Speeding up the Supply Chain requires a new Supply Chain Planning approach - Enhanced User Experience Introduce state-of-the art user experience with communication capabilities (SAP JAM) and MS Excel Spreadsheets. Built on SAP HANA Demand Networks require real-time monitoring and a focus on short-term planning

1. Supply Chain Excellence
SAP Integrated Business Planning

2. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Confidential
IBP

3. One Harmonized Data Model
Avoid any latency due to integration efforts and leverage the SAP
ERP data model
Cloud First Approach
The solutions will be provided in the SAP Cloud but also be made
available on-premise
Enhanced User Experience
Introduce state-of-the art user experience with communication
capabilities (SAP JAM) and MS Excel Spreadsheets
Built on SAP HANA
Demand Networks require real-time monitoring and a focus on
short-term planning
New Planning Algorithm
Leverage predictive analytics (e.g. demand sensing) algorithm in
combination with optimization
SAP Business Network
Supply Inventory Response Demand
Sales & Operations Planning
Enhanced User Experience
Supply Chain Control Tower
SAP HANA Platform
SAP Integrated Business Planning
Speeding up the SupplyChain requires a new SupplyChain Planning approach

4. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
S&OP Customer Testimonial
“”Colgate Business Planning (CBP) is our integrated business planning process focused on
accelerating profitable growth. We have engaged with SAP as an co-innovation partner
and collaborator to utilize their S&OP tool to enable our integrated monthly CBP process
to synchronize demand and supply.
The S&OP capabilities on HANA include the real time simulation and analysis of demand
opportunities during planning sessions. The tool’s contextual social collaboration
capabilities have facilitated more timely communication and updates of demand changes
across the organization. It has also streamlined the preparation and information exchange
leading up to key consensus meetings by providing one tool and repository for
information.”
Jim Davis
Global Director of Demand Planning and Customer Service
Colgate-Palmolive is a leading global
consumer products company, tightly
focused on Oral Care, Personal Care,
Home Care and Pet Nutrition. Colgate sells
its products in over 223 countries and
territories around the world.

5. The IBP Pillars

6. IBP: Plan in Real-time With a Unified Data Model
Capabilities:
 Plan in real-time, using a unified model of your demand,
supply chain and financial data within a single data
model, allowing planning on qty or value
 Analyze massive volumes of complex data instantly at
any level of granularity, aggregation, and dimension
 Import massive amounts of detailed data directly from
SAP and non-SAP sources
Benefits:
 Optimize product/customer profitability and product mix,
considering supply and financial constraints
 Adjust inventory levels to reduce cost, while meeting
target customer service levels
 Manage capacity utilization to avoid capacity and
material shortages

7. QtyValueUser-driven embedded analytics
User-defined process templateAlert management

8. IBP: Run Simulations and Scenarios Instantly
Capabilities:
 Rapidly run simulations of demand, supply and
financial changes using your full data model to
support what-if analysis
 Compare planning scenarios and their impact on key
performance indicators in real-time
 Drill down into simulated data to perform detailed
analysis without the need for manual disaggregation
Benefits:
 Identify optimal set of tactics to drive revenue growth
and increase market share
 Uncover opportunities to reduce supply chain cost
 Prepare for potential changes in demand and supply
before they happen

9. Plan on select key figures Plan on select hierarchy level and disaggregate
Select quantity or value
Create own master data for simulation
Addresses NPI and invisible demand
Embedded alerts

10. IBP: Enable Rich, Contextual Social Collaboration
Capabilities:
 Track progress of your business process, including
assignment and monitoring of action items and the
stakeholders responsible
 Collaborate quickly and easily using embedded role
and context-aware social tools
 Plan using user-friendly web and Microsoft Excel
interfaces
Benefits:
 Increase speed and agility of planning
 Drive greater engagement and improve input from
users across your organization
 Improve precision of demand and supply balancing

11. Messenger to key stakeholders
Collaborate and share analysis
Wealth of collaboration tools

12. SAP Integrated Business Planning (IBP)
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA

13. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 13
• Consider an airport control tower’s real time visibility of all airlines events in the region.
• The air traffic controllers has all the relevant information presented to them in real time
and are able to analyze, interpret and act on the information presented.
• They have a single interface to manage actions, corrective actions and communication
with stakeholders.
• Taking these lessons learned into supply chain planning… reacting to events in your
supply chain timeously helps to prevent losses and increase profit.
• SAP enables global visibility of the supply chain linked to sales, operations and
inventory planning in real time through the SAP Integration Business Planning solution
delivered in the SAP Managed Cloud
SAP Supply Chain Control Tower

14. SAP Supply Chain Control Tower
Understand current supply chain status with flexible dashboards
Enable supply chain professionals to
navigate, analyze and profitably manage
the end-to-end supply chain in real-time
• Increase end-to-end visibility
• Provides historical and forward looking
KPIs in a single view
• Drive visibility and action with user
configurable dashboards and analytics
• Monetized impact of exception conditions
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA

15. SAP SUPPLY CHAIN CONTROL TOWER
KPI dashboard Global visibility
Task and Case managementAlerting to Action
SAMPLE USE CASES

16. SAP Integrated Business Planning for sales and operations
Deliver a cross departmental sales &
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
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA

17. SAP Integrated Business Planning for sales and operations
S&OP process management Simulation
Collaboration Dashboard analytics

18. Supporting different Business Models and Challenges

19. Net Business Impact
Value Proposition with S&OP powered by HANA Benefits
Real-time Planning
 Plan in real-time, using a unified model of your demand, supply chain and financial
data
 Analyze massive volumes of complex data instantly at any level of granularity,
aggregation, and dimension
 Import massive amounts of detailed data directly from SAP and non-SAP sources
Optimize product/customer profitability
and product mix
Single business plan for all
stakeholders
Avoid shortages
Instant Simulations
& Scenarios
 Rapidly run “what-if” simulations of demand, supply and financial changes using
your full S&OP data model (30 to 40% improved response time)
 Compare planning scenarios and their impact on key performance indicators in real-
time
 Drill down into simulated data to perform detailed analysis without the need for
manual disaggregation
Become prepared to seize opportunities
or deal with imminent threats
Lower safety buffers without raising risk
Social Collaboration
 Track progress of the S&OP process, including assignment and monitoring of action
items and the stakeholders responsible
 Collaborate quickly and easily using embedded role and context-aware social tools
 Plan using user-friendly web and Microsoft Excel interfaces
Improve forecast accuracy through a
faster and collaborative S&OP process
Greater accountability & adoption from
stakeholders

20. Net Business Impact
Value Proposition with S&OP powered by HANA Business Impact
Standardize
Process
• Standardize process with automated workflow and task management
• Enable collaboration with field providing ability for customer program managers to directly
input forecast data
• Integration and consolidated data provides single version of the truth
Participation
&
Accountability
Optimize
Demand
Plan
• Optimize demand planning by leveraging historical data (previous forecast, actuals, etc.) and
current backlog data
• View different demand inputs to create a single consensus
Forecast
Accuracy (%)
Balance
Supply-
Demand
• Run financial impact simulations, e.g. revenue impact based on supply plan
• Perform constraint based supply planning
• Perform material and capacity analysis to balance supply-demand
Inventory
Costs
Real-time
Data
Refresh
• Real-time refresh of data fields including: product family, part number, ASP, customer master,
form factor
• Run simulations in real-time to make better business decisions, faster
• Paradigm shift from time spent on data gathering to data analysis to uncover opportunities
for improvement
Time for Data
Analysis
vs.
Gathering
1
2
3
4

21. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 21
Company
SMART Modular Technologies Inc.
Headquarters
Newark, California
Industry
High tech
Products and Services
Design, development, and deployment of
current and next-generation memory
products
Employees
1,400
Web Site
www.smartm.com
Partner
Intrigo Systems
www.intrigosys.com
Business challenges
 Planning processes that could not be scaled to keep up with fast company growth
 Lack of capabilities to support a value-driven and profitability-oriented sales and operations
planning process that is linked to business strategy
Technical implementation
Implemented the SAP® Sales and Operations Planning application powered by the SAP HANA®
platform
Key benefits
 Standardized, optimized, and automated the sales and operations planning process, substantially
reducing planning cycle times and workload
 Increased efficiency and accuracy of the forecasting process, and enabled the identification of
critical component shortages
 Enabled integrated business planning
“SAP Sales and Operations Planning powered by SAP HANA helps
SMART Modular manage our sales and operations planning in a
collaborative and efficient manner. We see a single version of the plan
from sales to planning to materials to the factory, all of which can be
correlated to financial performance. The result is true integrated business
planning.”
Srini Tanikella, Director IT Solutions, SMART Modular Technologies Inc.
Planning More Effectively with SAP® IBP for sales and
operations planning
Unified
Picture of sales, profits, and
and share targets, all in one
system
Fast
Cycle times with fewer
manual and labor-
sales and operations
planning processes
Intuitive
User interfaces and
embedded collaboration
tools that help boost user
productivity

22. SAP Integrated Business Planning for demand
Gain full Demand Transparency for short-,
mid- and long-term forecasting by
leveraging demand sensing and statistical
forecasting methods
• Develop more accurate mid-term
statistical forecasts
• React faster to short term demand
changes with pattern recognition based
algorithms
• Drive more accurate deployment of
product based on short term demand
• Manage multiple demand signals
• Collaborate to ensure the most
accurate forecast
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA

23. SAP Integrated Business Planning for demand
Demand Sensing Scenario planning for demand
Issue Resolution Fiori appDefining a forecast model

24. SAP Integrated Business Planning for inventory
Optimize multi stage Inventory Targets to
most efficiently meet or exceed customer
service levels, fully considering
uncertainties like forecast error and supply
uncertainty.
• Improve customer service levels
• Maximize the efficiency of inventory
and working capital
• Improve planner productivity,
standardize planning processes
• Standardize the inventory target-setting
process at each tier within the supply
chain to feed operational plans
• Determine right amount, right place,
and right time for inventory to carry
while meeting plan objectives
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA

25. SAP Integrated Business Planning for inventory
Inventory positioning in network Inventory & Service optimization
‘What if’ analysis on inventoryDrivers of inventory

26. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 28
Company
McKesson Corporation
Headquarters
San Francisco, CA, US
Industry
Pharmaceuticals
Products
Pharmaceuticals, Healthcare products,
Medical technology
Employees
43,500
Revenue
US$ 122.455 billion
Web Site
McKesson.com
Partner
SAP Consulting
Business challenges
 Spreadsheet-based planning approach prevented achieving aspired business growth targets
 Limited to no possibility to gain insight / analyze vast amounts of relevant data on the required levels
of granularity
 Growing and enabling business organization quickly to fulfill growth targets
Implementation
 Integrated solution for sales & operations planning and inventory optimization/replenishment
planning
 SAP HCI pivotal piece of integrating IBP for s&o, EIS, ECC and BW
 One Business Unit globally first, subsequent Roll-out
Key benefits
 Improved confidence in and integrity of the S&OP process
 Optimal inventory positioníng and level setting in complex supply chain environment
 Simplification of planning and fully exception-based procedures enabled scaling up the business
organization quickly
 Aggregation/disaggregation „on the fly“ through millions of relevant data records for rapid insight
for business users
 Generation of optimal constrained and balanced business plan in line with corporate financial
“Simplification of sales and operations planning, the introduction of an
optimized inventory positioning and replenishment process, and the rapid
enablement of the human organization was key for scaling up the business
according to the business growth targets.”
Jim Smith, Director of Solution Management, McKesson Corporation
Mastering complex hub & spoke supply chain model with SAP® IBP for
sales and operations and SAP® EIS
Increased
User acceptance through
centralized analytics and alerting
Decreased
Working capital through
optimized invetory targets and
Greater
Speed, efficiency and
effectiveness of planning
process

27. SAP Integrated Business Planning for supply
Create tactical level supply planning
simulations for S&OP based on forecasts,
orders, and inventory or safety stock
targets.
• Simulate either constrained or
unconstrained production and distribution
plan, using heuristics or optimization
based algorithms
• Multi level sourcing determination for
both distribution and Bills of Material
• Development of rough cut capacity plan
in a times series bucketed supply plan
• Gain visibility for projected stock or
shortages at relevant levels of
aggregation
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA

28. Fast, flexible supply planning supporting a variety of
approaches, suitable for many industries, including:
• Support of tactical (time-bucketed, rough cut) supply
planning in conjunction with IBP for sales and operation
• Create specific orders for production and procurement
in short – mid term, in alignment with tactical plan
• Constrained optimization and priority rules-driven
algorithms. Unconstrained demand propagation and
heuristics options as well
• Make short-term supply adjustments
• What-if analysis of actual or hypothetical
changes to demand and / or supply
• Pegging and gating-factor analysis
• Optionally generate and provide allocations
to ATP, and reschedule sales orders
SAP Integrated Business Planning for response and supply
Demand Inventory Supply Response
Sales and operations planning
Supply Chain Control Tower
SAP HANA

29. SAP Integrated Business Planning for supply & response
Entry screen – KPIs and alerts overview Back order processing and confirmation simulation
Demand supply pegging analysisStock projection

30. SAP Integrated Business Planning for supply & response
Entry screen – KPIs and alerts overview
Demand supply pegging analysisStock projection

31. SAP Integrated Business Planning for supply & response
Entry screen – KPIs and alerts overview
Demand supply pegging analysisStock projection

32. Customers

33. Integrated Business Planning for sales and operations
Customers and Industries
High Tech
Pharma
Chemicals
Manufacturing
Mill
Products &
Mining
Consumer
Products
Services
Retail

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