Topic Covered -

1. SAP Training Session and Experience Levels

2. Supply Chain Planning Model and SAP IBP

3. Understanding Supply Chain Network Entities

4. Demand Planning Process Discussion

5. Understanding Demand and Supply Planning Processes

6. Strategic and Tactical Planning Collaboration

7. Supply Network Operations and Planning

8. Distributor Roles and Sales Planning

9. Supply Chain Organization and Planning

10. SAP's Supply Chain Planning Evolution

11. SAP IBP Supply Chain Planning Training

SAP Training Session and Experience Levels

Sam led a training session and asked team members to indicate their level of experience with SAP. Naveena confirmed that she had work experience, specifically in her role at Manion. There were some technical difficulties with Naveena's microphone, but her contributions were understood by Sam.

Supply Chain Planning Model and SAP IBP

Sam led a comprehensive discussion on the Supply Chain Planning (SCP) model and its implementation using the SAP Integrated Business Planning (IBP) tool. He emphasized the importance of understanding business processes and parameters before learning how to model these processes using SAP IBP. Sam also clarified the differences between IBP and Ecc models, focusing on the configuration part of production, master data elements, and the execution part. He encouraged questions and summarization of queries throughout the discussion. Owais confirmed his familiarity with the SAP IBP tool.

Understanding Supply Chain Network Entities

Sam explained the structure and functions of a typical supply chain network. He identified various entities within the network, such as the organization itself, distribution centers, retailers, and end customers. He also clarified the roles of these entities, with the organization producing or procuring finished goods, distribution centers storing and distributing these goods, retailers selling them to end customers, and end customers consuming the finished products. Sam emphasized that while some of these entities are within the organization's control, others are external and belong to the supplier network.

Demand Planning Process Discussion

Sam discussed the process of demand planning, which involves predicting the quantity of products that will be sold to distributors over a specific time period. This forecast is then used to calculate any inventory shortages and pass that net demand up the supply chain, from distribution centers to warehouses to manufacturing plants. Demand planning helps ensure the right products are available to meet customer needs.

Understanding Demand and Supply Planning Processes

Sam provided an in-depth explanation of demand planning and supply planning, emphasizing their crucial role in generating production plans and ensuring product availability. He highlighted the importance of understanding these processes for individuals involved in supply chain planning, such as demand planners, supply planners, and production planners. Sam also discussed the process of finalizing a production plan, stressing the need to focus on quantity, assess raw material availability, and consider machine and labor availability. He further explained the execution orders process, the role of logistics and execution, and the concept of distribution requirement planning. Lastly, he emphasized the importance of prediction and execution in the planning process.

Strategic and Tactical Planning Collaboration

Sam clarified the distinctions and intersections between strategic planning and tactical planning. He emphasized the importance of close collaboration and integration between the two processes, especially when it comes to forecasting and aligning with financial projections. Venkatesh's questions were addressed, and he expressed understanding and satisfaction with the explanations.

Supply Network Operations and Planning

Sam provided an in-depth explanation of the organization's supply network operations. He detailed the role of multiple distributors, the use of regional distribution centers, and the optimization strategy based on distributor locations and potential shortages. Sam also clarified the terminology used in the supply planning process, emphasizing the importance of understanding concepts such as net requirements, shortage calculation, and replenishment calculation. He indicated that a basic understanding would be established before exploring the functionalities of IBP, and highlighted that master data elements would also impact the calculation and logic.

Distributor Roles and Sales Planning

Venkatesh sought clarification from Sam about the role of a distributor in the organization's supply chain. Sam explained that the distributor, who is external to the organization, places orders and purchases stock from the supplier, and the supply chain team predicts which distribution center should sell to the distributor. Sam also highlighted that the distributor's input is crucial in forecasting, and their purchase order is treated as a sales order from the organization's side. Furthermore, Sam discussed the impact of contracts and scheduling agreements with distributors and suppliers on the organization's forecasting and planning, emphasizing the need for an integrated, collaborative planning process known as sales and operations planning.

Supply Chain Organization and Planning

Emery and SAM discussed the different functions within a typical supply chain organization. SAM explained that there are dedicated teams for demand planning, supply planning, production planning, and materials planning. A distribution planning function is also necessary to decide how to allocate shortages among multiple warehouses. SAM emphasized that these functions work collaboratively to create a final production plan that considers demand, supply bottlenecks, and finance targets. emery confirmed understanding of a scenario where a warehouse closer to the manufacturing plant would be advantageous.

SAP's Supply Chain Planning Evolution

Sam discussed the evolution of supply chain planning and forecasting tools, starting with SAP's decision not to focus on these functionalities in their SAPCC model. Instead, they introduced SAPPU and transferred these solutions to it. He further elaborated that SAP APO became the core system for planning purposes, and to manage sales and operation planning, they developed IPP, designed to maintain the familiar Excel front-end that users are accustomed to, while the data is stored in a cloud-based database. Sam also highlighted the development of IBP to integrate the results of various planning functions and mentioned that SAP is working to mature these functions by 2027, or risk losing clients to non-SAP tools.

SAP IBP Supply Chain Planning Training

Sam discussed the importance of understanding the supply chain planning process and solution expertise within SAP IBP. He highlighted the significance of demand forecasting and Time Series Analysis for identifying product demand trends and seasonality. Sam outlined the training curriculum covering sales and operations planning, demand forecasting, time series supply planning, and master data requirements. He explained the data integration mechanism and the role of a functional consultant in creating functional specifications. Venkatesh clarified that system access would be granted by the end of next week.