digitalization of supply chains with sap ibp & sap s/hana...& optimization (apo) prodution...

Peter Bickenbach, Solution Hub Lead d-SCM, MEE

Digitalization of Supply Chains with SAP IBP & SAP S/HANA

Prague, 08.11.2018 Peter BickenbachSolution Hub Lead SCM, [email protected]

+49 160360 3857

mailto:[email protected]

https://www.linkedin.com/in/peter-bickenbach-5a17831a/

https://www.xing.com/profile/Peter_Bickenbach


3PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Globalization

• Sharing Economy

• Re- & Near-Shoring

• Outsourced manufacturing

• Cost pressure

Individualization

• Individualizedproducts & services(Lotsize 1)

• Micro manufacturing/ 3D printing• Business Networks

• Omni-Channel

• Connected IoT

• Autonomousproduction & logistics

Connectivity

• Urban logistics

• On-the-fly / on-the-go culture

Mobility

• Green logistics & re/upcycling

Sustainability

Global Supply Chains are becoming more and more complex…


New Business Models Enabled by Digital Supply Chain Industry boundaries are blurring

Consumer Product Companies

On-lineRetailers

LogisticsCompanies

Manufacturers ServiceProviders

from WHOLESALE MODEL to DIRECT-TO-CONSUMER MODEL

from SAME-DAY DELIVERY to SAME-HOUR DELIVERY

from PHYSICAL INVENTORY to DIGITAL INVENTORY

from PRODUCTS to SOLUTIONS


The Intelligent EnterpriseThe foundation of a Digital Supply Chain

Intelligent

Technologies

Intelligent

Suite

Digital

PlatformAI

Machine Learning

Analytics

IoT

Data Management

Cloud Platform

Network & Spend

Management

People Engagement

Digital Core

Manufacturing

& Supply Chain

Customer Experience

The Intelligent Enterprise features 3 key components:

Intelligent Suite

Digital Platform

Intelligent Technologies

1

2

3




Intelligent Suite

Digital Platform


1

2

3


The Intelligent Enterprise Machine Learning algorythms for brand protection


Intelligent enterprises elevate employees to focus on higher-value




Intelligent Suite

Digital Platform


1

2

3


The Intelligent EnterpriseThe foundation of a Digital Supply Chain (Drivers)



Intelligent

Technologies

Intelligent

Suite

Digital

PlatformAI

Machine Learning

Analytics

IoT

Data Management

Cloud Platform

Network & Spend

Management

People Engagement

Digital Core

Manufacturing

& Supply Chain

Customer Experience


Intelligent Suite

Digital Platform


1

2

3


Idea

Project

CAD

Engineering

Production

Service

Maintenance

As designed

As built

As maintained

Digital Supply Chain: A Product‘s Lifecycle…

Costing

Operate


Production

ProductionSupply

Procurement

Warehouse Transport

Digital Supply Chain: A Product‘s lifecycle and the Physical Movement of Goods…

Integrated BusinessPlanning

SalesDistribution

Yard Logistic


Idea

Project

CAD

Engineering

Production

ProductionSupply

Procurement

Warehouse Transport

Service

Maintenance

Prototyping

As designed

As built

As maintained

Digital Supply Chain: A Product‘s lifecycle and the Physical Movement of Goods in complete Integration…

Yard Logistic

Costing


SalesDistribution

Operate

20PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Costing

Idea

Project

CAD

Engineering

Production

ProductionSupply

Procurement

Warehouse

Service

Maintenance

As designed

As built

As maintained

Digital Supply Chain: A Product‘s lifecycle and the Physical Movement of Goods in complete Integration and Networking Externally

Yard Logistic

Network ofEngagement

Network ofDigital Twins

Warehouse Transport


SalesDistribution

Operate

Prototyping

21PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Costing

Idea

Project

CAD

Engineering

Production

ProductionSupply

Procurement

Warehouse

Service

Maintenance

As designed

As built

As maintained

Yard Logistic

Network ofEngagement

Network ofDigital Twins

Warehouse Transport


SalesDistribution

Operate

Prototyping

Digital Core and Digital Supply Chain offer unique advantages

1Harmonized UI(Fiori/UI5)

7Integrated PrototypeManagement

6 Finite Capacity Planning

4Warehouse:• Resource Planning• Extended Warehouse Processes

3

Digital Supply Chain on a Digital Core:• Common Organization Structure• Common Master Data

9Digital Twin:• Common Master Data• One Integrated Process• One Change Management

5Transportation:• Integrated Warehouse and Transport Processes• Extended Transportation Processes

8Integrated LifecycleProduct Costing

2

Support several Biz Models in the same Supply Chain:• Make-to-stock, Make-to-Order, Design-to-Order• Project Manufacturing, Service, Retail• Discrete and Process



Intelligent

Technologies

Intelligent

Suite

Digital

PlatformAI

Machine Learning

Analytics

IoT

Data Management

Cloud Platform

Network & Spend

Management

People Engagement

Digital Core

Manufacturing

& Supply Chain

Customer Experience


Intelligent Suite

Digital Platform


1

2

3

SAP`s Supply Chain Strategy


Innovation Progress

2012

Functional, Integration, Industry-specific & Security Enhancements

Sales & Operations Planning

SAP HANA

S&OPon Premise

Strategic Planning

= On Premise = Cloud


Innovation Progress

2013



SAP HANA

S&OPCloud-based, Strategic

Planning



Innovation Progress

2012 - 2013 2014 - 2016


Supply Chain Control Tower

InventoryResponse& SupplyDemand

Sales & Operations

SAP HANA


SAP HANA

IBPUnified Platform &

Integrated Processes


Planning




Future Innovation Focus


Planning

2012 - 2013

IBPUnified Platform &

Integrated Processes

2014 - 2016 2018 +


InventoryResponse& SupplyDemand

Sales & Operations

SAP HANA


SAP HANA

IBPBusiness Networks, Advanced Planning, Machine Learning, and Smart Extensions



SAP Advanced Planning & Optimization (APO)

Prodution Planning/ Detailed Scheduling

(PP/DS)

Global

Available-to-Promise

(gATP)

Demand Planning (DP)

Supply Network Planning

(SNP)

SAP Digital Supply Chain Planning Strategy

Supply NetworkCollaboration


InventoryResponse

& SupplyDemand


SAP Integrated Business Planning

Network oriented PlanningRedesigned and innovated Processes

Ariba

Plant centric PlanningUnified Manufacturing Plan to Produce

Planning in ONE System

Finance

Human Resources

Sales

Sourcing & Procurement Manufacturing

Supply Chain

DemandResponse

& Supply AdvancedAvailable-to-Promise (AATP)


(PP/DS)



SAP Digital Supply Chain Planning Strategy


InventoryResponse

& SupplyDemand




Ariba

Plant centric PlanningUnified Manufacturing Plan to Produce


Finance

Human Resources

Sales


Supply Chain

AdvancedAvailable-to-Promise (AATP)


(PP/DS)



SAP Digital Supply Chain Strategy



InventoryResponse

& SupplyDemand




Ariba

Plant centric PlanningUnified Manufacturing Plan to Deliver


Finance

Human Resources

Sales


Supply Chain

AdvancedAvailable-to-Promise (AATP)


(PP/DS)

Extended Warehouse Management (EWM)

Transportation Management (TM)

How to work with SAP IBP?


Why did we come up with IBP?

ERP

Creating a plan should be easy, right?

• Getting consistent data

• Orchestrate and maintain a process

• Simulate different scenarios

• State-of-the-art algorithms

• Getting decission support

• Deligate tasks

• Communicate in ONE tool



ERPProduction

B3rd Party

ProductionA

MarketingSales


DataExcel, Outlook,Presentations,

Meetings

Datapools

Departments


© 2018 SAP SE or an SAP affiliate company. All rights reserved. 34

ERP Production B3rd PartyProduction AMarketingSales


Departments

Creating a plan is easy!

IBP


© 2018 SAP SE or an SAP affiliate company. All rights reserved. 35

ERP Production B3rd PartyProduction AMarketingSales

MS-Excel


High LevelFunctions


High LevelFunctions

ANALYSEFIORI Analytics

Analytics Objects

Colors

Display

Tasks

Live Refresh

Machine Learning (ML)

NEW

NEW

COLLABORATION

SAP JAM („Facebook of SAP“)

Process Flow

3 click Sharing

Excel Simulation

Share Dashboard

Supplier collaboration

SAP Co-Pilot(„WhatsApp of SAP“)

NEW

NEW

ALGORITHMSDemand Driven MRP

Order Based Planning

Optimizer

Heuristics

AdvancedForecasting Methods

Multi Echelon (Stage)Inventory Optimizer

NEW

PLANNINGComments

To-Do‘s & Workflows

Time horizons

Own Macros

Easy customizing

Alerts handling

Case & task management

NEW

NEW


IBP Release Timeline

MayFeb Aug

On-Demand

Nov

IBP 1802 IBP 1805 IBP 1808

Note: All future planned releases dates are subject to change.

2018

IBP 1811

Feb

IBP 1902

May

IBP 1905

Next Release: SAP IBP 1811• Applied to Customer Systems November 9 to November

30, 2018• Planned Release to Hosting November 6, 2018

Primary Upgrade Window: Default Upgrade timeframe during which systems will be scheduled for upgrade.

Reschedule requests can be communicated to [email protected] or via customer support incident.



High Level Solution Architecture of IBP

Sales/Marketing

Demand Planning

Finance

Supply Chain

Executives

ERP

CRM

BPC

APO

BW

Any other system

Files

Excel: Planning

Web

UI

sftp

|h

ttp

s

Ou

t-o

f-th

e-b

ox

or

con

figu

red

Inte

grat

ion

CP

I-D

SIBP Model & Engine

Attributes

Key Figures

Scenarios & Simulation

Predictive Analytics (ML)

Heuristics & Optimization

Inventory Algorithms

Process Workflow

Alerts

Social Collaboration (SAP JAM)

UI5: Analysis

JAM: Collaboration

S/4HANAIBP


SAP IBPComponents



Demand Response & Supply

Inventory

SAP HANA Platform

IBP



- Deliver a cross departmental sales and operations plan balancing the impact on inventory, service levels and profitability- 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


Selected Machine Learning (ML) Use Cases in IBP

Future / Research Phase

PoC with Customer Data

ML supporting

New Product Introduction

Automatic Exception

Handling &intelligent Decision

Support (DSC)

Flexible determina-

tion of Master Data using ML, e.g. lead times

Additional ML forecasting algorithms,

e.g. Gradient Boosting

Planned with IBP 1811

Available

Demand Sensing

Pattern Recognition

Use ML to analyse

segmen-tationgroups

Machine Learning Customer Workgroup Established in January 2018

This is the current state of planning and may be changed by SAP at any time.

Product direction


What does IBP for inventory accomplish for the end-to-end supply chain?

90% 92% 94% 96% 98% 100%

Inve

nto

ry (

$)

Customer Service Level (%)

Optimal inventory Company current performance

Achieve the Right Balance Between Service Levels and Inventory Investment

-60%

-40%

-20%

0%

20%

40%

60%

De

cre

ase

Incr

eas

e

Fix the Mix of Inventory!

How much inventory here?

Here? How about here?

Consequence (if inventory management fails):

▪ Too much inventory Finance

▪ Not enough inventory Customer

▪ Right inventory, wrong place SC planners


SUP 302

SUP 301Customer 1

MFG 2011

A

A Product Capacity Resource 1 Material

Sourcing Ratio& Lead Times

Customer 2

A

Customer 3

A

DC 101

A

DC 102

A

Demand- Forecast or Orders

On-Hand/Target Inventory

Location

Capacity LimitRequired /

Available Supply

4

A

1

2

3

4

5

4

5

Multi-level BOM

Production Source

MFG 202

A

1

6

3

4

5Multi-level BOM


On-Hand/Target Inventory


Multi Level Supply Chain Example

▪ Ability to model multiple tiers of the supply chain network including: Customers, DC’s, Plants, and Suppliers

▪ Ability to model multiple level BOM’s as a constraint

▪ Capable of planning for distribution, production, and procurement

Integrated Business Planning for Response & Supply


IBP Operational (Response & Supply) 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 S/4HANA- or an ERP-System, and allow for root-cause analysis and simulation of plans


Comparison of Response Management to SAP Advanced Planning and Optimization (APO)

SAP APO

Backorder Processing

Demand Planning

Production Planning

Supply Network Planning

Global Available-to-Promise

Capable-to-Match

(CTM)

Response Management

=

+

+ Unified priorities

+ Fast simulation

+ Visibility and analytics

+ Root cause analysis

+ Integration to ERP

Capable-to-Match

(CTM)

Backorder Processing

IBP Operational (Response & Supply) Order Based Planning Process


Look & Feel


How can you work with IBP?

IBPAddin

+

Dashboards/Configure Data

Key Figures, Reason Codes,Collaborate, Dashboards, Analytics, Alerts, Configure, Import Data, Define

Processes,Tasks, Cases

Edit Data/Simulate

Data Input, What-IF Scenarios, Unified Environment, Single Source of Truth, Real-Time Aggregation & Disaggregation, Easy Data Drill Down, Share Views, Use your own Macros


How can you work with IBP?

Getting an Overview & AnalyzeTake advantage of powerful supply chain analytics, rich User Interfaces and much more.

Taking ActionSet up your planning framework, settings and models to combine sales forecasts, inventory targets, supply plans, and financial plans into a single operational plan.

Working togetherHarness social collaboration capabilities to accelerate planning and decision making.


Getting an Overview & AnalyzeTake advantage of powerful supply chain analytics, rich User Interfaces and much more.

FIORI

Launchpad

Dive into IBP with your own role-based FIORI Launchpad. On anyof your devices.

FIORI ANALYTICS

Dashboards

Leverage the power of built-in Analytics. Access data in real time to slice and diceimportant KPI‘s.

FIORI ANALYTICS

Build Your Own

Building your own Analytics is easy. Create stunning analytics within secondsbased on real time data.


EXCEL

Planning Area

Include Master Data Attributes, PlanningLevels and Key Figures.For example: Product, Region, …

Set up your planning framework, settings and models to combine sales forecasts,inventory targets, supply plans, and financial plans into a single operational plan.

Excel

What If Scenarios

Gain deep insight into your data by setting up different scenarios to play around with your data.

EXCEL

Aggregate/Disaggregate

Easily Explore different planning levelswith one click. Share your insights withco-workers.

Taking Action


Harness social collaboration capabilities to accelerate planning and decision making

FIORI

Collaborate Anywhere

Share knowledge, ideas, data, tasks andmuch more in one single platform. PC & mobile.

EXCEL

Take Decisions Together

Easily share decisions taken directlyfrom the planning view while savingyour data.

Working together


Harness social collaboration capabilities to accelerate planning and decision making

Working together

Demand Driven MRP in S/4HANA & IBP


MotivationDDMRP Philosophy (as defined by the Demand Driven Institute)


The DDMRP methodology consists of five major building blocks

Strategic decouplingBuffer profiles and

levelsDemand-driven

planning

Position

1Protect

2 3Pull

4 5

Dynamic adjustmentsVisible and

collaborative execution

Modeling/re-modeling the environment Plan Execute

Source : Demand Driven Institute.


SAP Demand-Driven ReplenishmentEnd-to-End Processflow in S/4HANA

4Replenishment

Execution

1

Buffer Positioning(Strategic)

Individualized

DD w/ Buffer

intermediate

3

ReplenishmentPlanning

MaterialStock/

Stock Level

Stock+

Ordered

Proposed

order qty

FIO-NAV-0815 3 13 30

FIO-PST-1501 6 16 15

FIO-MST-3006 55 135 0

FIO-PRD-0807 22 56 0

FIO-NAV-0101 23 23 127

FIO-NAV-0404 44 44 26

FIO-MST-0821 25 25 0

FIO-PRD-0822 88 88 0

5

Lead Times

Average Daily Usage

Classifikation

Analytics(incl. Bias for Feedback)

2Buffer Level Management

(Operational)

LT Var(LT)

Safetystock

Reorder Pt.

t


SAP Demand-Driven Replenishment Solution Overview

Fiori Launchpad

1 1 25

Classify products …

to support identificationof possible decouplingpoints and

to prepare buffer profile assignment

Position buffers on level of product plant combination

by maintaining MRP type = D1

Calculate decoupled leadtime and LT classification

to prepare buffer calculation

Calculate buffer level proposals

for manual (and automated) adoption

Configuration & Setup Apps

2 3 4

Review and adopt the system’s buffer level proposals

Review the currentplanning situation

based on the net flow position

Review the currentexecution situation

based on the on-hand stock status

Mapping to the End-to-End Process

Business Applications with User Interaction


DDMRP - Based on SAP Cloud Platform and IBP

Demand Driven MRP for IBP v1IBP + Camelot SAP Cloud Platform DDMRP extension + Camelot Configuration

• Extends SAP IBP with SAP Cloud Platform “microservice”

• Integrates seamlessly into SAP IBP

• Can be flexibly connected to SAP ECC and S/4 HANA (using released existing standard interfaces)

• Enables customers to start DDMRP today with SAP

• Full compliance and certification with SAP and DDI

• Available now

• Requires IBP for inventory

– plus

– Camelot DDMRP extension in SAP Cloud Platform

– plus

– Camelot “RDS” one-time services fee

– Plus

– Camelot implementation services, as required

Using Camelot SAP Cloud Platform for step 1 & 2

Five components of DDMRP *

Leveraging SAP IBP (via Camelot configuration) for step 3-5

Leveraging Camelot ERP add-on for step 5


DDMRP for SAP IBP integrates with SAP ERP/scheduling systems

CP

I-D

S

SAP ECC

SAP APO

SAP S/4HANA

ERP master data + transactional data

DDMRP config. & data extension

MRP run

Detailedscheduling

Order execution

DDMRP config. &MRP extension

IBP S&OP


IBP Demand

IBP Supply & Response

IBP Inventory

SAP IBP

SAP Cloud Platform“DDMRP for SAP IBP”

enhancementas an SAP IBP Microservice

(based on SAP SCP and Fiori UI)

SAP HANA & IBP data model

“DDMRP for SAP IBP” configuration

as Rapid Deployment Solution (RDS)

CPI-DS = Cloud Platform Integration - Data Service Time Series - Based Integration


Financial Planning

Supply Chain

Sales

Procurement

Manufacturing

Marketing

PLAN / Network PRODUCE & FULFILL / Plant

Demand Review

Sales Budget and P&L Planning

SupplyReview

S&OP ReviewInventory

Financial Forecast & Reporting

ProductionExecution

IBP PPDS BPC TPMAriba SCC S/4HANA

Production Planning

Production Scheduling

Customer Collaboration * (VMI)

Supplier Collaboration

NPI Planning

Procurement Execution

Promotion Planning

PO Collaboration

E2E Business Process Flow and Touchpoints

Sales Forecasting

Budget/AOP

Financial Forecast Adjustments

Planned Trade Promotion

Planned New Product Introductions

Supplier Forecast Commit

Unconstrained Demand

Sales Forecast

Budget/AOP

PR

PO

Production Receipt

Goods Receipt

Planned Order

PrOdPrOd

Sales Budget

Sales History

Demand, Replenishment Plan

Sales OrderFulfillment

Material Requirements Planning

S&OP Plan Available-to-promise

Transport management

Warehouse operations

STR

Confirmed order

IBP = Integrated Business PlanningPP/DS = Production Planning / Detailed SchedulingAriba SCC = Supply Chain CollaborationBPC = Business Planning & ConsolidationTPM = Trade Promotion Management


Financial Planning

Supply Chain

Sales

Procurement

Manufacturing

Marketing

PLAN / Network PRODUCE & FULFILL / Plant

Demand Review

Sales Budget and P&L Planning

SupplyReview

S&OP ReviewInventory

Financial Forecast & Reporting

ProductionExecution

Production Planning

Production Scheduling

Customer Collaboration * (VMI)

Supplier Collaboration

NPI Planning

Procurement Execution

Promotion Planning

PO Collaboration

E2E Business Process Flow and Touchpoints

Sales Forecasting

Budget/AOP

Financial Forecast Adjustments

Planned Trade Promotion

Planned New Product Introductions

Supplier Forecast Commit

Unconstrained Demand

Sales Forecast

Budget/AOP

PR

PO

Production Receipt

Goods Receipt

Planned Order

PrOdPrOd

Sales Budget

Sales History

Demand, Replenishment Plan

Sales OrderFulfillment

Material Requirements Planning

S&OP Plan Available-to-promise

Transport management

Warehouse operations

STR

Confirmed order

Order based planning

IBP PPDS BPC TPMAriba SCC S/4HANA

IBP = Integrated Business PlanningPP/DS = Production Planning / Detailed SchedulingAriba SCC = Supply Chain CollaborationBPC = Business Planning & ConsolidationTPM = Trade Promotion Management


As-Is SituationToday


Sales PlanningExcel

SOP Planning in ERPMC94

Capacity AnalyticsBW & Excel

Capacity AnalyticsQlikView

Capacity Analytics GraphicallyBW & Excel

Capacity Usage reportSAP ECC

Work Schedules in ERPCA02/03

Demand Planning in APOSAPAPO/DP


Should-Be Situation

Today


High Tech

Life Sciences

Chemicals

Mill Products & Mining

Services

Auto

Manufacturing

(OK to present to customers; DO NOT email or provide hardcopies externally)

Updated August 2018

Distribution/ Retail

Consumer Products

Customers running IBP per Industry

http://www.dsm.com/countrysites/dsmnl/nl_NL/home.html

http://www.mondelezinternational.com/home

http://www.akzonobel.com/

http://www.bose.com/


SAP IBP Starter Edition

https://www.sapstore.com/solutions/60032/SAP-Integrated-Business-Planning-starter-edition,-non-production

https://www.sapstore.com/solutions/60032/SAP-Integrated-Business-Planning-starter-edition,-non-production


Roadmaps

https://www.sap.com/germany/products/roadmaps.html

https://www.sap.com/germany/products/roadmaps.html


Info: SAP-Infotag Lager- und Transportmanagement 2018

https://events.sap.com/de-infotag-lager-transport-18/de/home

https://events.sap.com/de-infotag-lager-transport-18/de/home


Ort:

Rosengarten

in Mannheim

19.3.Wann?:

19. März 2019

Vorankündigung: SAP-Infotag SCM-Planung 2019

Peter BickenbachSolution Hub Lead SCM, [email protected]

+49 160360 3857

Thank you!



https://www.xing.com/profile/Peter_Bickenbach


digitalization of supply chains with sap ibp & sap s/hana...& optimization (apo) prodution...

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