Integrated Business Planning. Jay Foster, SAP February 08, 2018

Transcription

1 Integrated Business Jay Foster, SAP February 08, 2018

2 Evolution Technology & Philosophy MRP 1964 MRPII 1983 S&OP 1987 ERP 1992 SIOP 2001 IBP

3 What is Integrated Business? Integrated Business (IBP) is the business planning process for the post-recession era, extending the principles of S&OP throughout the supply chain, product and customer portfolios, customer demand and strategic planning, to deliver one seamless management process. 3

4 The Digital Enterprise Today 4

5 React Anticipate Integrate Collaborate Orchestrate

6 Value of a Mature Integrated Business Process & Solution Tangible Benefits* % impact Revenue Top line revenue growth In-stock % improvement Service level increase Operating cost Improved planner productivity Order fulfillment lead time reduction Inventory carrying cost reduction Asset Utilization/Working capital Reduction in inventory levels Inventory turns increase Cash-to-Cash cycle time reduction 1-2% 20-30% 5-10% 20-30% 10-20% 5-10% 5-15% 5-10% 5-10% * IBM, Aberdeen & Gartner Case Studies & Benchmarks from SAP Value Engineering 6

7 SAP s Intelligent Digital Supply Chain Sales & Operations Control Tower Advanced Demand Inventory Optimization Response & Supply Integrated Business 7

8 What is the Real Problem? Sales: We can sell 200 Marketing: The promotion will sell 400 What s the right number? How Do I solve this? Order Promising Strategic & Financial Manufacturing: They will only sell 150 Shipment One Plan Demand Forecasting & Demand : The customers will order 175 Finance: We have a budget of 300 Material Supply Distribution Manufacturing 8

9 Great User Experience 9

10 Great User Experience 2. Point & Click User Control of Their Content 1. Easy to Use & Adopt Excel Based User Interface 10

11 Great User Experience 3. Save, Share & Add New Charts to Dashboards 1. Point & Click Selection of Values to Include 2. Choose, Change & Experiment with Different Chart Types 11

12 Great User Experience 1. Change to Different Dashboards at the Click of a Button. Make Dashboards for Multiple Purposes 2. Monitor Progress of Cyclical Processes 12

13 IBP for Sales & Operations 4. Generate MPS for Return to Execution 1. Each Contributor to the Process has Their Own View 2. Arrive at Consensus on Commitment to Market 3. Convert Consensus Demand into Load, Balance Against Capacities for RCCP 13

14 IBP for Inventory (SIOPS) The Dilemma How about here? Here? How much inventory here? 14

15 Decrease Increase Inventory ($) IBP for Inventory Developing Intelligent Inventory Policy Achieve the Right Balance Between Inventory & Service Levels 90% 92% 94% 96% 98% 100% Customer Service Level (%) 60% 46% 40% 20% 11% 15% 13% 13% Fix the Mix of Inventory! 0% 2% 8% 4% -20% -40% -3% -5% -12% -18% -25% -6% -18% -30% -19% -40% -7% -16% -21% -25% -33% -31% -7% -35% -19% -23% -28% -30% -30% -43% -25% -10% -14% -33% -60% 15

16 IBP for Inventory Identify Areas of Focus for Improvement 1. Adjust Various Variability Factors & Goals 2. Compare Valuated Inventory Investment Levels 16

17 IBP for Demand Advanced Demand Shaping 3. Let the System Find the Best Method 1. User Friendly Apps for Specific Functionality 2. Powerful & Flexible Pre- Processing Steps 4. Many Different Forecasting Methods Available 17

18 IBP for Demand 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) 18

19 IBP for Response & Supply What is the Impact of Change? 1. Confirm the ability to deliver specific orders & create appropriate supply orders 2. Drill to gating factors and identify when delivery can occur 19

20 IBP Supply Chain Control Tower 1. SCOR Based Performance Metrics 2. Alerts Identify Underperforming Areas 3. Create Cases and Assign to Individuals or Groups to Resolve 20

21 SAP s Intelligent Digital Supply Chain Sales & Operations Control Tower Response & Supply Advanced Demand Integrated Business Inventory Optimization 21

22 Thank You Integrated Business Jay Foster, SAP February 08, 2018 CUSTOMER