SAP Integrated Business Planning

SAP Integrated Business Planning


To maintain leadership or develop activities in a dynamic and fragile economic environment, organizations need to move to a more intelligent and faster planning approach. The digitization of supply chain planning processes allows you to get closer to the customer, to ensure transparency of inventory movement and to stimulate business innovation.

Key Issues in Supply Chain Planning and Implementation:

  • Insufficient data analytics and lack of required reporting tools.
  • Unstable market conditions and complex logistics.
  • Fragmented systems with heterogeneous or missing information.
  • Gaps in planning and execution.
  • Different data models for different processes.
  • Lack of client orientation.

SAP HANA-based SAP Integrated Business Planning is a cloud-based product that provides a co-planning process within a company or group of companies. The application allows you to flexibly do and adjust planning to market expectations. By using SAP IBP, the company can meet forecast demand based on real-time supply chain information.

SAP Integrated Planning solution combines sales planning, demand and production planning, inventory planning, forecasting planning. SAP IBP is a flexible cloud solution that is easily scalable to your business needs. Solutions can be implemented using a modular approach.

SAP IBP modules

Supply Chain Control Tower

A suite of real-time capabilities for navigating, analyzing, and managing inventory, profitability, and other metrics.

The module provides a visualization of the entire supply chain and its segments, allowing in real-time to receive more in-depth information about the indicators.

SCCT enables you to identify existing and prevent potential problems in supply chain processes while improving the quality of decision making. The module combines the individual setting of messages and alerts, the possibility of simulation of “what-if”, task management and solution of specific situations in a structured and consistent way.

Sales & Operations Planning (S&OP)

Formation of agreed integrated plan of sales and operations based on demand forecast, taking into account the constraints of the supply chain and financial goals in terms of revenue, expenses, and profit of the company.

The module allows you to create a sales plan that brings together different departments and balances profit, inventory levels and quality of service.

With the ability to analyze data effectively from different business units, there is an opportunity to consider different planning scenarios and to choose the best one. Improving planning quality leads to cost reductions, improvement inventory efficiency, revenue growth, and financial goals.

Demand Planning

Full transparency of short-, medium- and long-term forecasting processes

One of the key modules of SAP IBP. It provides a complete planning toolkit that integrates traditional medium- and long-term plans based on statistical methods. Based on the familiar Microsoft Excel user interface, the module allows scheduling to be fully automatic.

  • More accurate statistical forecasts.
  • Ability to respond more quickly to changes in demand.
  • More efficient business operations on short-term demand.
  • The ability to work together to improve the quality of forecasts.
  • Improve the quality of decision making throughout the supply chain.

Inventory Optimization

Risk management in inventory planning

The module allows you to manage risks to the supply chain (eg fluctuations in customer expectations, demand volatility, supply heterogeneity, and volatility in the economy). Inventory planning is a procedure that requires balancing the cost of maintaining an insurance stock and the loss due to the inability to meet customer expectations and maintain quality of service on time.

The module allows you to plan globally, across the organization. As a result, inventory optimization at different stages is carried out simultaneously, which allows to reduce capital expenditures, while not reducing, but often to improve the quality of customer service. For manufacturing companies, working on inventory optimization can start with just production.

  • Improved efficiency.
  • Improved scheduling speed.
  • Reduction of production and distribution costs.
  • Integration of planning and execution.

Response & Supply

Creating integrated supply planning models

The module is used to plan integrated supply planning models based on forecasts, orders, inventory levels, taking into account supply chain constraints.

  • Formulation of plans for production, purchase, and delivery of finished goods (with or without restrictions) using heuristic and optimization algorithms
  • Scenario planning and modeling (“what-if” analysis)