Gitacloud Webinar Series 2018: © 2018 Gitacloud, Inc. All Rights Reserved

SAP IBP Order Based Supply Planning
GitaCloud Webinar Series 2018
© 2018 GitaCloud, Inc. All Rights Reserved.

Moderator Introduction
Webinar Moderator: Guenter Schmidt – Principal, GitaCloud
• 25+ years implementing and supporting SAP Supply Chain solutions in Europe, North America and Asia
• Expertise in Semiconductor / High-Tech, Aerospace, innovative and non-mainstream use-cases
• ex-Broadcom Sr. Director Business Transformation and Sr. Director IT, responsible for SAP ecosystem
• ex-TriQuint Semiconductor IT Applications Director, IT owner of Response Planning Processes
• Welcome to this webinar focused on IBP Response & Supply: Order Based Planning
• This webinar is brought to you jointly by GitaCloud and SAP
• All attendee microphones will stay muted

2
Our Speakers
Ashutosh Bansal – President & CEO, GitaCloud
 2 decades of SAP Supply Chain Solutions Implementation Experience at multiple Fortune 500 companies in US
 SCM/IBP SME: Ashutosh has led sales & delivery for multiple IBP engagements globally
 At SAP America for 10 years: played High-Tech Industry Principal, Sales Executive, and SCM SME roles
 Blogs actively on IBP topics at www.gitacloud.com/blog and LinkedIn (10K+ followers)
Eric Simonson – SCM Solution Management, SAP America

 Director, SCM Solution Management
 Solution Owner for SAP IBP for response and supply
 25+ years in Supply Chain Planning, positions / involvement ranging from forecasting to supply planning to
production scheduling
Deep Chhichhia – IBP Consultant, GitaCloud

 Experienced IBP Consultant. Led S&OP Implementation at a CPG company in 2017
 Led Forecast Error reduction by 60% for another large CPG company – top 2 international markets
 Configured IBP Order Based Planning and SDI based integration for 2 large customer POC engagements
 Led several IBP customer workshops across IBP S&OP, Demand, Inventory, and Response & Supply applications

3
Response & Supply At a Glance
Order Based Planning Time Series Planning
Reference Planning Area SAP7 Review: Master Data, Key Reference Planning Area SAP4 Review: Master Data, Key
Figures, Response Configuration Settings Figures (e.g., Downstream, Minimum, Adjusted, In-Transit,
Response Planning Business Processes: Input, Output Key Figures)
Demand Prioritization, Constrained Forecast Run, Allocation Supply Heuristics: Supply Planning vs. Supply Propagation
Planning, Forecast Consumption, Confirmation Run, Overview, Parameters, Receipts Balancing, Co-Production,
Deployment Planning Cross-Plant Production, Multi-level BOM, Production Lead
Response Management by Exception: Time, Lot Sizing
View Confirmations, View Gating Factors, View Projected Supply Optimizer:
Stock, Analyze Supply Usage, Analyze Resource Usage, Overview, Cost Model & Parameters, Fair Share Distribution,
Simulate Sales Order, What-if Simulations, Analyze Supply Co-Production, Storage Constraints, Lot Sizing, Capacity
Usage in Excel Expansion, Optimizer Explainability
Advanced Scenarios: Advanced Scenarios:
Planning Area Enhancements, , Multiple Forecast Key Shelf-Life Visibility, Means of Transport, Demand Categories,
Figures, Forecast Consumption & Production Allocation at Subnetworks, Time Aggregation, Aggregate Constraints,
Customer level / with custom attributes, Lot Sizing, Delta Minimums/Maximums, Cost and Revenue Key Figures
Planning Misc. Topics: Check Mode, Local, Compute Quotas
Misc. Topics: Ariba Business Networks Collaboration, Operators, Analytics & Dashboards, Alerts, IBP Integration
Analytics, Alerts, IBP Integration (SDI) (CPI-DS)

4
We invite you to
• Learn SAP IBP with GitaCloud Workshops:
• SAP IBP Response & Supply Online Workshop: March 17th, 2018 onwards
• SAP IBP Demand & Inventory Bootcamp: April 30th – May 4th, 2018
• SAP IBP Response & Supply Bootcamp: June 18th – 22nd, 2018
• See the complete Events Calendar here
• Learn SAP IBP on your own schedule:

• GitaCloud Learning Platform: video recordings of past IBP workshops
• GitaCloud YouTube Channel: previous IBP webinars
• GitaCloud Insights: Industry specific thought leadership
• Connect with GitaCloud for help with SAP IBP Implementation / Support:
• Email: connect@gitacloud.com
• Phone: +1-925-519-5965
• Address: 6200 Stoneridge Mall Road, 3rd Floor, Pleasanton, CA 94588, USA
• Website: www.gitacloud.com

5
SAP IBP Order Based Planning: Overview & Roadmap

6
SAP Integrated Business Planning
World class solution for supply chain monitoring, sales and operations planning, demand
management, inventory planning, supply planning, and response management
Integrated Business Planning (IBP)
User Experience
Supply Chain Control Tower
IBP for sales & operations
IBP for demand IBP for inventory
IBP for response and supply
SAP HANA Platform

7
What Problems Are We Solving?
Volatile demand served by distributed supply networks
• Empowered customers have many choices and businesses must excel in fulfilling demand to compete
• Supply networks are often globally distributed with long lead times
• Product life cycles are short, and the risks of excess inventory are great
• Even best-in-class forecast accuracy is often 60% or less
Risk
• High or uncontrolled inventory levels
• Inadequate customer service levels or inventory availability
Requirement
 Respond to unexpected demand and/or supply disruptions with minimum latency by adjusting supply plans
and fulfillment decisions

8
Where IBP response functionality fits
• Demand is volatile, lead times are long, but buffer inventory is expensive (and short life cycles create obsolescence)
• Short Lifecycles (Consumer), expensive materials (HT), long lead times, warehouse limitations (Consumer Durables)
• Forecast ability is low -> Need lower dependency on the forecast
• Requires faster and more frequent re-planning to re-align demand and supply
• Need for fast re-planning

Inventory cost Forecast Accuracy
• Need for simulations and What-if

9
Operational and Response Planning using Priority Heuristic
Generate a finite capacity supply plan based on prioritized
and categorized demand such as orders and forecasts
• Fast, rules-based, priority-driven solution for supply

planning, allocations planning, order rescheduling, and
deployment planning
• Focused on supporting what-if analysis, and root cause
analysis of actual or hypothetical changes to demand or
supply
• Optionally, generate and provide allocations to ATP for
online confirmations of sales orders
• Order-based / demand-based
• Finite Heuristic (priority rules-driven) planning

10
IBP Operational and Response - Order Based Planning Process
Main processes supported:

• Supply & Allocations Planning: Create allocations and a supply plan based on prioritized forecast demands and
supply chain constraints
• Response Planning: Create order confirmations and an adopted supply plan based prioritized demands,
allocations and supply chain constraints
• 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

11
Supply & Allocations Planning Flow - Inputs & Outputs
Demands
(forecasts)
Scenarios,
What-If Analysis
Rules ERP
Fast
Demand Prioritization Rules-driven

Supply
Heuristic
Supply Sourcing Proposals
Supply-Demand Match
ATP - Live
*Allocations Order
Supply Promising
(material, capacity,
supplier commits)
*Optionally used
during the
confirmation run

12
Response Planning Flow - Inputs & Outputs
Demands
(forecasts, sales
orders)
Scenarios, Sales Order
What-If Analysis Commits
Rules ERP
Fast
Demand Prioritization Rules-driven
Supply
Supply Sourcing Heuristic
Proposals
*Allocation
Supply-Demand Match
*From the Constrained Supply

Forecast run (material, capacity,
supplier commits)

13
IBP Response & Supply - Deployment Planning
Deployment distributes available supply from central to
Network Detailed Load
Deployment
downstream locations to meet demands. Planning Planning Consolidation
• Order based, constraint deployment heuristic considering

priority rules
• Multi-stage planning
• What-if Simulation capabilities Distributes given Supply

Source Target
• Tight order level integration to SAP ERP Location Location(s)

14
Operational and Response Functional Capabilities & Strengths
• Root-cause and Results Analysis • Prioritization Rules

• Rough-cut pegging on planning run result • Rule Set definition
• Gating Factor Analysis on created supply plan • Rule Set assignment to planning runs
(order & forecast) • Rules definition and evaluation based on HANA
• Analysis of competing demands Rules Framework
• Constrained forecast view
• Simulation and Scenarios

• Constraints and Consumption Strategies
• Order-based planning in planning versions (copy
between planning versions) • Considered constraints: allocations, material
constraints, production capacity, supplier
• Simulations for analyzing changes in demand or constraints
supply situation, including simulative orders
• Forecast Consumption within forecast period
• On-the-fly and persistent “scenarios” for different (day, week)
situation analyses
• Allocation consumption rules based on material
• Analysis of scenarios (see root-cause and results availability date, defined in allocation
analysis) procedure

15
Roadmap
Please see: https://www.sap.com/products/roadmaps.html
• Search on “Integrated”.

16
SAP Integrated Business Planning for response and supply
Product road map overview - key themes and capabilities Preliminary
V1802 – Recent innovations(1) V1805 – Planned Q2/2018(1,2) • V1808 – Planned Q3/2018(2) • V1811 – Planned Q3/2018(2)
Order-based Planning Order-based Planning Order-based Planning Order-based Planning

• Enhance Analyze Supply Usage • Integration • Planning in Multiple Planning Areas • Integration
• Analyze resource usage • Support for Analytics on order-based • Pegging Strategy: Prefer available supply • Enable a separate integration source for
• Supply Pegging in Microsoft Excel data, including geolocation information each Planning Area
• Component Lead-time Offset • Deployment STR visible in S/4
• Enhancements to best practice package for • Freeze Horizon
• Supply Chain Network Visualization on • Optimization
response management • Optimization order-data
• Cost-based optimization on order-data • Cost maintenance
• Create detailed pegging and allow supply Tactical Supply Planning • Advanced Forecast Consumption
Tactical Supply Planning and resource usage analysis • Enhancements to Optimizer and • Multiple Modes of Transport
• Enhanced UI to configure time-series-based • Basic Fair Share Unconstrained Heuristic
supply planning operators • Supply Chain Dependencies Analysis • Master Data simulation in user-defined
• Enhancements to the time-series-based scenarios
• Version specific master data • Switchable Constraints
supply planning
• Telescopic Planning (Optimizer) • Include order based planning in SAPIBP1 – • Enhancements to Forecast Consumption
• Late Demand Fulfillment support for guidelines and how to guide
Independent demand (Optimizer)
• Calculate target coverage based on Tactical Supply Planning
average demand for specified buckets
• Forecast Consumption
• Time-Series Based Supply Propagation
Heuristic • Shelf-Life Planning (Heuristic)
Release 1802
1. Potential Data Protection & Privacy features include: Simplified deletion of personal data; reporting of personal data to an identified data subject; restricted access to personal data; masking of personal data; read access logging to special categories of personal
data; change logging of personal data; and consent management mechanisms. 2. This is the current state of planning and may be changed by SAP at any time without notice.

17
SAP Integrated Business Planning for response and supply
Direction update Preliminary
Enhancements in Order-based Planning Deployment Planning Product direction

 Quota arrangements  Deployment Optimization
 Periodic lot sizes  Push Deployment
 Multiple activities in planned orders  Load consolidation
 Near-real-time integration / Multi-ERP integration  Transportation and handling capacities
 MRP Areas
 Subcontracting support
 MRP Segments for make-to-order and project segments
Operational Supply Planning
 Characteristics-based planning / shelf-life planning
 Infinite supply planning heuristics on order data
 Support for process orders
 Capacity leveling on infinite planning result
 Product and location substitution
 DDMRP replenishment
Supply & Allocations Planning
 Delta planning, enhanced parallel planning
Tactical Supply Planning
 Shelf-life support for time-series based planning
Response Planning  Transportation and handling capacities
 Allocation on components and aggregate levels

18
SAP IBP Order Based Planning Showcase

19
Supply Chain Network
CPU-A
BOARD-A
CASE-A
PACKAGING-A LAPTOP-A LAPTOP-A LAPTOP-A
3 days 2 days
SUPP 01 FA01 DC01 CUST 02
3 days
MEMORY
LAPTOP-B LAPTOP-B
3 days 3 days
SUPP 02 VH71 2 days
DC02 CUST 03
MEMORY
3 days LAPTOP-B
SUPP 03 FA02
CUST 01
CPU-B LAPTOP-B
LAPTOP-B
BOARD-B
CASE-B
PACKAGING-B DC03
2 days
In-house Production Lead Time = 1 day

20
Sales Orders
Order / Confirm. Order Material Location Customer Open Original Requested Delivery
Item Mode Type Quantity Quantity Date Priority
Number (YYYY-MM-DD)
357/10 B VC GC_LAPTOP_A DC01 CUST02 100 100 2018-03-04 01
358/10 B VC GC_LAPTOP_B DC02 CUST01 500 500 2018-03-04 03
367/10 C VC GC_LAPTOP_A DC01 CUST02 200 200 2018-03-06 02
368/10 X VC GC_LAPTOP_B DC02 CUST01 400 500 2018-03-06 02
369/10 blank VC GC_LAPTOP_B DC03 CUST01 100 100 2018-03-06 01

21
Sales Orders: Confirmation Mode
Order / Confirm. Order Material Location Customer Open Original Requested Delivery
Item Mode Type Quantity Quantity Date Priority
Number (YYYY-MM-DD)
367/10 C VC GC_LAPTOP_A DC01 CUST02 200 200 2018-03-06 02
368/10 X VC GC_LAPTOP_B DC02 CUST01 400 500 2018-03-06 02
391/10 B Confirm
VC Late
GC_LAPTOP_B Partial
DC03 CUST01 100 100 2018-02-11 03
ation Demand Demand 03
395/10 B VC GC_LAPTOP_B DC03 CUST01 150 150 2018-02-13
Mode Fulfillment Fulfillment
401/10 B VC ok?
GC_LAPTOP_A ok?
DC01 CUST02 160 160 2018-03-12 03
402/10 B VC B GC_LAPTOP_B
Yes DC02No CUST01 400 400 2018-03-15 03
403/10 B VC C GC_LAPTOP_B
No DC03No CUST01 200 200 2018-03-13 03
404/10 B VC X GC_LAPTOP_A
Yes DC01
Yes CUST02 300 300 2018-03-12 02
405/10 B VC
blank GC_LAPTOP_B
No DC02
Yes CUST01 250 250 2018-03-15 01

22
Demand Prioritization
Rule # 1 Rule # 2
Segment 1: Delinquent Sales Orders Segment 1: Sales Orders
Sorted by Delivery Priority
Segment 2: Customer 1 DC 2 Sales Orders

Segment 2: Forecasts
Sorted by Requested Date
Segment 3: Customer 1 DC 3 Sales Orders
Segment 4: All other Sales Orders Segment 3: All Other Demands

Sorted by Requested Date
Segment 5: All Forecasts in DC 2
Segment 8: Any other Demands

23
Sales Orders Sorted Per Demand Prioritization Rules
Per Rule # 1

24
Sales Orders Sorted Per Demand Prioritization Rules
Per Rule # 2

25
Constrained Forecast Run (with no constraints)
Material Location Customer Key Figure 2/25 2/26 2/27 2/28 3/1 3/2 3/3 3/4 3/5 3/6 3/7 3/8 3/9 3/10
Number Number Number
GC_LAPTOP_A DC01 CUST02 Forecast Unconstrained 100 100 100 100 100 100 100 100
Forecast Constrained
GC_LAPTOP_B DC02 CUST01 Forecast Unconstrained 250 250 250 250 250 250 250 250
Forecast Constrained 100 100 100 100 100 100 100 100
26
Constrained Forecast Run (with no constraints)

27
Constrained Forecast Run (with Supply Constraint)
Material Supplier Number Key Figure 2/25 2/26 2/27 2/28 3/1 3/2 3/3 3/4 3/5 3/6 3/7 3/8 3/9 3/10
Number
GC_MEMORY SUPPLIER2 Supplier Constraint 700 700 700 700 700 700 700 700 700 700 700 700 700 700
Material Location Number Key Figure Value Material Number Plant Number Key Figure 3/6
Number
GC_LAPTOP_A DC01 Initial Stock 100 GC_LAPTOP_A FA01 Production Order 90
GC_LAPTOP_B DC02 Initial Stock 50
GC_LAPTOP_B FA02 Initial Stock 200

28

29
Excel View (Supplier Constraint)

30
Excel View (Stock)

31

32
Constrained Forecast Run (with Capacity Constraint)
Resource Location Number Key Figure 2/25 2/26 2/27 2/28 3/1 3/2 3/3 3/4 3/5 3/6 3/7 3/8 3/9 3/10
Number
GC_A1 FA01 Capacity Available 480 480 480 480 480 480 480 480 480 480 480 480 480 480
GC_A2 FA02 Capacity Available 200 200 200 200 200 200 200 200 200 200 200 200 200 200

33

34
Excel View (Manufacturing Capacity)

35

36
Constrained Forecast Run (with Lead Time Constraint)
Total 6 days lead time

Vendor Hub to Plant: 3 days
Manufacturing Time: 1 day
Plant to DC: 2 days
Material Supplier Number Key Figure 2/25 2/26 2/27 2/28 3/1 3/2 3/3 3/4 3/5 3/6 3/7 3/8 3/9 3/10
Number
GC_MEMORY SUPPLIER2 Supplier Constraint 0 0 700 700 700 700 700 700 700 700 700 700 700 700

37

38

39
Excel View (Forecast and Allocation)

40
Confirmation Run (Confirmed Sales Orders – Excel view)

41
Confirmation Run (View Confirmations)

42
Confirmation Run (View Confirmations Grouping view)

43
Confirmation Run (Analyze demand – Competing Orders)

44
Confirmation Run (Analyze demand – Order Network)

45
Confirmation Run (Order Network Graphical View)

46
Sales Order Simulation (Simulation Run)

47
Sales Order Simulation (Analyze Demand application)

48
Sales Order Simulation (View Projected Stock application)

49
Sales Order Simulation (View Confirmations application)

50
View Gating Factors application

51
Analyze Supply Usage application

52
Supply Pegging Key figures – Excel UI

53
Excel View (Supply Usage)

54
Available To Deploy Profile

55
Order Network with Deployment Requisitions

56
Excel View (Deployment)

57
Ashutosh Bansal
President & CEO, GitaCloud
+1-925-519-5965
6200 Stoneridge Mall Road, 3rd Floor, Pleasanton, CA 94588, USA
ashutosh@gitacloud.com
www.gitacloud.com

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SAP IBP Order Based Supply Planning

GitaCloud Webinar Series 2018

© 2018 GitaCloud, Inc. All Rights Reserved.

© 2018 GitaCloud, Inc. All Rights Reserved.

Eric Simonson – SCM Solution Management, SAP America

Deep Chhichhia – IBP Consultant, GitaCloud

© 2018 GitaCloud, Inc. All Rights Reserved.

© 2018 GitaCloud, Inc. All Rights Reserved.

• Learn SAP IBP on your own schedule:

© 2018 GitaCloud, Inc. All Rights Reserved.

© 2018 GitaCloud, Inc. All Rights Reserved.

Integrated Business Planning (IBP)

Supply Chain Control Tower

IBP for sales & operations

IBP for demand IBP for inventory

IBP for response and supply

SAP HANA Platform

© 2018 GitaCloud, Inc. All Rights Reserved.

© 2018 GitaCloud, Inc. All Rights Reserved.

• Need for fast re-planning

© 2018 GitaCloud, Inc. All Rights Reserved.

Generate a finite capacity supply plan based on prioritized

and categorized demand such as orders and forecasts

• Fast, rules-based, priority-driven solution for supply

© 2018 GitaCloud, Inc. All Rights Reserved.

Main processes supported:

© 2018 GitaCloud, Inc. All Rights Reserved.

Demand Prioritization Rules-driven

© 2018 GitaCloud, Inc. All Rights Reserved.

*From the Constrained Supply

© 2018 GitaCloud, Inc. All Rights Reserved.

• Order based, constraint deployment heuristic considering

• What-if Simulation capabilities Distributes given Supply

© 2018 GitaCloud, Inc. All Rights Reserved.

• Root-cause and Results Analysis • Prioritization Rules

• Simulation and Scenarios

© 2018 GitaCloud, Inc. All Rights Reserved.

Please see: https://www.sap.com/products/roadmaps.html

© 2018 GitaCloud, Inc. All Rights Reserved.

Order-based Planning Order-based Planning Order-based Planning Order-based Planning

© 2018 GitaCloud, Inc. All Rights Reserved.

Enhancements in Order-based Planning Deployment Planning Product direction

© 2018 GitaCloud, Inc. All Rights Reserved.

© 2018 GitaCloud, Inc. All Rights Reserved.

In-house Production Lead Time = 1 day

© 2018 GitaCloud, Inc. All Rights Reserved.

357/10 B VC GC_LAPTOP_A DC01 CUST02 100 100 2018-03-04 01

358/10 B VC GC_LAPTOP_B DC02 CUST01 500 500 2018-03-04 03

359/10 B VC GC_LAPTOP_B DC03 CUST01 150 150 2018-03-04 03

367/10 C VC GC_LAPTOP_A DC01 CUST02 200 200 2018-03-06 02

368/10 X VC GC_LAPTOP_B DC02 CUST01 400 500 2018-03-06 02

369/10 blank VC GC_LAPTOP_B DC03 CUST01 100 100 2018-03-06 01

391/10 B VC GC_LAPTOP_B DC03 CUST01 100 100 2018-02-11 03

395/10 B VC GC_LAPTOP_B DC03 CUST01 150 150 2018-02-13 03

401/10 B VC GC_LAPTOP_A DC01 CUST02 160 160 2018-03-12 03

402/10 B VC GC_LAPTOP_B DC02 CUST01 400 400 2018-03-15 03

403/10 B VC GC_LAPTOP_B DC03 CUST01 200 200 2018-03-13 03

404/10 B VC GC_LAPTOP_A DC01 CUST02 300 300 2018-03-12 02

405/10 B VC GC_LAPTOP_B DC02 CUST01 250 250 2018-03-15 01

406/10 blank VC GC_LAPTOP_B DC02 CUST03 125 125 2018-03-06 02

© 2018 GitaCloud, Inc. All Rights Reserved.

357/10 B VC GC_LAPTOP_A DC01 CUST02 100 100 2018-03-04 01

358/10 B VC GC_LAPTOP_B DC02 CUST01 500 500 2018-03-04 03