Introduction of the SAP cloud solution Integrated Business Planning (IBP)
Transparency regarding demand, stocks and capacities along the supply chain
Implementation Highlights
- Significantly increased transparency along the entire supply chain
- Group-wide, precise response to changing market situations
- Modern planning algorithms and improved system support for planners
- Cost savings due to fewer planning errors and missed opportunities
- Successful implementation project despite 100 percent remote work
Initial situation
As part of its digitalisation strategy, TEEKANNE decided to introduce the SAP IBP planning software. The company wanted to use it to improve existing processes and tap into further strategic potential in order to ensure greater transparency in the Group-wide supply chain. Harald Liedtke, Head of Digital Transformation (CIO) at TEEKANNE, and Christoph Habla, Head of IBP at CONSILIO, had overall responsibility for the project.
![[Translate to English:] TEEKANNE](/fileadmin/_processed_/3/2/csm_teekanne-02_3f2f089409.png)
With the introduction of Integrated Business Planning, we want to improve the future viability of our processes and tap into further strategic potential of digitalization.
In our search for a partner, CONSILIO impressed us with its proven expertise in the field of supply chain management and a very coherent overall concept.
The challenge
By networking sales, production and purchasing, the topic of supply chain planning is a prime example of cross-departmental and cross-location collaboration with major changes to previous processes. The departments involved and their planning topics are brought together via the central IBP tool with a standardised database in the sense of a single point of truth. Change and expectation management are regularly underestimated in such projects and tie up a large proportion of internal resources.
Project goals
- More efficient planning process with better results, faster processes and improved utilisation of available resources
- More transparency in the Group-wide supply chain
- Greater flexibility in responding precisely to changing market situations
- Improving the future viability of processes and tapping into further strategic potential of digitalisation
- Conversion of the company to centralised supply chain planning in SAP IBP within two years
Project process
The project was implemented in two waves: In the first wave, the focus was on the supply planning of the production network for the end products. The preliminary product stages were not integrated at this time, nor was demand planning, which was still mapped using the non-SAP system TIA.
Supply planning for the production network comprises seven plants across Europe, where capacity should be planned in addition to production and distribution. It takes place once a month and supports the S&OP process. The results of the supply planning are fed back into the ERP as planned independent requirements and form the basis for the MRP run and detailed planning.
These values describe which end products are to be produced in which plant, in which quantities and in which month for a period of 18 months. This data is therefore a constrained forecast - i.e. a realistic production programme based on the company's operational capabilities.
The product preliminary stages were added in the second wave. In addition, demand planning with the external TIA system was to be replaced by IBP. Demand planning is carried out at TEEKANNE in the individual countries for the end products. In addition to statistical forecasts and customer forecasts, the planning of key account managers and budget planning are also incorporated here.
Planning with IBP is underpinned by data from SD, which provides all prices and conditions as well as the customer hierarchy. This allows realistic pricing to be implemented and the required quantities per plant and material to be determined by disaggregating the sales.
With the introduction of SAP IBP, TEEKANNE will gain access to innovative IT planning tools for production, distribution and procurement, which will help it to successfully overcome future challenges.
Summary of the case study
The introduction of SAP IBP guarantees TEEKANNE significantly increased transparency along the entire supply chain, as well as greater flexibility in responding to changing market situations.
Modern planning algorithms and improved system support for planners enable an efficient planning process with better results, faster processes and improved use of available resources.
This also avoids costs resulting from planning errors or missed opportunities. TEEKANNE is thus well prepared for future challenges.
Further information
Integrated Business Planning (SAP IBP)
SAP IBP offers you real-time planning in an integrated planning environment.
SAP IBP for Sales & Operations Planning
Your planning results are only as good as the synchronisation between the various planning departments.
SAP IBP for Demand
Make your requirements planning robust and future-proof!