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SAP Integrated Business Planning for Supply Chain

What is sap integrated business planning for supply chain.

Plan for a sustainable, risk-resilient future with the SAP Integrated Business Planning for Supply Chain (SAP IBP) solution. Speed responsiveness and stay ahead of change with supply chain analytics, what-if simulations, alerts, and more.

Powered by SAP HANA, this cloud-based solution combines sales and operations planning (S&OP), forecasting and demand, response and supply, demand-driven replenishment, and inventory planning.

• Automated, tightly coordinated supply chain planning processes
• Advanced machine learning algorithms and planning capabilities 
• Native integration with SAP Supply Chain Control Tower and other solutions
• Watch an overview video

The special thing about SAP IBP for response and supply is that it helps us create transparency and a feasible plan, which is great for providing reliable delivery dates for customers. Bernard Czap, Global Project Lead S&OP Transformation & Order Promise China, BSH Home Appliances Group Watch the customer video

2022 Annual Customer Report for SAP IBP

What were the highlights for SAP IBP over the past year? Dive in to find out.

• Read the report

Product Awards

See how customers are succeeding with sap.

See how ZF Friedrichshafen meets demand for its intelligent products with an integrated ecosystem of planning applications.

Explore how Hyundai Mobis is reducing excess inventory and being more responsive to customer needs.

Learn how DMK Group unified data processes on one platform so business units can track inventory data.

Discover how large-scale Australian brewer Lion became a climate activate–certified and carbon-neutral brewer.

See how Viessmann Group optimised its corporate supply chain planning processes to keep moving forward during a global pandemic.

Learn how Microsoft harnessed big data, machine learning, and IoT to build a connected and predictive digital supply chain.

Can you act fast when supply chain disruption happens?

See if your supply chain can withstand today’s challenges.

SAP has created the “Supply Chain Game Changer,” a simulated game that allows you to choose from three different scenarios (product shortages, logistics issues, and merger obstacles) and various roles (demand planner, supply planner, and head of planning) to see how your supply chain would hold up.

Join us on this interactive journey to understand how each role responds and reacts to today’s supply chain challenges.

• Play “Supply Chain Game Changer” now

Safeguarding business continuity while growing profits

Find out how synchronised planning can help you build a sustainable, proactive, and risk-resilient supply chain that increases visibility, boosts agility, and helps you better meet customer demand. 

• Read the white paper

What are analysts saying about planning and the sustainable, risk-resilient supply chain?

Building visibility with supply chain planning.

Read the Oxford Economics research into building visibility and collaboration in supply chain planning to avoid risk.

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Read what IDC has to say about how forward-thinking companies are using AI to make sense of their data and conquer supply chain complexity.  

Related supply chain planning solutions

Make informed, responsive, and in-context planning decisions with fast, flexible planning analytics, powerful simulations, and a collaborative supply network.

SAP S/4HANA Manufacturing for planning and scheduling

Extend the SAP S/4HANA digital core with embedded advanced planning and scheduling functionality.

• Learn about the solution

Frequently Asked Questions

What is SAP IBP?

The SAP Integrated Business Planning for Supply Chain (SAP IBP) solution is a cloud-based supply chain planning solution that scales to accommodate business growth and integrates with other SAP and third-party systems. It integrates key aspects of the planning process including demand, supply, inventory, and sales and operations planning (S&OP). Designed to help you streamline planning and improve performance, SAP IBP supports data-driven decision-making and simplified collaboration to increase operational efficiency. This is accomplished with help from advanced analytics, artificial intelligence, and powerful optimisation algorithms that enable real-time visibility, better forecasting, and faster decision-making across the entire supply chain.

Which modules are part of SAP IBP?

• Demand management: SAP IBP integrates historical data, market trends, and advanced predictive analytics so that you can generate more accurate demand forecasts.
• Response and supply planning: SAP IBP takes capacity constraints, lead times, and inventory levels into account so that you can optimise production and distribution plans and more efficiently meet customer demands.
• Inventory management: SAP IBP helps you maintain optimal inventory levels by balancing the trade-offs between carrying costs, stockouts, and service levels.
• Sales and operations planning: SAP IBP provides a unified platform for collaborative planning, allowing different departments to align on strategic goals and operational plans.
• Demand-driven replenishment: SAP IBP supports DDMRP for strategically positioning inventory buffers in the supply chain to absorb variability and uncertainty.
• Supply chain control tower: SAP IBP supports the real-time supply chain visibility and enhanced analytics you need to quickly respond to changing market conditions and customer requirements.

Who uses SAP IBP?

More than 1000 companies worldwide use SAP IBP to streamline supply chain and planning processes. Ranging from large multinational corporations to medium-sized enterprises, these companies span a wide range of industries, including manufacturing, retail, consumer goods, pharmaceuticals, automotive, aerospace, and many others. Some of the key users of SAP IBP include:

• Supply chain managers: They use SAP IBP to optimise supply chain processes, improve visibility, and monitor and control inventory levels.
• Demand planners: They use SAP IBP to forecast customer demand accurately, align supply with demand, and improve overall customer satisfaction.
• Sales and operations planners: They use SAP IBP to align sales, marketing, and operations teams to execute integrated business plans and achieve financial targets.
• Inventory managers: They use SAP IBP to optimise inventory levels, minimise carrying costs, and improve working capital efficiency.
• Executives and decision-makers: They use SAP IBP to gain insights into the overall health of the business, make data-driven decisions, and drive strategic initiatives.

Questions? Get in touch!

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Ericsson Chooses SAP Software to Connect Supply Chains

WALLDORF — SAP SE (NYSE: SAP) announced that Ericsson, a world leader in 5G and communications technologies and services, has selected the SAP Integrated Business Planning for Supply Chain (SAP IBP) solution to drive further operational efficiencies in its global supply chain network.

Supporting networks with more than 2.5 billion subscribers in more than 180 countries, and with 40% of the world’s mobile traffic outside China carried over its networks, Ericsson needed a technological foundation to provide for a single source of truth for its entire planning and logistics process.

The cloud-based SAP IBP solution integrates business planning capabilities across various business functions, improves the ability of companies to anticipate supply-chain risks and offers mitigating solutions. With SAP IBP, Ericsson will be able to navigate complex planning requirements while improving response times of sales, operations, resources, and inventory planning. This will empower Ericsson to further focus on driving innovation and improving cost efficiencies.    

The ability to predict and meet demand in an agile manner is crucial for companies to achieve several business objectives. Choosing SAP IBP is part of a long-time SAP and Ericsson partnership, in which SAP has supported Ericsson’s vision of providing limitless connectivity for the world.

“Agility, resilience and trust are critical for global leaders like Ericsson to achieve supply-chain resilience and meet customers’ needs,” said Dominik Metzger, head of the SAP Digital Supply Chain organization. “Ericsson and SAP have had a strong collaboration over the years, and its choice of SAP IBP allows us to support it in further digitalizing its supply chain to cement its position as one of the world’s leading telecommunications companies.”

Visit the SAP News Center . Follow SAP at @SAPNews .

Media Contacts: Ulrika Wass, +46 73 827 1074, [email protected] , CET Lesa Plingen, +49 622 776 9000, [email protected] , CET SAP Press Room ; [email protected]

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ.  Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2023 Annual Report on Form 20-F. © 2024 SAP SE. All rights reserved. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices.

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Introduction to SAP Integrated Business Planning for Demand

After completing this lesson, you will be able to:

• Explain Demand Planning challenges using SAP IBP for Demand

Integration Scenario

For SAP Integrated Business Planning for Supply Chain the following integration scenarios are possible: 

Which integration scenario to choose depends on the object type of the data that you want to integrate:

• Time series (mandatory for time series based planning): Use SAP Cloud Integration for data services (SAP CI-DS)
• Orders etc. (mandatory for order based planning): Use SAP Cloud Integration Smart Data Integration (SAP CI-SDI)

The different scenarios contain the following exceptions and point-to-point connections:

• Integrating ABAP backend with SAP IBP mediated via SAP Cloud Integration for data services: 2, 3, 4
• Integrating ABAP backend with SAP IBP mediated via SAP Cloud Integration with Smart Data Integration: 1, 3, 4 

Technical Prerequisites

The following technical prerequisites have to be met in order to monitor this scenario:

• Error log monitoring requires at least SAP Solution Manager 7.2 SP04
• SAP IBP job monitoring requires at least SAP Solution Manager 7.2 SP05

Available Monitoring Content

The following monitoring objects can be monitored for SAP IBP: 

• SAP IBP writes errors in the IBP error log, which can be collected and monitored by SAP Solution Manager.
• On the business application side, SAP IBP processes data and creates forecasts using data from any backend system (typically a SAP ERP system), i.e. there are important inbound and outbound data processes as well as forecast runs. Important jobs therefore are the Data Integration*, Forecast* jobs.​ These application jobs should be also monitored as part of the Job Monitoring in SAP Solution Manager.

This portal page explains how to set up the monitoring for the SAP IBP error log.

Monitoring Template: Cloud (SAP IBP) 

Connect cloud service, preparations in sap integrated business planning for supply chain.

Create Communication Agreement

The user that will be maintained in the HTTP endpoint, must be a user declared in the relevant Communication Arrangement defined in SAP Integrated Business Planning for Supply Chain for enabling the API used by Solution Manager. To arrange a communications agreement and allow SAP Solution Manager access please proceed as following:

• Log as administrator onto the SAP Fiori Launchpad of your SAP IBP tenant
• Select 'Communication Systems' under Communication Management
• System ID: SAP Solution Manager SID
• System Name: SAP Solution Manager system name (e.g. SOLMANAGER)
• Host Name: Enter any value into the mandatory field Host Name. Please note that since the actual value is not used in this communication scenario, it can be chosen freely.
• Choose '+' user under 'User for Inbound Communication' to add a user for inbound communication
• Choose 'New User'
• User Name: Enter a user name
• Description: Enter a short description
• Password: Enter a password. Remember this password for later
• Choose 'Create'
• Choose 'User Name and Password' as authentication method
• Select OK and save the communications system.
• Return to the Fiori Launchpad and choose 'Communication Arrangements' under 'Communication Management'
• Create a new scenario of type 'SAP_COM_0068' (Planning - Monitoring Integration)
• On the next screen select the communication system you created before and verify that the user name is provided automatically
• Save the communications arrangement 

Connect Cloud Service to SAP Solution Manager

The Cloud Services configuration is now accessible from the SAP Solution Manager Configuration (SOLMAN_SETUP) → Managed Systems Configuration → Tab 'Cloud Services'.

Create Cloud Service:

• Select 'Cloud Service Operations' → Create Cloud Service
• Select Service Type: 'SAP Integrated Business Planning' from the drop-down list.
• Tenant. The SAP Integrated Business Planning for Supply Chain tenant name
• You can also adjust the extended service ID (The ID used as SID in LMDB) here.
• Confirmation: Check your input values and click 'Finish'

The second step is to create the end-point for the cloud service.

Create the End-Point:

• Select your SAP IBP cloud service from the list and click 'Configure Cloud Service' 
• Configure Endpoints: Click the 'Add' button on the 'HTTP Endpoints' tab.
• Description: A meaningful description
• User: Communication user created before
• Password: Password for the user
• If necessary add proxy information to connect to SAP IBP

Monitoring Configuration

Step 1: configure exception management.

After the basic configuration you now have to configure Exception Management, as the exceptions collected via Exception Management and stored in the central exception store are the basis for the Integration Monitoring data collection.

Configuration for IBP Logs

To access the Exception Management setup please go to transaction SOLMAN_SETUP → Application Operations → Exception Management 

• In the step 'Define Scope' select the tab 'Cloud Services' and your SAP IBP system. If you didn't configure the system before make sure to select 'All Cloud Services' in the view drop-down. Click on 'Configure' or click 'Next' two times. You will enter the step 'Exception Configuration'.
• Click 'Add / Configure Log Store'. Select 'IBP Logs'.
• Area: Application Log Area (see info box below)
• FreeText: Message Text
• Severity: Error or Warning
• SubArea: Application Log Sub Area
• UserName: User creating the log entry
• MsgID: Message Class
• MsgNo: Message Number
• Maintain the filter values for the fields in the Filter Definition panel under the log stores table. You can also add, remove or change filter fields and values later on in the area. You can use different operators for your filter value. You can add more than one filter filed combination per log store. To add an additional filter field combination click on the button 'Add Filter' in the 'Configured Log Stores' panel.
• You should not set up the monitoring for the exceptions in the Exception Management. If you activate the monitoring here, you will receive an alert (and if set up this way an email) for every single exception in the application log. Instead we will use Interface and Connection Monitoring to monitor the central exceptions store for exceptions. 

Additional Information: Errors and Warnings

If you set up the IBP Logs store without any filters, only IBP logs of Severity 'Error' will be collected.

To collect errors and warning please add two filters to the IBP Logs store, one filter for Severity = Error and one filter for Severity = Warning.

IBP Log Area

To find out which log area and sub-area to use for the filter, you can check the available logs in your IBP tenant.

You need a user with the authorizations to see the "General Planner" group in the IBP Launchpad.

• Go to 'General Planner' → 'Application Logs'
• Select the log you want to monitor / alert on
• The area and sub-area are visible in the top on the log screen
• Make sure to use the technical names for area and sub-area!  

Step 2: Configure Interface and Connection Monitoring

The last step is the configuration of Interface and Connection Monitoring. The Interface and Connection Monitoring setup can be accessed via SAP Solution Manager Configuration (SOLMAN_SETUP). 

Configuration for Monitoring Template: Cloud (SAP IBP)

To access the Integration Monitoring setup please go to SAP Solution Manager Configuration (SOLMAN_SETUP) → Application Operations → Integration Monitoring → Interface and Connections. 

Navigate to the step 'Define Scope'. You can create a new scenario for the SAP ByD monitoring or use an existing one. Make sure the on premise system for the SAP ByD scenario and the Cloud Service created for SAP ByD is part of the Interface and Connection Monitoring scenario. 

Create the Interface Channel:

• Select the scenario and click 'Next'
• In step 'Preparation' perform all relevant manual activities and run all automatic activities.
• Channel Name: Enter a meaning full name (max. 30 characters)
• Type: Select 'Cloud'
• Monitoring Template: Select 'Cloud (SAP IBP)'
• Description: Enter a description for the channel
• Click Next.
• If the source system is the on premise system, please select 'Technical System'
• If the source system is the SAP IBP system please select 'External Service'
• Source: Select the on premise system resp. the SAP IBP Cloud Service from the drop-down list
• If the target system is the on premise system, please select 'Technical System'
• If the target system is the SAP IBP system please select 'External Service'
• Target: Select the on premise system resp. the SAP IBP Cloud Service from the drop-down list
• The measuring point is selected automatically
• If more than one client are connected for the on premise system please select the correct client for the monitoring
• Click Finish.

Maintain the Interface:

• Select the interface channel you created
• On the 'Interfaces' tab click the 'Add' button.
• Area (mandatory): Application Log Area
• Subarea: Application Log Sub Area
• Message ID: Message Class
• Message number: Message Number

User: User creating the log entry

Select Metrics:

• On the tab 'Metrics' select the metrics you want to monitor
• Save your interface channel by clicking on the 'Save' button.

Filter Values in Interface and Connection Monitoring

Since the data collection is based on the content of the global exceptions store, you can always check the collected exceptions in Exception Management. All filter parameters are part of the collection context of the exceptions. The filters applied in Interface and Connection Monitoring allow you to filter the exceptions collected by the Exception Management further. However if the filters in Exception Management do not collect an exception, it is not available in the central exception store and you will not be able to find it in Interface and Connection Monitoring! 

You can maintain attributes as described in the  Interface and Connection Monitoring Setup  on the tab 'Attributes'.

Thresholds and the collection schedule are maintained in the next step of the guided procedure. Once you have maintained all your channels, click 'Next' in the main guided procedure to move to the step 'Activation'.

Maintain Thresholds and Schedule:

• On alert level you can maintain notification and incident message creation
• Do not remove the flag for 'Do not Group Individual Occurrences' as this flag ensures that an alert each time new exceptions are found during a data collection interval
• Do not change the data collector type or data collector name on the tab 'Data Collection' as the monitor will not work anymore if this is changed.
• Do not change the threshold if it is set to 'Already Rated'.
• Click 'Apply and Activate' → <Choose one option> to activate the monitoring

If not active you can also activate the reporting for the channels by checking the box in the column 'Reporting'. This way you can see a history of the number of exceptions that happened and also place the metric on the OCC Dashboard in Focused Insights.

Job Monitoring

The user that will be maintained in the RFC endpoint, must be a user declared in the relevant Communication Arrangement defined in SAP Cloud for Customer for enabling the API used by Solution Manager. To arrange a communications agreement and allow SAP Solution Manager access please proceed as following:

• Log as administrator onto the SAP Fiori Launchpad of your S/4 HANA Cloud tenant
• Go to the Fiori Launchpad and choose 'Communication Arrangements' under 'Communication Management'
• Create a new scenario of type 'SAP_COM_0064' (Job Monitoring Integration)
• On the next screen select the communication system you created before for Exception Management and verify that the user name is provided automatically

Preparations in SAP Solution Manager

• If not already done for Exception Management you need to add the IBP system as cloud service in the Managed System Configuration as described above 
• You need to have done the steps described in note  SAP Note 2669548 , beside others apply the BCSet attached to the note.

Configure Job Monitoring

In the following we describe the monitoring configuration for an individual cloud Application Job.

To access the Job Monitoring setup please go to SAP Solution Manager Configuration (SOLMAN_SETUP) → Application Operations → Job Monitoring 

Navigate to the step 'Define Scope'. You can create a new scenario for the monitoring or use an existing one. Add the IBP system/tenant as external service to the monitoring scenario. 

Create the Job Monitoring Object:

• Select as Job Type ‘NW Appl Job' and as Technical System the IBP tenant.
• Chose to get the job identification option From Managed System .
• To select the job using the Job Selection Criteria and click ‘Search'.
• Select the relevant job.
• Copy the job name into the Monitoring Object Name field (you can chose a different name though)
• On the Schedule tab, you can accept the default (e.g. data collection every hour) or adjust to your needs.
• Confirm to create a monitoring object.
• Status and Application Log Status should be selected always
• For Duration and Start Delay you need to define thresholds
• For End Delay , Out of Time Window and Not Started on Time you need to define on top the expected times.
• Optionally do further configurations, e.g. maintain Incidents and Notifications .
• Generate and Activate via the Actions button on top of the list of job monitoring objects.

Why Ericsson Chose SAP to Enhance Supply Chain Efficiencies

As one of the world’s leading producers of software for the management of business processes, SAP is constantly developing solutions that facilitate effective data processing and information flow across organisations.

This extends to the supply chain space, where the tech giant is driving operational efficiencies throughout global networks. 

It’s little wonder, then, that Ericsson – itself a world leader in the field of 5G and communications technology and services – has selected SAP Integrated Business Planning (IBP) for Supply Chain in a bid to drive further efficiencies within its own network. 

“Agility, resilience and trust are critical for global leaders like Ericsson to achieve supply chain resilience and meet customers’ needs,” comments Dominik Metzger, Head of SAP Digital Supply Chain.

“Ericsson and SAP have had a strong collaboration over the years. Ericsson’s choice of SAP IBP allows us to support it in further digitalising its supply chain to cement its position as one of the world’s leading telecommunications companies.”

Navigating complex planning requirements

Supporting networks with more than 2.5 billion subscribers in more than 180 countries, and with 40% of the world’s mobile traffic outside China carried over its networks, Ericsson has been seeking a technological foundation to provide a single source of truth for its entire planning and logistics process.

The cloud-based SAP IBP solution integrates business planning capabilities across various business functions, improves the ability of companies to anticipate supply chain risks and offers mitigating solutions. 

With SAP IBP, Ericsson will be able to navigate complex planning requirements while improving response times of sales, operations, resources and inventory planning , thus empowering the organisation to further focus on driving innovation and improving cost efficiencies.

The ability to predict and meet demand in an agile manner is crucial for companies to achieve several business objectives. 

Ericsson choosing SAP IBP is part of a long-running partnership, which has seen SAP support Ericsson’s vision of providing limitless connectivity for the world.

How else is SAP driving efficiencies? 

SAP is developing solutions to ease the day-to-day work of supply chain and procurement teams at a relentless pace. 

Last year, the technology powerhouse announced Joule , a natural-language, generative AI co-pilot embedded throughout SAP's cloud enterprise portfolio, including procurement and supply chain. 

The tool is aimed at quickly sorting through and contextualising data from multiple systems to surface smarter insights, with the overall intention of helping people get work done faster and driving better business outcomes in a secure, compliant way. 

Joule is able to identify underperforming regions; link to other data sets that reveal a supply chain issue; and automatically connect to the supply chain system to offer potential fixes for the manufacturer's review.

Elsewhere, SAP has been working with EDF Renewables to develop a solution that supports automated replenishment of inventory items based on aggregation of spent data and consumption data.

Supply Chain Digital spoke to Mike Wade, Head of Digital Supply Chain EMEA South at SAP, earlier this year about the company’s efforts to keep up with the pace of change in supply chain and procurement digital transformation .

Check out the latest edition of Supply Chain Magazine and sign up to our global conference series – Procurement and SupplyChain LIVE 2024 . 

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