Tre grunde til at migrere til SAP S/4HANA nu
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Decisions should be made based on data – not your gut instinct
Successful Supply Chain Planning is about hitting the sweet spot where costs and revenues meet in the most profitable solution. Unfortunately, this is easier said than done.
All too often, supply chain planning, financial planning, and decision-making are undertaken without the necessary data and insights. And the consequences are tangible: poor delivery performance, internal disagreements about what to do, inefficient plant performance, high operational costs and poor delivery performance – to name just a few.
Enterprises need to replace old-fashioned gut instinct with work processes and solutions that enable better informed decision-making – to achieve more efficient and profitable supply chain planning.
Are you facing any of these challenges?
- You lack collaboration across functions, as different departments, such as manufacturing and sales, work in silos with different sets of numbers
- Your plant performance is insufficient due to low capacity utilization
- You lack valid, real-time data to support decisions that are growing increasingly complex
- Your planning and forecasting are based on experience and gut instinct – not data.
- Your ambition to achieve best-in-class delivery performance is obstructed by inefficient work processes, both vertically and horizontally
Have you experienced one or more of the challenges mentioned above? If you have then continue reading.
Sales & Operations Planning: How it works
Sales & Operations Planning – also known as S&OP – is a process that supports enterprises all over the world to align operational plans across different functional areas. The process is made up of four focus areas, starting with the demand review. Here, the objective is to deliver a demand plan based on statistical and management forecasts including the right product mix for each product family. After focusing on the demand, it is time to review the supply. How many resources are required? What are the capacity constraints for each product family? Here, you agree on the answers. At the pre-S&OP meeting, you build scenarios based on your review of demand and supply in order to create the foundation for good decision-making before the final decisions are made at the executive S&OP meeting. All decisions are the result of the preceding work with a focus on previous history, current business conditions, and future ambitions. The outcome is a more realistic supply chain plan that is not only based on, but will also increase, cross-functional collaboration.
Sales & Operations Planning descriptive models
See how to integrate S&OP and Financial Planning as well as S&OP's role in Integrated Business Planning in our models.
DownloadPlanning is not about units – it’s about profit
Profitable planning is about asking the right questions – and finding the right answers. Historically, supply chain planning has focused solely on quantity. In terms of production time and working hours. And in terms of machines and units. But something is missing in this quantitative arena. We need to answer the most important question: will we make money?
Sales & Operation Planning – also known as S&OP – is a process that supports professionals all over the world to integrate planning across different functional areas – all to help answer this crucial question about profitability. By focusing on both costs and revenues, S&OP elevates supply chain planning so that it is part of the bigger picture with dedicated focus on the financial aspects. Knowing which options maximize the contribution to the gross margin enables you to take better and more profitable decisions.
Integrate strategy and operational actions in one
If S&OP is the backbone of supply chain planning, then working with Integrated Business Planning (IBP) is key to unleashing its full potential.
IBP builds on the S&OP processual focus on demand & supply by adding financial planning. This enables enterprises to create financial scenarios showing key figures, such as customer and product profitability.
Working with IBP is very much about integrating strategic and tactical planning with operational planning. Drawing the line from daily operations to financial output at an executive level isn’t done overnight but needs to be implemented through different maturity stages.
In short, you need to get the basics right, which in this case, is the functional planning process focusing on manufacturing and logistics. With this in place, it is possible to start anticipating patterns and supply-and-demand plans; collaborating across all relevant functional operations, before orchestrating activities that will help achieve end-to-end connectivity. The possibilities are enormous and so is the potential.
The processual work with IBP is scalable, so you can match it to your needs. Maybe you just need to streamline operational planning? Or maybe you are looking for the complete solution that enables your enterprise to exploit the full power of working with data?
Whatever your needs, itelligence Nordic will analyze them to help you succeed. Our experts already assist national and international enterprises to succeed with S&OP.
Harmonize planning – and your enterprise with SAP Integrated Business Planning
SAP Integrated Business Planning is a cloud-based solution that allows enterprises to align Sales, Marketing, Finance, Operations & Logistics for S&OP. This is made possible by combining capabilities for S&OP and the result is a strengthened collaboration across business units with all employees now working with a single set of numbers – something that is crucial in today’s supply chain planning.
All too often, supply chain planning does not go as planned, because people across the enterprise analyze and interpret the same numbers differently. With SAP Integrated Business Planning, all business units and employees work with a single set of numbers, which reduces daily confusion and misalignment. This not only results in more effective resource planning, it also enables professionals to find the best possible solution in respect of constraints and expected financial output. Therefore, it is no surprise that SAP Integrated Business Planning is the leading planning solution for enterprises across the world.
Why you should work with SAP Integrated Business Planning?
- Improve collaboration by working with ‘one set of numbers’ towards realizing common strategic goals
- Increase forecast accuracy with advanced forecasting algorithms
- Improve reaction time with real-time insights into plans from the Supply Chain Control Tower
- Manage the supply chain from end-to-end with access to more insights
- Achieve faster planning cycles
- Reduce inventory levels
- Improve delivery performance
- Increase customer satisfaction
- Respond to short-term changes in both supply and demand
SAP IBP
SAP IBP Dashboard
SAP IBP Analyze Demand
SAP IBP Custom Alerts Overview
SAP Supply Chain Control Tower
From here, you can see everything. The SAP Supply Chain Control Tower enables users to get an updated end-to-end overview of their supply chain, including production and shipment among others. This monitoring not only helps you to optimize supply chain performance and improve on-time delivery performance but also to reduce supply chain cost.
SAP IBP for Sales and Operations Planning
Align sales and operations plans with your corporate strategy to effectively improve your supply chain planning and decision-making. Based on the S&OP process, you can achieve cross-department collaboration on demand and supply to create the optimal and most profitable business case – all to help attain your financial targets.
SAP IBP for Demand Management
Streamline your supply chain planning with precise short-term, mid-term, and long-term forecasting by combining demand sensing and statistical forecasting methods. This enables you to react faster to demand changes and generate consensus forecasts at any level that are more precise than ever.
SAP IBP for Inventory Optimization
Optimize multi-stage inventory targets to maximize the efficiency of inventory and working capital. The solution ensures that inventory is deployed in the most efficient way and allows you to automate and standardize the planning process, which will enable you to reduce product and distribution costs while improving customer service levels.
SAP IBP for Response and Supply Planning
Combine speed with precision. With this solution you can create advanced supply chain planning simulations, which provide the overview needed to take well-informed decisions on prioritized customers. This helps enterprises plan more effectively and in doing so, manage resources better and optimize profits.
Optimize Supply Chain Planning with the GIB Suite
The GIB Suite features a wide range of efficient and well-proven supply chain optimization solutions. This helps enterprises work smarter and achieve multiple benefits. From improving the balance of supply and demand to reducing costs. From optimizing inventory to planning ahead with data-based forecasting.
The GIB Suite is SAP-certified, which allows you to seamlessly integrate the desired solutions into your existing SAP system. So, say goodbye to the stack of Excel files and tools that don’t work together – and hello to a selection of reliable and connected solutions that will enable you to make better business decisions.
5 good reasons to work with GIB Suite:
- A seamless integration to SAP systems ensures hassle-free implementation and operation
- Increase forecast accuracy with advanced forecasting algorithms
- Optimize production planning on bottleneck resources and reduce inventory levels
- Improve delivery performance and customer satisfaction
- Gain business-critical insights with all relevant supply chain data gathered in one place
GIB Suite Forecast
Is it possible to predict the future? GIB Suite Forecast is a data-driven crystal ball that increases forecast reliability and optimizes demand planning. With its advanced forecast models, it is possible to simulate the impact of planning and constantly optimize your work through ex-post analysis.
GIB Suite Operations
With GIB Suite Operations, you get access to all MRP-relevant information thanks to individual user layouts and default layouts. The improved transparency enables employees to navigate through the day-to-day operations, and enterprises work smarter and faster as a result.
GIB Suite Planning
Overview is everything in planning – and with the dynamic planning table, you get a real-time overview of short and long-term planning. Additionally, the solution enables immediate triggering of necessary measures, e.g. in case of bottlenecks. All in all, this helps enterprises achieve error-free and time-saving production planning.
GIB Suite Controlling
With GIB Suite Controlling, you can efficiently optimize inventory for the long-term. The solution offers several features, e.g. integration of requirement-specific key figures and simulation of MRP parameters, which not only ensures full transparency of inventory drivers and risk materials but also enables evaluation of future consequences and risks.
GIB Suite Buying
With GIB Suite Controlling, you can reduce transportation and storage costs, while improving your delivery performance. By combining purchase requisitions into PO bundles, you improve supply chain transparency and optimize order-handling, which facilitates an ordering process focused on range of coverage (RoC).
GIB Suite Vendor managed Inventory
With GIB Suite Vendor managed Inventory, you can integrate vendors who do not have their own SAP/ERP system in a browser-based application. The easy inclusion of even the smallest vendor enables more efficient transition of responsibility for operational MRP management to the vendor, which improves vendor flexibility and transparency, streamlines actions, and optimizes inventories – all to increase liquidity.
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Are you searching for answers or would like to receive more information about Supply Chain Planning? Do you want more detailed advice from our experts or wish to book a Supply Chain Plannning workshop?
Just contact us – we will be happy to help.
