112_SUC_Overview of SAP IBP

Topic Covered - 1. SAP Integrated Business Planning Session

2. Sales Functions and Supply Chain Management

3. Production Planning, Inventory Management, and Supply Planning

4. Planning Tools and Their Applications

5. Parminder's System Sub-Modules and Integration

6. SAP IBP Demand Planning Functionality Shift

7. SAP IBP Implementation and Supply Chain Control Tower

8. IDP Model, Integration, and Training Curriculum

9. PP Module and SAP SD Discussion

10. Integrated Business Planning Course Overview

11. IVP Training Session and Internship Program


SAP Integrated Business Planning Session


parminder led a session on SAP Integrated Business Planning (IBP), covering its concepts and applications. He introduced Sam, the IBP expert, who would delve deeper into the topic. parminder also highlighted the importance of understanding planning and its various solutions, emphasizing that IBP fits into different business scenarios. He informed the attendees about an ongoing 15% discount on all courses, valid until August 15, and encouraged them to make use of it.


Sales Functions and Supply Chain Management


parminder discussed the different scenarios in sales functions, with a focus on high volume, quick supply products and the concept of 'make to order' for customized machines. He emphasized the importance of having a large warehouse for quick dispatch and efficient planning, contrasting this with the Amazon model where products are produced and dispatched over a longer period. parminder also highlighted the significance of demand planning, sales operation planning, and accurate forecasting in managing supply chains and meeting customer demands. He encouraged participants to ask questions and focus on understanding the concepts being presented.


Production Planning, Inventory Management, and Supply Planning


parminder discussed the importance of production planning and inventory management to fulfill sales demands. He explained that production planning involves identifying the necessary materials, considering lead times and production capacities, and deciding when and how much to produce. Inventory planning, on the other hand, focuses on maintaining adequate stock levels of essential items. parminder also introduced the concept of supply planning, which determines the most economical source of supply among multiple plants. He emphasized that these plans should be regularly reviewed and adjusted based on changing stock levels and demand.


Planning Tools and Their Applications


Parminder discussed the complexities of planning tools and their applications in various scenarios. He explained that different planning solutions are available, including supply network planning, demand planning, sales and operations planning, and inventory planning, among others. parminder highlighted that while SAP is a significant provider of planning solutions, other companies also offer similar tools. He further clarified that SAP's ERP system, while useful, is primarily a transaction system and not a comprehensive planning system. He suggested that for more advanced planning, one should consider using APO, a separate product that runs on a different server.


Parminder's System Sub-Modules and Integration


parminder discussed the various sub-modules of their system, including Tp, Ppds, GATP, Snp, and the newly introduced Ddmrp and Mrp live. He explained that Apo is sunsetting by 2030 and that S. 4 Hana now supports multiple new products to support planning functions. parminder also highlighted the integration of Ibp into the system for advanced planning solutions and the availability of training for Atp. He then handed over the discussion to Sam, who elaborated on the concept of forecasting and the issues with Apo.


SAP IBP Demand Planning Functionality Shift


Sam discussed the shift of demand planning functionality from SAP APO to SAP IBP, highlighting the new features and improvements. He explained that SAP IBP now includes a dedicated license for demand planning, incorporating various forecasting methods and algorithms for unconstrained and constrained demand plans. Sam also introduced the demand sensing model, the inventory planning concept, and the DDMRP algorithm, which is now part of both IBP and SAP S/4HANA. Lastly, he discussed the materials requirement planning, supply network planning, and sales and operations planning processes within the integrated production and planning model.


SAP IBP Implementation and Supply Chain Control Tower


Sam discussed the development and implementation of a new tool by SAP, called IBP (Integrated Business Planning), to streamline the SNOP (Sales and Operations Planning) process. The tool was designed to mimic the functionality of Excel, making it easier for organizations to transition from offline calculations to a systematic approach. Sam also introduced the concept of a Supply Chain Control Tower to manage and monitor key performance indicators (KPIs). He noted that while there are different models available in IBP, most organizations prefer the SNOP model, which can be combined with other models like RBP for demand planning. Finally, Sam explained the architectural concept of IBP, which involves creating a dedicated client-specific instance for each organization.


Idp Model, Integration, and Training Curriculum


Sam discussed the functionalities and integration of the Idp model, emphasizing its use as a front-end with other systems like SAP. He detailed the training curriculum, focusing on the sales and operations planning process, demand forecasting, time series supply planning, and the SNOP process. Sam also outlined the configuration and hands-on training on the SAP IBP planning area architecture, demand calculations, time series supply calculations, and data integration concepts. He highlighted the program's inclusivity, designed to cater to a diverse range of participants, and its transferability to other systems. Finally, he handed over the discussion to parminder and his team for subsequent topics.


PP Module and SAP SD Discussion


Sam and parminder discussed the prerequisites and benefits of the PP module and SAP SD for supply planning and demand management. Sam clarified that while having experience with these systems can be beneficial, it is not a prerequisite for understanding the supply planning concepts. He emphasized that the focus should be on understanding business processes and logic, rather than technical coding language. Sam also mentioned that the training curriculum should focus on demand sales and operations planning, time series supply planning, and net requirement calculation. He further explained that while external algorithms can be integrated with IBP for preprocessing, specific configurations and data services are required.


Integrated Business Planning Course Overview


Sam and parminder led a session on the Integrated Business Planning (IBP) course, focusing on its curriculum, interactive elements, and career guidance. Kaushal clarified that inventory management is not part of the IBP course but is a separate topic. Venkatesh asked about the demand planning module, to which Sam clarified that it covers both short-term and long-term planning. Sam also confirmed that there are machine learning capabilities within IBP. Regarding certification, Sam advised that it's beneficial but not mandatory, suggesting that hands-on experience and a good understanding of SAP IBP are more important.


IVP Training Session and Internship Program


Sam announced the upcoming training sessions starting from the 18th, with parminder thanking Sam for his dedication to the project. parminder also informed the team about the start of a new batch for the Interactive Virtual Platform (IVP) training, with Sam as the main trainer. The cost of IVP system access was discussed, with parminder explaining it was expensive, around 70 to 75k per user ID. parminder emphasized the importance of booking sessions early to secure preferred time slots and highlighted the training material that would be provided, including standard SAP IBP books, video content, and live sessions. He also clarified the internship program, stating it primarily involves working on simulation environments and not real-time implementation projects.

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