SAP Integrated Business Planning (IBP) is a modern and flexible tool for supply chains. Powered by SAP S/4HANA and AI and machine learning capabilities, the tool integrates financial, demand, supply, and inventory plans. SAP IBP helps transform your sales and operations planning into more effective decision-making.
Why does traditional business planning fail to deliver results?
Recently, we’ve seen how global events can create rapid shifts in demand. Demand is also impacted by a variety of factors such as the season and weather – and in traditional systems, the effect of external factors like this can’t be taken into account.
Supply chain planning must be flexible enough to respond to sudden fluctuations, and a fast reaction is needed to prevent significant disruption. Traditional business planning often includes separate planning processes and solutions, and the accuracy of demand forecasting is often insufficient.
How SAP IBP helps
SAP Integrated Business Planning transforms your business planning in the following ways:
-
The tool provides full visibility of the entire supply chain, which makes each organization’s role more evident in achieving common business goals. You can integrate and connect all supply chain planning processes with financial planning.
-
Supply and demand, as well as capacity are balanced, and supply of raw materials can be connected to respond to demand of the end-product. You can prioritize demand and allocate supply with smart tools.
-
While traditional business planning relies on historic trends, IBP provides powerful statistical forecasting capabilities such as demand sensing and exception-based planning to create a demand forecast based on current realities.
-
Demand-driven replenishment means better planning and management of supply chains when there are disruptions of supply chains or demand fluctuations. You can reduce variability and inventory levels with strategically placed buffers. This allows businesses to hold the right inventory at optimal levels.
-
The interface is a pleasure to use, which is a key factor in making sure you get employees onboard and using the system. The tool includes a supply chain control tower with alerts, dashboards, and predefined KPIs that allow managers to navigate, analyze, and manage their supply chain in real time.
SAP IBP allows improved responsiveness to a changing operating environment and demand fluctuations. With the tool, you can allocate critical resources like people, equipment, inventory, materials, time, and money efficiently to satisfy customer needs. You also get real-time visibility of inventory, the supply situation, and demand variations.
Want to learn how SAP IBP can help your organization? Contact us to set up a demo.
