Planning Level
• Product / Location / Customer Analytics
• Supply planner • No predefined analytics
• S&OP coordinator
Planning Operator ​Collaboration
 S&OP operator: time-series-based forecast consumption  One optional task in predefined S&OP process management
 Disaggregation operator: copy total demand output to template (supply review) with task integration for SAP
consensus demand Build Work Zone, advanced edition

INTERNAL – SAP and Partners Only 80

 Process Management (IBP for sales and operations)
Management
Demand Review Supply Review Reconciliation Review
Business Review

Review Sales Forecast Run Forecast Consumption Review Supply Scenarios Review Executive Proposal
(if you implement 3RT)
Review Marketing Forecast Approve Final Plan
Create Supply Plan
Review Annual Operating Plan
Prepare Supply Scenarios
Create Consensus Demand Plan

Start Step Start Step Start Step Start Step

 On Start Date  When End Application Job of Previous Step is  When Previous Step is Completed  On Start Date or
Completed or  When Previous Step is Completed
 When Previous Step is Completed (if
you implement 3RT)

Start Job

 Copy of Final Safety Stock (from IO)

End Step End Step End Step End Step

 On End Date or  When Tasks are Completed  On End Date or  When Tasks are Completed
 When Tasks are Completed  When Tasks are Completed

End Job End Job

 Copy Consensus Demand Plan or  Copy Constrained Demand Plan to Final
 Blank (if you implement 3RT) Consensus Demand Plan

INTERNAL – SAP and Partners Only Step Task 81

Scope in detail

IBP for sales and operations – supply review – heuristic

INTERNAL – SAP and Partners Only 82

IBP for sales and operations – supply review – heuristic
Process flow

ABC-XYZ
Segmentation
Segmented
Products

Demand Run Check Carry Out Prepare Reconciliation

Run Cost Rollup
Review Supply Heuristic Capacity Alerts Capacity Leveling Supply Scenarios Review
Consensus Constrained Constrained Constrained Unit Cost Constrained Constrained
Demand Plan Demand Plan Demand Plan Demand Plan Demand Plan Demand Plan

Inventory
Optimization
Inventory
Plans

INTERNAL – SAP and Partners Only

Supply Review – Heuristic SAP IBP Process External Process 83
IBP for sales and operations – supply review – heuristic
Description
The supply review is the second phase of the sales and operations planning process. The supply planner creates a complete supply plan for the consensus
demand. This plan defines for each product how much to purchase, produce, or ship at each location in the supply chain and in which period of the
planning horizon. Using the S&OP heuristic planning algorithm, the supply planner can generate an infinite supply plan with no shortages to identify
supply and capacity bottlenecks. By performing manual capacity leveling, the planner can then resolve potential supply issues and create a feasible
constrained demand plan. The supply planner simulates different solutions and provides them as scenarios to the participants of the reconciliation review .

​Scope ​Technical details ​User interaction

​Use Fiori Apps
Case Input
• Dashboards – Advanced
• Create an infinite supply plan with no shortages to identify • Consensus demand plan (from demand review)
• Manage Tasks
capacity bottlenecks • Resource capacities
• Perform manual capacity leveling to create a feasible • Safety stock
Planning Views
constrained demand plan
Output • Supply Plan Heuristic, 10 worksheets
​Benefits • Constrained consensus demand plan
• Effectively balance demand and supply Alerts
Planning Level • The ‘Supply Plan Heuristic’ planning view includes 1 alert
​Frequency • Weeks / Product / Location / Customer definition for capacity overload
• Monthly (worksheets have different planning levels, for example,
Analytics
​Participants
Capacity: Resource / Component; Production: Source /
• 1 predefined ‘Supply Review’ dashboard with 6 charts
Ship-To; Transportation: Ship-To / Ship-From)
• Supply planner
​Collaboration
• S&OP coordinator ​Planning Operator
 No predefined process management and no integration with
 Time-Series-Based Supply Planning Heuristic
SAP Build Work Zone, advanced edition
 Network Aggregation Operator

INTERNAL – SAP and Partners Only 84

Scope in detail

IBP for response and supply – supply review – TS-based

supply optimizer

INTERNAL – SAP and Partners Only 85

IBP for sales and operations – supply review – TS-based supply optimizer
Process flow

ABC-XYZ
Segmentation
Segmented
Products

Demand Run Prepare Reconciliation

Review Supply Optimizer Supply Scenarios Review
Consensus Constrained Constrained Constrained
Demand Plan Demand Plan Demand Plan Demand Plan

Inventory
Optimization
Inventory
Plans

INTERNAL – SAP and Partners Only

Supply Review – Optimizer SAP IBP Process External Process 86
IBP for sales and operations – supply review – TS-based supply optimizer
Description
The supply review is the second phase of the sales and operations planning process. As a supply planner, you create a complete supply plan for the
consensus demand. This plan defines for each product how much to purchase, produce, or ship at each location in the supply chain and in which period
of the planning horizon. Using the S&OP optimizer planning algorithm, you generate a cost-optimized production, distribution, and procurement plan for
the entire supply chain network, resulting in a feasible constrained demand plan that is maximized either for profit or for delivery. You provide the
optimizer results to the participants of the reconciliation review.

​Scope ​Technical details ​User interaction

​Use Fiori Apps
Case Input
• Dashboards – Advanced
• Create a feasible cost-optimized supply plan for the entire • Consensus demand plan (from demand review)
• Manage Tasks
supply chain based on constraints • Resource capacities
• Collaboration
• Safety stock
​Benefits
• Cost per unit
• Effectively balance demand and supply, and achieve a cost- Planning Views
optimized plan for production, distribution, and Output • Supply Plan Optimizer, 10 worksheets
procurement • Constrained consensus demand plan • Supply Plan Cost Rate, 6 worksheets
​Frequency Planning Level Alerts
• Monthly • Weeks / Product / Location / Customer • No predefined alerts
​Participants
(worksheets have different planning levels, for example,
Analytics
Capacity: Resource / Component; Production: Source /
• Supply planner • 1 predefined ‘Supply Review’ dashboard with 5 charts
Ship-To; Transportation: Ship-To / Ship-From)
​Collaboration
​Planning Operator
 1 step with 1 task in predefined S&OP process management
 Time-Series-Based Supply Planning Optimizer
template with task integration for SAP Build Work Zone,
advanced edition

INTERNAL – SAP and Partners Only 87

Scope in detail

IBP for sales and operations – reconciliation review

INTERNAL – SAP and Partners Only 88

IBP for sales and operations – reconciliation review
Process flow

Supply Review –
Heuristic
Constrained
Review Agree on Management
Demand Plan
Supply Scenarios Executive Proposal Business Review
Supply Review – Constrained Constrained Final Consensus
Optimizer Demand Plan Demand Plan Demand Plan
Constrained
Demand Plan

INTERNAL – SAP and Partners Only

Reconciliation Review SAP IBP Process External Process 89
IBP for sales and operations – reconciliation review
Description
The reconciliation review is the third phase of the sales and operations planning process. Representatives from sales, finance, marketing, production, and
demand planning discuss deviations between constrained demand and consensus demand. They agree on one executive proposal, and prepare a list of
issues that must be resolved urgently. Afterwards, the executive management decides on an executive proposal during the management business review.

​Scope ​Technical details ​User interaction

​Use Fiori Apps
Case Input
• Dashboards – Advanced
• Evaluate constrained demand scenarios and prepare an • Constrained consensus demand plan
• Manage Tasks
executive proposal for demand, supply, and finance
Output
alignment
• Constrained consensus demand plan Planning Views
​Benefits • No predefined Excel template
• Better align your strategic long-term supply chain planning
Planning Level
• Months / Product Family / Customer Group Alerts
with your operational short-term planning
• No predefined alerts
• Improve the speed, agility, and accuracy of sales and ​Planning Operator
operations planning  No planning operator Analytics
​Frequency • 1 predefined ‘Reconciliation Review’ dashboard with 14
• Monthly charts
​Collaboration
​Participants
• Director of finance, sales manager, marketing manager,
 1 step with 2 tasks in predefined S&OP process
management template with task integration for SAP Build
demand planner, supply planner
• S&OP coordinator Work Zone, advanced edition

INTERNAL – SAP and Partners Only 90

Scope in detail

IBP for sales and operations – management business review

INTERNAL – SAP and Partners Only 91

IBP for sales and operations – management business review
Process flow

S&OP – forecast error

calculation and analysis
Forecast
Errors

Reconciliation Review Approve Demand

Review Executive Proposal Final Plan Planning
Constrained Constrained Final Consensus Global
Demand Plan Demand Plan Demand Plan Demand Plan

Operational Planning &

Execution Processes

Management
INTERNAL – SAP and Partners Only SAP IBP Process External Process 92
Business Review
IBP for sales and operations – management business review
Description
The management business review is the fourth phase of the sales and operations planning process. The executive management of the business units
involved determines if the proposal presented aligns with the company's financial targets and key performance indicators. They assess and decide on the
presented list of issues that must be resolved urgently. This results in an approved final consensus demand and supply plan ultimately designed to drive
revenue growth and increase market share, optimize product and customer profitability, minimize inventory costs, and overcome capacity constraints.

​Scope ​Technical details ​User interaction

​Use Fiori Apps
Case Input
• Dashboards - Advanced
• Achieve executive agreement on final consensus demand • Constrained consensus demand plan
• Manage Processes
plan across functional business units
Output • Manage Realignment Rules
​Benefits • Final consensus demand plan • Manage Tasks
• Increased product and customer profitability by given
Planning Level
supply and financial constraints Planning Views
• Months / Product Family / Customer Group
• Optimized business plan to drive revenue growth and • No predefined Excel template
increase market share ​Planning Operator
• Improve the speed, agility, and accuracy of sales and Alerts
 No planning operator • No predefined alerts
operations planning
​Frequency Analytics
• 1 predefined ‘Management Business Review’ dashboard
• Monthly
with 5 charts
​Participants
​Collaboration
• Executive management of the involved lines of business
• S&OP coordinator
 1 step with 2 tasks in predefined S&OP process
management template with task integration for SAP Build
Work Zone, advanced edition

INTERNAL – SAP and Partners Only 93

Scope in detail

IBP for sales and operations – forecast error calculation and

analysis

INTERNAL – SAP and Partners Only 94

IBP for sales and operations – forecast error calculation and analysis
Process flow

Management
Business Review
Final Consensus
Run Forecast Analyze
Demand Plan
Error Calculation Forecast Errors
Sales & Forecast Forecast
Distribution Errors Accuracy
Open,Confirmed,Delivered
Sales Orders

S&OP – forecast error

INTERNAL – SAP and Partners Only
SAP IBP Process External Process 95
calculation and analysis
IBP for sales and operations – forecast error calculation and analysis
Description
As an S&OP coordinator, you use the results of forecast error calculations to evaluate and monitor the forecasting accuracy of your sales and operations
planning. With the help of predefined forecast error profiles and dedicated analytics, you can check the forecast error for consensus demand and final
consensus demand, identify areas where forecasting accuracy needs to be improved, calculate forecast accuracy at product-location-customer level, and
set appropriate forecasting accuracy goals for various types of products.

​Scope ​Technical details ​User interaction

​Use Fiori Apps
Case Input
• Application Jobs
• Analyze the accuracy of past consensus demand forecasts • Unconstrained consensus demand plan
• Dashboards - Advanced
by calculating error measures based on actual sales data • Final consensus demand plan
• Sales history
​Benefits Planning Views
• Insight into forecast accuracy Output • No predefined Excel template
• Increased forecast quality • Forecast error values
Alerts
​Frequency Planning Level • No predefined alerts
• Monthly • Months / Product / Location / Customer
Analytics
​Participants ​Planning Operator • 1 predefined ‘SOP Forecast Error’ dashboard with 6 charts
• S&OP process expert  Forecast Error Calculation
​Collaboration
• S&OP coordinator
 No predefined process management and no integration with
SAP Build Work Zone, advanced edition

INTERNAL – SAP and Partners Only 96

Scope in detail

IBP for sales and operations – footprint analysis

INTERNAL – SAP and Partners Only 97

IBP for sales and operations – footprint analysis
Process flow

Supply Review –
Heuristic
Constrained
Run Network Analyze CO2e Create Alternative Run Supply Run Network
Demand Plan
Aggregation Operator Supply Plan Heuristic Aggregation Operator
CO2e aggregated unit CO2e aggregated unit CO2e aggregated unit
Supply Review – Supply Plan Scenario Supply Plan Scenario
values & shares values & shares values & shares
Optimizer
Constrained
Demand Plan

Footprint Analysis SAP IBP Process

INTERNAL – SAP and Partners Only 98
IBP for sales and operations – footprint analysis
Description
As a global supply chain planner, you use the results of the supply planning run to monitor the greenhouse gas emissions of your supply chain. Using the network aggregation
operator, you can aggregate the CO2 emissions throughout your supply chain, including emissions caused by external procurement, transport, production, and inventory
maintenance. This detailed information allows you to analyze your supply chain to identify the critical emitters, simulate different options, and reduce the overall CO2 emissions.
SAP IBP can receive some of the greenhouse gas emission information at location product level from SAP Sustainability Footprint Management through SAP S/4HANA. SAP
Sustainability Footprint Management is a native SAP Cloud application to calculate product footprints periodically and at scale, considering the entire product lifecycle.

​Scope ​Technical details ​User interaction

​Use Case Planning Level Fiori Apps
• Monitor and evaluate footprint information based on a • Week / Product / Location • Configure Carbon Emissions Rollup
given supply plan • Planner Workspaces
​Benefits
Planning Operator
• Prerequisite: Time-Series-Based Supply Planning Planning Views
• Provide visibility regarding greenhouse gas emissions for
Heuristic / Optimizer • No predefined Excel template
long-term production plan
– Network Aggregation Operator • Preconfigured Planner Workspace for footprint analysis
• Gain insights into the different areas causing CO2
emissions Analytics
​Frequency • 3 charts: “Distribution of CO2e by Product”, “CO2e Share
• On demand by Location”, ”CO2e Scenario Comparison”

​Participants Collaboration
• Supply planner  No predefined process management and no integration with
SAP Build Work Zone, advanced edition

INTERNAL – SAP and Partners Only 99

Local emissions at node: Legend
Location
Local carbon emissions at node is the sum of all emissions that are incurred locally at the node in a period. It doesn’t Product
aggregate the emissions along the supply chain. Emission

Supplier Plants DCs

IBP-111-R
IBP-110 IBP-110

Transportation
1710 Transportation
1720

0013300002

External Receipt Production Inventory Holding

Local emission at node (IBP- Local emission at node (IBP- Local emission at node (IBP-
111-R / 0013300002) 110 / 1710) 110 / 1720)

INTERNAL – SAP and Partners Only 100

 Aggregated Unit Carbon Emission:
Legend
Aggregates the emissions from the supplier up to the location including all the emissions that occur for procurement / transport / Location

production / inventory maintenance Product

Emission

Supplier Plants DCs

IBP-111-R
IBP-110 IBP-110

Transportation
1710 Transportation 1720
Aggregated emissions
(IBP-111R /0013300002) Production Inventory Holding
001330000
External Receipt

IBP-111-R
IBP-110 IBP-110

1710 Transportation 1720

Transportation

Production Inventory Holding

001330000
Aggregated emissions
External Receipt
(IBP-110 /1710)

IBP-111-R
IBP-110 IBP-110

1710 Transportation 1720

Transportation

0013300002 Production Inventory Holding

External Receipt Aggregated emissions
(IBP-110 /1720)

INTERNAL – SAP and Partners Only 101

Scope in detail

IBP for demand – demand forecast for SAP S/4HANA

Cloud, public edition

INTERNAL – SAP and Partners Only 102

IBP for demand – demand forecast for SAP S/4HANA Cloud, public edition
Process flow

Master Data

Product, Plant,
Business Partner Gather and Cleanse Run Statistical Analyze and Adjust Analyze
Historical Data Forecasting Forecast Results Forecast Quality Operational Planning &
Adjusted Statistical Demand Planning Residuals Ex-Post Fcst – Execution Processes
Actuals Forecast Qty. Final Actuals Qty
Sales &
Distribution
Delivered Sales Orders

SAP S/4HANA Cloud,

Demand Planning
INTERNAL – SAP and Partners Only public edition 103
IBP for demand – demand forecast for SAP S/4HANA Cloud, public edition
Description
The material requirements planning (MRP) run in SAP S/4HANA Cloud, public edition needs forecast data to estimate the future demand of materials
and components. This information is crucial for determining the quantities of materials and components required to fulfill customer orders. SAP IBP
offers advanced forecasting algorithms and can provide high-quality forecasts to SAP S/4HANA Cloud.
This solution process starts with integrating master data and transactional data from SAP S/4HANA Cloud into SAP IBP. In SAP IBP, the statistical
forecast run delivers the data for the planned independent requirements (PIRs) that are integrated back to SAP S/4HANA Cloud. The PIRs are used as the
input for the material requirements planning in SAP S/4HANA Cloud.

​Scope ​Technical details ​User interaction

​Use Case Inbound Integration Objects Fiori Apps
• Mid- or long-term demand planning Master Data • IBP: Manage Master Data
• Advanced statistical forecasting • Location: Plant, DC • IBP: Planner Workspaces
• Product • S/4HANA Cloud: Maintain PIRs
​Benefits
• Business Partner
• Improved forecast accuracy with automatic forecast models Key Figures Planning Views
based on historical data • Actuals Quantity • No predefined planning views
• More accurate and timely sales predictions
• Better resource allocation and operational efficiency ​Outbound Integration Objects Alerts
• Timely availability of materials • Planned Independent Requirements (PIR) (using key figure
• No predefined alerts
• Predefined Cloud Integration iflows for out-of-the-box Consensus Demand Plan Quantity) Analytics
integration
• No specific predefined analytics stories, but the stories for
​Frequency IBP for demand – demand planning can be used
Planning Level
• Weekly ​Collaboration
• Weeks / Product / Location / Customer
​Participants • No predefined process management and no integration with
​Planning Operator SAP Build Work Zone, advanced edition
• Demand planner  Statistical forecasting based on forecast models that support a
broad range of forecasting algorithms and any combinations
thereof
INTERNAL – SAP and Partners Only 104
IBP for demand – demand forecast for SAP S/4HANA Cloud, public edition
Architecture

SAP S/4HANA Cloud, public edition SAP Integration Suite SAP IBP
Cloud Integration

Master data Master data

Aggregated sales
Sales history key figure
history

Preconfigured
iFlows
Demand
forecasting

Planned independent Consensus demand

requirements forecast key figure

MRP run

INTERNAL – SAP and Partners Only 105

IBP for demand – demand forecast for SAP S/4HANA Cloud, public edition
Architecture

INTERNAL – SAP and Partners Only 106

Scope in detail

IBP for demand – demand planning

INTERNAL – SAP and Partners Only 107

IBP for demand – demand planning
Process flow

Sales & Sales Management Demand

Distribution Planning Business Review Review
Open,Confirmed,Delivered Sales Final Consensus Consensus
Sales Orders Forecast Demand Plan Demand Plan
Demand
Sensing
Sensed
New Product Gather and Cleanse Run Statistical Create Local Create Global Demand Supply and
Introduction Historical Data Forecasting Demand Plan Demand Plan Allocations Planning
Adjusted Statistical Local Global Supply Proposals.
New Products Demand – Forecast Error
Actuals Forecast Demand Plan Demand Plan Product Allocations
Calculation and Analysis
Forecast
Operational Planning &
Errors
Execution Processes
Time-Series ABC-XYZ Inventory
Analysis Segmentation Optimization
Distribution of Change Segmented Inventory
Points and Analysis Products Plans
INTERNAL – SAP and Partners Only
Demand Planning SAP IBP Process External Process 108
 IBP for demand – demand planning
Description
During demand planning, you use statistical forecasting methods to gain full demand transparency for mid- and long-term forecasts, resulting in an
adopted global demand plan at the end of each week. As the demand planning process expert, the local demand planner, or the global demand planner,
you collaborate in a globally distributed demand planning team and align on your decisions using SAP Build Work Zone, advanced edition. You can
combine automated, exception-based planning processes as well as manual planning capabilities and execute role-based local and global demand
planning.

.
​Scope ​Technical details ​User interaction
​Use Fiori Apps
Case Input • Data Integration Jobs
• Mid- or long-term demand planning • Order-based or time-series-based sales history • Monitor Custom Alerts
• Advanced statistical forecasting • Approved consensus demand plan from the last S&OP • Planner Workspaces
• Role-based local and central planning cycle • Manage Planning Notes
• Additional input: sales forecast, final sensed demand* • Manage Analytics Stories
​Benefits
• Improved forecast accuracy with automatic forecast models Output Planning Views
based on historical data • Global demand plan • Historical Data Cleanse, 1 worksheet
• Increased efficiency through automated exception-based • Combined final demand = global demand plan + last final • Statistical Forecast, 1 worksheet
• Local Demand Plan, 1 worksheet
planning, embedded analytics, and collaboration sensed demand* • Global Demand Plan, 2 worksheets
capabilities • Preconfigured planner workspace for global demand planner
Planning Level
​Frequency • Weeks / Product / Location / Customer Alerts
• Weekly • 2 predefined custom alerts: Global Demand Planner, Statistical Fcst
​Planning Operator
• New global demand plan at the end of every week Error Measures
 Statistical forecasting based on forecast models that support
​Participants Analytics
a broad range of forecasting algorithms and any • Preconfigured Analytics Stories for Demand Planning Process Expert,
• Local demand planner, global demand planner, demand combinations thereof Global Demand Planner, Local Demand Planner
planning process expert
​Collaboration
 No predefined process management and no integration with SAP Build
Work Zone, advanced edition
INTERNAL – SAP and Partners Only 109
*only if the IBP for demand – demand sensing solution process is implemented
Scope in detail

IBP for demand – new product introduction

INTERNAL – SAP and Partners Only 110

IBP for demand – new product introduction
Process flow

Define Product Run Statistical Demand

Check Results
Lifecycle Forecasting Planning
Reference Product / Statistical Statistical Global
Manual Forecast Forecast Forecast Demand Plan

INTERNAL – SAP and Partners Only

Demand Planning SAP IBP Process External Process 111
 IBP for demand – new product introduction
Description
Companies introduce new products into their portfolio on a regular basis. When you start planning for a new product, there’s usually no historical data available. You can search for
similar products and use their historical data to obtain reliable forecasts for the future demand of the new product. This solution process shows three different variants for the new
product introduction process – using a reference product with substitution, using a reference product without substitution, and using manual forecasting without a reference product.
It covers the following tasks: creating the planning objects, defining the reference product or manual forecast, executing the statistical forecast run, and finally checking the result.

​Scope ​Technical details ​User interaction

​Use Fiori Apps
Case Input
• Data Integration Jobs
• Mid- or long-term demand planning of new products • Time-series-based sales history (needed for reference
• Manage Product Lifecycle
• Advanced statistical forecasting product variant)
• Manage Master Data
• Additional parameters: base value, trend, seasonality
​Benefits
(needed for manual forecast)
• Improved forecast accuracy both for new and obsolete Planning Views
products Output • Statistical Forecast, 1 worksheet
• Reliable forecast for new products without sales history • Statistical forecast
• Reliable forecast for products during phase-out period Alerts
• Manage global product launch with different
Planning Level • No predefined alerts
• Weeks / Product / Location / Customer
phase-in/phase-out dates Analytics
​Planning Operator • No predefined analytics
​Frequency
• On demand
 Statistical forecasting based on forecast models that support
​Collaboration
a broad range of forecasting algorithms and any
​Participants
 No predefined process management and no integration with
combinations thereof, or on manual forecast patterns
• Local demand planner, global demand planner, demand SAP Build Work Zone, advanced edition
defined in the Manage Product Lifecycle app
planning process expert

INTERNAL – SAP and Partners Only 112

Scope in detail

IBP for demand – demand sensing

INTERNAL – SAP and Partners Only 113

IBP for demand – demand sensing
Process flow

Demand
Planning
Global
Demand Plan
Inventory
ABC-XYZ
Optimization
Segmentation
Inventory
Segmented
Run Demand Manage Demand Plans Supply and
Products
Sensing Sensing Issues Allocations Planning
Sales & Sensed Final Supply Proposals.
Distribution Demand Sensed Demand Demand – forecast error Product Allocations
Open,Confirmed,Delivered calculation and analysis
Sales Orders Forecast
Errors

Operational Planning &

Execution Processes

INTERNAL – SAP and Partners Only

Demand Sensing SAP IBP Process External Process 114
IBP for demand – demand sensing
Description
Demand sensing helps you refine short-term forecasts and drive better fulfillment and inventory reduction. As a demand planner, you schedule the
demand sensing job on a daily basis to identify demand patterns based on granular demand signals such as demand planning quantity, requested quantity,
and completed deliveries. Alerts help you detect potential issues caused by deviations between the final sensed demand quantity and the demand
planning quantity. You can also include the demand sensing forecast into the collaborative demand planning process, enabling you to adjust your demand
plans.

​Scope ​Technical details ​User interaction

​Use Input Fiori Apps
Case
• Manage Forecast Models
• Short-term statistical forecasting with algorithms based on • Confirmed sales orders with future material availability
• Application Jobs
pattern recognition date (only order-based data)
• Monitor Custom Alerts
• Global demand plan
​Benefits
• React faster to short-term demand changes Output Planning Views
• Drive more accurate deployment of products based on • Sensed demand (result of algorithm) • No predefined planning views
short-term demand • Final sensed demand (contains manual adjustments to
Alerts
​Frequency
sensed demand, otherwise equals sensed demand)
• 1 custom alert to inform the demand planner about large
• Daily batch run Planning Level deviations between global demand plan and sensed demand
• Manual interaction only in case of alerts • Days / Product / Location / Customer
Analytics
​Participants ​Planning Operator • No predefined chart
• Demand planner  Demand sensing algorithm can be applied in forecast ​Collaboration
models of the Statistical Forecasting operator
 Typically no collaboration involved during the process,
 Demand Sensing with Gradient Boosting
therefore no integration with SAP Build Work Zone,
 Daily disaggregation optimization for the update run
advanced edition

INTERNAL – SAP and Partners Only 115

Scope in detail

IBP for demand – forecast error calculation and analysis

INTERNAL – SAP and Partners Only 116

IBP for demand – forecast error calculation and analysis
Process flow

Demand
Planning
Global
Run Forecast Analyze
Demand Plan
Error Calculation Forecast Errors
Sales & Forecast Forecast
Distribution Errors Accuracy
Open,Confirmed,Delivered
Sales Orders

Demand – Forecast error

INTERNAL – SAP and Partners Only
SAP IBP Process External Process 117
calculation and analysis
IBP for demand – forecast error calculation and analysis
Description
As a demand planner, you use the results of forecast error calculations to evaluate and monitor the forecasting accuracy of your demand planning. With
the help of predefined forecast error profiles and dedicated analytics, you can check the forecast error for the statistical forecast and the combined final
demand plan, identify areas where forecasting accuracy needs to be improved, calculate forecast accuracy at product-location-customer level, and set
appropriate forecasting accuracy goals for various types of products.

​Scope ​Technical details ​User interaction

​Use Fiori Apps
Case Input
• Application Jobs
• Analyze the accuracy of past demand forecasts by • Statistical forecast
• Dashboards - Advanced
calculating error measures based on actual sales data • Combined final demand
• Sales history
​Benefits Planning Views
• Insight into forecast accuracy Output • No predefined Excel template
• Increased forecast quality • Forecast error values
Alerts
​Frequency Planning Level • No predefined alerts
• Monthly • Months / Product / Location / Customer
Analytics
​Participants ​Planning Operator • 1 predefined ‘Demand Planning Forecast Error’ dashboard
• Demand planning process expert  Forecast Error Calculation with 11 charts
​Collaboration
 No predefined process management, no integration with
SAP Build Work Zone, advanced edition

INTERNAL – SAP and Partners Only 118

Scope in detail

IBP for demand – time-series analysis

INTERNAL – SAP and Partners Only 119

 IBP for demand – time-series analysis
Process flow

Calculation of
Forecast Error
Forecast
Error

ABC-XYZ Run Analyze Run Change Point Review Change Point Demand
Segmentation Time-Series Analysis Time Series Pattern Detection Detection Results Planning
Result of Segmentation Time Series Property Distribution of Change Points Distribution of Change Global Demand Plan
Time Series Property Points and Analysis

ABC-XYZ
Segmentation
Result of Segmentation

INTERNAL – SAP and Partners Only

Demand – time-series analysis SAP IBP Process External Process 120
 IBP for demand – time-series analysis
Description
Time-series analysis and change point detection are powerful tools. They help you as a demand planning process expert identify patterns in individual
time series such as Trend, Seasonality, Continuous, and Irregular as well as significant changes, for example, level shifts where the mean of the time
series values alters significantly or trend changes where the direction or slope of a trend alters significantly. Based on these insights, you can select the
most suitable forecast algorithms. You can further analyze these results together with those from ABC segmentation and demand forecast accuracy to
better understand the structure of the underlying data.

​Scope ​Technical details ​User interaction

​Use Fiori Apps
Case Input
• Application Jobs
• Analyze time series and record time series properties • Time Series
• Dashboards - Advanced
• ABC Segmentation
​Benefits • Manage Forecast Automation Profiles
• Demand Forecast Accuracy
• Provide domain and business knowledge to forecast
automation Output Planning Views
• Insight into behavior and characteristics of time series • Time Series Properties • No predefined Excel template
​Frequency Planning Level Alerts
• 3-Monthly • Customer / Location / Product / Week • No predefined alerts
​Participants ​Planning Operator Analytics
• Demand planning process expert  Forecast Automation • 1 predefined ‘time-series analysis’ dashboard with 3 charts
​Collaboration
 No predefined process management, no integration with
SAP Build Work Zone, advanced edition

INTERNAL – SAP and Partners Only 121

Scope in detail

IBP for inventory

INTERNAL – SAP and Partners Only 122

IBP for inventory
Process flow

ABC-XYZ
Segmentation
Segmented Supply Review –
Products Heuristic, Optimizer
Demand Validate Run and Review What-If Finalize Constrained
Planning Data Inputs Inventory Plan Analysis Inventory Plan Demand Plan
Global Demand Inventory Inventory Inventory
Demand Plan Forecast Plans Plans Plans Operational Planning &
Execution Processes
Demand
Sensing
Sensed
Demand

INTERNAL – SAP and Partners Only

Inventory Optimization SAP IBP Process External Process 123
 IBP for inventory
Description
Inventory optimization helps you balance your customer service and inventory investment levels. Considering uncertainties in demand forecasts, lead times, and
supply quantities, SAP Integrated Business Planning optimizes your entire supply chain network and determines the optimum safety stock for each stocking location.
As an inventory planner, you validate your input data and then create an inventory plan by running several planning operators calculating the safety stock levels and
the inventory components for each location. Using dashboards and a Planner Workspace, you can review the optimization results. When running the service level
prediction, you can review the impact of the safety stock adjustments on the predicted customer service level. You can also execute a what-if analysis to see how
changed demands affect inventory component levels.

​Technical details ​User

​Scope interaction
​Use
Input Fiori Apps
Case • Global demand plan • Dashboards – Advanced
• Multi-stage inventory optimization across all stages of the
• Final sensed demand • Planner Workspaces
supply chain, compensating for uncertainties in demand • Target service levels
forecasts, supply timing, and supply quantity
Output Planning Views
• Prescribe inventory targets to minimize inventory costs
• Validate inputs, 4 worksheets
while buffering for uncertainty and meeting customer • Safety stock
• • Review Results, 3 worksheets
service targets Cycle stock
• • Preconfigured planner workspace for inventory planner
• Execute a what-if analysis to identify supply chain On-hand stock
improvement opportunities • In-process stock Alerts
• Vendor-in-transit stock
​Benefits
• Merchandising stock • No predefined alerts
• Maximize the utilization of inventory • Inventory position
• Improve customer service levels Analytics
Planning Level • 2 predefined dashboards: Validate Data Inputs (7 charts),
​Frequency • Weeks / Product / Location Review and Finalize Inventory Plan (8 charts)
• Weekly
​Planning Operator
​Participants Collaboration
 Used algorithms of the Inventory Optimization operator:
• Inventory planner
 No predefined process management and no integration with
Multi-Stage Inventory Optimization and Target Inventory
SAP Build Work Zone, advanced edition
Components, Forecast Error Calculation
 Customer service level prediction
INTERNAL – SAP and Partners Only 124
Scope in detail

IBP for inventory – scenario planning

INTERNAL – SAP and Partners Only 125

IBP for inventory – scenario planning
Process flow

Inventory Create Edit View

Run Scenario
Optimization Scenario Scenario Results
Scenario for demand / Target Service Level / Inventory Recommended
Inventory Plan transportation Transportation Leadtime
Plans Safety Stock

INTERNAL – SAP and Partners Only

Scenario Planning SAP IBP Process 126
IBP for inventory – scenario planning
Description
Inventory scenario planning allows you to spontaneously create scenarios for inventory-related changes to demand, transportation, production, and
policy input variables.​​This helps you better understand how these changes affect your inventory plans.
As an inventory planner, you first create a scenario which defines the analysis type, either demand or transportation. In the next step, you can change the
input key figures specific to your analysis type. The inventory optimization operator creates a simulation and you can then compare the analysis results to
the baseline plan.

​Scope ​Technical details ​User interaction

​Use Case Input Fiori Apps
• Simulate strategic decisions, e.g. changes to key inputs for • Inventory plan • Inventory Analysis
inventory plans • Demand, transportation variables, e.g. target service level,
• Understand the impact of inventory input variables on transportation leadtime Planning Views
inventory plans • No predefined Excel template
Output
​Benefits • Recommended safety stock
• Evaluate the impact of certain scenarios compared to • Demand, supply, service variability safety stock Alerts
baseline planning outputs • Zero lot size additional safety stock • No predefined alerts
• Better understand the impact of demand and transportation
Planning Level Analytics
variables
• Weeks / Product / Location • No predefined dashboards / charts
• Determine the sensitivity of input variables with regard to
baseline planning outputs ​Planning Operator Collaboration
​Frequency
 Used algorithm of the Inventory Optimization operator: • No predefined process management, no integration with
• On demand Multi-Stage Inventory Optimization and Target Inventory SAP Build Work Zone, advanced edition
Components
​Participants
• Inventory analyst

INTERNAL – SAP and Partners Only 127

Scope in detail

IBP – ABC-XYZ segmentation

INTERNAL – SAP and Partners Only 128

 IBP – ABC-XYZ segmentation
Process flow

Demand Demand
Planning Sensing
Global Sensed
Sales & Run ABC/XYZ Review Segmentation
Demand Plan Demand
Distribution Segmentation of Products
Open,Confirmed,Delivered Segmented Segmented Demand
Inventory
Sales Orders Products Products Review
Optimization
Inventory Consensus
Plans Demand Plan

Supply Review –
Heuristic, Optimizer
Constrained
Demand Plan

INTERNAL – SAP and Partners Only

ABC-XYZ Segmentation SAP IBP Process External Process 129
IBP – ABC-XYZ segmentation
Description
You use different types of segmentation to group your planning objects based on the values of a selected key figure. ABC segmentation prioritizes your
objects based on their relative importance, for example, the revenue contribution of your products, whereas XYZ segmentation classifies your objects
based on the demand volatility of your products, for example constant or seasonal demand. The result of the segmentation is used in almost every
solution process for specific analytics and custom alerts, but also helps you generate more accurate results for demand planning, inventory planning, and
sales and operations planning.

​Scope ​Technical details ​User interaction

​Use Case Input Fiori Apps
• Group products based on sales history • Sales history • Application Jobs
• Dashboards - Advanced
​Benefits Output
• Tailor your forecast strategy and inventory optimization to • Segmented products
Planning Views
the characteristics of segments • No predefined Microsoft Excel template
• Analyze forecast accuracy by product segments
Planning Level
• Product
• Identify inventory items that require closer attention Alerts
• Define alerts for specific segments only ​Planning Operator • No predefined alerts
• View analytic charts with regards to specific segments  Segmentation
Analytics
​Frequency • 1 predefined ‘ABC-XYZ Segmentation’ dashboard with 2
• Monthly charts
​Participants ​Collaboration
• Process expert  No predefined process management, no integration with
SAP Build Work Zone, advanced edition

INTERNAL – SAP and Partners Only 130

 IBP – ABC-XYZ segmentation

• ABC/XYZ segmentation lets you group planning objects based on

the values of a selected key figure

• A sample segmentation profile is delivered with SAPIBP1 that

categorizes products by historical sales revenue with a 70-20-10
distribution (A-B-C) and by coefficient of variation in historical
sales quantity (X-Y-Z) in the past 12 months

• The ABC-XYZ segmentation solution process describes how to run

the segmentation operator and analyze the result; it’s a preceding
process to all other solution processes

• Segmentation is used in every solution process for specific analytics

and custom alerts to guide the user to the most relevant segments,
thereby increasing user efficiency and generating more accurate
planning results

INTERNAL – SAP and Partners Only 131

Order-based planning
• Sample process flow of response management including SAP S/4HANA processes
• Sample process flow of deployment planning including SAP S/4HANA processes
• IBP for response and supply – supply and allocations planning – heuristic
• IBP for response and supply – supply planning – OBP optimizer
• IBP for response and supply – response planning
• IBP for response and supply – deployment planning – optimizer
• IBP for response and supply – transportation load building
• IBP for response and supply – shelf life planning
• IBP – order-based planning inbound integration with SAP S/4HANA
• IBP – order-based planning inbound integration for deployment planning
• IBP – order-based planning inbound integration for shelf life planning
• IBP – order-based planning outbound integration with SAP S/4HANA

INTERNAL – SAP and Partners Only 132

Real-Time Integration – SAP Best Practices specific notes

​For technical reasons, the following assets/solution processes will not be available from 2202:
- IBP - Business Network Collaboration - supplier commit with SAP Ariba (2P2) solution process
- Sample data loaded using the Data Provisioning Agent and the file adapter (see Tips&Tricks document -
Setup Instructions for File Adapter in Order-Based Planning) not available for RTI

INTERNAL – SAP and Partners Only 133

Supply and Allocations Planning Heuristic / Optimizer / Response Planning
Sample process flow of response management including SAP S/4HANA processes
SAP S/4HANA SAP IBP

SO Confirm
Sell from Stock Create Initial Stock, SO,
(BD9) Delivery

OBP Inbound
Integration (2S4) Prerequisite for sample product
Supply and Alloc. master data:
Plann. Heuristic/ MRP Type X0, no MRP in S/4
Supply planning –
OBP Opt LEGEND
(2I0/42C) SAP IBP Process
(Solution Process)
Converting Pl.O -> ProdO Response SAP S/4HANA Process
Converting PR-> PO ProdO processing Planning (2P0) (Solution Process)
SO Confirm
PO processing
Make-to-Stock Pl.O OBP Outbound Pl.O, PR, STR SO Confirm SO Sales Order

Production (BJ5) Pl.O Planned Order

Integration (2S6)
ProdO Production Order
PR Purchase Requisition
Procurement of PO Purchase Order
PR
Direct Materials Stock Transfer
STR
(J45) Requisition

Intercompany STR
Stock Transfer

Manage STR Stock Transfer STR

with Delivery

Stock Transfer STR

INTERNAL – SAP and Partners Only
without Delivery 134
Shelf Life Planning Heuristic
Sample process flow of shelf life planning including SAP S/4HANA processes
SAP S/4HANA SAP IBP

SO Confirm
Sell from Stock Create Initial Stock, SO,
(BD9) Delivery

OBP Inbound
Integration (6Z1) Prerequisite for sample product
master data:
MRP Type X0, no MRP in S/4

Shelf Life Planning LEGEND

(6WZ) SAP IBP Process
(Solution Process)
Converting Pl.O -> ProdO
SAP S/4HANA Process
Converting PR-> PO ProdO processing (Solution Process)
SO Confirm
PO processing
Make-to-Stock Pl.O Pl.O, PR, STR SO Confirm SO Sales Order
OBP Outbound
Production (BJ5) Pl.O Planned Order
Integration (2S6)
ProdO Production Order
PR Purchase Requisition
Procurement of PO Purchase Order
PR
Direct Materials Stock Transfer
STR
(J45) Requisition

Intercompany STR
Stock Transfer

Manage STR Stock Transfer STR

with Delivery

Stock Transfer STR

INTERNAL – SAP and Partners Only
without Delivery 135
Deployment Planning - Optimizer
Sample process flow of deployment planning including SAP S/4HANA processes
SAP S/4HANA SAP IBP
SO Confirm Sell from Stock Create Initial Stock, SO,
(BD9) Delivery
Prerequisite for sample product
master data:
OBP Inbound MRP Type X1, MRP in S/4
Integration for
Deployment (4VA) LEGEND
Run MRP for Deployment Requires extending Best
Production Planning Opt. Practices sample
Planning (4UT) product master data
SO Confirm with MRP-enabling data
Make-to-Stock STR, DSTR OBP Outbound STR, DSTR, SO Confirm
SAP IBP Process
Production (BJ5) Integration (2S6) (Solution Process)
Convert
PR -> PO SAP S/4HANA Process
(Solution Process)
Procurement of STR, DSTR
Run MRP
Direct Materials
for SO Sales Order
Purchasing
(J45) PR Purchase Requisition

Material PO Purchase Order

STR, DSTR Stock Transfer
Requirements STR
Requisition
Planning (J44) DSTR
Deployment Stock
Transfer Requisition

Intercompany STR, DSTR

Stock Transfer

Manage STR Stock Transfer STR, DSTR

with Delivery

Stock Transfer STR, DSTR

without Delivery
INTERNAL – SAP and Partners Only 136
Scope in detail

IBP for response and supply – supply and allocations

planning – heuristic

INTERNAL – SAP and Partners Only 137

IBP for response and supply – supply and allocations planning – heuristic
Process flow

Response
Demand Planning
Planning Supply Proposals,
Global Sales Order Confirmations
Demand Plan
Review Priority Rules, Run Check Alerts and Create Product Analyze Supply and Available-to-Promise
Forecast and Constraints Constrained Forecast Identify Bottlenecks Allocation Plan Allocations Planning Check
Demand Unconstrained Constrained Constrained Product Constrained Forecast, Sales Order
Sensing Forecast Forecast Forecast Allocation Plan Product Allocation Plan Confirmations
Sensed
Demand
Operational Planning &
Execution Processes

Supply and
INTERNAL – SAP and Partners Only
SAP IBP Process External Process 138
Allocations Planning
IBP for response and supply – supply and allocations planning – heuristic
Description
Using a dedicated planning version, you create a supply plan and product allocation plan based on prioritized forecast demands and supply chain
constraints, for example, resource capacity or safety stock targets. As a supply planner, you run a supply planning for your dedicated planning version.
What-if and root cause analyses as well as simulation functions help you identify any gating factors and remove them by adjusting the constraints and
rerunning the constrained forecast. Once your new constrained forecast is ready, the account planner uses it as input for the new product allocation plan
in the dedicated version and copies all new data and adjusted constraints to the base planning version. Running the constrained forecast again in your
base version provides you with a new feasible supply plan and a new product allocation plan.

​Scope ​Technical details ​User interaction

​Use Case Input Fiori Apps
• Create a finite supply plan based on prioritized demand • Global demand plan, sensed demand • Application Jobs
and supply chain constraints • Resource capacities • Planning Run Profiles
• Create a product allocation plan for available-to- • Dashboards - Advanced
Output • Monitor Custom Alerts
promise (ATP) checks and confirmation of sales orders
• Constrained forecast • View Gating Factors
​Benefits • Product allocations • Manage Versions and Scenarios
• Reduce inventory carrying costs
• Avoid capacity and material shortages
Planning Level Planning Views
• Days / Product / Location / Customer • Forecast and Constraints, 4 worksheets
• Ability to quickly react to exceptions in the supply
chain with fast simulations ​Planning • Forecast and Product Allocations, 1 worksheet
Operator
​Frequency
 Order-based planning: Supply Planning Run Alerts
• ‘Forecast Deviation Above or Below Threshold’ custom alert
• Weekly
​Participants
Analytics
• 1 predefined ‘Supply and Allocations Planning’ dashboard with 6
• Supply planner charts + 1 alert overview
​Collaboration
 No predefined process management, no SAP Build Work
Zone integration
INTERNAL – SAP and Partners Only 139
Scope in detail

IBP for response and supply – supply planning – OBP

optimizer

INTERNAL – SAP and Partners Only 140

IBP for response and supply – supply planning – OBP optimizer
Process flow

Response
Planning
Demand Supply Proposals,
Planning Sales Order Confirmations
Global
Review Run Constrained Create Product Analyze Supply and Available-to-Promise
Demand Plan
Planning Run Profile Forecast using Optimizer Allocation Plan Allocations Planning Check
Constrained Product Constrained Forecast, Sales Order
Demand Cost Rules
Forecast Allocation Plan Product Allocation Plan Confirmations
Sensing
Sensed
Demand Operational Planning &
Execution Processes

Supply and
INTERNAL – SAP and Partners Only
SAP IBP Process External Process 141
Allocations Planning
IBP for response and supply – supply – OBP optimizer
Description
Using a dedicated planning version, you as a supply planner create a supply plan and product allocation plan based on given capacities, supply chain
constraints, and cost rules. These rules consider costs such as inventory holding costs, safety stock violation costs, transportation costs, procurement
costs, production costs, and demand costs. You run a supply planning for your dedicated planning version. Alerts help you identify any deviations, and
you can also check the supplier delivery and capacity consumption to detect potential bottlenecks. Once your new constrained forecast is ready, the
account planner uses it as input for the new product allocation plan in the dedicated version and copies all new data and adjusted constraints to the base
planning version. Running the constrained forecast again in your base version provides you with a new feasible supply plan and a new product allocation
plan.
​Scope ​Technical Details ​User Interaction
​Use Case Input Fiori Apps
• Create a finite supply plan based on cost rules and supply • Global demand plan, sensed demand • Application Jobs
chain constraints • Resource capacities • Planning Run Profiles
• Create a product allocation plan for available-to-promise • Dashboards - Advanced
Output •
(ATP) checks and confirmation of sales orders Monitor Custom Alerts
• Constrained forecast
​Benefits • Product allocations
Planning Views
• Reduce inventory carrying costs
Planning Level • Forecast and Constraints, 4 worksheets
• Avoid capacity and material shortages
• Days / Product / Location / Customer • Forecast and Product Allocations, 1 worksheet
• Ability to quickly react to exceptions in the supply chain
with fast simulations ​Planning Operator Alerts
 Order-based planning: Supply Planning run Using • ‘Forecast Deviation Above or Below Threshold’ custom
​Frequency
Optimizer alert
• Weekly
​Participants
Analytics
• 1 predefined ‘Supply and Allocations Planning’ dashboard
• Supply planner
with 6 charts + 1 alert overview
​Collaboration
 No predefined process management, no integration with
INTERNAL – SAP and Partners Only SAP Build Work Zone, advanced edition 142
Scope in detail

IBP for response and supply – response planning

INTERNAL – SAP and Partners Only 143

IBP for response and supply – response planning
Process flow

Supply and Allocation Execution on Orders

Planning
Sales Order
Product Allocation Review Demands Run and Check Create and Simulate Order Confirmation Confirmations
Supply Proposals by Priority Order Confirmation Run Scenario for Adjusted Allocation
Ranked Demand Sales Order Confirmation Adjusted Allocation Supply Plan
Sales Order Sales Order Confirmations Available-to-Promise
Processing
Processing
Open,Confirmed,Delivered
Sales Order
Sales Orders
Confirmations

INTERNAL – SAP and Partners Only

Response Planning SAP IBP Process External Process 144
 IBP for response and supply – response planning
Description
By creating order confirmations and an adopted supply plan based on prioritized demands, allocations, and supply chain constraints, response planning
allows you to quickly respond to incoming customer orders. As an account planner, you check how demand is prioritized based on a specific rule and
then execute the supply planning run to calculate a new supply plan, confirm sales orders, and consume product allocations. Using analysis and
simulation features, you evaluate confirmations and identify and remove any issues and gating factors to finalize your supply plan. Once you are
satisfied with your scenario, you copy the data to your base planning version.

​Scope ​Technical details ​User interaction

​Use Case Input Fiori Apps
• Adjust supply plan • Product allocation • View Demands by Priority
• Respond to incoming customer orders • Supply constraint • Application Jobs
• • Orders • Intelligent Visibility
Confirm sales orders
• Manage Versions and Scenarios
• Plan allocation for constrained supply
Output • Projected Stock
​Benefits • Confirmed sales orders • View Confirmations
• Flexible short-term response to market reality • Planned orders • Planner Workspaces
• Detailed end-to-end visibility • Purchase requisitions for components
• Root cause analysis through gating factor analysis • Stock transfer requisitions Planning Views
• Maximize service level using what-if analysis for a • No predefined Microsoft Excel planning views
Planning Level • Predefined planner workspace for response management
potential opportunity or risk scenario without impacting the
• Day / Product / Location / Customer
live data Alerts
​Planning Operator • No predefined alerts
​Frequency
• Daily
 Order-based planning: Supply Planning Run Analytics
• No predefined analytics
​Participants
• Account planner ​Collaboration
 No predefined process management, no integration with SAP
Build Work Zone, advanced edition
INTERNAL – SAP and Partners Only 145
Scope in detail

IBP for response and supply – deployment planning –

optimizer

INTERNAL – SAP and Partners Only 146

IBP for response and supply – deployment planning – optimizer
Process flow

Production /
Procurement
Stock
Run and Check Check Alerts for Create New Short-Term Run and Check Check Alerts for Execution on Orders
Deployment Run Central & Local DC Demand Deployment Run Central & Local DC
Stock Transfer
Distribution Plan Safety Stock Violation Forecast Distribution Plan Safety Stock Violation Requisitions
Sales Order
Processing
Open,Confirmed,Delivered
Sales Orders

INTERNAL – SAP and Partners Only

Deployment Planning SAP IBP Process External Process 147
IBP for response and supply – deployment planning – optimizer
Description
Deployment planning helps you create a reliable short-term deployment plan by distributing available supply to demand. As a distribution planner, you first schedule the
deployment run job and then check the alerts for each location product where safety stock violations occur to identify potential issues. Considering all customer demands and safety
stock, the optimizer tries to find the globally best solution to satisfy the demands with the existing supply elements. Cost parameters, fair share stock segments, and the available-to-
deploy profile are used as the input for the run.
Note: This solution process and the two solution processes for supply and allocations planning and response planning are mutually exclusive because the deployment optimizer run
does not consider product allocations (see SAP Note 2640432).

​Scope ​Technical details ​User interaction

​Use Case Input Fiori Apps
• Plan the distribution of available supply to demand • Sales orders • Planning Run Profiles
• Respond to unforeseeable events in the supply chain • Forecast • Application Jobs
​Benefits • Safety stock / maximum stock • Projected Stock
• Flexible short-term response considering unforeseeable • Transportation costs / demand costs / inventory costs • Planner Workspaces
• Fair share stock segments
events in the supply chain
• Detailed end-to-end visibility Planning Views
Output • No Microsoft Excel planning views
• Optimized solution based on predefined costs for supply • Deployment Stock Transfer Requisitions
• Predefined Planner Workspace for distribution planner
alternatives and demands
• Maximize service level using available supply from central Planning Level
Alerts
to downstream locations • Day / Product / Location / Customer
• Safety Stock Violation
​Frequency ​Planning Operator
Analytics
• Daily • Order-based planning: Deployment Run using optimizer
• 1 predefined ‘Deployment Planning’ dashboard with 1 alert
​Participants overview and 1 supply chain network
• Distribution planner ​Collaboration
 No predefined process management, no integration with
SAP Build Work Zone, advanced edition

INTERNAL – SAP and Partners Only 148

Scope in detail

IBP for response and supply – transportation load building

INTERNAL – SAP and Partners Only 149

IBP for response and supply – transportation load building
Process flow

Deployment Schedule transportation Analyse transportation Create Purchase Create

Planning load building Run load building results Execution on Orders
Requisition Transportation Load
Stock Transfer Load Stock Transfer Load Stock Transfer Stock Transfer
Purchase Requisition Load Purchase
Requisitions Requisitions Requisitions Orders
Requisitions

INTERNAL – SAP and Partners Only

Deployment Planning SAP IBP Process External Process 150
 IBP for response and supply – transportation load building
Description
Transportation load building (TLB) helps you to group planned distribution receipts for products with the same transportation lane, transportation group, and delivery data. There
are two different use cases. In the first use case, TLB is a subsequent planning step after deployment planning. As a distribution planner, you first schedule the transportation load
building run job. This job generates transportation loads for deployable products that are to be transported between locations and consolidates deployment requisitions into loads. In
a next step, you can review the loads in the Planner Workspace. The second use case consolidates purchased products into loads that are to be transported from suppliers to plants.
You first create a purchase requisition and you create the load manually in the Planner Workspace.

​Scope ​Technical details ​User interaction

​Use Case Input Fiori Apps
• Group planned distribution receipts with the same • Deployment Stock Transfer Requisitions • Application Jobs
transportation lane, transportation group, and delivery data • Purchase Requisitions • Planner Workspaces
into transportation loads
• Choose the optimal equipment type for each load Output
Planning Views
• Load Stock Transfer Requisitions
​Benefits • No Microsoft Excel planning views
• Load Purchase Requisitions
• Predefined Planner Workspace for transportation load
• Reduce transportation costs by building optimal loads that
Planning Level building
best utilize given equipment types
• Day / Lane / MOT / Load
• Real-time integration of multi-item load requisitions to SAP
Alerts
​Planning Operator • No alerts
S/4HANA / tight order-level integration to SAP ECC and
SAP S/4HANA • Transportation load building run
Analytics
• Version and scenario management for master data and • No analytics / dashboard
transactional data ​Collaboration
​Frequency  No predefined process management, no integration with
• Daily SAP Build Work Zone, advanced edition
​Participants
• Distribution planner
INTERNAL – SAP and Partners Only 151
Scope in detail

IBP for response and supply – shelf life planning

INTERNAL – SAP and Partners Only 152

IBP for response and supply – shelf life planning
Process flow

Demand
Planning
Global
Demand Plan Schedule Supply Analyze supply
Planning Run (heuristic) planning run results Operational Planning &
Minimum remaining Minimum remaining Execution Processes
Demand
Sensing shelf life shelf life
Sensed
Demand

INTERNAL – SAP and Partners Only

Shelf life planning SAP IBP Process External Process 153
IBP for response and supply – shelf life planning
Description
Shelf life planning helps you to generate a supply plan, considering the minimum remaining shelf life of independent demand as well as the remaining shelf life of existing stock on
hand and planned receipts. As a supply planner, you first schedule the supply planning run job. This job generates the supply plan including the shelf life planning information, such
as the Minimum Remaining Shelf Life (MRSL) and the expiration date. You can review the result of the run with the detailed pegging information on batch level in the Planner
Workspaces app and other apps.

​Scope ​Technical details ​User interaction

​Use Case Input Fiori Apps
• Generate a supply plan considering the minimum remaining • Global demand plan, sensed demand • Planning Run Profiles
shelf life • Resource capacities • Simulate Demand Prioritization
​Benefits • Minimum Remaining Shelf Life (MRSL) • Projected Stock
• Expiration date • Planner Workspaces
• Waste reduction by ensuring that products are sold before
their expiration date Output
Planning Views
• New planned orders / Purchase Requisitions / Stock
• Improved customer service by preventing stockouts of • Preconfigured planner workspace for shelf life planning
Transfer Requisitions
products with short shelf lives Alerts
Planning Level • No alerts
• Cost saving by reducing the risk of stockouts and waste • Days / Product / Location / Customer
​Frequency ​Planning
Analytics
Operator • No analytics / dashboard
• Weekly  Order-based planning: Supply Planning Run (Heuristic)
​Participants ​Collaboration
• Supply planner  No predefined process management, no integration with
SAP Build Work Zone, advanced edition

INTERNAL – SAP and Partners Only 154

Scope in detail

IBP – order-based planning inbound/outbound integration

with SAP S/4HANA

INTERNAL – SAP and Partners Only 155

IBP – order-based planning inbound integration with SAP S/4HANA
Description
Order-based planning requires the automatic synchronization of the SAP S/4HANA execution system and the SAP IBP planning system with
reconciliation. The built-in near real-time integration from the source to the target system using asynchronous functions ensures the consistency of the
master data and the transactional data.
Covering the complete integration process, this solution process describes the relevant master data and transactional objects and provides references to
SAP Best Practices for SAP S/4HANA which explain how you maintain this data in SAP S/4HANA. You’ll also find information on how to carry out the
initial and delta load and check the imported data with the help of SAP Fiori apps.

​Scope ​Technical details

​Use Case Inbound Integration – Objects
Transactional Data
• Order-based planning in IBP with master and • Sales Orders
transactional data from SAP S/4HANA Configuration Data
• Outbound Deliveries
• UOM, Calendar, Currency
• Initial Stock/Inventory
• Planned Orders
​Benefits Master Data
• Production Orders
 Built-in integration reduces implementation efforts and • Locations: Plant, DC, supplier, customer
• Purchase Requisition
costs • Materials
• Purchase Orders
 Granular selection of the planning-relevant data that • Location Material
• Stock Transfer Requisitions/Stock
must be transferred through the integration model • Transportation Lane
Transfer Orders
 Push-based delta integration providing up-to-date • Work Centers
planning data in SAP IBP • Production Data Structures
 Real-time integration ensures consistent data in both
systems and allows you to quickly react to demand
changes through sales orders

​Participants
• Order-based planning administrator
•INTERNAL
General response
– SAP and planner
Partners Only 156
IBP – order-based planning inbound integration for deployment planning
Description
Order-based planning requires the automatic synchronization of the SAP S/4HANA execution system and the SAP IBP planning system with reconciliation. The built-in near real-
time integration from the source to the target system using asynchronous functions ensures the consistency of the master data and the transactional data.
Covering the complete integration process, this solution process describes the relevant master data and transactional objects and provides references to SAP Best Practices for SAP
S/4HANA which explain how you maintain this data in SAP S/4HANA. You’ll also find information on how to carry out the initial and delta load and check the imported data with
the help of SAP Fiori apps.
NOTE: This integration process solution process is a variation of the IBP – order-based planning inbound integration with SAP S/4HANA solution process adapted to the
IBP for response and supply – deployment planning – optimizer solution process.

​Scope ​Technical details

​Use Case Inbound Integration – Objects
• Deployment planning in IBP with master and
transactional data coming from SAP S/4HANA Configuration Data Transactional Data
• UOM, Calendar, Currency • Sales Orders
• Outbound Deliveries
​Benefits Master Data • Initial Stock/Inventory
 Built-in integration reduces implementation efforts and • Locations: Plant, DC, customer • Planned Orders
costs • Materials • Production Orders
 Granular selection of the planning-relevant data that • Location Material • Stock Transfer Requisitions/Stock
must be transferred through the integration model • Transportation Lane Transfer Orders
 Push-based delta integration providing up-to-date
planning data in SAP IBP
 Real-time integration ensures consistent data in both
systems and allows you to quickly react to demand
changes through sales orders

​Participants
• Order-based planning administrator
• Distribution planner
INTERNAL – SAP and Partners Only 157
IBP – order-based planning inbound integration for shelf life planning
Description
Order-based planning requires the automatic synchronization of the SAP S/4HANA execution system and the SAP IBP planning system with reconciliation. The built-in near real-
time integration from the source to the target system using asynchronous functions ensures the consistency of the master data and the transactional data.
Covering the complete integration process, this solution process describes the relevant master data and transactional objects and provides references to SAP Best Practices for SAP
S/4HANA which explain how you maintain this data in SAP S/4HANA. You’ll also find information on how to carry out the initial and delta load and check the imported data with
the help of SAP Fiori apps.
NOTE: This integration process solution process is a variation of the IBP – order-based planning inbound integration with SAP S/4HANA solution process adapted to the
IBP for response and supply – shelf life planning solution process.

​Scope ​Technical details

​Use Case Inbound Integration – Objects
• Shelf life planning in IBP with master and transactional data
Configuration Data Transactional Data
coming from SAP S/4HANA • Sales Orders
• UOM, Calendar, Currency
• Outbound Deliveries
​Benefits Master Data • Initial Stock/Inventory
• Locations: Plant, DC, supplier, customer • Planned Orders
 Built-in integration reduces implementation efforts and costs
• Materials (incl. minimum remaining shelf life, • Production Orders
 Granular selection of the planning-relevant data that must be • Stock Transfer Requisitions/Stock
shelf life planning active)
transferred through the integration model • Location Material Transfer Orders
 Push-based delta integration providing up-to-date planning data • Transportation Lane • Batch information
in SAP IBP • Work Centers
 Real-time integration ensures consistent data in both systems • Production Data Structures
and allows you to quickly react to demand changes through
sales orders

​Participants
• Order-based planning administrator
• Supply planner
INTERNAL – SAP and Partners Only 158
 IBP – order-based planning outbound integration with SAP S/4HANA
Description
Order-based planning requires a dynamic data integration across the SAP S/4HANA execution system and the SAP IBP system. The order-based
planning results can be transferred periodically back to the execution system which can then quickly and efficiently react to planning changes, for
example in production planning or purchasing. This process ensures that order information such as order numbers and order quantities are consistent in
both systems.

​Scope ​Technical details

​Use Case Outbound Integration – Objects
• Order-based planning in SAP IBP with master and transactional • Sales order confirmation proposals (only after response
data from SAP S/4HANA planning)
• Deployment planning / transportation load building in SAP IBP • Purchase requisitions
with master and transactional data from SAP S/4HANA • Planned orders
• Stock transfer requisitions
• Deployment stock transfer requisitions (in case of
​Benefits deployment planning)
 Built-in integration reduces implementation efforts and costs • Load stock transfer requisitions (in case of deployment
 Granular selection of the planning-relevant data that must be planning)
transferred through the integration model Objects for deployment planning:
 Real-time integration ensures consistent data in both systems and • Sales order confirmation proposals
allows you to quickly react to demand changes through sales • Stock transfer requisitions (deployment stock transfer
orders requisitions and stock transfer requisitions)
• Load stock transfer requisitions

​Participants
• Order-based planning administrator
• Distribution planner
INTERNAL – SAP and Partners Only 159
 SAP IBP Real-Time Integration Architecture
SAP ECC/S4HANA and SAP IBP

INTERNAL – SAP and Partners Only 160

Appendix
System landscape

INTERNAL – SAP and Partners Only 161

System landscape
SAP Best Practices

SAP Integrated Business Planning for

SAP Best Practices Supply Chain SAP IBP, Add-in for MS Excel
Sample Data Files
SAP Best Practices
Application Content
SAP Build Work SAP S/4HANA
Zone, advanced
edition
Integration
Methods & Sample Planning Areas
SAPIBP1, SAP7F, SAP8 SAP Fiori Launchpad in Browser
SAP Enterprise Tools
Product
Development

SAP S/4HANA Cloud, public SAP Best Practices Application

SAP S/4HANA Content
edition

SAP S/4HANA
Cloud, public Sample Planning Area SAPIBP1
edition

INTERNAL – SAP and Partners Only 162

SAP IBP Architecture Overview For more information on the integration scenarios
in SAP IBP, see the documentation
System Landscape
SAP CoPilot External Map- SAP Qualtrics SAP Business Technology
SAP IBP, Add-In Web User Interface (IBP internal service) Provider (for IBP-questionnaires)
Platform
for MS Excel IBP Fiori SAP Cloud IAS SAP Built-In
Customer build
Apps
(IBP internal service) Support
Frontend
SAP
Backend SAP Cloud IPS SAP Ariba Enterprise Product
SAP HANA Customer Cloud
Development Spatial Services Solutions
Cloud AP
REST APIs OData Services
SAP Build Work Microsoft SAP SAP Analytics SAP Cloud Customer
Zone, ext. Ed. / JAM Teams Enable Now Cloud (SAC) ALM Forecast Engine

N Ne
IBP Applications IAM SAP Cloud ew
IAG
SAP BTP
Theme Designer
w SAP Data
Custodian
SAP Build Work
Zone, stand. Ed.
SAP Logistics
Business Network

SAP
SAP Cloud Build Process
Applications Integration Automation
Job Scheduling
SC Control Tower
Collaboration S&OP
Demand Driven Demand Response Data Integration for SAP S/4HANA, TM or ECC
SAP Cloud
Replenishment Inventory & Supply SDI Connector
SAP SDI Supply chain ECC only: Core Interface (CIF)
Data Integration for DP Agent integration add-on Demand Driven
IBP Inbound & Outbound
Configuration Replenishment
CI-DS SAP CI-DS
Agent
SAP Other (BW, …)
HANA Database Calculations and CI-DS
Data Model Algorithms SAP S/4HANA cloud, private edition utilizes the Cloud
SAP managed
same technologies like SAP S/4HANA OnPremise On Premise
to integrate with SAP IBP Customer
INTERNAL – SAP and Partners Only managed Firewalls 163
SAP IBP Architecture Overview
Systems and services which can be integrated with IBP

Cloud SAP OnPremise Others

Integration Tools
SAP Business Customer
SAP Ariba Technology
SAP SDI SAP S/4HANA Customer
SAP Analytics Ne On Premise
Cloud Platform DP Agent IBP S/4HANA Cloud w
X O S AddOn* Solutions
Solutions
D R S D O V O V D F
Customer build
Apps N
SAP Cloud AL SAP Build Wo ew SAP Connectivity SAP Cloud Co Everstream
rk Zone, ext. E O Service
M nnector
d. / JAM R R C
Ne SAP ERP
SAP Cloud IPS SAP S/4HANA SAP Cloud Int
w IBP ERP AddOn* External Schedul
SAP Cloud IA SAP Data Servic External Forecast
G Cloud Ne egration – Dat es Agent Engine er Tools
C w aDServices D D R S O O

SAP Cloud
SAP SAP BTP SAP Build Process Integration SAP Deman SAP DSC Editi External Map- External Monitori
Enable Now Theme Designer Automation C d Signal Manage on Provider ng Tools
D
ment D O
SAP S/4HANA Microsoft
SAP Build Work Z SAP Logistics Busi SAP Footprint cloud, public SAP Transportatio SAP Business External Identity
one, standard Edi ness Network Management edition n Management Teams Management
tion D Warehouse P
D P D O

SAP Enterprise Pr SAP Access Co SIEM systems SIEM systems

SAP HANA Spati SAP Data Intellige SAP HANA Clo ntrol SAP Solution SAP Focused
oduct Developme al Services nce ud Manager Run ** **
nt O D more O O O O

* AddOn recommended, but not mandatory

**SIEM: Security Information and Event Management D CI-DS SOAPP cXMLX C CI
SAP S/4HANA cloud, private edition utilizes the same technologies F File Adapter (SDI) R RTI V CSV
like SAP S/4HANA OnPremise to integrate with SAP IBP
O OData SDI S Best Practice Content available
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 164
Appendix
Solution Process flow

INTERNAL – SAP and Partners Only 165

What is a solution process flow vs. a unified planning process flow?

Using a sample sequence, the solution process flow guides the

user through all solution processes available with the SAP Best
Practices for SAP Integrated Business Planning for Supply Chain.
This is mainly intended for test purposes to have a complete
walkthrough for all solution processes.

The unified planning process flow (see slides 6, 7, 11, and

21) shows the relationship of the key planning steps and the
main output of each step. It does not include processes like
segmentation, forecast error calculation, integration, and so
on – it focuses only on the major planning steps without a
direct reference to the solution processes.

INTERNAL – SAP and Partners Only 166

Solution process flow (1/4)
Planning Area SAPIBP1

S&OP S&OP S&OP Supply Review S&OP Reconciliation S&OP Forecast Error
10 12 Time-Series-Based - Heuristic
Demand Review 13a (2BS) 15 Review 17 Calculation and Analysis
(2BQ) Forecast (2BU) (2C4)
Tactical Consumption (3RT)
Frequency: Monthly M - Copy final Demand Planning M – Time-series-based supply planning M – Forecast error calculation
Horizon: 1-3 years Qty to Global Demand Plan Qty heuristic
M – Copy + Disaggregate key figure
Buckets: Months, Weeks (SOP)
Integration of operators
Supply Review – S&OP Management
M - Copy Consensus Demand Plan
11 planned independent 13 TS-based supply 16 Business Review M - S&OP Forecast Error: Create 1M
Qty to Consensus Demand requirements to Lag Data
SAP S/4HANA (4NO)
b optimizer (2BW)
M - Copy Final Safety Stock (for (18N) M - S&OP Forecast Error: Create 3M
IO) to Safety Stock (SOP) M – Time-series-based supply planning M - Copy Customer Receipts to Consensus Lag Data
optimizer Demand Final

Time-Series-Based Demand Inventory Scenario

New Product
Mid-Term Inbound Integration
4 5 Planning 8
IBP for Inventory 9 Planning
1 with SAP S/4HANA
Introduction
(11Z) (4YI)
Operational (3OF)
(5OZ) (11V)
Frequency: Weekly W– Statistical Forecast W– Statistical Forecast W – Copy combined final demand W- Global (multi-stage) inventory
Horizon: 1-12 months
to Demand Forecast (IO) optimization
Buckets: Weeks, Days
ABC-XYZ Demand Forecast Error W- Global (multi-stage) inventory
optimization
2 segmentation 7 Calculation and Analysis
(2BM)
S&OP footprint
(1S6) W – Calculate target inventory 14 analysis
components operator (5LG)
M – Segmentation M – Forecast Error Calculation W – Copy final safety stock (for
IBP for demand – demand M - DP Forecast Error: Create 1M IO) to final safety stock last cycle
forecast for SAP S/4HANA Lag Data (for IO)
3 Time-Series Analysis
(34Y)
0 Cloud, public edition
W– IO Forecast error CV
Supply chain risk
(78P) M - DP Forecast Error: Create 3M 18 management
Lag Data calculation
(6S7)
W– Statistical Forecast
3M – Forecast Automation

Short-Term
Operational Demand
Frequency: Daily 6 Sensing
Horizon: 1-12 weeks (11X)
Buckets: Days
D – Demand Sensing

INTERNAL – SAP and Partners Only IBP for response

and supply IBP for Demand IBP for SOP IBP for Inventory 167
Solution process flow (2/4)

Supply and
Order-Based Planning 20 Allocations Planning
19 Inbound Integration
(2S4) a – heuristic
(2I0)
W– Order-based planning
Mid-Term constrained forecast run
Operational
Frequency: Weekly
Horizon: 1-12 months Supply Planning Order-Based Planning
Buckets: Weeks, Days 20 - OBP optimizer Inbound Integration for Shelf life planning Order-Based Planning
27 28 (6WZ) 29 Outbound Integration
b (42C) shelf life planning
(2S6)
(6Z1)

W– Order-based planning
constrained forecast run
using optimizer

Response Order-Based Planning

21 Planning (2P0) 22 Outbound Integration
Short-Term (2S6)

Operational D – Order-based planning

Frequency: Daily confirmation run
Horizon: 1-12 weeks
Buckets: Days
Order-Based Planning Deployment Transportation Order-Based Planning
Inbound Integration for Planning – Outbound Integration
23 deployment planning 24 Optimizer 25 Load Building 26 (2S6)
(4VA) (4UT) (6NV)
D – Order-based planning Planning Area SAP7F
deployment run - optimizer

IBP for response

INTERNAL – SAP and Partners Only and supply 168
Solution process flow (3/4)
Planning Area SAP8
DDR
1 strategic buffer
positioning (40U)
Strategic
Frequency: quarterly. biannual Q - ADU CoV Calculation
Horizon: 1-3 years Using Historical CoV of
Actuals
Q - Recommend Decoupling
Points

Short-Term DDR DDR

Operational 2
buffer setup and
adjustment (40V)
3 planning (40W)

Frequency: Daily
Horizon: decoupled lead-time
Buckets: Days D - ADU CoV Calculation D - DDMRP Buffer Status
Using Historical CoV of Snapshot
Actuals
D - Calculate DDR buffer
levels

IBP for demand-

driven
INTERNAL – SAP and Partners Only replenishment 169
Solution process flow (4/4)

Planning Area SAP9

Mid- to long-term Maintenance, repair
Planning Horizon 1 and operations (75C)

Frequency: Monthly/Weekly
W - Segmentation
Horizon: 1 - 60 months
W – Inventory Optimization
Buckets: Weeks
W – Statistical Forecast
W – Supply Heuristic

INTERNAL – SAP and Partners Only 170

 Appendix
Sample data overview

INTERNAL – SAP and Partners Only 171

 1310: CN
Legend
Sample Data – Supply chain network Location
Product
6210: HK
3710: NL

(used for time-series-based planning solution processes) Resource 1010: DE

Suppliers Plants DCs Customers

FG126, SG25,
RM20, SG25 SG124, RM20 FG126
FG126
1310 6210 0062100001
0013300001 0062100003
APJ APJ
ASSEMBLY1310001
PACK01 1310001
TECHNIC 1310001
TESTING 1310001

FG126, SG25, FG126 FG126

RM20, SG25 SG124, RM20
3710
1010 0037100001 0037100002
0010300001 EU
EU
ASSEMBLY1010001
PACK01 1010001
TECHNIC 1010001
TESTING 1010001

FG126

1710 FG126
US
0017100002

INTERNAL – SAP and Partners Only 172

 1310: CN
Legend
6210: HK
Sample Data – Supply chain network Location
Product 3710: NL

(additional materials for time-series-based planning solution processes) Resource 1010: DE

Suppliers Plants DCs Customers

IBP-111-S IBP-100, IBP-110, IBP-300, IBP-310,
All products All final products IBP-120 IBP-320

1710 1720 0017100001 0017100003

AME Mfg AME DC
0013300003 0017100002
1710 Assemby, IBP-200, IBP-210,
1710 Pack, IBP-220
1710 Subassembly
IBP-101-R, IBP-103-R, IBP-112-R, IBP-121-R,
IBP-123-R, IBP-301-R, IBP-302-R, IBP-311-R,
IBP-313-R, IBP-322-R, IBP-191-R
IBP-200, IBP-210,
All products IBP-100, IBP-110, IBP-220
All final products IBP-120
1010 3710 0010100001 0012100001
EU Mfg EU DC
0013300001
1010 Assembly, IBP-300, IBP-310, 0011100001
1010 Pack, IBP-320
IBP-102-R, IBP-111-R, IBP-113-R, IBP-122-R, 1010 Subassembly
IBP-303-R, IBP-312-R, IBP-321-R, IBP-323-R

IBP-200, IBP-210,
IBP-220 IBP-300, IBP-310,
All products All final products IBP-320
6210 0061100001 0013100001
1310
1310 6210
0013300002 APJ
APJ
APJMfg
Mfg APJDC
DC
IBP-201-R, IBP-202-R, IBP-203-R, IBP-211-R, 0018100001
IBP-212-R, IBP-213-R, IBP-221-R, IBP-222-R, IBP-100, IBP-110,
1310 Assembly,
IBP-223-R IBP-120
1310 Pack,
1310 Subassembly

Unspecific
supplier

INTERNAL – SAP and Partners Only 173

 Legend

Sample Data – Supply chain network Location

Maintenance
Activities

Sample data for maintenance, repair, and operations (MRO) solution processes Asset
MRO part
Resources

Suppliers Distribution Operation

MRO part
Center Sites
9622212383
9614508055
…
10300001 53381169 53340119
All parts … …
Resource
1010000 1020000 Resource
MRO part
1310
9685339090 APJ MRO Part MRO Part

9670356278 1030000
…
11300001 53192038
All parts …

MRO part
6210 Resource

9683501505
APJ MRO Part

9639898752
…
12300001

53131012 53002463
MRO part …. ….
All parts
9645881597 Resource
2010000 2020000 Resource
9668708920
…
1710 US MRO Part MRO Part
13300001 2030000
53315479
….
MRO part
Resource
9660684299
9642808036 MRO Part
14300001 …

INTERNAL – SAP and Partners Only 174

Sample Data – Supply chain network Legend
Location
Used for order-based planning solution processes: Product
IBP for response and supply – supply and allocations planning – heuristic Resource

IBP for response and supply – response planning

Suppliers Plants DCs Customers

FG126, SG25,
RM20, SG25 SG124, RM20 FG126
FG126
2 1310 2 6210 62100001
13300001 days days 62100003
CN HK
ASSEMBLY1310001
Customer Classification: A
PACK01 1310001
TECHNIC 1310001
TESTING 1310001

2
days

FG126, SG25,
RM20, SG25 SG124, RM20 FG126 FG126
2 1010 2 3710
10300001 days 37100001 37100002
DE days NL
ASSEMBLY1010001
PACK01 1010001 Customer Classification: B
TECHNIC 1010001
TESTING 1010001

FG126, SG124: Production Lead Time=1 day

(5 working days per week)
INTERNAL – SAP and Partners Only 175
Sample Data – Supply chain network
Used for order-based planning solution process:
IBP for response and supply – deployment planning – optimizer

Plants Central DCs Local DCs Customers

62100001

2
days
1310 2 6210 2510
days 25100001
CN HK BE
14
days

2
days

12100001
3710 2 1210
NL days FR
12100002

INTERNAL – SAP and Partners Only 176

 Sample Data – Supply chain network
Used for order-based planning solution process:
IBP for response and supply – transportation load building

Supplier Plants Central DCs Local DCs Customers

62100001

2
days
1310 2 6210 2510
days 25100001
CN HK BE
14
days

2
days

A_FG126, A_FG126,
37300010 B_FG126 B_FG126
12100001
NL 3710 2 1210
2
days NL days FR
12100002

This part of the network

is used for the TLB
solution process.
INTERNAL – SAP and Partners Only 177
Sample Data – Transportation Load Building Master Data Types
Equipment Type Limit
Product Unit

Product ID Target UoM UoM Conversion UoM Conversion Equipment Equipment Limit Equipment Upper
Equipment Type ID
Denominator Numerator Limit Unit Description Limit
A_FG126 EA 1 1
A_FG126 KG 5 1 ET01_TRUCK_SMALL KG Weight 10000
A_FG126 M3 1 40 ET01_TRUCK_SMALL M3 Volume 25
A_FG126 PAL 1 50 ET01_TRUCK_SMALL PAL Pallet 10
B_FG126 EA 1 1 ET02_TRUCK_MEDIUM KG Weight 35000
B_FG126 KG 5 1 ET02_TRUCK_MEDIUM M3 Volume 35
B_FG126 M3 1 40 ET02_TRUCK_MEDIUM PAL Pallet 15
B_FG126 PAL 1 50 ET03_TRUCK_LARGE KG Weight 18000
ET03_TRUCK_LARGE M3 Volume 50
ET03_TRUCK_LARGE PAL Pallet 20

Equipment Type Transportation Group Equipment Type Assignment

Equipment Type ID Equipment Type Description Transportation Group ID Equipment Type ID Fixed Cost
TG10_3710_1210_ROAD ET01_TRUCK_SMALL 100
ET01_TRUCK_SMALL Small Truck 10 PAL
TG10_3710_1210_ROAD ET03_TRUCK_LARGE 180
ET02_TRUCK_MEDIUM Medium Truck 15 PAL
ET03_TRUCK_LARGE Large Truck 20 PAL TG20_37300010_3710_ROAD ET02_TRUCK_MEDIUM 150

Transportation Group Transportation Lane

Transportation Group ID Transportation Group Description Ship-from Ship-to Means of

Product ID Transportation Group ID
Location Location Transport
TG10_3710_1210_ROAD ROAD from 3710 to 1210 A_FG126 3710 1210 ROAD TG10_3710_1210_ROAD
TG20_37300010_3710_ROAD ROAD from 37300010 to 3710 B_FG126 3710 1210 ROAD TG10_3710_1210_ROAD
A_FG126 0037300010 3710 ROAD TG20_37300010_3710_ROAD
B_FG126 0037300010 3710 ROAD TG20_37300010_3710_ROAD
INTERNAL – SAP and Partners Only 178
 Legend
Sample Data – Supply chain network Location

Used for order-based planning solution process: Product

Resource
IBP for response and supply – supply planning – OBP optimizer

Subcontractors Suppliers Plants DCs Customers

FG126, SG124
RM20, SG25, FG126
RM13,RM14 FG126 62100001
2 1310 2 6210
13300001 days
CN days 2
HK
days

62100003

RM13,RM14
1
13300007 days

SG23 2
days
3
days

FG126
FG126, SG124
FG126
RM20, SG25 FG126 37100001
RM13,RM14
2 1010 2 3710
10300001 days DE days NL
37100002
RM13,RM14
1
10300007 days
SG23
3
days

INTERNAL – SAP and Partners Only 179

Sample Data – Supply chain network
Used for order-based planning solution process:
IBP for response and supply – shelf life planning

Supplier Plant Distribution Center Customers

SL_FG126
Forecast Demand:
140 PC/week
37100001 Sales Order 1: 10 PC
Batch 1

SL_FG126
2 1010 2 3710 37100002 Forecast Demand:
0010300001 days days
EU EU 140 PC/week

SL_FG126

SL_RM122 SL_FG126 37100003 Forecast Demand:

SL_FG126
700 PC/week
Batch 3: Batch 1:
Sales Order 2: 20 PC
Initial Stock: 100 PC Initial Stock: 1000 PC
Batch 2
Shelf Life of Plann. Batch 2:
Production: 180 Initial Stock: 2000 PC
Loc.-Prod. Minimum
Rem.Shelf Life: 60
SL_SG124
Shelf Life of Plann.
Production: 210

Legend
SL_RM122
Location
Shelf Life of Product
Transportation: 210
Supply Element
Demand Element
INTERNAL – SAP and Partners Only
Master Data Info 180
Sample Data – Bill of materials (IBP-100)

PRODUCTIONSOURCEHEADER.CSV
IBP-100 Finished product

Raw material
IBP-101-S Semi-finished
product IBP-103-R

PRODUCTIONSOURCEITM.CSV
IBP-101-R IBP-102-R Raw materials

Alternative BOM
(only relevant for 18N-IBP for response and supply – supply review – TS-based supply
optimizer solution process)

IBP-100 Finished product

Raw materials
IBP-191-R IBP-103-R
INTERNAL – SAP and Partners Only 181
 Sample Data – Bill of materials (IBP-110 / -120)

Same BoMs repeat for locations 1010 and 1310

IBP-110 Finished product

IBP-120 Finished product

IBP-111-S Semi-finished
product IBP-113-R Raw material
IBP-121-S Semi-finished
product IBP-123-R Raw material

IBP-111-R IBP-112-R Raw materials

IBP-121-R IBP-122-R Raw materials

INTERNAL – SAP and Partners Only 182

 Sample Data – Bill of materials (IBP-200 / -210 / -220)

IBP-200 Finished product

IBP-210 Finished product

IBP-201-S Semi-finished
product IBP-203-R Raw material
IBP-211-S Semi-finished
product IBP-213-R Raw material

IBP-201-R IBP-202-R Raw materials

IBP-211-R IBP-212-R Raw materials

IBP-220 Finished product

IBP-221-S Semi-finished
product IBP-223-R Raw material

IBP-221-R IBP-222-R Raw materials

INTERNAL – SAP and Partners Only 183

 Sample Data – Bill of materials (IBP-300 / -310 / -320)

IBP-300 Finished product

IBP-310 Finished product

IBP-301-S Semi-finished
product IBP-303-R Raw material
IBP-311-S Semi-finished
product IBP-313-R Raw material

IBP-301-R IBP-302-R Raw materials

IBP-311-R IBP-312-R Raw materials

IBP-320 Finished product

IBP-321-S Semi-finished
product IBP-323-R Raw material

IBP-321-R IBP-322-R Raw materials

INTERNAL – SAP and Partners Only 184

Sample Data – Bill of materials (IBP-100) and routing (LOCID 1010)

Production Source Header

Finished Product
IBP-100
SOURCEID PRDID LOCID OUTPUTCOEFFICIENT
1010_IBP-100 IBP-100 1010 1

SOURCEID PRDID LOCID OUTPUTCOEFFICIENT

1010_IBP-101-S IBP-101-S 1010 1
Packaging

Production Source Item

SOURCEID PRDID SOURCEITMID COMPONENTCOEFFICIENT
1010_IBP-100 IBP-101-S 10 1
Assembly
1010_IBP-100 IBP-103-R 20 1

SOURCEID PRDID SOURCEITMID COMPONENTCOEFFICIENT

1010_IBP-101-S IBP-101-R 10 1
Semi-finished Product Raw Material
1010_IBP-101-S IBP-102-R 20 1
IBP-101-S IBP-103-R

Production Source Resource

SOURCEID RESID CAPACONSUMPTION
Subassembly 1010_IBP-100 1010 Pack 1
1010_IBP-100 1010 Assembly 1

SOURCEID RESID CAPACONSUMPTION

Raw Materials 1010_IBP-101-S 1010 Subassembly 1
IBP-101-R IBP-102-R

INTERNAL – SAP and Partners Only 185

 Sample Data – Bill of materials (FG126) – Production source

Planned in IBP
Finished
FG126 product

SG23 SG124 SG25 RM20 RM27

Semi-Finished product Semi-Finished products Raw Material Raw Material

RM13 RM14
Raw Material Raw Material

RM124
Raw Material PRODUCTION SOURCE ITEM

PRODUCTION SOURCE

INTERNAL – SAP and Partners Only 186

 Location
Demand-Driven Replenishment Sample Data – Supply chain network
Product

PLT = Production Lead Time (days)

TLT = Transportation Lead Time (days)
LTCT = Lead Time Customer Tolerance (days)

Plants Regional DC Local DCs Customers

F-10A F-10A
1010 TLT=7 3710 LTCT=21
12100001
DE NL FR

PLT=3 F-10A
3711 LTCT=21 10100001
TLT=6
DE DE

TLT=7 3712 LTCT=0 10100002

GB GB

TLT=25 3713 LTCT=21 11100001

DE DE

INTERNAL – SAP and Partners Only 187

Appendix
Dashboards and Charts available in SAPIBP1 / SAP7F
INTERNAL – SAP and Partners Only 188
 Copy Analytics and Alerts SAPIBP1
• New copy option for the SAPIBP1 planning area as of 2002

• Content available for SAP7F as of 2202

• When copying the unified planning area (SAPIBP1 or SAP7F) using the Create
New with Dependencies option, you can select the Copy Analytics and Alerts option
to copy sample analytics, alerts, planner workspaces and analytics stories.

• The following content types are copied:

SAP7F
• Sample alert definitions
• Sample alert subscriptions
• Sample alert overviews
• Sample dashboards
• Sample analytics charts
• Sample supply chain network charts
• Procedure Playbook
• Planner Workspace
• Analytics Stories (as of 2402)

• Reduces manual configuration effort for the Best Practices processes and replaces
previous setup instructions

• List of available content available as part of Technical assets for SAPIBP1 resp.
SAP7F
INTERNAL – SAP and Partners Only 189
 Appendix
New scope and changes in past versions

INTERNAL – SAP and Partners Only 190

New scope and changes in V30.2302
 Technical upgrade to product version 2302 of the SAP Integrated Business
Planning for Supply Chain solution
 The SAPIBP1 sample planning area has been enhanced as follows:
• New adjustment key figures for local and global demand plan quantity
• Unassign not required time attribute PERIODID from multiple planning
levels
• Adjust decimal settings of FORECASTCONSTR, IPUPORDUCTION,
IPUPRODUCTIONCOMPENTDS, and STDDEVACTUALSQTY to 6 to
improve the accuracy of their disaggregation
 The IBP for response and supply – transportation load building scope item
has been enhanced with interactive planning of loads. It’s now possible to
create, unload, or delete loads and load items in the Planner Workspace.
Users can change the equipment type of a load and add distribution receipts
and manually entered product quantities to loads.
 The IBP for inventory – scenario planning scope item has been enhanced
with additional steps to promote a scenario to the baseline if the simulation
results are promising.
 The new scope item called IBP – supply chain risk management contains an
example of how the new analytics stories embedded in SAP IBP can be used.
The story used in this scope item helps supply chain leads to analyze typical
supply chain risks and collaborate with planners to eliminate them. Scores are
used to illustrate risks that result from low forecast accuracy, inaccurate
safety stock levels, resource bottlenecks, and excess CO2 emissions. We
deliver the scope item content through a presentation describing the setup of
the story pages and a video showing how supply chain leads can work with
the story.

INTERNAL – SAP and Partners Only 191

New scope and changes in V31.2305

 Technical upgrade to product version 2305 of the SAP Integrated Business Planning for
Supply Chain solution
 New access to the SAP Best Practices content via Process Navigator by SAP
https://me.sap.com/processnavigator
 The SAPIBP1 sample planning area has been enhanced as follows:
• Modeling for goods receipt processing time
• New forecast error measure (SPEC) for intermittent demand
• Key figure for storing outlier markers
 The new IBP for response and supply – shelf life planning solution process describes how IBP for response and supply – shelf life planning: Projected Stock app
to create an operational supply plan, considering the minimum remaining shelf life of
independent demand as well as the remaining shelf life of existing stock on hand and
planned receipts.
After creating the supply plan including the shelf life planning information, such as the
Minimum Remaining Shelf Life (MRSL) and the expiration date, planners can review the
result of the run with the detailed pegging information on batch level in the Planner
Workspaces app and other apps.
 The new IBP – order-based planning inbound integration for shelf life planning solution
process describes the complete integration process, the master data, and the transactional
objects needed for the new solution process IBP for response and supply – shelf life
planning. It provides references to SAP Best Practices for SAP S/4HANA which explain
how you maintain this data in SAP S/4HANA.
 The preconfigured Planner Workspaces (PWS) are updated to the latest version of the
Planner Workspaces app: PWS for global demand planner, PWS for footprint analysis,
PWS for deployment planner, and PWS for response planner.
 The solution process IBP for response and supply – deployment planning – optimizer has
been enhanced with the step to use the Supply Chain Network app to understand the supply
relations within the network and evaluate the stock situations in each location.
SAP Process Navigator

INTERNAL – SAP and Partners Only 192

New scope and changes in V32.2308
 Technical upgrade to product version 2308 of the SAP Integrated Business
Planning for Supply Chain solution
 The SAPIBP1 sample planning area has been enhanced as follows:
• New key figures for cost rollup
• New key figures for sales and marketing planning (integration to SAP
Analytics Cloud)
 The solution process IBP for response and supply – supply planning – OBP
optimizer has been enhanced with an example showcasing the telescopic
planning and subcontracting process.
 The preconfigured Planner Workspace for transportation load building is
now part of SAP7F sample planning area.
 A new preconfigured Planner Workspace is now available for inventory
planners. Planner workspace for inventory planner

 The solution process IBP for sales and operations – supply review –
heuristic has been enhanced with a cost rolllup example. The cost rollup
calculates the unit cost of products at different locations over a planning
horizon, considering costs incurred at various points in a supply network.
Examples of such costs are transportation, production, inventory
maintenance, and components.
 In the new solution process IBP for maintenance, repair, and operations
(MRO), the planner provides full transparency for mid-term and long-term
MRO parts and resource requirements by leveraging statistical forecasting
methods as well as inventory and supply planning algorithms.

Project Stock app with subcontracting

INTERNAL – SAP and Partners Only 193
New scope and changes in V33.2311
 Technical upgrade to product version 2311 of the SAP Integrated Business
Planning for Supply Chain solution
 The SAPIBP1 sample planning area has been enhanced as follows:
• New key figures for CO2 emissions rollup operator
• New key figures for service level prediction in inventory
• Change of multiple sample attributes to uppercase values only
• New configuration for group planning in supply planning
• New attribute and key figure for fixed capacity consumption in production
 The IBP for inventory solution process has been enhanced with customer service
level prediction. It predicts the customer service level by product location using Planner Workspace Footprint Analysis
an inventory to learn the impact of changes, for example on recommended safety
stock.
 Several preconfigured Planner Workspaces - PWS for Consensus Demand Plan,
PWS for Sales Manager, PWS for Marketing Manager, and PWS for Finance
Manager - are now available for the S&OP process. They are used in the IBP for
sales and operations – demand review solution process.
 The IBP for sales and operations – footprint analysis solution process has been
reworked. Now it features a CO2 emissions rollup example using the network
aggregation operator, and includes a Planner Workspace with different planning
views and charts. The CO2 emissions rollup calculates the CO2 emissions of
products at different locations across a planning horizon, considering CO2
emissions incurred at various points in the supply network. Examples are
transportation emissions, production emissions, etc.

Planner Workspace Consensus Demand Plan

INTERNAL – SAP and Partners Only 194
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