Hello all, this blog is focused on order based collaboration in SAP IBP combined with intelligent business rules to define the collaboration scope. This is an enhancement delivered by GitaCloud team to augment SAP IBP Order Based Planning OBP standard capabilities. Read content below to understand the business requirement, SAP IBP functionality gap, solution approach, and business value, when it comes to business threshold based intelligent alerts leveraging pegging data generated by SAP IBP Order Based Planning.
- This enhancement is built on top of the standard SAP IBP Response and Supply application, leveraging Pegging API, and custom Fiori Apps in SAP S/4HANA.
- As you may know, SAP IBP Response and Supply Application supports an Order Based Data Model tightly integrated with SAP S/4HANA. This enables Order Based Planning OBP capability in SAP IBP, which generates pegging relationships between demand and supply order elements.
- Planners need to understand which firm supply elements (Production Orders, Purchase Orders, etc.) need to be expedited / delayed / cancelled based on latest firm demands (Sales Orders, Outbound Deliveries, etc.).
- With this Intelligent Alerting enhancement developed by GitaCloud team, planners can get the order based planning paradigm extended to order and pegging based alerts as well.
- See overall IBP Solution Architecture view below, before we dee-dive into the Intelligent Alerting solution.
- Procurement Teams (Buyers) need to work with Suppliers to pull-in / push-out or cancel open firm supply (Purchase Orders) in response to volatile demands (Sales Orders, Forecasts). We refer to this as Order Based Supplier Collaboration. This is similar to MRP Exception Message Processing processes in SAP S/4HANA or SAP ECC centric MRP world.
- Production Planners need to work with Shop Floor to pull-in / push-out Production Orders in response to demands. We refer to this as Shop Floor Collaboration.
- Firm Supply Orders (Purchase Orders, Production Orders) have an original Goods Receipt GR date in S/4HANA. It is important for Planners to understand the New Need Date or New Goods Receipt GR Date in-sync with latest demands.
- Planners need pegging based alerts, e.g., only raise an expedite request (pull-in) for a Purchase Order within the next two weeks, if the pegged demand is a sales order and not a forecast. This makes sense, as asking the supplier to change shipment mode from ground to air to support a shortage related to forecast is not a good way to spend the freight budget.
- It is not enough to simply raise pegging based alerts for