Supply Chain Planning and Integrated Business Planning in SAP Hana Logistics

Last updated on Dec 05 2021
Anand Vishwakarma

Table of Contents

Supply Chain Planning and Integrated Business Planning in SAP Hana Logistics

In S/4 HANA system, Supply Chain Management process is divided into different steps, out of which few steps are executed by S/4 HANA components and others by SCM component. SAP S/4 HANA and SCM system is integrated together for planning and Core Interface is used for integration.

Following processes can be performed by using the components in Supply Chain Management −

  • Demand Planning (DP)
  • Supply Network Planning (SNP)
  • Production Planning and Detailed Scheduling (PP/DS)
  • Global Available-to-Promise (ATP) Check
  • Transport Planning/Vehicle Scheduling (TP/VS)

Demand Planning

You can use demand planning to plan future demand for specific customers, regions, or sales organizations. Demand planning allows you to forecast future demands and you can create both quantity-based and value-based plans.

You define the planning level using characteristics in the system. All the planning data in demand planning is stored in the form of key figures and it contains a numerical value.

Using time characteristics, you can view, plan, and store the data. Historical data is imported to SAP NetWeaver BW system of SCM with the use of BW extractors.

Various mathematical methods can be used to analyze historical data for demand planning.

  • Moving average
  • Constant model
  • Trend model
  • Seasonal model
  • Exponential smoothing

In analyzing historical data, you can use various constant models for products with historical data that changes little over time.

In Demand Planning, seasonal models are used for seasonal products. As per requirement, there can be different seasonal products – candles, ice creams, etc.

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In the above image, you can see the demand planning process flow. The Sales Order details provide the basis for forecasting future demands. With the forecast result, the demand plan is released as Planned Independent Requirement (PIR).

Integrated Business Planning

SAP Integrated Business Planning (IBP) is a real-time integrated planning solution based on SAP HANA. It provides integrated, unified planning across sales and operation, demand and inventory with analytical dashboard for monitoring.

IBP is a new user experience which provides the following solutions −

  • IBP for Sales and Operation
  • IBP for Demand
  • IBP for Inventory
  • IBP for Supply
  • IBP for Response (Planned)

To meet future demand, SAP Integrated Business Planning is powered by SAP HANA inmemory and is used to combine the capability of sales and operation, demand, supply planning, and inventory optimization.

SAP Integrated Business Planning ─ Key Features

Following are the key benefits of SAP IBF −

  • End-to-end supply chain visibility
  • Unified, integrated, and cross-departmental planning approach
  • Simple and easy-to-use user interface
  • Advanced demand sensing, analysis, and predictive forecasting
  • Embedded social collaboration and MS Excel-based planning

To use SAP Integrated Business Planning, you use the following applications −

  • SAP Integrated Business Planning for sales and operations
  • SAP Integrated Business Planning for demand
  • SAP Integrated Business Planning for response and supply
  • SAP Integrated Business Planning for inventory
  • SAP Supply Chain Control Tower

The features of each of these tools are available only when you have the license. Features of the IBP platform are available to all IBP applications. However to use SAP Jam, which is used for collaboration, there is a need of a separate license.

SAP Simple Logistics – Create PIR

In SAP ERP Business Suite, use T-code MD61 or go to Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Create.

In SAP S/4 HANA system, navigate to SAP Fiori Launchpad.

Enter the user name and password for login.

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In the next window, you have to enter PIR in the search option to search for apps Manage PIR. Click Manage PIR app to open this application.

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This will display all apps based on Planned Independent Requirement (PIR). You can create new PIRs, display PIRs or manage the existing PIRs in the system.

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In the next window, you have to enter the following details −

  • MRP controller for plant # as your area of responsibility.
  • Select your end item material and Extreme group ##.
  • Maintain PIRs of 50 pieces starting in the fourth week for the next 4 weeks. Click the save and draft option.

Next, open Display PIR’s app and enter material and plant #.

 

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You can create a new PIR here or can change the existing PIR using the Display PIR tile. To display PIRs, you have to pass different parameter values.

  • Planning Horizon
  • MRP Area
  • Selection Parameters

Once you select all the values, you can press ENTER to display the existing PIRs.

So, this brings us to the end of blog.
This Tecklearn ‘Supply Chain Planning and Integrated Business Planning in SAP HANA Logistics’ blog helps you with commonly asked questions if you are looking out for a job in SAP S4 Simple Logistics and SAP Domain. If you wish to learn SAP S4 Simple Logistics and build a career in SAP domain, then check out our interactive, SAP S4 HANA Simple Logistics Training, that comes with 24*7 support to guide you throughout your learning period. Please find the link for course details:

https://www.tecklearn.com/course/sap-s4-hana-simple-logistics-training-and-certification/

 SAP S4 HANA Simple Logistics Training

About the Course

SAP S/4 HANA Logistics 1909 is a one stop solution for new-age Material Management, Production Planning, Supply Chain Management, as well as sales and distribution of organizations with medium to large infrastructure. SAP S/4HANA Logistics is also known as SAP S4 HANA Enterprise Management which includes all the modules not only the Finance but also the modules like SAP MM, SAP SD and now they are available as a part of SAP S4 HANA as a product and enterprise management is the complete business street. SAP S4 HANA Logistics uses the data processing ability of S4 HANA to provide simpler, faster and more efficient approaches to logistics and supply chain problems.

Why Should you take SAP S4 HANA Simple Logistics Training?

  • The Average salary of SAP Consultant is $110,250 per annum – PayScale.com
  • S4 is a new tool to come from SAP HANA stables that can help simplify the domains of logistics, enterprise resource management, supply chain management, and more. Worldwide Business Intelligence and Analytics Market to grow to $22.8 billion in next 2 years – Gartner.

What you will Learn in this Course?

Overview of SAP and SAP HANA

  • Architecture overview of SAP HANA
  • History of SAP
  • Enterprise Architecture
  • Database, Application and Presentation Layer
  • Comparing row store and column store in SAP HANA
  • Overview on views (Attribute, Analytic, Calculation)
  • SAP HANA Modelling

Introduction to S4 HANA Logistics

  • How S4 HANA benefits the business enterprises in the logistics domain
  • SAP Business Suite to S4 HANA
  • SAP Navigation GUI
  • New User experience app SAP Flori for SAP software and applications
  • Deploying S4 HANA Logistics for premise in the cloud or as a hybrid application
  • Deployment options – On Premise, Cloud, Hybrid
  • Why go for Simple Logistics
  • SAP S4 HANA Simple Logistics – Key Innovations
  • ERP Model Vs S4 HANA Data Model
  • SAP Simple Logistics – Main Components
  • Hands On

SAP S4 HANA Implementation Scenarios

  • Transition to S4 HANA
  • System Conversion
  • New Implementation
  • Landscape Transformation
  • Hands On

Introduction to SAP Activate Methodology

  • What is SAP Activate
  • Why do we need SAP Activate
  • SAP Activate used in which projects
  • Advantages of SAP Activate
  • SAP Activate – Innovations for New Implementation
  • Hands On

Business Partner and Customer Vendor Integration (CVI) on SAP S4 HANA

  • Master data synchronization between Business Partner (BP) to customer and vendor
  • Synchronization control
  • Customer Vendor Integration (CVI)
  • Implementation/Migration from ECC to S4 HANA
  • Converting Customers/ Vendors into BP and Conversion Process & Tools, and Conversion Cockpit.
  • Configuring BP role
  • Configuration of number range and grouping
  • Defining account group
  • Hands On

SAP Fiori Apps

  • Introduction to SAP Fiori UX
  • SAP Flori Launchpad
  • UI Theme Designer
  • Innovations in Fiori for different modules
  • Generate new tiles for a custom/ standard tcode
  • Creating new catalogue, group & roles
  • KPI
  • Hands On

Sales on SAP S4 HANA

  • Sales Documents (customizing)
  • Billing process and Customizing, Smart Business
  • Basic Functions (customizing), Pricing and condition technique.
  • Sales process, Shipping Process and Customizing, Availability Check, Organizational Structures, Cross-functional Customizing, Master Data
  • Hands On

Output management on SAP S4 HANA

  • Prerequisite of output management
  • Configuration of new output management
    • – Manage application object type application
    • – Define output type
    • – Define business rule for output determination
    • – Assign output channels
    • – Define rules for determination of master form template
    • – Assign form template

Material Requirement Planning (MRP) on SAP S4 HANA

  • MRP_Live configuration prerequisite
  • Number range configuration for MRP_Live
  • Set Up and Creation of planning file entries
  • Planning Execution for Material Requirements
  • Concept of Requirements Planning and its Technical Processes
  • Processing and Assessment of MRP Results
  • Additional Processes in MRP
  • Simplification of MRP from storage location to MRP area level

Changes in SAP Simple Logistics Process:

  • Overview of New Functionalities in SAP Simple Logistics
  • Overview of SAP Flori Apps related to Logistics/Supply Chain
  • Architectural Changes for Product Master and Supplier Information
  • Architectural Changes / Configurations related to Sourcing and Procurement
  • Architectural Changes / Configurations related to Supply Chain
  • Architectural Changes / Configurations related to Manufacturing
  • Architectural Changes / Configurations related to Sales

Data Migration to SAP S4 HANA

  • Activate methodology for data migration
  • Guided configuration
  • Maintenance planner
  • ABAP Test Cockpit
  • Adaption note for adapting custom development
  • Data migration cockpit for new fresh implementation
  • New field adding in report
  • Synchronization between BP to customer or Vendor,
  • Migration of credit management, Migration of material ledger, migration of documented credited decision

SAP S4 HANA Logistics Implementation Projects

  • Configuring standard Flori apps
  • Order to Cash Performance monitoring
  • SAP S4 on premise
  • Integrating SAP S4 HANA with Design Studio

Got a question for us? Please mention it in the comments section and we will get back to you.

 

 

 

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