Supply Chain Planning with S/4 HANA & Integrated Business Planning. Sagar Deshmukh, SAP July 2017

Transcription

1 Supply Chain Planning with S/4 HANA & Integrated Business Planning Sagar Deshmukh, SAP July 2017

2 Legal disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP s strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code, or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP s willful misconduct or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. 2

3 Supply Chain Planning with S/4 HANA & Integrated Business Planning Agenda 1. Overview 2. SAP S/4HANA Supply Chain solution 3. SAP Integrated Business Planning 4. Integration scenarios and technology 5. Customer cases 6. Appendix 3

4 Overview

5 S/4 HANA Outlook Secure Roadmap with Integration of both Existing and new Digital SCM solutions with S/4 HANA Advanced Planning and Project Management (On Premise Deployment) Integrated Business Planning (IBP) (New, Unified Platform for Cloud Deployment) Supply Chain Execution Platform (On Premise Deployment) Portfolio & Project Management (PPM) Advanced Planning & Optimization (APO - DP, SNP, PP/DS, GATP) Supply Network Collaboration (SNC) SAP HANA Platform Supply Chain Control Tower Sales & Operations Planning Demand Inventory SAP HANA Platform Supply & Response Warehouse Management Track & Trace Transportation Management SAP HANA Platform SAP Asset Intelligence Network Portfolio & Project Management S/4 Enterprise Management and new S/4 HANA Products Material Planning/PP/DS Extended Warehouse Mgt. Advanced ATP & Transportation Order Scheduling Management... 5

6 SAP S/4HANA Supply Chain solution- PP/DS

7 SAP S/4HANA 1610 Production planning and detailed scheduling (PPDS) * UI Harmonization, CIF Simplification, Master Data Harmonization, Analytics Traditional system Reinvented Business Processes with SAP S/4HANA Unique Value of S/4HANA SAP Advanced Planning and Optimization planning and detailed scheduling ERP CIF Live cache SAP HANA platform SAP S/4HANA Master data CIF Planning and detailed scheduling SAP HANA platform, including live cache TCO reduction: PPDS functionality gets codeployed with SAP S/4HANA on the same system utilizing one HANA database instance Integration for material master and work center resource not needed Constraint based planning, using various heuristics and optimizers by bringing PP/DS on SAP S/4HANA, reducing integration efforts and allowing seamless master data & UI harmonization * does not reflect licensing 7

8 SAP S/4HANA 1610 Capabilities highlights for production planning and detailed scheduling*» Access production planning and detailed scheduling as part of the manufacturing planning functionalities in SAP S/4HANA 1610» Create procurement proposals for in-house production or external procurement to cover product requirements» Optimize and plan the resource schedule and the order dates and times in detail by taking the resource and component availability into account» Plan critical products, such as products with long replenishment lead times or products that are produced with bottleneck resources» Create executable production plans» Use the Create Optimal Orders for Shipment app to order several materials in one purchase order and optimize the order quantities to best utilize the capacity of the means of transport Monitor capacity utilization SAP Fiori app for production scheduling board * Does not reflect licensing 8

9 SAP S/4HANA 1610 Production planning and detailed scheduling - Monitor Capacity Utilization Evaluation Profile and Horizon based on the customization Filter: Currently filtered by resources Utilization Chart based on daily buckets KPIs Navigation Options 9

10 SAP S/4HANA Supply Chain solutionaatp

11 Available to Promise Current functional model With SAP S/4HANA for Supply Chain APO Product Availability Check Product Allocation Substitutions/RBA Code Pushdown to HANA Back order processing(bop) Data replication via CIF Etc. SAP S/4HANA Product Availability Check ERP Basic Product Availability Check Product Allocation- Info structure Rescheduling Product Allocation BOP Substitutions/RBA Etc. 11

12 SAP S/4HANA the radically new approach advanced available-to-promise* Business Motivation Situation Business Suite Capability» In a demand oriented market organization, successful companies need to provide bestin-class service levels for order fulfillment and, at the same time, following trends such as lot-size 1 (e.g. web shop scenarios) and flexible order sequence based on customer priority and revenue per order.» Significant performance improvements in backorder processing allow the customers to execute the run more frequently, adapted to his business needs. Thus, the delivery times can be reduced essentially.» Runtime and memory consumption demands of the classic backorder processing run limited the adoption: For instance, customers with high-end wholesale scenarios refrained from using backorder processing at all.» The underlying algorithm does not allow to combine different order release strategies (release for delivery), for example to combine customer priorities with time priorities, within one common run. Thus, the overall result was a combination of multiple runs with local optimizations. The customer needs to set up a complex sequence of batch schedules.» SAP S/4HANA brings a performance optimization of factor of 10+ in the ATP check routines over Business Suite (new algorithm). Now, backorder processing can be run sub-daily.» In addition, due to the mass capabilities of SAP HANA the algorithm allows for the flexibility needed to combine different release strategies within one run in order to obtain a global optimum.» A comprehensive SAP Fiori app (Release for Delivery) allows the user to check and further optimize the outbound delivery schedule after the backorder processing run. * Does not reflect licensing SAP SE or an SAP affiliate company. All rights reserved. Public 12

13 SAP S/4HANA 1610 Capabilities highlights for advanced available-to-promise* SAP S/4HANA enabled mass product availability check for sales, planned, and production orders Product Allocation» Supports the business decision if a sales order should be confirmed and, if yes, to which extent» Decision can be based on almost every attribute of the underlying sales order, material, plant, or customer» Grouping and aggregation capabilities (collective allocations) for simplification and ease of maintenance Back-Order Processing» New SAP Fiori UIs to set up back-order processing (BOP) runs» New concept for requirement classification, like winner, gainer, redistributor, filler, loser» New SAP Fiori app to display the BOP result result is displayed on different aggregation levels and allows an easy identification of (and fast drill-down to) confirmation issues Release-for-delivery app to enable timely actions on short-term supply-and-demand changes. * Does not reflect licensing 13

14 SAP S/4HANA 1610 Back-Order Processing (BOP): Confirmation Strategy Five confirmation strategies with the new advanced available-to-promise in SAP S/4HANA aatp confirmation based on business priority instead of order creation time. Win Gain Redistribute Fill Lose Confirm as requested Improve if possible Redistribute Delete confirmation if required Delete confirmation Shall be fully confirmed in time (MBDAT of requirement in past shall be today). Shall at least keep the confirmation and should gain. Should gain, but may also lose. Shall not gain anything, should keep confirmation, but may also lose. Shall lose everything. Can gain quantityfrom 14

15 15

16 SAP S/4HANA Supply Chain solution - EWM

17 SAP S/4HANA 1610 Capabilities Highlights for Integrated Extended Warehouse Management* Plans to bring the full scope of the SAP Extended Warehouse Management (SAP EWM) application into SAP S/4HANA software, which will provide customers with flexible deployment options to run all kinds of warehouses within a single SAP solution» Access business partner data within SAP S/4HANA instead of replicating business partners to a decentralized EWM system» Use material and product data within SAP S/4HANA instead of replicating it to a decentralized EWM system» Manage batch master data within SAP S/4HANA instead of replicating it to a decentralized EWM system» Directly read purchase order data, process order data, and production order data instead of replicating those objects to a decentralized EWM system and storing them in an expected goods receipt document» Skip warehouse request objects and process only outbound delivery orders without using outbound-delivery requests; process only inbound deliveries without having inbound-delivery notifications; process only posting changes without using posting-change requests» Maintain only one quality document instead of working with a quality inspection document and a quality management (QM) inspection lot» Eliminate the need to replicate accounting objects» Directly read material values instead of making periodic replications for decentralized storage * does not reflect licensing 17

18 Business Innovation Reduction of Data Redundancy Direct Read of SAP S/4HANA Master Data Simpler Data Model ERP EWM ERP EWM Purchase Order Replicate Orders Inbound Delivery Expected Goods Receipts Create EWM Inbound Delivery Purchase Order Create EWM Inbound Delivery Inbound Delivery Sales Order Outbound Delivery Outbound Delivery Request EWM Outbound Delivery Order Pick Pack Sales Order Outbound Delivery EWM Outbound Delivery Order Pick Pack ERP EWM ERP EWM Purchase Order Production Order Inbound Delivery Inbound Delivery Notification EWM Inbound Delivery Order Unload Put away Purchase Order Production Order Inbound Delivery EWM Inbound Delivery Order Unload Put away Material Posting Outbound Delivery Posting Change Request Posting Change Material Posting Outbound Delivery Posting Change 18

19 Business Innovation SAP EWM & SAP S/4HANA Outlook SAP EWM embedded in SAP S/4HANA* New deployment option for our customers Small & midsize warehouses; production warehouses Warehouse Management* Integrated SAP EWM LES (WM) SAP EWM (Decentralized ) On Premise» Decentralized SAP EWM (integrated to SAP ERP or SAP S/4HANA) is planned to be a long-term valid deployment option for SAP EWM for good reasons (e.g. regional EWM systems, risk mitigation, specific planned down-times, scale-out for large DCs, multi-erp connected; different release cycles; proximity to warehouse (MFS);..)» Decentralized SAP EWM and central S/4HANA EWM are planned to share a common core of warehouse management functions This common Core is planned to evolve over time with new functions in both EWM options.» Decentralized SAP EWM and central SAP S/4HANA EWM are planned to have different technical integration features with SAP ERP, but identical integration with other SAP systems (e.g. GTS, TM,..)» Decentralized SAP EWM and central SAP S/4HANA EWM are planned to cover the same business scenarios & processes with only minor exceptions e.g. central SAP EWM can only integrate with local ERP client, no multi ERP client integration will be possible as required in some LSP (Logistics Service Provider) scenarios * See Simplification List 19

20 SAP S/4 HANA EWM Roadmap 20

21 SAP S/4HANA Supply Chain solution - TM

22 SAP S/4 HANA TM Roadmap 22

23 SAP Integrated Business Planning

24 SAP S/4HANA Current business scope SAP S/4HANA FINANCE SAP S/4HANA HUMAN RESOURCES SAP S/4HANA SOURCING & PROCUREMENT SAP S/4HANA SUPPLY CHAIN SAP S/4HANA MANUFACTURING Integrated Business Planning Automated Agile Manufacturing Accounting and financial close Treasury and financial risk management Receivables management Integrated business planning human resources and payroll Talent management Time and attendance management Human capital analytics Supplier Collaboration Business Network Supply Chain Control Tower IBP Sales and operations IBP Demand IBP Response and Supply IBP Inventory Manufacturing Integration and Intelligence Manufacturing Execution System Plant Connectivity The Digital Core Accounting and entity close Accounting Cost management and profitability analysis Time capturing SAP Success Factors Employee Central connectivity Order and contract management Supplier information and master data Operational procurement Invoice and payables Operational sourcing and contract management Production planning Inventory and warehouse management Enterprise Management Service management Service master data management Service parts management Service agreement management Maintenance Operations Manufacturing operations Quality management and compliance Product development Commercial Project Management Portfolio and Project Management The Digital Core Billing and revenue innovation management Sales planning and performance management Mobile Service Predictive Maintenance Asset Networks Environment, health, and safety Collaborative Product Development Product safety and stewardship Product Network SAP S/4HANA MARKETING AND COMMERCE SAP S/4HANA SALES SAP S/4HANA SERVICE SAP S/4HANA ASSET MANAGEMENT SAP S/4HANA RESEARCH AND DEVELOPMENT 24

25 SAP Integrated Business Planning in the SAP Digital Supply Chain portfolio Digital Business Planning Digital Product Innovation Digital Response & Supply SAP Leonardo Bridge Digital Manufacturing Digital Logistics Digital Operations Connected Products Connected Assets Connected Fleet Connected Infrastructure Connected People Connected Markets 25

26 SAP Integrated Business Planning Solution Overview 26

27 SAP Integrated Business Planning Solution Overview State-of-the-Art business processes Leverage new technologies to enable new business processes with highly flexible UI s Connected planning processes Break down planning silos through single data model and connected and integrated planning processes Leverage end-to-end visibility End-to-end visibility on strategic, tactical, and operational level Faster planning cycles React faster to changes in the business through complete integration, one user experience Advanced Planning Algorithms Leverage predictive analytics (e.g. demand sensing) in combination with optimization Sales & Operations Demand SAP Integrated Business Planning Enhanced User Experience Supply Chain Control Tower SAP HANA Platform Inventory Response and Supply 27

28 SAP Integrated Business Planning Evolution 2012 SAP Sales and Operations Planning 2.0 SAP Integrated Business Planning for sales & operations New cloud-based HANA platform for advanced planning New Excel and HTML User Experience Unified architecture Comprehensive data model Support for internal collaboration 2013 SAP Sales and Operations Planning 3.0 New HANA Cloud Integration model Integration content for ECC, APO, EIS Extended S&OP modeling, planning, analytics Planning area templates 2014 SAP Integrated Business Planning 4.0 Supply Chain Control Tower SAP Integrated Business Planning for inventory and supply Gartner MQ Leadership Quadrant Future SAP Integrated Business Planning 5.0 IBP for Demand SAP HANA Cloud Platform, integration service (HCI) IBP Integration Templates Functional enhancements to each solution SAP Integrated Business Planning 6.x IBP for Response Order-based data model Integration with SAP ERP, using SAP HANA Smart Data Integration Trade promotion integration and analysis Unified Planning Area plus RDS SAP Integrated Business Planning 1705 Integration with the SAP Ariba Supply Chain Collaboration platform DDMRP Scenario Support Functional enhancements to each solution Major functional investments e.g in IBP for response and supply, demand, Networked IBP incl Supply Chain Execution Convergence & financial planning integration This is the current state of planning and may be changed by SAP at any time. 28

29 SAP Integrated Business Planning Overview Key roadmap themes by application area Development Themes Sales & Operations Demand Inventory Response & Supply Control Tower Platform Enhanced process visualization, automation, and collaboration including workflow and approval processes Advanced algorithms for forecast optimization and inclusion of machine learning Service level optimization, with inventory budget constraints Cost to Serve, Profit-optimized inventory and service levels Near real time & closed loop integration with ERP & S/4HANA Operational supply & distribution planning Demand Driven Replenishment Fiori based analytics & automation with Machine Learning Collaborative Workspaces and Ariba Network integration Simplification, usability and performance Single planning area & implementation templates This is the current state of planning and may be changed by SAP at any time. 29

30 SAP Integrated Business Planning Product direction detail Product direction Advanced planning External integration Industry-specific support SAP Integrated Business Planning (IBP) SAP HANA Platform Scaling & performance Set-up: modelling & configuration Automation SAP Fiori analytics Machine learning Business Network Collaboration This is the current state of planning and may be changed by SAP at any time. 30

31 Business Network Collaboration Product direction detail Product direction Business Networks Private Portals Suppliers SAP Integrated Business Planning (IBP) SAP HANA Platform Forecast Collaboration VMI / SMI Inventory Visibility.. Customers This is the current state of planning and may be changed by SAP at any time. 31

32 SAP Integrated Business Planning Product road map overview - key themes and capabilities V1705 Recent innovations V1708 Planned Q2/2017 V1711 Planned Q3/2017 V1802 Planned Q1/2018 Key New Functionality & Processes New Analytics and Dashboard Fiori apps Deployment planning Supply side collaboration with forecast commit and message integration to SAP Ariba Supply Chain Collaboration (CSC) Supply usage analysis / bottom-up analysis in response management Support of phase-in scenarios for new products in the Product Lifecycle Management app Flexible time axis supporting multiple time levels in same planning view in the SAP Integrated Business Planning, add-in for Microsoft Excel Continuous enhancements in all areas Release 1705 Key New Functionality & Processes New Supply Chain Network Fiori app for visualization of the, and drill-down into the whole network Minimum, maximum, fix and rounding lot sizes & prioritization of multiple forecast key figures in response management Optimize inventory for products that are planned based on historic demand, like slow movers Continuous enhancements in all areas Key New Functionality & Processes New S&OP Process Modeling app, including key figure editability options based on the process status Support of phase-out scenarios for obsolete products in the Product Lifecycle Management app Continuous enhancements in all areas Key New Functionality & Processes New S&OP Process Monitoring and Visualization app Demand forecast collaboration and WebUI for external partners Demand-driven MRP (DDMRP) planning support in inventory optimization User comments on cell level in the SAP Integrated Business Planning, add-in for Microsoft Excel Continuous enhancements in all areas This is the current state of planning and may be changed by SAP at any time. 32

33 SAP Integrated Business Planning Foundation and Platform Product road map overview - key themes and capabilities V1705 Recent innovations V1708 Planned Q3/2017 V1711 Planned Q4/2017 V1802 Planned Q1/2018 Model Configuration New Time Profile Fiori app Analytics New Analytics and Dashboard Fiori app Definable chart options like colors and configurable axis Charts based on versions and scenarios Visibility Filter Change history New viewing and filtering options Data Integration Enhanced check functionality for error validation General Enhancements Enhanced business logging Enhancements to Unified Planning Area and the SAP Best Practices solution Release 1705 Model Configuration New SAP Sample Content Fiori app User Management Mass upload of business users Simplified business user creation Analytics Integration of Supply Chain Network Export of charts and dashboards External API for using external tools on top of IBP data Supply Chain Network Visualization New Supply Chain Network Fiori app General Enhancements Copy operator: Support conversions Enhancements to visibility filter Scheduling of data sharing plan from Microsoft Excel Enhancements to Unified Planning Area and the SAP Best Practices solution Model Configuration Continue redesign of the UI Copy key figure data between planning areas Data Integration New integration templates General Enhancements Enhancements to Analytics Fiori app Enhancements to Supply Chain Network Fiori app Provide further extensibility options Copy operator: Clear key figure values Enhancements to Unified Planning Area and the SAP Best Practices solution Model Configuration Continue redesign of the UI Simplified key figure calculations Analytics Chart annotations & transport of charts between systems Use of planning filters Access Control Input and display-only configuration capabilities for key figure values in Microsoft Excel General Enhancements Enhancements of extensibility options Enhancements to Supply Chain Network Fiori app Enhancements to Unified Planning Area and the SAP Best Practices solution This is the current state of planning and may be changed by SAP at any time. 33

34 SAP Integrated Business Planning, add-in for Microsoft Excel Product road map overview - key themes and capabilities V1705 Recent innovations V1708 Planned Q3/2017 V1711 Planned Q4/2017 V1802 Planned Q1/2018 Flexible time axis with multiple time levels in same view: Basic Scenario Possibility to refuse shared favorites Organize folders, favorites and templates Enhanced business logging Flexible time axis with multiple time levels in same view: Custom Aggregates Enhancements to Change History: Aggregated changes without Change ID Total & Subtotals S&OP task status and task status changes Time dependent user comments on cell level Locking of key figure values Release 1705 This is the current state of planning and may be changed by SAP at any time. 34

35 SAP Supply Chain Control Tower Product road map overview - key themes and capabilities V1705 Recent innovations V1708 Planned Q3/2017 V1711 Planned Q4/2017 V1802 Planned Q1/2018 Additional KPI sample content Total cost to serve (costs) Supply Side Collaboration Forecast commit Message integration to the SAP Ariba Supply Chain Collaboration (CSC) platform Manage data sharing plans Exception Management Mass assignment of alerts to cases Supply Side Collaboration Inventory visibility (stock on hand) Enhanced data sharing plans Enhanced integration with the SAP Ariba Supply Chain Collaboration platform Message monitoring Exception Management Alert notifications Alert overview with drilldowns Additional KPI sample content Cost of goods sold Supply Side Collaboration New planning time-series integration with SAP Ariba CSC. Forecast Commit with SAP Supply Network Collaboration (SNC) Exception Management Case overview with drilldowns Use of planning filters Additional KPI sample content Order fulfillment cycle time Supply Side Collaboration Enhanced integration with SAP Ariba CSC and SAP SNC Excess & obsolescence sample content Collaboration Foundation Message management Demand Side Collaboration Demand forecast collaboration Collaboration Foundation WebUI for external partners Process adherence management Release 1705 This is the current state of planning and may be changed by SAP at any time. 35

36 SAP Integrated Business Planning for sales and operations Product road map overview - key themes and capabilities V1705 Recent innovations V1708 Planned Q3/2017 V1711 Planned Q4/2017 V1802 Planned Q1/2018 S&OP Process Management New sales and operations (S&OP) process chart Assign multiple process charts to one dashboard in the new dashboards Fiori app Navigation to tasks and application jobs directly from the process chart Process automation for non-jam usage Support for business network collaboration Sample Integration Content with financial planning (SAP BPC) Demand Management Forecast model assignments: Traceability Tactical Supply Planning Enhanced logging of S&OP supply operators S&OP Process Management Enhancements to S&OP process management Process step start/end dependency on application job completion Time-stamps for process instances Sample Integration Content with SAP Hybris Cloud for Customer (C4C) Tactical Supply Planning Effectivity dates for Sources of Supply S&OP Process Management New S&OP process modeling app for the configuration of the process templates and instances S&OP task status and task status changes directly in Microsoft Excel Notifications on process exceptions Shelf life visibility Tactical Supply Planning Enhancements to the time-seriesbased supply planning heuristics: Cross-plant production Multiple modes of transport Calculate target coverage based on average demand for specified buckets New planning profile framework for time-series-based supply planning operators S&OP Process Management New S&OP process monitoring and visualization app Process adherence KPIs Key figure editabilty based on process status Assumptions based planning Tactical Supply Planning Support user-defined scenarios Release 1705 This is the current state of planning and may be changed by SAP at any time. 36

37 SAP Integrated Business Planning for demand Product road map overview - key themes and capabilities V1705 Recent innovations V1708 Planned Q3/2017 V1711 Planned Q4/2017 V1802 Planned Q1/2018 Demand Management Product lifecycle management / like modelling: Phase-in (pre-configured curves) Analyze promotions: Filter on any attribute of the promotion level Forecast model assignments: Traceability New, detailed logging Demand Sensing Base balancing End of quarter handling Improve daily disaggregation Demand Management Product lifecycle management / like modelling: Phase-In (configurable curves) Promotion Analysis: Evaluate historical promotion success Improved Automated Exponential Smoothing (AES) Demand Sensing Improve daily uplift balancing Demand Management Product lifecycle management / like modelling: Phase-Out New forecast algorithm ARIMA Demand Sensing Leverage downstream demand data (warehouse withdrawals and point-of-sales data) Demand Management Data re-alignment New forecast algorithm Gradient Boosting Enhancements in forecast model assignment: Display forecast accuracy Demand Sensing Simplify forecast model maintenance Advanced promotion elimination pre-processing algorithm leveraging machine learning capabilities Release 1705 This is the current state of planning and may be changed by SAP at any time. 37

38 SAP Integrated Business Planning for inventory Product road map overview - key themes and capabilities V1705 Recent innovations V1708 Planned Q3/2017 V1711 Planned Q4/2017 V1802 Planned Q1/2018 Enhanced multistage inventory optimization simulation Support make-to-order / assemble-to-order modeling Calculation of average historical demand and its coefficient of variation for un-forecasted products Detailed visibility into pipeline inventory for improved analytics and budget planning Planning unit filtering for end-to-end inventory operators Inventory planning profiles for configuring operator settings inventory optimization using maximum storage constraints (e.g., storage tanks) Multi transportation modes Time-varying days of supply for safety stock and on-hand stock, required for shelf-life reporting Demand-driven MRP planning support (DDMRP) Strategic inventory positioning (manual; automated will follow) Buffer profile and level calculation Product lifecycle management: Like modelling for products Inventory optimization functional enhancements Enhance reorder point calculation for intermittent items to account for demand interval Model impact of production frozen horizon on safety stock Enhance single stage simulation to account for impact of lot size at upstream flow-through nodes Release 1705 This is the current state of planning and may be changed by SAP at any time. 38

39 SAP Integrated Business Planning for response and supply Product road map overview - key themes and capabilities V1705 Recent innovations V1708 Planned Q3/2017 V1711 Planned Q4/2017 V1802 Planned Q1/2018 Response Management Planning enhancements: Start planning run from Microsoft Excel Graphical order network Supply usage analysis / bottom-up analysis Integration: Delta extraction for IBP outbound processing Deployment Planning Basic finite pull deployment heuristics with Stock Transfer Requisition (STR) with type ( deployment STR) Integration of deployment results into SAP ERP Tactical Supply Planning Production lead-times for supply optimizer with capacity resource offset Release 1705 Response Management Multiple forecast types: Prioritize multiple forecast key figures Minimum, maximum, fix and rounding lot sizes Flexible demand attributes Integration: SDI ABAP adapter for periodic integration Deployment Planning Selective integration of deployment results into SAP ERP Tactical Supply Planning Explanation of time-series-based supply planning optimization results Effectivity dates of source of supply Enhancements to the time-seriesbased supply planning optimization Response Management Support full delivery indicator for sales order line items Manual changes to planning results Version specific master data, switchable constraints Integration: Periodic integration with SAP S/4HANA (on premise) for order-based planning and improved error handling and logging Order-based planning in the unified planning area Deployment Planning Fair share with demand slices Manual adjustment of deployment results in Microsoft Excel Flexible available to deploy definition, planning horizons Tactical Supply Planning Enhancements to the time-seriesbased supply planning optimization and heuristic Response Management Support multiple planning areas for order-based planning Version-specific master data for order-based planning: Append additional master data values to already integrated operational master data in base versions Deployment Planning Fair share windows Goods receipt and goods issue handling calendars Means of transport Tactical Supply Planning Enhancements to the time-seriesbased supply planning optimization This is the current state of planning and may be changed by SAP at any time. 39

40 RM1 Summary Connected Supply Chain including SAP Integrated Business Planning is a strategic focus area for SAP SAP is investing heavily in supply chain solution innovation has a clear roadmap strategy & strong execution uses customer-centric co-innovation at the center of development SAP Supply Chain solutions can transform & empower your business * *SCE: Supply Chain Execution This is the current state of planning and may be changed by SAP at any time. 40

41 Slide 40 RM1 Rakina, Maryia, 5/11/2017

42 Integration scenarios and technology

43 SAP IBP Integration Technology SDI (order data model) ERP to IBP Batch upload via ERP Add-On 1 data source (load file) Any source to IBP Batch IBP to ERP Staging Area for data extraction from IBP. Use of standard BAPI integration, based on user decision to promote. Integration w/ ERP Add-On User Experience Supply Chain Control Tower IBP for demand Order Store SAP Smart Data Integration Open Batch Integration IBP Suite (cloud) IBP for sales & operations IBP for inventory IBP for response and supply SAP HANA Platform IBP Data Model SAP HANA Cloud Integration Data Integration Time-Series Store Prepackaged Integration flows HCI (time-series data) Cloud-based technology Bi-directional process and data integration Graphical flows & mappings Centralized monitoring and administration Pre-built adapters Community marketplace (future) SAP ERP 3 rd Party On-Premise/Cloud 42

44 Integrated Business Planning Application Architecture 43

45 Customer Case

46 Case 1: Supply Chain Planning Conceptual Architecture User Community Desktop (internal or External) (OS Independent) Mobile/Portal (Internal or External) (OS Independent) System Configuration Customer A: Social Network (Sales, Marketing, Finance, SC Ops, etc.) Supply Chain Management Data Model Near Real Time Integration Sales and Operations Planning < ---Response Management--- > Ariba CSC IBP Customer S/4 Customer Collaboration Demand Planning Supply Chain Control Tower Supply Planning Inventory Optimization Supply Chain Data Store Available To Promise IBP IBP IBP Ariba CSC Supplier Collaboration HANA 4 5 Sources Internal and External On Premise Cloud Based Apps 3 rd Party Data (i.e.. IDC) Customers Channel Suppliers Mfg Partners Logistics Partners 45

47 IBP Response & Supply Project Regional ERP systems Flat Files Regional SCM systems WW BW SDI Agent HCI Agent F i r e w a l l Demand Propagation Validate Demand Communicate Escalate to Regions Constrained run Demand Categorization Validate Supply Demand Supply Match Regional Simulation & Scenarios Propagate Demand Review Constraint Plan Results Adjust Firm Supply Adjust Demand Deal Simulation & Scenarios Review Node Requirements Adjust Supply Adjust Demand Adjust Regional Supply Allocation Create Component Demand/Supply view- Copy Operator Publish Node Netted Requirements Plan- Copy Operator Publish Allocation Backlog Simulation External Component Demand/ Supply data Netted Requirements Plan Regional Supply Allocation HANA Cloud Integration 46

48 Case 2 E2E Supply Chain Process Overview Alerts and Case Management S&OP and Demand Planning Forecast (PFAM) Segmentation Segment Forecast (SKU / DC) Supply Planning Aggregated Planning* (Agg SKU / Agg LOC) Forecast Consumption* Net Requirement (Agg SKU / Agg LOC) Disagg** Net Requirement (SKU / DC) Priority Calculation Unconstrained Net Requirement with priority Response Planning Demand Prioritization Rough Cut Capacity Planning Build Plan collaboration Constrained Planning with prioritization Demand Supply match based on Priority Create Purchase Requisition Collaboration Build Plan collaboration Supplier Commit PO Confirmation Production Order Status Segment Execution Goods Receipt ASN Component Consumption Purchase Order Segment Order Confirmation Back Order Processing Allocation Consumption Location/Product Substitution Sales Order* (Availability Check) Allocation (Channel) Planning * BTA/BTX/ATO/CTO ** Based on Shortage Calc 47

49 Case 2 : Future Architecture - IBP Current: Manual, Subjective & Siloed Subtitle Demand Planning Here Sell thru & Promotion Planning Body content here Body content here Demand Planning Tool Supply Planning & Collaboration CM Tier2..n After: Integrated, Objective & E2E Subtitle Here Sell thru & Promotion Planning Body content here Body content here External Data CM PoS Tier2..n Tier2..n Consensus Forecast Independent Planning SAP SAP Tier2..n S&OP Decisions PLM Demand S&OP Supply Plan Decision Plan Integrated Business splanning Financial Forecast PoS PLM Financial Forecast Master Data Historical Data

50 IBP at Customer - Innovate with SAP MaxAttention Receive guidance from SAP in every phase of your project, in every project! DISCOVER PREPARE EXPLORE REALIZE DEPLOY RUN Speed-up your implementation project Accelerate your implementation Decrease time to value Reduce implementation and operational IT cost Jump-start your implementation project Simplify and innovate in co-operation with SAP Get the most out of your strategic SAP investment Create a value-based innovation roadmap PROGRAM projects sub projects Minimize risk in implementation projects Mitigate implementation risks Make the go-live a non-event for your business Prepare for sustainable operational excellence 49

51 SAP Max-Attention as Partner Engage Early: Build Design Guiding Through Preparation to Design Adopt POC s to help Business to understand new functionalities Continued Support: Build Support Quick and Proactive Resolution to issues Guiding through Design to Deployment Custom Tailored Workshops Complement the standard training process Ability to Contact Dedicated/Specific Resources at any time during the project timeline Co-Innovate with SAP Influence SAP Development Roadmap Critical functional requirements for HPI have included in the IBP Roadmap Easy Access to Development Experts Early Adoption of New Features 50

52 Appendix

53 IBP-Supply Chain Control Tower

54 Supply Chain Control Tower integrates performance data from multiple systems* SAP Supply Chain Control Tower SAP Integrated Business Planning ERP TM ERP SNC ERP 3rd Party APO APO 3rd Party APO 3rd Party EM * Multiple Systems can be connected to IBP. This requires additional work in implementation projects. Effort depends on customer scenario. 53

55 SAP Supply Chain Control Tower - Global Transparency over the Supply Chain The Supply Chain Control Tower provides you with end-to-end visibility of your supply chain, decision support and fast corrective action. 54

56 Supply Chain Control Tower - Integrating Suppliers via Ariba Supply Chain Collaboration Forecast BUY MANAGE CASH SELL Forecast Commit Discover Ariba Network Connect Collaborate [My company] [Your suppliers] 55

57 Supply side collaboration with external partners Extend SAP Integrated Business Planning to collaborate with external partners like suppliers via integration to the SAP Ariba Supply Chain Collaboration platform Forecast Commit Component demand is send to suppliers who are on-boarded on the SAP Ariba Supply Chain Collaboration platform Supplier commits forecast and sends it to SAP Integrated Business Planning Message Integration to SAP Ariba Supply Chain Collaboration Build new message based integration capabilities with the SAP Ariba Supply Chain Collaboration platform Manage Data Sharing plans Build new capabilities to manage and configure collaboration scenarios with external partners The data sharing plan component manages, for example What information is shared with external partners? Which partners taking part in the collaboration process? How is the information shared? SAP IBP SAP HANA This is the current state of planning and may be changed by SAP at any time. 56

58 Supply Chain Control Tower - Quickly Identify Issues With Custom Alerts Providing Context and Priority Understand the situation, impact on customers and analyze end-to-end materials and flow in the context of the alert 57

59 IBP-Sales and Operations

60 Where SAP Integrated Business Planning for sales and operations fits across enterprise planning Value Strategic Planning Make strategy actionable Integrate tactical planning & Execution Strategic Plans Scenario Plans Constrained Revenue Margin Projections Drive visibility and agility Strategic Tactical/Execution Opportunities, Promotions SAP Integrated Business Planning for sales and operations AOP, Finance Plan Sales Automation Sales Forecast Short Term Plans Constrained Qty Plan Scenario Plans Constrained Rev & Margin Projections Financial Planning Operational Planning 59

61 SAP Integrated Business Planning for sales and operations Unified Planning Environment Unified Planning Environment Single unified data model across Demand, Finance, Supply Chain to support both tactical and operational planning at any level of granularity & dimension Flexible process modeling Planning, Analytics and Collaboration driven off of this single model 60

62 SAP Integrated Business Planning for sales and operations Scenario Planning and Simulation Real-Time Planning & Simulation Tools Consensus demand planning, rough-cut capacity planning, volume and revenue modeling Alternative what-if scenarios for rapid decision-making across multiple key figures and dimensions Constraints at both detailed and aggregate level, real-time aggregation and disaggregation 61

63 SAP Integrated Business Planning for sales and operations Collaboration Contextual Process Orchestration Contextually organize People, Documents, S&OP Process Steps, S&OP Data, Action items, Decisions, Alerts, etc. around the S&OP Process Enable People to stay on top of relevant, contextual updates 62

64 SAP Integrated Business Planning for sales and operations Advanced Analytics Advanced Analytics Evaluation of multiple levers to shape profitable demand Faster identification of problems through better visualization Compare scenarios, track KPIs, monitor trends across multiple dimensions, granularities in real-time End user personalization and sharing 63

65 Wrap up - SAP Integrated Business Planning for sales and operations Deliver a cross departmental sales and operations plan balancing the impact on inventory, service levels and profitability Business Benefits Create the optimal business plan to drive revenue growth and increase market share Effectively balance demand and supply and attain financial targets Increase speed and agility of planning and drive most profitable responses Improve forecast accuracy and on-time delivery 64

66 IBP-Demand

67 Key enablers of SAP Integrated Business Planning for demand Automated alerts to monitor situations where forecast accuracy targets are not met Demand sensing algorithms identify and adjust short term forecast using pattern recognition Collaborate, communicate to ensure the most accurate demand plan 66

68 SAP Integrated Business Planning for demand Sample Use Cases Short-term demand sensing Collaboration Statistical forecasting Promotion Analysis 67

69 Sense Short Term Demand Patterns Short-term Forecast Issues Increase Inventory and Reduce Service Metrics Demand Sensing Predict daily demand requirements Apply pattern based forecasting logic for shipment and fulfillment Sense downstream demand using external data patterns (future functionality) 68

70 Wrap up - SAP Integrated Business Planning for demand Deliver a more accurate demand plan that allows you to drive better planning and execution processes Business Benefits Enable inventory reduction based on more accurate forecasts Deploy product more effectively allowing for higher service levels Better understand bias in your forecast Pass an integrated demand sensing and demand planning signal to supply planning processes 69

71 IBP-Inventory

72 What makes this difficult to do... (cont.) SUPPLY CHAIN How much inventory do I need at my Manufacturing location? How much inventory do I need at my Distribution Center? DEMAND Service level targets Forecast Forecast error Consistently over/under forecasting (bias) Intermittent demand Outlier sales or forecasts Multiple service levels and inventory thresholds Seasonality/promotions Internal and external demand SUPPLY Lead times Lead-time uncertainty Internal service levels Schedule attainment variability Production/distribution batch sizes Supply reliability Capacity restrictions Frozen production/planning periods Multiple supply sources 71

73 SAP Inventory Optimization: What is Being Calculated Achieve the Right Balance Between Inventory and Service Levels Fix the Mix of Inventory! 60% Inventory ($) 40% 20% 0% -20% -40% Increase 90% 92% 94% 96% 98% 100% Customer Service Level (%) Optimal inventory Company current performance -60% 72

74 SAP Inventory Optimization: What Decision Are We Making Safety stocks optimized and recommended across the entire distribution network, based on Demand from customers and its impact on internal replenishment orders Forecast error and its impact across supply chain Lead times and their variability, replenishment frequency and lot sizes Target service level at customers Inventory Deployment with the proper balance between risk and cost How much inventory to keep here? Here? How about here? 73

75 Wrap Up - Integrated Business Planning for inventory Business Benefits Achieve the Right Balance Between Inventory and Service Levels with Multi Stage optimization Fix the Mix of inventory by item and location Use inventory more efficiently to buffer risk and uncertainty at least total cost Improve customer service levels 5-10%, with better order lead time variability Reduce working capital 15-30%, with corresponding reductions in obsolescence and inventory carrying cost Improve planner productivity with 20-40% less time spend expediting, and more effective supply plans 74

76 IBP-Response & Supply

77 SAP Integrated Business Planning for Response & Supply Fast, flexible supply planning supporting a variety of approaches, suitable for many industries, including: q Support of tactical (time series) supply planning in the context of S&OP q Unconstrained heuristics or constrained optimization q What-if analysis q Support of operational supply planning (orders) q Creates supply orders (planned orders, purchase req., distribution req.) q Generates allocations to feed to live ATP process q Constrained priority rules-driven planning, optimization based (roadmap) and unconstrained heuristic (roadmap) q What-if analysis q New order data store and tight integration with ERP q Support of response planning (orders) q Adjust \ create supply orders, and reschedule sales orders q What-if analysis q New order data store and tight integration with ERP 76

78 Operational and Response Planning using Priority Heuristic Generate a finite capacity supply plan based on prioritized and categorized demand such as orders and forecasts q Fast, rules-based, priority-driven solution for supply planning, allocations planning, order rescheduling, and deployment planning q Focused on supporting what-if analysis, and root cause analysis of actual or hypothetical changes to demand or supply q Optionally, generate and provide allocations to ATP for online confirmations of sales orders q Order-based / demand-based q Finite Heuristic (priority rules-driven) planning 77

79 Response Planning Use Cases View Planning Results View Confirmations Analyze Competing Demands Gating Factor and Order Network 78

80 IBP Operational (Response) Order Based Planning Process Main processes supported: q Supply & Allocations Planning: Create allocations and a supply plan based on prioritized forecast demands and supply chain constraints q Response Planning: Create order confirmations and an adopted supply plan based prioritized demands, allocations and supply chain constraints q Deployment Planning: Create a deployment plan, adjust other supply proposals and order confirmations based upon prioritized demands, allocations, supply chain constraints, and deployment settings Processes work on tightly integrated information from ERP, and allow for root-cause analysis and simulation of plans 79

81 Response Management Functional Capabilities q Root-cause and Results Analysis q Rough-cut pegging on planning run result q Gating Factor Analysis on created supply plan (order & forecast) q Analysis of competing demands q Constrained forecast view q Simulation and Scenarios q Order-based planning in planning versions (copy between planning versions) q Simulations for analyzing changes in demand or supply situation, including simulative orders q On-the-fly and persistent scenarios for different situation analyses q Analysis of scenarios (see root-cause and results analysis) q Prioritization Rules q Rule Set definition q Rule Set assignment to planning runs q Rules definition and evaluation based on HANA Rules Framework q Constraints and Consumption Strategies q Considered constraints: allocations, material constraints, production capacity, supplier constraints q Forecast Consumption within forecast period (day, week) q Allocation consumption rules based on material availability date, defined in allocation procedure 80

82 Wrap Up - Integrated Business Planning for response and supply q Create supply plans and fulfillment plans in the face of demand changes and / or supply disruptions q Identify root causes and actionable corrections to demand infeasibilities q Simulate alternative corrective actions Business Benefits q Competitive advantage from faster response to upside opportunities q Higher customer loyalty and satisfaction from dependable commitments and deliveries q Improved customer service levels, and reduced working capital requirements q Improved planner productivity 81

83 Thank you.