EagleBurgmann had already started to set up an S&OP process before the project - but initially without tool support.
SAP Integrated Business Planning (IBP) for Sales and Operations Planning (S&OP) was ultimately selected as the planning software - a planning solution that helps companies improve their integrated corporate planning.
The employees of CONSILIO have successfully supported us in the implementation of SAP IBP S&OP in a cooperative and competent partnership. With a high level of expertise and comprehensive know-how, CONSILIO succeeded in adapting the planning solution to our specific requirements.
The initial introduction of a central planning solution as a pilot in a plant was challenging, as new processes had to be introduced that did not previously exist at the required level of detail. In addition to demand planning, other requirements included the introduction of infinite supply planning and special processes for new product planning and the consideration of CRM opportunities from SAP Sales Cloud.
This allows results from opportunity planning in SAP Sales Cloud to be compared with forecasts from the demand planning process in IBP. The SAP standard interface has been adapted accordingly for the comparison.
EagleBurgmann's sealing solutions, for example for use in pipelines or power plants, are complex products that are usually manufactured as part of MTO (‘make to order’) processes.
The extensive product portfolio ranges from sophisticated series seals to customised individual designs. The resulting complexity posed a further challenge because the product portfolio must be considered comprehensively in order to be able to take the corresponding component requirements into account in the operational processes following demand planning at end product level.
The aim of the pilot project at EagleBurgmann was to examine the extent to which the SAP IBP S&OP planning solution could improve planning processes, minimise risks, increase responsiveness to market changes and ultimately strengthen competitiveness. Following an evaluation phase, a decision should then be made as to whether the planning solution should be rolled out across the company.
In order to achieve the project objective described above, the first step was to set up a tool-supported planning process and ensure the harmonisation of demand, sales and supply planning. Demand planning involves statistical forecasts, manual adjustments and a systematic calculation of the forecast value added. This makes it possible to subsequently analyse the benefit of individual planning steps, be it a statistical forecast, the consideration of opportunities or a manual adjustment.
Production capacities and component requirements are then planned in Supply Planning. After the S&OP review, the planning results are then transferred to SAP S/4HANA in the form of pre-planning requirements at component level.
On the customer side, the prototype is then evaluated and an assessment is made as to whether the acquired S&OP licence meets EagleBurgmann's planning requirements. In addition, an assessment was made as to whether the use of other supply chain planning software, such as SAP PP/DS or other IBP modules, was relevant. Based on the results of the pilot project, EagleBurgmann has decided to roll out the S&OP planning process in IBP globally.