SAP Integrated Business Planning: the solution for advanced supply chain planning
SAP Integrated Business Planning (SAP IBP) is a cloud-based solution that allows you to connect processes and plan them with agility and flexibility to ensure your supply chain is sustainable, efficient and resilient.
Currently, the biggest challenge facing supply chains around the world is the volatility of demand. Not only this, but the complexity of networks and, therefore, the difficulty in efficiently and holistically managing distribution also pose difficulties. Faced with this situation, SAP IBP makes it possible to manage comprehensive processes in real time through sales and operations planning (S&OP) and inventory management.
In this article, discover all of the advantages of using this solution to take your supply chain’s efficiency to the highest level.
SAP IBP modules
SAP IBP is a platform that integrates key aspects of the supply chain, covering demand, sourcing, inventory and S&OP planning. In this way, it’s possible to make more informed decisions and streamline operations.
The platform consists of six modules:
SAP IBP for Demand
Historical data, as well as trends and predictive analysis, make it possible to manage demand with agility and always forecast accurately.
SAP IBP Response & Supply
By considering capacities, the transportation and delivery process and inventories, companies can optimise production and distribution planning based on market changes.
SAP IBP Inventory Optimisation
The platform integrates up-to-date inventory data and forecasts of demand peaks. With this information and SAP IBP’s alerts and suggestions, decisions can be made to help maintain optimal inventory levels to increase efficiency, taking into account storage and transportation costs, among other things.
SAP S&OP
The solution offers a collaborative and unified space for planning. This makes it much easier to align actions with key performance indicators (KPIs) and strategic objectives.
SAP Demand-Driven Replenishment
SAP IBP helps to plan material needs. In this way, intermediate stocks of inventory can be strategically positioned in the logistics chain to prevent risks associated with demand variability and uncertainty.
SAP Control Tower
With this solution, all parties involved have a broad view of the chain and have the necessary data to be able to respond quickly to market conditions and customer needs.
Benefits of SAP IBP
Thanks to the SAP IBP platform, planners, analysts and managers from different areas have access to an integrated virtual space where all relevant processes and teams are aligned and have up-to-date data for decision-making. There are many advantages which cover different areas important to the company’s success.
Integration
One of the main advantages of this solution is that it integrates aspects of the entire supply chain into its control panels, from demand and supply planning to execution and monitoring. In this way, it enables informed and coordinated decision-making. In addition, the tool can be integrated with other SAP and third-party systems.
Collaboration
SAP IBP facilitates collaboration between people and teams at each link in the supply chain. Sales, marketing, production, logistics, finance and other personnel can work together with the latest data and with the same level of transparency.
Visibility
In fact, visibility is another advantage of this system, which offers greater transparency and total control of data at all times. In addition, the graphs and tables in which the information is presented are customisable, as are the control panels, to adapt to the needs of each company. This control over data makes it possible to predict demand and supply better, and thus be more prepared to respond to contingencies.
Simulation
Advanced analytics, together with powerful algorithms and artificial intelligence assistance, not only enable real-time visibility and generate better forecasts, but also offer highly advanced simulations of scenarios and variables. Thus, the impact of different measures can be evaluated and risks mitigated while optimising planning and improving strategic decision-making.
Operational efficiency
SAP IBP functions and the alignment of production capacity with actual demand results in greater operational efficiency. In addition to better managing resources, it’s possible to optimise profitability and save money. For example, thanks to inventory and logistics data and projections, companies can make better decisions to reduce storage and transportation costs.
Adaptability
In addition to being able to adapt and customise itself to the specific needs of each organisation, SAP IBP helps companies be more resilient to a volatile and uncertain environment.
Learn more about SAP IBP
With SAP Integrated Business Planning, companies can take their operational efficiency to the highest level, make more informed decisions and maximise the resilience of supply chains in a competitive and challenging environment.
At NTT DATA, we have experts who can help you answer questions and discover the potential of this tool to improve the efficiency of your supply chain. Get in touch with us and take the leap to the next level or ask us for a demo of the solution.
