Thoughts and Notes on SAP IBP 1805


I’d like to introduce you today to some of the new features that are in SAP IBP 1805.  While there are many exciting features in this release, this blog will just touch on a few of the ones that are aligned with my particular areas of expertise, which are S&OP and Supply and Inventory Optimization.

While I have not implemented IBP Response, there are 2 new features in SAP IBP 1805 that are required for an order-based planning – fair share distribution and frozen horizons.  The fair share works when the demand priorities are the same and to make sure everyone gets something if supply is constrained.  It works both at the finished goods level and component.  The frozen horizons are necessary to prevent changes to the supply planning in the near-term horizons.  For this to work, there are 3 new fields that will need to be populated – Distribution Freeze, Production Freeze and Plan Deletion Freeze horizons.

There are also some new features in Analytics.  While I am not an analytics expert, I have used it enough to feel comfortable mentioning one great new feature: The user can now control when the chart gets refreshed.  That is awesome since complex charts with drill downs takes time to refresh, so being able to  control when that happens is a huge plus.

For me though, the best new feature in SAP IBP 1805 is the ability to fix cells using MS Excel.  For those of you who have used APO DP, you know that you lost this capability when moving to IBP.  This feature is important when planners want to make changes at low planning levels but then also want to use a DISAGG operator to disaggregate KFs from aggregate levels to lower levels as an example.  SAP has also provided the ability schedule a batch job Unfix Key Figure Values which will be nice when moving from one planning cycle to another.  Remember, fixing KFs is a new configuration setting on the key figure and don’t get carried away with the number of key figures – there is a performance impact here.

For time-series supply planning, the best new feature is forecast consumption.  This is another feature from SAP APO that has now found its way into IBP supply.  The settings will look familiar for those who have used this in the past:

First Forward then Backward

Backward/Forward

Forward

Backward

First Forward then Backward

I have used Backward/Forward the most in my APO days.  Note that this capability comes with a new master data type – IBPFORECASTCONSUMPTIONMODE.

Finally, I have experience with Demand Sensing and it has always been hard for me to see if the result from the algorithm makes sense.   SAP has now supplied 5 new key figures in IBP 1805 that show the “intermediate” results of the algorithm.  These will definitely help in explaining/understanding the result.

I hope this blog was helpful.  If you have time and would like to learn more, I recommend checking out the SAP IBP 1805 recorded session.  Click here for the Slides and Recording.

Charlie Der
Charlie Der
c.der@scmconnections.com