SAP APO migration of sales and budget planning to SAP Integrated Business Planning

Implementation of SAP IBP for the gradual replacement of SAP SCM APO

Implementation Highlights

APO replacement with several intermediate architectures
Simulation framework for testing, comparing and evaluating new algorithms with productive data
10 forecast models with partly combined forecast algorithms for 2 different forecast levels with weekly run
Additional forecasting algorithms, some with customizable parameterization via master data maintenance
Automatic forecast model selection according to own set of rules
Forecasting and planning at different aggregation levels with the option of checking and defining the optimum forecast level
17 % improvement in forecast quality compared to planning in APO DP thanks to modern and coordinated algorithms and the simple options for optimization

Planning of product variants or products with multiple characteristics
10 forecast models run for 400,000 planning combinations in just approx. 1 hour
High-performance integration of 1 million transaction data combinations per minute
Reduced infrastructure costs thanks to cloud system
Early and ongoing involvement of the specialist department
Almost exclusively virtual collaboration

Initial Situation

With the introduction of the cloud-based planning software SAP Integrated Business Planning (IBP), REHAU Industries plans to replace the predecessor software SAP SCM APO with its modules APO DP and APO SNP, whose support will expire in 2027 and whose content is already no longer being developed further.

The APO replacement lays the foundation for future-proof, high-performance processes that are optimally supported by state-of-the-art software. The company is thus tapping into strategic potential for the digitalisation of the supply chain and the benefits of cloud-based software. Due to the strategic importance for REHAU Industries and the scope of the processes and data to be migrated, as well as the necessary change process for the organisation, the APO replacement is to be tackled at an early stage.

In addition to more flexible planning of internal and external project resources, the benefits of the timely replacement include the ability to align the IBP implementation with the content requirements without time pressure. At the same time, a sustainable transfer of know-how of the new software and planning structure into the organisation is made possible.

In the first step, the transfer of APO-DP planning processes to IBP for Demand is to be implemented and supplemented by budget planning.

The combination of expert knowledge in the areas of SAP APO, integration and IBP processes was decisive for us to implement the project with CONSILIO.

Anja Zeitler, SAP SCM Inhouse Consultant REHAU Industries SE & Co. KG

Project Goals

Replacement of APO DP with IBP for Demand for sales and budget planning processes
More flexibility for users thanks to customisable planning views, filters, favourites, etc.
Greater user acceptance thanks to simple operation and Microsoft Excel as the user interface
Improved forecast quality and lead times
Implementation of the budget planning processes in a second phase
Performance improvements in terms of UI and background processing of large amounts of data (approx. 2 million characteristic value combinations of customer and material)
Simple system support and customisation options thanks to extensive automation, for example via provisioning and job management as well as simulation functionalities
Reduced future maintenance and infrastructure costs thanks to the cloud application
First step towards using additional IBP modules for all planning processes in the company and the final replacement of SAP APO
State-of-the-art architecture, use of cloud services
Gaining experience with the cloud for further cloud applications and business processes in the future
In-depth development of technical expertise in the IT department

Challenge

The replacement of the SAP APO installation for all divisions of REHAU Industries requires careful preparation with the definition of a target system architecture and a sensible sequence for the replacement of processes and modules. The phased approach to the migration means that the smooth functioning of the affected processes must also be guaranteed during the necessary intermediate technical architectures. The success of the far-reaching adjustments must be ensured through appropriate change management. The following challenges were given particular consideration during the project:

Very independent divisions with different requirements and processes in some cases
Very large amounts of data with planning on several, partly technically independent aggregation levels and technical planning levels with around ten times the 3 million planning combinations
Complex process for automated forecast model selection
Mapping of parallel planning strands with delimited scope and technically differing requirements
Complex process for determining prices
Possibility of simultaneous planning of quantity and sales in the same key figure, taking into account the respective conversion into other units of measurement or currencies
Mapping of dynamic, cyclical calculations to enable the adjustment of each key figure value within a calculation
Option for simple, manual adjustment of specific authorisations by key users depending on progress in the planning process, without the need for an authorisation workflow or the need to assign extensive authorisations
Automatic generation and planning option for dummy customers
Cross-process backup and data lifecycle management
Performance optimisation of jobs and operators in collaboration with SAP development as well as complex key figure calculations in special scenarios in the IBP backend

Project Management

The project team consisted of a four-person internal core team and two to three CONSILIO consultants for the creation of the PoC and concept as well as during the implementation and go-live. The four corporate divisions of REHAU Industries were continuously kept up to date during implementation and go-live. The project was carried out using the agile Scrum method, with collaboration taking place almost exclusively virtually.

Following the successful go-live of sales planning in IBP as a big bang, the company-wide budgeting process ‘sales plan-based budgeting’ was installed in IBP. The sales targets in the various divisions and countries for the following year are determined as part of budget planning. Among other things, this is based on planning results from sales planning with IBP. Thanks to the forward-looking project planning, the implementation of the budget planning could be tested in detail and approved by REHAU Industries so that, together with user training, a smooth implementation of the annual process with IBP was ensured.

Despite the largely virtual collaboration, this was closely coordinated and successful. All project goals in terms of content and time were achieved. Thanks to very good risk management with early involvement of the specialist departments and a competent and capable project team, the expected implementation costs were even kept below the estimates despite the complex requirements.

In addition to the pure course of the project, the project was also successful because all objectives were achieved or expectations were exceeded. At REHAU Industries, SAP IBP enjoys a high level of user acceptance among the planners and causes few support requests - even directly after the go-live. All end-of-day and weekend processing is stable and performant across all systems. The popularity of the tool has now also convinced departments that previously operated independently to also map their planning processes with the implemented IBP solution.