The supply planning algorithms in the time series model when coupled with the forecasting solution could deliver an end to end S&OP solution for efficient tactical planning in the mid to long term horizon however it has less relevance when it comes to the short-term horizon where order-based planning and optimization is essential.
VisionTree implements SAP Integrated Business Planning for response and supply whereby we configure rule-based demand prioritization to suit the business requirements and give the business users ability to remain nimble and flexible in terms of priorities in which demands are fulfilled across the supply chain network. In the case of supply shortages, the fulfillment of demand carried out based on order prioritization.
A rule comprises of one or more segments which form the planning building blocks based on pre-defined conditions such as Demand Type, Customer Priority, and Order Quantity. The required conditions need to be configured via segment while setting up a rule. Within a segment, there is a possibility to sort demand based on standard attributes. Once the segments are defined and sorted based on attributes, they can be arranged based on priorities.
Some of the key benefits of SAP IBP for response and supply solutions are:
- It offers planners to excel based planning in IBP itself.
- Manage the allocations and response for the optimal customer service across prioritized demand streams.
- It supports both unconstrained heuristics and constrained optimization.
- Generates allocates to feed the live ATP process.
Moreover, SAP IBP response support multiple integration profiles to integrate several ERP systems or file servers for multiple active planning areas. Day, SAP is ready to offer time-series and order-series together; it would be great for planners to address both long term and short term situations together with Inventory and Order optimization at their very best.