IMPROVA’s service area expands with SAP Integrated Business Planning Solutions
IMPROVA, which is one of the most innovator SAP partners in Turkey has been known with its successful SAP projects and certificated consulting team in Supply Chain Management (SCM) and Integrated Business Planning (IBP) areas.
Tolga Büyüksaraç, Supply Chain Solutions Director in Improva clarifies critical subjects about Integrated Business Planning orientation in Turkey and world together with the key points of IBP transformation process for the existing SAP customers.
What is IBP oriented planning? How can it be exactly described?
IBP is a new generation business planning process which brings end to end management approach combining the most critical strategical planning functions with financial key figures.
Regarding this description can we say IBP approach overlaps with S&OP approach?
We can say that the two approach serves to reach the same strategical goals, however IBP requires a more improved and top-level management point of view. IBP carries the planning processes to a higher dimension. IBP aims to bring a top-level planning approach which overlaps strategical goals of the company including New Product, Research & Development and financial key figures directly in the planning process whereas S&OP aims to balance demand and supply in short and middle term.
Is IBP oriented planning a rising topic in the world? If it is, can you explain the reasons for that?
Factors like uncertain economical circumstances, requirements about entering the market faster, rising variability in customer demands, decreasing profit margins direct companies to make more accurate and efficient plans. IBP oriented management and planning approach is the most ideal guide to follow for companies because of its strong functions and strategical structure.
How is the orientation in Turkey?
Turkey which is having one of the biggest economies in the world reacts the same way in economical and industrial point of view with the world. So IBP transformation is also very important for them and they have already started to transform.
Are the companies in Turkey ready for the transformation process?
Turkey has seriously improved in software and technology fields since ten years. Companies which don’t have a proper ERP approach in the beginning of 2000’s changed dramatically their company culture in this time period and got familiar with the advanced planning software together with the advanced planning culture which is driven by these planning tools. Because of this reason we can say that in Turkey, companies have started the transformation long before and they continue this process for a long time.
Which processes companies must pass through to adapt IBP oriented planning?
At first this work must be owned by company personnel. It is important to give educations emphasizing the benefits of this transformation in order to spread the IBP culture. The necessity of the transformation must be assimilated before the transformation starts. After all of these steps are completed, the process must be supported with a strong software which both makes easy to manage the process and gains flexibility and speed to the process.
What are the benefits of SAP IBP solution as an IBP tool?
SAP’s IBP solution gives an opportunity to the companies to work faster, more efficient, more smart and more profitable. With SAP IBP on Hana companies;
- Analyse demand, supply and financial data concurrently in a single model.
- Simulate various different scenarios in very short periods.
- See instantaneous demand changes and reacting correctly at the right time.
- Make optimum stock and supply plans covering all supply chain constraints with using various optimization functions which is one of the essential sides of an IBP tool.
- Feel the difference of using graphical web screens, advanced analytical applications, interactive management functions and excel based working environment.
What are the differences of SAP IBP product from SAP APO which is a component of SAP SCM product family?
APO is a SAP product in the fields advanced planning and optimization which has become a world leader in 20 years. APO covers a wide range of planning functions from demand planning to detailed production scheduling. APO is a strong solution which aims to solve, optimize and model midterm and short term planning problems whereas IBP focuses strategical top-level planning, fast simulations, financial integration, collaborator and consolidated plans.
Are there advantages to use SAP IBP tool for the existing SAP APO customers?
Definitely it has many advantages because SAP locates APO as a tactical and operational level planning tool whereas IBP focuses on more strategic and top-level planning activities. IBP’s output can be used in APO so we can say that they are complementary products. Companies have a chance to make more accurate plans with accurate inputs serving companies’ strategy when they both use IBP and APO.