SAP Integrated Business Planning for Supply Chain

Strategy and Roadmap Update

SAP Digital Supply Chain Planning

Paul Saunders, Bertram Wiest, Holger Herrmann
November
Stephan 2021
Kreipl – Chief Product Owner, SAP Integrated Business Planning for Supply Chain
2023
CONFIDENTIAL
Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.
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This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and
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assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,
and they should not be relied upon in making purchasing decisions.

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Agenda

Supply Chain Dynamics

SAP Solutions

Solution Direction for SAP Integrated Business Planning for Supply Chain

Q&A

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Agenda

Supply Chain Dynamics

SAP Solutions

Solution Direction for SAP Integrated Business Planning for Supply Chain

Q&A

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The need for a resilient and sustainable supply chain

Disruption did more than empty the shelves.

How do you reverse 20 years of globalization in

20 months?

We need to rethink how we design and plan our

supply chains to take risk right out of them!

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Key capabilities to build a resilient and sustainable supply chain

Visibility End-to-end visibility in the supply chain to identify disruptions and events

Connectivity Collaborate with your ecosystem creating digital connections with all partners

Agility Proactively and profitably sense and respond to market dynamics

Intelligence Identify patterns, auto-correct or propose solutions and let planners

focus on the exceptions

Sustainability Actively manage your environmental and community impact

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Synchronized Planning with SAP Integrated Business Planning for Supply Chain
Enabling a resilient and sustainable supply chain

Extended Planning
Visibility and Analysis (xP&A)
with Financial Planning

Connectivity Synchronized Planning

for Production

Agility
Synchronized
Logistics Operations

Intelligence
Network Aware
Planning

Sustainability
Risk Aware Planning

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Agenda

Supply Chain Dynamics

SAP Solutions

Solution Direction for SAP Integrated Business Planning for Supply Chain

Q&A

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SAP Digital Business Planning
Connect strategic and operational planning with real-time visibility and execution
Digital Business Planning

Strategic, Tactical, and Operational

Supply Chain Network Planning
SAP Integrated Business Planning (IBP)

Supply Chain Execution Enterprise Planning Supply Chain Collaboration

SAP S/4HANA SAP Analytics Cloud (SAC) SAP Business Network
Leverage proximity to core Financial planning, steering and financial High scalability with access to
for transactional planning and impact analysis on enterprise level trading partners for collaborative
scheduling, e.g. Production planning and execution, e.g. SAP
Planning and Detailed Scheduling, Ariba, SAP Business Network for
Transportation Management, … Logistics

Process Interoperability Common User Experience Seamless Integration Organizational Structures

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SAP Integrated Business Planning for Supply Chain
Overview

Synchronize planning processes to minimize

disruption risks and increase supply chain resiliency

Strategic Tactical Tactical Operational Digital Twin

Sales & Demand Multi-tier Response & Analytics &
Operations Management Inventory Supply Network Dashboards
Planning Optimization Planning Scenario Planning &
What-If Simulations
DDMRP
Collaboration

Value and volume- Embedded End-to-end supply chain

based planning Machine Learning visibility and reporting
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Agenda

Supply Chain Dynamics

SAP Solutions

Solution Direction for SAP Integrated Business Planning for Supply Chain

Q&A

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

 Product Direction

Investment focus areas in SAP Integrated Business Planning for Supply Chain
Extensibility

Cloud Operations and Engineering • Supply Optimizer Extensibility

• Scaling & Performance • Extension Points Planning UI

• Security & Monitoring • Planner Workspace
• True cloud scalability with HANA Cloud

Advanced Planning
• Synchronized Planning for
Seamless Planning Processes
Production
• Real-time integration
• Characteristics-Based Planning
• Network Aware Planning
• Harmonized Supply Planning
• Supply Chain Risk
• Touchless Forecasting
• External Causal Factors
• Next generation Inventory
• Collaborative Enterprise Planning Optimization
(xP&A) with SAP Analytics Cloud
Intelligence & Visibility • Scenario Management
• Sustainable Supply Chain Planning
• Machine Learning • Probability Based Planning
• Process Automation
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Planning UI

Paul Saunders, Bertram Wiest, Holger Herrmann

November 2021
CONFIDENTIAL
 Product Direction

SAP Integrated Business Planning: Planning UI

SAP IBP Excel Add-in & Planner Workspace

Planners can choose and have full flexibility to accomplish their planning tasks: SAP IBP Excel Add-in &
Planner Workspace

Both Planning UI will have in common: Easily create custom Planning Views, What-if analysis, Application
Jobs and many more…
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 Product Direction

SAP Integrated Business Planning: Planner Workspace

The path to a central user interface

The idea behind Planner Workspace is to offer a centralized user interface. Consequently features from
other SAP IBP apps will be adopted into Planner Workspace. Examples:

Transport Load Building Change History Intelligent Visibility

Available Adoption in progress Adoption planned

Today

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Advanced Planning

Paul Saunders, Bertram Wiest, Holger Herrmann

November 2021
CONFIDENTIAL
Synchronized Planning for Production: Combining Supply Planning capabilities in
IBP with Production Planning in SAP S/4HANA in a synchronized way

Supply Planning in SAP IBP SAP S/4HANA PP/DS (Advanced Planning)

Supply Planning business process Detailed Planning and Scheduling business process

Synchronized Planning for Production

S/4
HANA
PP/DS

Supply
Planning
in IBP

* Manufacturing for Planning and Scheduling (MP&S) & DSC Edition

aka Production Planning and Detailed Scheduling (PP/DS)
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Two Standard Integration Patterns in Synchronized Planning for Production
enabling seamless business processes and integration
Use order integration… Use key-figure integration…

…for Operational Planning …mainly for Tactical Supply Planning

• Synchronization of supply plans in real time
between SAP IBP and S/4 HANA PP/DS on order
level and vice versa
• Tight integration for E2E processes across SAP IBP,
SAP ERP, and S/4 HANA PP/DS leveraged for base
version
• Flexible definition of process ownership between
operational supply planning and detailed planning
and scheduling
• Synchronization of supply plans by sharing
constraints as key figures between SAP IBP and
S/4 HANA PP/DS
• Loosely coupled direct integration between SAP IBP
and S/4 HANA PP/DS
• Constraints are considered in selected S/4 HANA
PP/DS heuristics

… with one common UI across SAP IBP and SAP S/4HANA MP&S / DSC-Edition
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 Product Direction

Synchronized Planning for Production

Enable planning of purchase requisitions and stock-transfer requisitions in S/4

Planned in 2023
HANA PP/DS (order integration)

Integrate decisions & constraints from IBP Supply Plan to S/4 HANA PPDS to
Planned in 2023
influence the production planning process using a (new) constraint heuristic

Integrating Plan Monitor KPIs from S/4 HANA PP/DS to SAP IBP key figures Planned in 2023

Embed S/4HANA PP/DS Planning UIs and Information in Planner Workspace Outlook

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 Product Direction

Operational Supply Planning

Support Subcontracting Shipped in 2023

Further enhancements in Transport Load Building – Planned in 2024

interactive planning and priority based loading

Characteristics-Based Planning: Use order attributes to support planning

where supply decisions are based on demand characteristics, e.g. regulatory Planned in 2024
or embargo use cases, planning with many characteristic combinations

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 Product Direction

Time-Series-Based Supply Planning

Increase transparency via the planning run input and output data monitor Shipped in 2023

Improve plan accuracy by accurately considering the impact of changeovers Planned in 2023
on capacity

Increase automation with Capacity-Levelling Heuristic on infinite results Outlook

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 Product Direction

Harmonized Supply Planning

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 Product Direction

SAP Integrated Business Planning for Sales and Operations

Collaboration (MS Teams integration) for Process and Tasks Shipped in 2023

Increase internal collaboration and productivity via Approvals and Workflow Planned in 2023
Management

Network cost and carbon rollup for margin / profitability and carbon emission
Planned in 2023
analysis

Driver Based Planning: Flexible planning levels and Driver Analysis in Planner Planned in 2024
Workspace

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 Product Direction

SAP Integrated Business Planning for Demand

Product Lifecycle Management (Guided-procedure for occasional Planned in 2023/24

users, multiple launch dimensions, aggregated like-modelling,…)

Range forecasting and confidence intervals Planned in 2023*

Advanced Outlier Correction Planned in 2023

Additional forecast automation options (Identify & consider life cycle status, forecast On-going
level optimization, …)

Increased forecast accuracy and improve visibility of relevant factors for your demand Research
with easy access to external information

* For selected forecasting algorithms

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 Product Direction

Next generation of Inventory Optimization

SAP IBP for inventory is already a leading inventory optimization solution (IDC 2022) that offers robust and
proven algorithms and sophisticated planning capabilities

Digital Twin for Inventory Optimizers Inventory Analytics

Supply Chain Planning and Heuristics

i n 2023
l anned on
Customer service prediction based
Demand Sensing & Forecasting Quantity P 24
ML-based short & long-term n 20
Budget service level predictionnn ed i
and
demand and Forecast Error
optimization Pl a

Optimizer Time-phased
inputs Multi-echelon inventory
Supply Lead Time Prediction: Single-echelon targets
ML-based “digital twin” of Inventory Risk Analysis: Simulation of
2024 Components
impactful supply network inputs
i n future inventory movements provides h
l an
to IBP planning (embeddednedin Inventory drivers confidence intervals for inventory
e searc
and
P R
SAP IBP) … service targets

• Inputs will be more accurate and require less effort to maintain.

• Outputs will drive analytical capabilities for strategic and financial decision making.
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 Product Direction

SAP Integrated Business Planning for MRO (Maintenance, Repair and Operations)

Shipped in 2022
Integration with Plant Maintenance (ECC & S4)

Demand, Inventory & Supply Planning Processes

SAP IBP for MRO
Plan MRO parts & workforce in the right place Outlook
at the right time by optimizing inventory
Inventory Planning using Poisson & N (μ, σ) Planned in 2023
levels to decrease asset downtime and
& g distribution or Mean Time betw. Failure
optimize procurement decisions
Integration with Project system (ECC & S4) Planned in 2023
Segmentation: Criticality and Risk Score
Planned in 2023
Target market based service level segmentation

Asset / Service-Centric Segment Rotables Planning: Repair, re-introduction,

Planned in 2024
(Oil & Gas, Mining, Railways, Utilities, etc.) refurbish or scrap material
This is the current state of planning and may be changed by SAP at any time.
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Intelligence

Paul Saunders, Bertram Wiest, Holger Herrmann

November 2021
CONFIDENTIAL
Touchless planning and better planning results with Machine Learning
Overview of Machine Learning in SAP IBP

Embedded machine learning capabilities in IBP significantly drives

planning accuracy and automation
Embedded natively in the solution, machine learning capabilities are available out of the
box with automatic access to all relevant planning data needed to train the models.

Set automatically alerts thresholds Continuous monitoring Identify job outliers

Integrate and Forecast your Plan your Optimize your

check Master Data demand inventory supply plan

Detect anomalies in your Cluster your products into Improve the results by Get the best configuration
master data segments predicting your lead times for your optimizer (2024)

Automatically correct Detect level shifts & trend

anomalies in your master changes
data (2023)
Forecast using Gradient Boosting

Predict your short-term demand

with Demand Sensing

HANA Cloud Allocate elastic computing nodes as needed

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This is the current state of planning and may be changed by SAP at any time.
Custom SAP IBP Machine Learning Capabilities with SAP BTP Data Intelligence
Customized Machine Learning Models

Structured Data Feature Model Model Hyperparameter Deployment

data Preparation Engineering Selection Training & Tuning
Validation

Unstructured
data

Extend machine learning (ML) capabilities for Data Scientists by using Data Intelligence on SAP
Business Technology Platform (“AI/ML extension platform for data scientists”)

Machine Learning Extension examples for SAP IBP in SAP BTP Data Intelligence:

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Seamless Planning and Decision Processes

Paul Saunders, Bertram Wiest, Holger Herrmann

November 2021
CONFIDENTIAL
Bringing all planning relevant data together
Goal: Seamless, simple and fast integration with internal and external systems

Internal data:
• IBP and (SAP) ERP: Enable faster planning cycles
with up-to-date planning data with real time integration
between SAP IBP and SAP ECC and SAP S/4HANA

• IBP and SAP Analytics Cloud, Business Network,

Business Technology Platform, Design-to-Operate,
…: Fast, reliable and easy-to-setup
Digital Supply
Partner data: Chain Twin
• Openness to operate in the ecosystem with non-SAP systems

Public data (e.g. weather, social sentiments, …):

• Unstructured data // large data volumes // need for mapping

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 Product Direction

SAP Integrated Business Planning: Integration

Enable faster planning cycles with up-to-date data via real time integration with
SAP ECC and S/4HANA
• Sales Order Extensibility with custom attributes (similar to SDI) Shipped in 2023
• Ability to enhance transactional data Planned in 2024
• Real time outbound Planned in 2024
• Connectivity to non-SAP backends Planned in 2023/24
• Fast and open data input for version planning Planned in 2023/24

Faster and easier Time Series Integration:

• Faster... by skipping unchanged master data loads in IBP inbound Shipped in 2023
• Faster... with parallel IBP post-processing Planned in 2024
• Faster... with delta enabled IBP extraction (IBP outbound) Planned in 2024

Bi-directional integration for demand forecasting scenario with SAP S/4HANA Cloud
Planned in 2024
and SAP Integrated Business Planning for Supply Chain using SAP Integration Suite
This is the current state of planning and may be changed by SAP at any time.
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 Product Direction

Integrated financial and supply chain planning

Extended Planning & Analysis (xP&A)

SAP's best of breed planning solutions (SAP Analytics Cloud & Integrated Business Planning for
Supply Chain) are enhanced by improved interoperability and reporting capabilities to provide a
seamless end-to-end planning experience

Example Use Cases: Supply Product Direction:

Chain
• Ad-Hoc Profitability Analysis • Common User Experience with
• Annual Budget Planning embedded analytical stories from SAP
Workforce Analytics Cloud
• Quarterly/Monthly Revisions IT
• Live data access (i.e. reporting without
of Financial Plans xP&A
data replication) to IBP data from
• … Enterprise SAP Analytics Cloud
• Enhancements in best practice content
Commercial Finance to support larger sets of use cases out of
the box (e.g. Commercial Planning)
• Overarching workflow and scenario-
based planning across planning LoBs
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 Link to Blog

Network-Aware Supply Chain Planning

• Enabling digitized collaboration & transparency with all trading partners in your
supply chain
• Unparalleled visibility across all processes in your supply chain
• Faster response to supply chain disruption

SAP Business Network for Supply Chain (Ariba) SAP Business Network for Logistics (LBN)
and SAP IBP and SAP IBP

Collaborate with your suppliers to get inventory and Collaborate with your third-party logistics providers
manufacturing visibility across multiple tiers and gain early insights into delayed shipments

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 Product Direction

Risk-Aware Planning
Drive awareness and risk management in Supply Chain Planning

• Uncover and subsequently eliminate risks throughout supply chain network to avoid firefighting and
strengthen resiliency of the enterprise
• Leverage real-time information from the external world about events and disruptions to assess the
impact on your business
• Leverage external data for causal analysis to drive accuracy of your plans

External Risk Information Business Continuity Analysis and

Risk Assessment and Reporting and Forecasts Digital Twin simulation

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 Product Direction

External Risk Data

Example: SAP-Partner Everstream, integrated to SAP IBP
Global Event Data

Disease
Airport & Port Outbreak
Congestion

Cybersecurity
Risk

Natural
Disaster

Data Sources Risks Covered Risks reflected in Planning

• Local Newspaper • Cyber Security • Unrest, War & Military Operations • Visibility and Scores
• Social Media • Airport & Port Congestion • Infrastructure • Risk-based alerting
• Forecasts • Natural Disaster & Weather • Fire & Hazards • Rolling up costs risk-based
• Public Sources • Terror Attack • Health Risks • Risk impact analysis
• Partner Information • Border Closure/Delays • Labor & Workforce Risks • Risk-aware planning
(e.g. DHL)
• Curfew/Lockdown
• Industrial Zone Shutdown
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This is the current state of planning and may be changed by SAP at any time. 36
 Product Direction

Supply Chain Resilience

Example: SAP-Partner Cosmo Tech, integrated with SAP IBP

Predict, test and optimize supply chain behavior, resilience and performance

WHAT-IS WHAT’S NEXT HOW-TO

Digital replica of the system “What-If” scenarios Optimal action plan
Assets, processes, resources, Considering business decisions, all type Determine the optimal course of action
constraints… of uncertainty and unpredictable events. according to your business goals.

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

This is the current state of planning and may be changed by SAP at any time. 37
 Product Direction

SAP Supply Chain Control Tower

Exception Management
• Alert grouping Planned in 2024
• Exceptions based on master data values and alert statistics Planned in 2024
• Additional exception management scenarios, including: order-based alerts,
Research
integration of alerts from “PP/DS”, and consumption of alerts from external sources
• Automation and analysis of exceptions and resolutions Research

Risk
• External risk visibility via external providers Planned in 2024
• Risk-based alerting, combining external risk information with planning data for Planned in 2024
exception management

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Operations

Paul Saunders, Bertram Wiest, Holger Herrmann

November 2021
CONFIDENTIAL
 Product Direction

SAP Integrated Business Planning: Foundation

Manage Master Data Fiori app:

• Uses machine learning capabilities to
• find patterns in master data and show records that don’t fit to a Shipped in 2023
pattern
• correct records using this Fiori app Planned in 2023

Enhanced scenario management: Promote order-based planning

Planned in 2024
scenarios to version

Extensibility: Introduce extension points (“BADIs”) Research

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Summary

Paul Saunders, Bertram Wiest, Holger Herrmann

November 2021
CONFIDENTIAL
SAP Integrated Business Planning for Supply Chain
The Supply Chain Planning Platform Of Choice

Complete supply Fully scalable Fully integrated Modern & Human, user-
chain planning planning solution real-time with innovative, fully centric, interactive,
platform / suite, with HANA Cloud, ERP / S/4HANA, and ML/AI supported & collaborative
and extensible no limits open for any data quarterly upgrades & easy to use

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 42

Thank you.
Contact information:
Dr. Stephan Kreipl
Chief Product Owner SAP Integrated Business Planning for Supply Chain
stephan.kreipl@sap.com
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