sap integrated business planning for demand driven replenishment

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Introducing DDMRP with SAP IBP Demand-Driven Replenishment for SAP ERP

• Discover how SAP IBP handles demand-driven replenishment
• See how to position buffers, protect throughput, and pull materials in SAP ERP
• Envision your demand-driven enterprise with SAP IBP

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Thomas Wright is a principal solutions engineer for SAP America. As a member of SAP’s supply chain planning team, he leverages SAP’s collective expertise to help customers improve efficiencies using technologies for planning and executing lean supply chains.

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SAP unveils new supply chain planning solution

This week, SAP announced the launch of its new solution, the SAP Integrated Business Planning application for demand-driven replenishment. Designed in partnership with Camelot ITLab, the application helps users compensate supply chain variability, compress lead times and reduce inventories.

“SAP continues to deliver digital supply chain portfolio innovations that simplify how our customers run their organizations,” said Franz Hero, senior vice president, SAP Supply Chain and Logistics Development. “This latest offering incorporates industry-proven methodologies to help companies address the challenges of increasingly volatile business landscapes and gain immediate improvements in business operations.”

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The principal methodology behind the Integrated Business Planning application is that of demand-driven material requirements planning (DDMRP), which is used to model, plan and manage supply chains, and protect and promote the flow of relevant information and materials.

The DDMRP approach allows users of SAP’s solution to Dampen the effect of demand and supply variation on the supply chain by calculating inventory buffers and assigning and managing those buffers at strategic decoupling points; drive replenishment at strategic decoupling points from actual demand; and achieve visibility and demand-driven prioritization of supply based on buffer status at decoupling points.

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Introduction to Integrated Planning

After completing this lesson, you will be able to:

• Outline processes covered by SAP Integrated Business Planning for Supply Chain solution

Introduction to Integrated Business Planning and SAP Integrated Business Planning for Supply Chain

The current lesson outlines the structure of the course presenting every unit as a milestone. Every unit refers to a macro process of Supply Chain Planning. Further, Integrated Business Planning is explained as a general term within Supply Chain Planning. Integrated Business Process refers to a business process used to address supply chain challenges, risks, and opportunities.

The second unit addresses Integrated Planning Processes within the previous definition, answering the question - "how can we integrate business processes in Supply Chain Planning via SAP Integrated Business Planning?".

Next unit three, presents important SAP IBP functionalities to achieve a professional user experience, such as

• Managing Master Data via MS Excel and the SAP Fiori Launchpad
• Analytics and Dashboards supported by the SAP Fiori Launchpad
• Analytic Stories supported by the SAP Fiori Launchpad
• Planning Workspace via the SAP Fiori Launchpad

Within Supply Chain Planning, the most common challenges occur when companies focus their efforts on integrating functional Planning areas. Integrated Business Planning, as a general term within Supply Chain Management, refers to macro processes such as Demand Planning, Inventory Planning and Optimization, Supply Planning, and Exception Management. This course connects a professional user experience with these as explained unit by unit as follows:

SAP IBP addresses every macro process listed before, that is, it combines Supply Chain monitoring, Sales and Operations Planning, Demand Management, Inventory Planning, and Supply Planning into a comprehensive solution, which also supports the integration of data from external systems such as SAP ERP or SAP Advanced Planning and Optimization. SAP IBP provides applications to facilitate the following key differentiators:

Balancing of demand and supply

Harmonization of Planning across corporate functions through organizational visibility and alignment

Responsive Planning with advanced algorithms, optimization, and what-if scenario simulation Planning

Demand-driven Supply Chain Planning based on Demand Sensing, analysis, and predictive forecasting

Multi-stage Inventory Optimization and improved customer service levels

End-to-end Supply Chain visibility with real-time monitoring, Analytics, alerting, and exception management

Creation of product allocation and supply plans, and ability to respond to changes with simulations and gating factor analysis

SAP Learning System Access

If you have an active subscription to the SAP Learning Hub, you can also select an SAP IBP system to practice the course exercises using the following link.

Log in to track your progress & complete quizzes

• Početna stranica
• Svi proizvodi
• Upravljanje lancem nabavke
• SAP Integrated Business Planning
• Demand-Driven Replenishment

Demand-driven replenishment

Use strategic decoupling points and inventory buffers to control the flow of material through the supply chain., position your inventory buffers strategically.

To enable the uninterrupted flow of material through the supply chain, the recommended decoupling point operator in SAP Integrated Business Planning sets decoupling points (inventory buffers) within your product structure and supply chain. Influencing factors for your inventory locations are internal and external variability, customer tolerance time, and inventory flexibility, among others. Scenario capabilities provide visibility into the quantity and value impact of changing the decoupling point.

Calculate and refine replenishment buffer levels

In the “Protect” stage of the process, the software suggests how much material must be placed for each decoupling point, per part and location. Each buffer quantity is divided into three zones that are identified by the colors green, yellow, and red. The green zone controls the frequency and minimum order size of each replenishment order, the yellow zone indicates the heart of demand coverage, and the red zone is safety stock. You can evaluate and dynamically fine-tune the suggested buffer values by incorporating information the system might not have, such as promotions or resource closures.

Generate replenishment orders and execute them

In the final “Pull” stage of the process, order quantities are calculated to bring the available stock position to the target level of the buffer zone. Minimum order quantities can be considered as input for planning. For order execution, you can evaluate color-coding and buffer status alerts that indicate which orders need to be prioritized. Finally, replenishment proposals are converted into demand and supply order elements in ERP.

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Explore all capabilities of integrated business planning

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Automate the statistical forecasting process and apply machine learning algorithms to predict demand.

Inventory planning and optimization

Establish optimal inventory targets that enable you to maximize profits, while ensuring customer service levels.

Response and supply planning

Generate feasible supply plans to meet demand with accurate inventory targets and efficient capacity utilization.

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• Demand-Driven Replenishment

Demand-driven replenishment

Use strategic decoupling points and inventory buffers to control the flow of material through the supply chain., position your inventory buffers strategically.

To enable the uninterrupted flow of material through the supply chain, the recommended decoupling point operator in SAP Integrated Business Planning sets decoupling points (inventory buffers) within your product structure and supply chain. Influencing factors for your inventory locations are internal and external variability, customer tolerance time, and inventory flexibility, among others. Scenario capabilities provide visibility into the quantity and value impact of changing the decoupling point.

Calculate and refine replenishment buffer levels

In the “Protect” stage of the process, the software suggests how much material must be placed for each decoupling point, per part and location. Each buffer quantity is divided into three zones that are identified by the colors green, yellow, and red. The green zone controls the frequency and minimum order size of each replenishment order, the yellow zone indicates the heart of demand coverage, and the red zone is safety stock. You can evaluate and dynamically fine-tune the suggested buffer values by incorporating information the system might not have, such as promotions or resource closures.

Generate replenishment orders and execute them

In the final “Pull” stage of the process, order quantities are calculated to bring the available stock position to the target level of the buffer zone. Minimum order quantities can be considered as input for planning. For order execution, you can evaluate color-coding and buffer status alerts that indicate which orders need to be prioritized. Finally, replenishment proposals are converted into demand and supply order elements in ERP.

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Gain end-to-end visibility of your supply chain and detect potential disruptions with SAP Supply Chain Control Tower.

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Unify financial and operational stakeholders in one S&OP process to foster collaboration –aligning inventory, service levels, and profitability.

Forecasting and demand management

Automate the statistical forecasting process and apply machine learning algorithms to predict demand.

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Establish optimal inventory targets that enable you to maximize profits, while ensuring customer service levels.

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Generate feasible supply plans to meet demand with accurate inventory targets and efficient capacity utilization.

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Product Expert - Integrated Business Planning

We help the world run better At SAP, we enable you to bring out your best. Our company culture is focused on collaboration and a shared passion to help the world run better. How? We focus every day on building the foundation for tomorrow and creating a workplace that embraces differences, values flexibility, and is aligned to our purpose-driven and future-focused work. We offer a highly collaborative, caring team environment with a strong focus on learning and development, recognition for your individual contributions, and a variety of benefit options for you to choose from. 

SAP supply chain management (SCM) solutions have achieved a leading market position and are used by more than 2,500 customers worldwide. We aim to innovate the SCM product portfolio through Integrated Business Planning and S/4HANA. SAP Integrated Business Planning (SAP IBP) is a cloud solution that enables companies to react quickly to customer demands and helps them handle changes and shortages in the supply chain by generating a short to mid-term supply plan based on prioritized and categorized demand, such as orders and forecasts. You can learn more about SAP IBP  here . The development of SAP Integrated Business Planning is fueled by various customer engagements and the collaboration between several teams in different locations. 

EXPECTATIONS AND TASKS

As a Product Expert for Integrated Business Planning, you are a highly motivated, multi-disciplined, and experienced team player with a strong background in supply chain and passion for product management, and an urge to deliver cutting-edge products in a dynamic result-driven environment.   You will work on the entire lifecycle of development projects together with customers, SAP colleagues, and development partners. You will engage with customers and numerous stakeholders to gather feedback, understand customer needs and formulate product requirements to define the product backlog.

• Deliver on a vision, strategy, and roadmap. Communicate the vision and roadmap with the engineering teams, stakeholders, partners, and customers
• Ensure delivery of feasible, desirable, and viable products with superior quality
• Oversee the business requirements gathering from internal stakeholders, partners, and customers. Manage their expectations ensuring excellent collaboration and relationship
• Define product requirements, user stories, and other development tasks for your development scrum team
• Manage the scrum team’s portfolio & backlog, drive planning and execution, being accountable for the delivery of the team
• Be a team player and ensure the success of your team by using your strong social skills and being open to new ideas and intercultural cooperation
• Prepare, publish, demo, and present the product domain internally and in customer-facing events
• Work with the UX researchers to identify the biggest pain points and provide solutions
• Foster customer co-innovation, act as a voice of the customer and ensure higher adoption of our solutions
• Work on highly collaborative and agile development projects while staying curious about new development methodologies
• Keep abreast of relevant industry and technology trends and best practices

EDUCATION AND QUALIFICATIONS / SKILLS AND COMPETENCIES

• University degree(s) in Business Administration, Computer Science, or equivalent (Master’s degree preferred)
• Strong problem-solving and analytical skills, as well as the ability to structure and process complex topics
• Deep knowledge of Agile Software Development Methodologies, specifically SCRUM
• Result-driven: a driver for execution with proven management and leadership skills (leading with and without authority)
• Decision maker: analytical abilities, innovative and creative problem solver with an obsession for quality
• Strong expertise in requirement engineering
• Excellent communication skills
• Experience in the field of Supply Chain, Planning, AI, and Cloud is an asset
• Fluency in English (spoken and written) is mandatory

WORK EXPERIENCE

• Experience in driving software development projects as a product owner and contributing to engineering discussions around technology decisions related to a product
• Proven track record in working with cross-location and multi-cultural teams, product planning, defining and launching successful products
• Preferably 3 to 5 years of experience as a Product Owner at SAP
• Minimum of 8 to 10 years of professional experience in product management
• Experience in solving complex conceptual and technical challenges with customers
• Knowledge of SAP UI5, Fiori, JavaScript, ABAP, HANA, OData is desired

Bring out your best

SAP innovations help more than four hundred thousand customers worldwide work together more efficiently and use business insight more effectively. Originally known for leadership in enterprise resource planning (ERP) software, SAP has evolved to become a market leader in end-to-end business application software and related services for database, analytics, intelligent technologies, and experience management. As a cloud company with two hundred million users and more than one hundred thousand employees worldwide, we are purpose-driven and future-focused, with a highly collaborative team ethic and commitment to personal development. Whether connecting global industries, people, or platforms, we help ensure every challenge gets the solution it deserves. At SAP, you can bring out your best.   

We win with inclusion

SAP’s culture of inclusion, focus on health and well-being, and flexible working models help ensure that everyone – regardless of background – feels included and can run at their best. At SAP, we believe we are made stronger by the unique capabilities and qualities that each person brings to our company, and we invest in our employees to inspire confidence and help everyone realize their full potential. We ultimately believe in unleashing all talent and creating a better and more equitable world. SAP is proud to be an equal opportunity workplace and is an affirmative action employer. We are committed to the values of Equal Employment Opportunity and provide accessibility accommodations to applicants with physical and/or mental disabilities. If you are interested in applying for employment with SAP and are in need of accommodation or special assistance to navigate our website or to complete your application, please send an e-mail with your request to Recruiting Operations Team: [email protected].

For SAP employees: Only permanent roles are eligible for the SAP Employee Referral Program, according to the eligibility rules set in the SAP Referral Policy . Specific conditions may apply for roles in Vocational Training.

EOE AA M/F/Vet/Disability:

Qualified applicants will receive consideration for employment without regard to their age, race, religion, national origin, ethnicity, age, gender (including pregnancy, childbirth, et al), sexual orientation, gender identity or expression, protected veteran status, or disability.

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Demand-Driven Replenishment in SAP Purchasing (MM‪)‬

Descripción editorial.

After completing his business studies degree, Ingo Licha worked for IT support at SAP AG both in Germany and abroad for several years. He is a certified SAP Solution Consultant SCM Procurement and since April 2009, has been working as a freelance SAP consultant and trainer. At SAP training partners, one of his areas of responsibility is SAP user and consultant training in the area of logistics. Since the summer semester of 2012, Ingo has also been working as a freelance associate lecturer at Ludwigshafen University of Applied Sciences in Germany, in the area “Business and International Programs”.

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