SAP IBP


Supply Chain Management: SAP IBP

Disruptive events are rapidly changing global supply chains. It is essential to create a new blueprint designed for agility and proactive response, ensuring unified planning, faster response, and visibility.

What Exactly Is SAP IBP?

SAP Integrated Business Planning (IBP) is cloud-based planning software for supply chain management. Using real-time information, it helps companies respond more quickly to market and business volatility. The objective is a process to translate desired outcomes into financial and operational requirements, maximizing profit and cash flow while minimizing risk.

SAP IBP consists of several modules which can be used independently as well:

  • IBP for Demand
  • IBP for Inventory
  • IBP for Response and Supply
  • IBP for Sales and Operations Planning (for fully integrated S&OP processes)
  • IBP Supply Chain Control Tower (for real-time control, analysis, and management of supply chains)

Key features include:

Supply Chain Management: SAP IBP

Disruptive events are rapidly changing global supply chains. It is essential to create a new blueprint designed for agility and proactive response, ensuring unified planning, faster response, and visibility.

What Exactly Is SAP IBP?

SAP Integrated Business Planning (IBP) is cloud-based planning software for supply chain management. Using real-time information, it helps companies respond more quickly to market and business volatility. The objective is a process to translate desired outcomes into financial and operational requirements, maximizing profit and cash flow while minimizing risk.

SAP IBP consists of several modules which can be used independently as well:

  • IBP for Demand
  • IBP for Inventory
  • IBP for Response and Supply
  • IBP for Sales and Operations Planning (for fully integrated S&OP processes)
  • IBP Supply Chain Control Tower (for real-time control, analysis, and management of supply chains)

Key features include:

  • Supply Chain Control Tower: A visual dashboard of data and KPI’s across the enterprise supply chain.
  • Demand Management: Full transparency with options for time series forecasting using algorithms and models.
  • Stock Management: Optimize target inventory to exceed customer service levels, while balancing costs and risk.

The most important functions of SAP IBP are:

  • Real-time planning for balancing supply and demand
  • Forecasting functions
  • Strong performance based on the SAP HANA platform
  • User friendly with vivid visuals
  • Ability to test and compare scenarios
  • Connection with Microsoft Excel.

The Difference Between SAP IBP and APO

SAP IBP is the next-generation planning tool for supply chain management. It has new innovative features and functions compared to SAP Advanced Planning and Optimization (APO). SAP IBP offers a multi-echelon inventory solution that APO does not carry. Many of the aggregation/disaggregation features of IBP for S&OP are only theoretically possible in APO. It is estimated that SAP APO will be maintained until 2025, then SAP IBP will replace it.

Technical resource partners for consideration might beSAP,  Gib or Reveal.

Further Insights for SAPinsiders

  • How to Build a Resilient and Efficient Supply Chain with Robust Sales and Operations Planning Using SAP IBP_S4HANA. Ulaganathan Balakrishnan, shares an article detailing experiences around implementing S&OP across many diverse industries.
  • Leverage SAP Integrated Business Planning for Forecasting. John Yuva of SAPinsider and  Marco Sisfontes-Monge, Managing Partner of Arellius Enterprises, conduct a Q & A with insights about how a robust system can adjust forecasting needs quickly based on changing market conditions.
  • 5 Steps of S&OP to Achieve an Integrated Business Plan. Venkata Ramana Nethi from Schlumberger discusses understanding the framework, key activities, inputs, and outputs of S&OP with the SAP IBP

39 results

  1. Aggregate Planning with SAP Integrated Business Planning (IBP)

    Published: 21/January/2024

    Reading time: 3 mins

    Aggregate planning is a planning process that involves balancing demand, inventory, capacity, and supply at a higher granularity in order to achieve efficient, cost-effective, and timely production and distribution of goods or services. The goal of aggregate planning is to align the organisation’s resources, such as workforce, production facilities, and inventory, with the expected demand…
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    Click HERE to view the presentation deck slides. Discover how the SAP Integrated Business Planning (IBP) process for Maintenance, Repair, and Operations (MRO) can calculate and optimize spare parts and workforce planning for both maintenance and projects. This session will compare traditional approaches, such as Material Requirements Planning (MRP) and demonstrate SAP IBP for MRO,…...…
  3. Planning For Ego Pharma’s Growth with SAP IBP Powered Supply Chain Visibility and Transparency

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    Click HERE to view the presentation deck slides. The nuclear medicine long term forecasting and financial forecast was excel based, the forecast book was manual, took days to update and could only be run by one person. The transition to SAP Integrated Business Planning (IBP) gave ANSTO the freedom to have on demand actual sales…...…
  5. Making the Journey to SAP Integrated Business Planning (IBP)

    Published: 14/November/2023

    Reading time: 3 mins

    At this year’s Mastering SAP Gold Coast conference, Cornelia Boonstra, leader of integrated business planning at ANSTO, shared the story of how the organisation evolved from supply chain planning solely with Excel spreadsheets to a cloud-based model leveraging SAP Integrated Business Planning (IBP). In this highlight from the presentation, you will learn how ANSTO was…
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    Discover how Blue Diamond Growers revolutionized their supply chain with Accenture’s SAP solution, achieving increased accuracy and pandemic resilience.
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    Published: 17/March/2023

    Reading time: 3 mins

    Effective planning is critical for the success of supply chain management. Businesses can improve customer satisfaction, reduce costs, and gain a competitive advantage in the marketplace by shaping demand, optimizing inventory levels, supply, production schedules, logistics operations, and risk management strategies. Planning increases supply chain resiliency as allows organizations to manage disruptions. Disruptions in the…
  8. SAP IBP

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    Published: 03/March/2023

    Reading time: 2 mins

    SAP Integrated Business Planning (IBP) is a leading supply chain planning tool. SAP makes regular enhancements to update the solution. SAP released the latest version of SAP IBP in February 2023. This article reviews some key enhancements in the 2302 SAP IBP release. This content is for Mastering SAP Premium Access and Mastering SAP Preferred…
  9. AWS Supply Chain SAP IBP

    Will AWS Supply Chain Compete With SAP IBP?

    Published: 26/August/2022

    Reading time: 5 mins

    Among many other features that SAP ICP has for integrated demand planning, inventory management is a critical one. Respondents highlighted inventory management as one of the key focus areas in our recent research on supply chain planning in the cloud. With the increased complexities in the supply chain and the severe disruptions that many supply…
  10. Promotion Planning SAP IBP

    Promotion Planning and Management with SAP IBP

    Published: 18/August/2022

    Reading time: 2 mins

    Demand forecasting was highlighted as a key challenge in SAPinsider's recent research Supply Chain Planning in The Cloud. The quality of forecasts also plays a key role in inventory management, which has emerged as another key focus area for SAPinsiders. We will also publish a research report focused on this specific topic of inventory management…