Over the past few years, as the global economy has evolved, companies are facing new business challenges. With a focus on innovative solutions becoming a top priority for many supply chain leaders, this blog post aims to highlight why SAP Integrated Business Planning for Supply Chain (SAP IBP), a cloud-based supply planning solution, can be a game changer.
Being available in the cloud, SAP IBP gives users the freedom to access the system from anywhere and anytime with just an internet connection. This flexibility allows users to collaborate and work seamlessly across different corners of the globe. There is no restriction on the number of devices that can connect from multiple locations.
SAP IBP offers a robust user interface, giving business users the option to work either on the Web UI or the Microsoft Excel add-in, depending on the needs of the stakeholders. For example, a Sales Executive can intuitively use the web interface to input their sales numbers on the go, whether they are in a meeting room with a customer or waiting to catch a flight. These numbers can then be picked up in the Excel UI by supply and demand planners for various analyses.
Usually, on-premises infrastructure setup and maintenance involve high costs, and often the infrastructure is not used to its full extent. There are also high risks involved when data storage needs get close to maximum. In contrast, the cloud deployment of SAP IBP adopts a subscription-based model, which significantly reduces upfront costs and offers a more predictable budgeting structure.
For any on-premise solution, the IT department typically estimates overall server costs. Since these are estimates, the IT team often has to predict the total size needed, which may not be reached from the start, plus the added cost of people and hardware needed to maintain the solution. In this type of solution, the data collected and used by the organization must be stored within the organization's servers, requiring physical space either on-site or in a leased data center. This leads to increased costs to maintain additional hardware and resources needed to integrate the data. All this can be minimized by making use of a cloud-based solution, especially for planning software.
Most system updates are managed by cloud providers. This ensures that SAP IBP is consistently equipped with the latest features and security patches. The automatic updates allow businesses to stay at the forefront of planning capabilities without worrying about manual updates.
Currently, SAP IBP’s automatic updates happen quarterly. With each release, SAP shares information on the latest features that businesses can use immediately or with minimal updates in the configuration model. Additionally, customer feedback plays a major role in the release of new IBP features, as SAP actively involves its customers in providing feedback and inputs for enhancing existing functionalities.
SAP IBP facilitates real-time collaboration among stakeholders. This not only speeds up the decision-making process but also improves communication and responsiveness across the entire supply chain. With the option of saving data with a single click, planners can view the same figures and run scenarios and simulations in real time.
One of the most important factors of collaborative working is the ability to share information. Within IBP, there are multiple ways of doing this.
SAP IBP offers a completely scalable solution with a unified data model. Businesses can easily scale resources up or down based on demand, ensuring optimal performance during peak periods and cost-effectiveness during quieter times.
Consider the example of a shoe company: on a normal day, the system handles regular demand forecasting and inventory planning. However, during a sales season, the company will experience an increase in demand. By using SAP IBP’s features, the company can easily scale up its resources to meet this increased demand. This is achieved by dynamically adjusting inventory targets, optimizing supply chain routes, and ensuring that production schedules align with the increased requirements. Once the high-demand period is over, the company can scale down the resources, thereby preventing overallocation and optimizing costs.
We foresee the future of Supply Chain Planning as being cloud-based. At ArchLynk, our passion is grounded in utilizing our profound domain expertise in SAP Integrated Business Planning implementation. We assist businesses in harnessing the full spectrum of these innovative features. Rely on our seasoned consultants to guide your company through the implementation journey, ensuring you capture the entire essence of SAP IBP in a dynamically evolving business environment. To know more, speak to an expert.
