Topic Covered -

1. Supply Chain Planning and Terminologies
2. Demand Forecasting and Supply Chain Management
3. Understanding IBP and Supply Chain Planning
4. Supply Chain Planning Processes Explained
5. Implementing IBP and Transitioning to SAP

Supply Chain Planning and Terminologies

In the meeting, Sam, a trainer, discussed the relevance of supply chain planning for consultants. He explained the concept of a supply chain network, where customers are tagged to locations and preferred shipping services. He also discussed the importance of understanding terminologies like downstream and upstream locations, multi-sourcing constraints, and the flow of goods in the supply chain. Sandeep and Satish raised questions about the impact of price strategy on the supply chain, to which Sam responded that while there would be an impact on cost, the final decision on prioritizing sales or adjusting costs would be taken by the supply chain director. Sam emphasized that the discussion was from a planning perspective, not an execution one.

Demand Forecasting and Supply Chain Management

Sam explains the demand forecasting process in supply chain management. He describes how sales representatives gather input from distributors and customers, while marketing teams provide information on upcoming events and promotions. This data is used by the demand planning function to create forecasts. Sam also discusses the importance of balancing supply and demand, highlighting how constraints like raw material or labor shortages can impact production. He emphasizes the role of Sales and Operations Planning (S&OP) in making decisions to meet demand and maintain service levels. Sam mentions that tools are necessary to provide visibility of exceptions and alerts, helping in decision-making processes.

Understanding IBP and Supply Chain Planning

Sam discussed the supply chain planning process, emphasizing the importance of understanding both the process and the tool. He outlined the various sub-modules within the Integrated Business Planning (IBP) system, including demand, supply, and production planning. He noted that while SAP's Apo has been replaced by the IBP system, Apo's functionalities are still available in the IBP response and supply model. Sam also highlighted the need for model configuration in IBP and the forthcoming training on optimizer. He encouraged the team to focus on gaining a deeper understanding of the supply chain planning process.

Supply Chain Planning Processes Explained

Sam discussed the different planning processes in a supply chain, including operational, midterm, and long-term planning. He explained that the midterm planning horizon can vary between organizations, commonly ranging from 18 months to 36 months. Sam also outlined the three main processes: operational planning, which focuses on short-term production needs; practical planning, which involves forecasting demand and coordinating with suppliers; and strategic planning, which addresses broader goals and product portfolios. Vijay inquired about the order of these processes and their relationship to the IBP (Integrated Business Planning), to which Sam responded that both IBP consultants and detailed scheduling experts are needed. Sam also touched on the importance of understanding the end-to-end supply chain process, including the role of the demand-driven MRP (Material Requirements Planning) in balancing safety stock levels. Sandeep asked about the DDMRP (Demand Driven Mrp), which Sam explained as a tool linked to the supply model, used for balancing safety stock levels.

Implementing IBP and Transitioning to SAP

SAM discussed the complexities of implementing the Inventory Buffer Planning (IBP) module, noting that it requires expertise in inventory planning processes and master data governance. He highlighted the potential for organizations to transition from IBP to other tools, such as SAP S/4, and emphasized the importance of accurate master data for successful implementation. Keshav shared a positive experience with the transition from IBP to Oracle, while Shrinivas raised a business question about using DDMRP for customer stock management. SAM clarified that DDMRP is a complex algorithm that could be potentially used for customer stock management but should be approached cautiously due to its complexity. He emphasized the need for simplicity and localization in implementation processes to ensure long-term success.