Supply Chain Innovation with SAP Integrated

Business Planning
November 21 | Brussels
Agenda

• 14:00 – Introduction to Flexso

• 14:15 – How does IBP ​fit in SAP’s strategy?

• 14:30 – What is IBP all about?

• 15:30 – Short Break

• 15:40 – How does Puratos integrate S&OP with

IBP?

• 16:40 – Conclusions and Take Aways

• 16:45 – Drinks & Appetizers

Innovate with our customers
Innovate with our customers
From SAP innovation to business innovation

Roadmap to S/4HANA Cloud Solutions Digital Use Cases

Front-runner in HANA & S/4HANA
Innovate with our customers
Greenfield S/4HANA implementation at
Drylock Technologies with S/4 release 1709
About Drylock Technologies
International manufacturer of sustainable hygiene products
Front-runner in HANA & S/4HANA
Front-runner in Cloud Solutions
Innovate with our customers
Puratos optimizes supply chain with SAP IBP
(Integrated Business Planning)
Supply Chain Management
Ontex gets a 360° view on the customer
with Hybris Cloud for Customer
Hybris Cloud for Customer
MIKO introduces an integrated
B2B sales portal
B2B & B2C e-commerce
C&A streamlines HR processes with
SuccessFactors
SAP SuccessFactors
Front-runner in digital transformation
Innovate with our customers
ODTH streamlines deliveries & shipments
with license plate recognition
Augmented reality in warehousing and
inventory management
Predictive maintenance, connected
machines, industry 4.0, smart factories, …
Identifying use cases for digital
transformation
And many more customer cases …
http://www.flexso.be/en/blog/
What is IBP all about ?
Stijn Schepers
Eric De Vriendt
What is IBP all about ?

• IBP – Solution Overview

• SCM Future landscape

• Roadmap towards IBP

• Best Practices for IBP

• How can Flexso help you on your IBP Journey ?

IBP – Solution Overview
IBP : Integrated Business Planning
What keeps planners awake at night ?
IBP : Solution Overview
Solution Overview

• Cloud-based, world-class
platform
• State-of-the-art user
experience & planning
tools
• Connected & integrated
business processes
• Real-time, end-to-end
visibility
IBP : Solution Overview
Solution Overview
IBP : Solution Overview
IBP Demo

User Experience

• Web-UI

• Excel Based
IBP- Solution Overview
Product Direction
IBP- Solution Overview
Different Planning Solutions
IBP- Solution Overview
Integration

• Standard Integration with

SAP ERP, S/4 HANA and
APO
• Flexible and adaptable,
integrate any system with
IBP
• SCP DS and SDI will
converge into a unified
integration platform
IBP for Demand
Key Capabilities

Traditional Demand • Statistical Forecast

Planning
• Consensus Demand Planning

Demand Sensing • Daily Forecast

• Sensed Demand based on Demand streams

Demand Management • Manage the Demand Planning Process

• Supporting Planning “Apps”

IBP for Response and Supply
Key Capabilities

• Consider both capacity and material constraints via time-series based

Supply Planning Optimisation or use a heuristic calculation to have a view on the
unconstrained plan
• Ability to model cross location and mult-level BOMs to cover the

Multi-Level Planning entire supply chain

Simulations and Scenarios • Run What if analysis via simulation capabilities

• Save and compare several scenarios

• Create dashboard and charts for any key figure or KPI in the supply
Analytics
model

• Create a supply order based supply plan via prioritisation rules

Response Management
• Generate and provide allocations to ATP and reschedule sales orders
IBP for Response and Supply
Demo

1. Identify Resource overloads via Dashboard

2. Scenario Planning
1. Create and compare resolution scenarios in Excel

2. Promote the scenario

3. Live update of the dashboard

IBP for Supply
Demo
IBP for S&OP
Key Capabilities

Complete Supply Chain • Demand, Supply and Financial Model on aggregate and detailed level
Planning Model
• Time series based heuristic planning to create an infinite plan

What if and scenario

Planning • Real time scenarios and simulations on entire model

Dashboards • Build dashboard and charts on every key figure/KPI of

demand/supply/finance model

• Transparant communication and recording of decisions

Collaboration
• Integration with SAP Jam

• Built-in workflow to guide the planning process supported by Job-

Integrated process workflow
scheduling
IBP for S&OP
Core components of Demand and Supply are combined in S&OP

IBP S&OP
Balancing/Scenarios/Dashboards/Process Management
SALES & OPERATIONS PLANNING PROCESS

Demand-
Product Demand Supply Executive
Supply
Review Review Review Decision
Balancing

Demand Planning Supply Planning Inventory Planning

• Simple Statistical • Multilevel Supply
Forecasting Planning S&OP
• Sales input Heuristic
consolidations

IBP Demand IBP Supply IBP Inventory

• Advanced • Planning Optimiser • Single Stage Inventory
Statistical • Response Optimisation
Forecasting Management • Multi-echelon
• Demand Sensing • Allocation Planning inventory
• Product Lifecycle Optimisation
Management • Inventory Breakdown
IBP for Inventory
Key Capabilities

• Multi-stage standardized and automated

Multi-echelon planning of safety stock calculation

inventories
• Consider and compensate for uncertainties
in demand and supply

• Finding Balance between Work In Capital vs

Balance Working Capital and
Customer Service Customer Service Level

• Right amount at the right place at the right

time
IBP Supply Chain Control Tower
Key Capabilities

• Import and consolidation of data of

Consolidation
multiple SAP and non-SAP systems

• Business network collaboration

Metrics and KPIs • Built-in SCOR-based and generic SCM KPIs

• Custom Alerts
Alerts
• Real-time Analytics and Alerts
IBP Control Tower
Demo

1. Identify Alerts via Control Tower

2. Resolve Alert
1. Sort to prioritize alerts

2. Navigate from WebUI to ExcelUI to adapt capacity

3. Refresh alerts  Solved issue will disappear

SCM Future Landscape
SCM Future Landscape
S/4 Hana and SAP IBP Future landscape

S/4 Hana SAP IBP

Control
Tower
Demand
Integrated
TM PP/DS Reporting
Supply &
S&OP
Response

EWM aATP Inventory

SAP HANA Platform SAP HANA Platform

SCM Future Landscape
APO – General Migration Strategy

Integrated Business Planning (IBP)

Advanced Planning & Optimization
Supply Chain Control Tower

Sales & Operations Planning

Demand Planning Response &
Demand Inventory
Supply

SAP HANA Platform

Supply Network Planning
Alert Monitor

Production Planning &

Detailed Scheduling
S/4
Enterprise Management and new S/4 HANA Products
Global Available-to-Promise Production Planning &
Scheduling
Advanced ATP ...
S/4 HANA and aATP
Solution Overview

SAP S/4 HANA advanced ATP : Order Promising and

Confirmation solution which provides
• Fast product availability check, both online and in
batch mode to make accurate delivery date
commitments against customer orders
• Product allocation check to manage shortages
• Back Order Processing with intuitive requirement
classification and filter criteria
• Flexibility to make informed last minute changes
to confirmations before delivery
• * Alternative Based Confirmation (Plant and
Product substitution)
S/4 HANA and PPDS
Solution Overview

SAP S/4 HANA PPDS:

• Finite capacity planning : One MRP plans everything:
create finite production plan according to the
available capacity situation and schedule available
resources and generate production plan to the
precision of seconds
• Monitor Capacity Utilization: Capacity utilization of
resources can be monitored using this app.
Production Planners can add the area of responsibility
to plants in which they want to monitor the capacity.
• Create Optimal Orders for Suppliers: Optimize the
results of your Material Requirements Planning (MRP)
by creating collective orders for material shortages.
Roadmap towards IBP
How to start with IBP?
3 typical Use Cases

If you have… We would reommend…

…to consider a move to IBP and S4/Hana, with S&OP

…no SCM solution yet?
as possible starting point.

…start the move to the mature IBP solutions and

…a light SCM solution?
consider additionally the IBP innovations.

…start with considering the IBP innovations to

enrich your current model; gradually replace the
…and advanced SCM solution?
existing solutions by considering the evolving IBP
capabilities and roadmap.
Leverage IBP Innovations

• Don’t go for “new”, go for “better”

› Leverage the existing solutions when deciding on IBP
solution implementations

• Examples
1. We have SNP Optimiser, but how to determine the
Safety Stocks?
2. We have APO DP, but statistics are not adding value
3. We have DP and SNP, but miss consolidation
capabilities
How does your IBP roadmap look like?
Hybrid Solution

SAP IBP
S&OP Demand

Inventory

SAP ECC SAP SCM

CIF
MM PP SNP
SAP BW
SD WM PPDS Reporting
ETL

SAP Livecache SAP Hana

Oracle DB
Best Practices for IBP
Our experience and recommendations
How to get started with IBP?

1 Phased approach
2 Out-of-the-box content for 3 Quickly reconfigure the
IBP IBP solution
Achieve early wins by deploying Reduce implementation time and Reconfigure IBP to meet your
in bite-sized chunks risk by leveraging SAP sample needs as requirements change
planning areas, data integration, • Hours to days
Option 1: parts of your business and rapid-deployment solution • Driven by the business
• Configuration based
BU 2 & BU 4 -
BU1
3 10 SAP HANA Integrated Business
Planning rapid-deployment solution

Option 2: parts of your process SAP sample planning areas and data
integration
Demand &
Supply Net Profit
Finance
ECC APO BPC
SAP Best Practices for SAP IBP
What to expect?

▪ Test scripts

▪ Process flow diagrams

▪ Scope item recordings

▪ Configuration guides

▪ Excel planning view

templates

▪ Sample data CSV files

Every project is unique

• Use of Integration templates?

• Use of unified planning area?

• Flexible configuration and

modeling
Importance of integration

• CPI provides a framework, but integration flows need to be built for

each project

• Top 3 attention points

1. Prestage as much as possible

2. Keep complex logic out of CPI, but build it in source systems

3. Build delta mechanisms

Experience with cloud solutions is key!

• Cloud solutions require a specific knowledge concerning

› Authorisation and authentication

› Integration scenarios

› FIORI
How can Flexso help you on your IBP
Journey ?
How can Flexso help you on your IBP Journey ?

Initiation and Roadmap Proof of Concepts IBP Cloud Solution

session on Flexso Demo system Implementation
Conclusions and Take Aways
Conclusions and Take Aways

• Build an IBP roadmap and innovate.

› IBP “go-forward” solution

• One team with the right skills

› IBP product and Cloud/Integration Knowledge
› SCM Business Expertise

• Consider POC/Assesment as a first step

Thank you!
Contact Flexso
flexso.com – [email protected]

Veldkant 33a – B-2550 Kontich

Avenue Pasteur 23 – B-1300 Wavre
89A Rue Pafebruch – L-8308 Capellen