Integrated Business Planning for inventory

SAP IBP for inventory allows companies to better respond to increased supply chain risks, customer expectations, and volatility and variation in supply and demand. The simultaneous optimization of the stock in various phases as well as variation modeling provide for inventory objectives that not only achieve or exceed the levels of service, but also reduce working capital.

The challenges

  • Data and processes in silos, without consistent visibility of the supply chain
  • Lack of speed in identifying and responding to delays
  • Making it easier to understand future plans combined with previous objectives

Key added value

  • Optimal positioning of inventory in order to respond optimally to forecast errors, variation in supply and demand and supply uncertainty
  • Multi-echelon (multi-stage) inventory optimization as a solution for ‘ the science of postponement
  • Manage S&OP decisions for planners for recommendations on supply objectives (item-location-time span specific)

Benefits

  • Increase customer service with 5-10%, through better order-lead time variables
  • Reducing working capital by 15-30%, with the corresponding reduction in aging and supply costs
  • Improve planner productivity by 20-40%, less handling time, and more effective supply plans

SAP IBP Solutions

The SAP IBP Suite consists of the following 5 components:

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Contact

wouter-vervoort-sm

Wouter Vervoort

Business Consultant

+31 (0)73 206 22 00