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What is SAP IBP? - An overview

IBP stands for

List of SAP IBP modules. SAP IBP Supply Chain Control Tower, SAP IBP for Demand, SAP IBP for Response & Supply, SAP IBP for Demand, SAP IBP for Inventory and SAP IBP for DDMRP

SAP IBP is a cloud-based supply chain planning solution and the successor to SAP APO (Advanced Planning and Optimisation). SAP IBP stands for SAP Integrated Business Planning. The HANA-based IBP solution from SAP combines traditional planning and forecasting functions with advanced machine learning algorithms and heuristics. By integrating operational, tactical, strategic and financial sales and production planning processes, SAP IBP enables comprehensive corporate planning. Modern methods and processes for demand, distribution, production and procurement planning are crucial for profitable growth and a robust value chain. SAP IBP supports you in fact-based decision-making, taking into account key financial figures. SAP IBP is more than a simple supply chain planning tool. 

Why do I need SAP IBP?

There are numerous benefits to using SAP IBP, including sales planning with greater accuracy, more reliable forecasts, an increased product profitability and optimized production and logistics planning. It also serves as support and pursuit of strategic corporate goals, improves the transparency for long-term business prospects and offers monitoring functions for defined company key figures/KPIs.

A selection of problems that SAP IBP also helps with are: 

  1. Insufficient transparency of the supply chain and lack of real-time information

  2. Too high or too low Stocks 

  3. Customer service level is not satisfactory

  4. Difficulties with the demand forecasting

  5. Inadequate capacity planning to plan future workloads

  6. Difficulties with the supplier planning

  7. Complex and confusing planning processes, possibly also in silos

If you identify with at least 2 points, we recommend that you take a look at SAP IBP and book a free consultation with one of our experts.

Each module contains a specific range of functions and must be licensed individually. Since not every company needs all modules, we help you choose the right modules to achieve the greatest business impact. 

SAP IBP Supply Chain Control Tower

With the Supply Chain Control Tower and dynamic alerts, you always have an overview of your supply chain. See directly where there are production bottlenecks or difficulties worldwide. Having an overview of complex supply chains has never been so easy.

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You can use infinite heuristics to plan your production capacities throughout your entire supply chain, and use driver-based planning and ad-hoc what-if scenarios to always keep utilization under control.

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SAP IBP for Response & Supply

With finite production planning and the optimizer, you automatically get the most out of your supply chain while minimizing costs and increasing your delivery reliability. You can also react to short-term events as quickly as possible.

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SAP IBP for Demand

Create ML and AI-supported forecasts, involve external sources, convince yourself of short-term demand forecasting (demand sensing) and plan your product life cycles (PLM).

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SAP IBP for Inventory

Inventory optimization with Multi-Echelon Inventory Optimization optimizes inventory across locations and prevents the bull whip effect. 

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SAP IBP for DDMRP (Demand Driven Replenishment)

Manage strategically important products with inventory buffers and “resupply trigger zones,” automatically replenish inventory when “pull signals” are reached, and collaborate with your suppliers and customers.

SAP IBP consists of six modules

Processes can be mapped in different modules. We advise you on licensing the right modules. 

What are the strengths of SAP IBP?

The strengths of SAP IBP ​arethe planning and optimization of the supply chain and inventory, while at the same time integrating business processes and areas into one toolto generate a viable business plan. SAP IBP relies on the latest technologies such as machine learning (ML) to achieve make system-supported decisions. Another strength is working together in scenarios and versions to create what-if plans and thus be prepared for future risks. 

The best approach for an SAP IBP project

The introduction of SAP IBP can seem opaque at the beginning. Thanks to our many years of project experience, we can guide you through all the steps.

This approach is essential for a solid SAP IBP project implementation: 

  1. Finding phase ​

  2. Concept phase

  3. Proof of Concept (optional)​

  4. Implementation (full or pilot)​

  5. Go Live & HyperCare​

  6. Rollout (optional)​

  7. Application Management Support (optional)​

We have detailed information on how an SAP IBP implementation works summarized here for you. 

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