- SAP Managed Tags
This Blog is mainly written for the SAP Basis colleagues, Project Managers and other SAP consultants who are not much familiar with IBP. This blog will also provide some basis knowledge on supply chain planning operations.
SAP IBP is a next-generation supply chain planning tool hosted on SAP Business Technology Platform (BTP). It combines:
- Predictive analytics powered by AI and machine learning
- Cloud-based architecture for scalability
- Real-time collaboration across supply chain teams
- Seamless integration with SAP ERP and S/4HANA
Why is SAP IBP Gaining Popularity?
- Cloud Flexibility – No on-premise infrastructure to maintain.
- Advanced AI Forecasting – Improves demand planning accuracy.
- Integration with SAP S/4HANA – Enables real-time data exchange.
- End-to-End Visibility – Optimizes global supply chains efficiently.
- Most of the companies are now working to move from SCM system to cloud based IBP system.
There are multiple other cloud solution for supply chain planning and one of the most popular tool is Kinaxis RapidResponse.
Now lets start with How SAP Basis Professionals Work with IBP
Like All other SAP cloud applications, SAP Basis team will be working on the technical configuration, integration of IBP with on-premise and other cloud bases applications.
SAP Basis teams play a vital role in IBP system architecture and administration:
Below is the diagram we have taken from SAP IBP documentation guide which explains different connections we can have with SAP IBP.
IBP is used mainly for time series based integration (long term planning) and Order based integrations (short term). Based on the long term or short term planning integration type is selected.
Lets understand the integration types
- Time-Series-Based Integration
Time-series planning organizes data into period-based key figures (e.g., weekly, monthly, yearly) and is used for forecasting, demand planning, and inventory optimization.
Most customers used Time series planning as it is used mainly for long term planning or to handle demand planning related scenarios
You can refer blog for integration of CI-DS with ECC.
Below is the example of how IBP system will collect the data and perform the demand planning operations based on the historical data to create the forecasts.
Most of the Basis people are not aware of Planned Independent Requirement. PIR is used in SAP Demand Management to define anticipated demand for a product without being directly linked to sales orders. PIRs help businesses plan production based on forecasts rather than customer orders.
2. Order Based Planning
Order-based planning focuses on real-time transactional data (e.g., sales orders, purchase orders, stock transfers) and is used for short-term execution and response planning.
Order based Planning connect ECC or S4HANA systems with IBP via cloud connector configurations.
With these two integrations types, Basis team can choose the different components they need to setup.
If you have some experience in SAP Manufacturing processes you can refer some if the below IBP use cases
- Sales & Operations Planning (S&OP)
Use Case: A manufacturing company aligns demand forecasts with production capacity to avoid stock shortages.
- Demand Planning
Use Case: A retail chain predicts seasonal demand fluctuations using AI-driven forecasting.
- Inventory Optimization
Use Case: A pharmaceutical company minimizes excess stock while ensuring critical medicines are available.
- Supply Planning
Use Case: An automotive supplier optimizes raw material procurement based on production schedules.
- Response & Supply Execution
Use Case: A logistics firm adjusts supply chain routes dynamically based on real-time disruptions.
I believe if you have not started working on IBP yet, some of the above terms explained above will help you to get started.
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