Golden Demo Supply Chain Highlights - Demand Planning - SAP UI · PDF fileGolden Demo Supply...

Golden Demo Supply Chain Highlights - Demand Planning

SAP Business ByDesign Reference Systems

Demo Script

Supply Chain Highlights - Demand Planning

Classification: Internal and for Partners

Version: 20180202


Document Version: 20180202 2

Disclaimer

This demo script is based on the ByD Reference System for the Almika model company. There are several country versions

of the Almika ByD implementation available. The content is similar but deviates especially with respect to language support,

names and object descriptions. Sample data used in this demo script relates to the US country version – for other country

versions different data samples might be relevant.

A prerequisite for being able to fully understand this demo script and run the demo, is a sound system knowledge on SAP

Business ByDesign. General assumption is that you are familiar with the Learning Center content available in your ByD

system at: Home Self-Services – Learning Center.

Although the script has been tested carefully you might nevertheless encounter different system behavior when running a

demo in an actual Almika demo tenant.

Release Statement

This version of the demo script is released for the following country versions of the ByD Reference System for the Almika

model company:

• US – United States, as of demo release ByD 1705

• DE – Germany, as of demo release ByD 1705

• UK – United Kingdom, as of demo release ByD 1705

• FR – France, as of demo release ByD 1705

• AT – Austria, as of demo release ByD 1705

• CH – Switzerland, as of demo release ByD 1705

• NL – Netherlands, as of demo release ByD 1705

• CA – Canada, as of demo release ByD 1705

• MX – Mexico, as of demo release ByD 1705

• AU – Australia, as of demo release ByD 1705

• CN – China, as of demo release ByD 1705

• IN – India, as of demo release ByD 1705

The demo release basically is determined by the time when the demo tenant has been provisioned for demo usage, a demo

tenant provided between mid of March and mid of June 2018 is part of the demo release ByD 1802.

As of demo release ByD 1802 the release status of your ByD demo tenant can be identified in the Company-Specific-Help:

You can find a help entry “ByD <nnnn> Demo Guides <CC>” under Help – Company-Specific-Help. <nnnn> specifies the

demo release of your ByD demo tenant, e.g. ‘1802’ – released in February 2018. <CC> specifies the country version of your

demo tenant, e.g. ‘US’ – Almika US country version. The version-controlled demo guides provided in this help entry match to

the demo release and the country version of your ByD demo tenant. Please be aware that the demo guides are not specific

to the country version, only the version of the demo guide is specific to your ByD demo tenant.



Table of Content

1 Demo Script Overview ................................................................................................................................... 4

1.1 Demo Overview ...................................................................................................................................... 4

1.2 Intended Audience.................................................................................................................................. 4

1.3 Protagonists ........................................................................................................................................... 5

1.4 Business Pain Points .............................................................................................................................. 5

1.5 Key Messages and Value Proposition ..................................................................................................... 5

1.6 Story Flow Summary .............................................................................................................................. 6

2 Technical Requirements ................................................................................................................................ 6

2.1 System Access Information ..................................................................................................................... 6

2.2 User Accounts ........................................................................................................................................ 6

3 Demo Steps .................................................................................................................................................... 7

3.1 Supply Planning Integration .................................................................................................................... 7

3.1.1 Product Planning Overview ........................................................................................................ 7

3.1.2 Planning parameters .................................................................................................................. 8

3.1.3 Statistical Algorithms Introduction ............................................................................................... 9

3.2 Demand Plans ...................................................................................................................................... 10

3.2.1 Demand Plans Overview.......................................................................................................... 10

3.2.2 Planning Mechanism Overview ................................................................................................ 11

3.2.3 Planning Models ...................................................................................................................... 12

3.2.4 Forecast Horizon ..................................................................................................................... 13

4 Scenario Quick Guide and Key Master Data ................................................................................................ 14

4.1 Supply Planning Integration .................................................................................................................. 14

4.2 Demand Plans ...................................................................................................................................... 14



1 Demo Script Overview

1.1 Demo Overview

The Demand Planning scenario allows you to interactively create demand forecasts in rolling time periods (for example

months) using different forecasting methods. You then release the demand forecasts to supply planning. You typically use

demand planning to plan forecast demand in a mid-term or long-term planning horizon for Make-to-Stock and Procure-to-Pay

(Stock) scenarios.

Before starting a new periodic forecast for a demand plan that already exists, you must consider potential changes, such as

new products, phased out products, and planning horizons. If necessary, you can set up a new demand plan.

Demand planning enables forecasting of future demand based on historical data using multiple statistical forecasting

methods

A guided setup activity leads you through the administration tasks necessary to update and prepare demand plans

Predefined planning options are available. Reduced setup and update effort as demand planning uses settings in supply

planning with respect to:

o Provision of historical data

o Release to supply chain execution and forecast consumption

Leveling of production and related cost savings in procurement and production

Avoiding cost of non or late delivery

Advanced demand planning options are available such as multilevel demand planning, statistical forecasting, outlier

correction, and forecasting of products both in-house and externally procured.

While there is no one comparison to all of the companies that could be considered our competition, for those without an

integrated demand planning module or a less sophisticated module the differentiators are these:

o Fully integrated, real time demand planning

o Robust, delivered out of the box statistical modeling calculations covering all of the common statistical

forecasting models and some of the less common as well.

Again there is no single technology differentiator but, depending on the competitor it could be:

o Native SaaS model if they are not a cloud company

o Built in analytics

1.2 Intended Audience

SAP internal: New hires

SAP external: CEO, CIO, CFO, COO, Logistics Management



1.3 Protagonists

Supplyplanner01P

KPI for Role 1: Forecast accuracy, inventory optimization, fill rate

1.4 Business Pain Points

The challenge faced by all companies is ultimately having the right amount of the right product in the right place at the right

time. Any of these conditions not optimized will negatively impact either the top or bottom lines (or both) of a company.

Companies continually strive to find the right balance between all of these items. The demand planning function in ByDesign

helps companies be the best they can be in:

Forecast Accuracy

Focus on the right things

Inventory investment

Customer service (fill rates)

1.5 Key Messages and Value Proposition

Overview

ByDesign demand planning strives to help demand planners efficiently and effectively produce a demand plan that can then

be fed to the supply planning part of the organization. This plan leverages the most appropriate statistical forecast base along

with heuristic contributions from the demand planner to produce the most optimal forecast from an investment perspective,

from a customer service perspective, and from an efficiency perspective.

Key Features and Associated Benefits

Unlimited planning models

o Allows the planner to focus on smaller groups and focus his attention on the most important products

o Allows the planner to group similar items together to make the planning process more efficient

Complete real time integration

o Allows a company to be nimble and quickly react to changes in the business

o Minimizes the possibility of making the wrong thing at the wrong time in the wrong amount

o Minimizes incorrect inventory investment

Flexible planning horizons

o Allows a planner to choose the best planning horizon at a very granular level.

o Planners are more efficient since they do not waste their time and attention on irrelevant time periods

Robust out of the box statistical calculation capabilities

o Allows planners to focus on planning and not waste their time figuring out the calculation methodology

Real time modeling

o Provides immediate results which prevent the organization from unnecessary inventory investment



1.6 Story Flow Summary

This demo covers the business processes depicted in the orange boxes:

2 Technical Requirements

2.1 System Access Information

To run the demo, you need access to a ByD demo tenant for the Almika model company, which is available in different

country versions.

2.2 User Accounts

The following user accounts for ByD Almika implementation are to be used to run the demo:

Predefined User ID User Name Password Component

SUPPLYPLANNER01P Richard Stone Welcome1 SAP Business ByDesign

Planning Parameters

Product Planning Overview

Statistical Algorithms Introduction

Demand Plans

Overview

Planning Mechanism Overview

Planning Models

Forecast Horizon



3 Demo Steps

3.1 Supply Planning Integration

3.1.1 Product Planning Overview

What to Say

Introduction

Demonstrate the tight integration between Demand Planning and Supply Planning system. For this, look up the

forecasts coming from the demand plan system based on statistical algorithms and the purchase planning numbers in

the Product Planning Details view.

Key Features and Advantages

Demand planning information draws from multiple sources to be effective. The output from demand planning is then

consumed by different functions in any manufacturing or distribution company. The key to making all of this work is

tight integration between all the moving parts.

Current and up to date history is read real-time in the statistical modeling exercises. This means you never work with

stale data and that your output forecast is based on the most accurate and current baseline possible.

Final forecasts are instantly made available to the supply planning function of the company ensuring that the proper

and most appropriate inventory investment is made.

Value Statement

Fully integrated systems enable companies to quickly react to changes in demand and optimize their inventory

investment.



3.1.1 Product Planning Overview

What to Do

WoC Supply Planning Products

Products View: All Products By Selection Open Product Planning Details for Product: P120101 in Planning

Area P1100.

What you Should See

3.1.2 Planning parameters

What to Say

Introduction

The planned quantities of the purchase proposals depend on the planning parameters. Show the wide variety of

settings in the planning tab of the Product and its relation to the purchase proposal quantities. These options lead to

better customer service and a reduction of inventory costs due to optimization.


Planning controls defined at the product level allow an organization to decide at a product level exactly how they want

customer orders to impact forecast demand. This allows different controls for different circumstances and does not

force the organization into a “one size fits all” environment.



Value Statement

This level of planning control assists an organization in optimizing their inventory investment without sacrificing

customer service.

What to Do

Click product link P120101 Compressor to enter Product Overview.

Click View All

Choose Planning tab

What you Should See

3.1.3 Statistical Algorithms Introduction

What to Say

Introduction

Back in the Product Planning Details view; explain briefly the forecasting system based on statistical algorithms for the

upcoming months before you go into details in the next chapter. Mention that as a planner you can overwrite those

forecast numbers.


ByDesign Demand Planning delivers most of the commonly accepted best practices statistical calculation algorithms

and a few of the less common ones. These do not require any configuration or other technical assistance to use. This

allows the planner to be immediately productive and provides many options to produce the statistical forecast.



3.1.3 Statistical Algorithms Introduction

Value Statement

Delivered algorithms means the planner is immediately productive in the planning activity…not having to spend any

time in actual calculations. It also provides an accurate baseline forecast that helps the organization optimize their

inventory investment.

What to Do

Go back to the Product Planning Details.

3.2 Demand Plans

3.2.1 Demand Plans Overview

What to Say

Introduction

Highlight the fact that you can have as many Demand Plans as you want, so that you can do “What-if-Planning” for

different situations (e.g. high growth, seasonal etc.).


Unlimited demand plans means that multiple planners can work simultaneously, that a planner can isolate high value,

high return planning items and can group like items together and apply the same rules to the planning process.

Value Statement

Having multiple demand plans means quickest return on a planner’s activity and optimal results available to supply

planners quickly so that inventory investment can be optimally managed.

What to Do

WoC Demand Planning Demand Plans

Select Demand Plan DP_10



What you Should See

3.2.2 Planning Mechanism Overview

What to Say

Introduction

Show the actual planning mechanism. Highlight the support of multiple products and locations in one plan.

Forecasting periods (as default months) can be changed. Explain key figures before going to the next point of how we

get to these numbers/figures.


An interactive and real-time planning board means that modeling can be done quickly and iteratively.

Value Statement

As always, efficiency in completing a task and getting those results to supply planning means that the demand planner

is more effective and efficient and that the supply planner can better manage inventory investment.

What to Do

Select active plan click Plan.

Click Choose Planning Board Layout, then choose Maximal Layout



What you Should See

3.2.3 Planning Models

What to Say

Introduction

Show the different variants of planning models. Highlight the variant Operational Procedure and run several variants of

Statistical Forecasts to show the differences. Run the Seasonal Linear Regression forecast variant as last one to work

with the calculated numbers in the next step.


An interactive and real-time planning board means that modeling can be done quickly and iteratively.

The results of those activities can be promoted to production all in one place and in one step.

Value Statement

As always, efficiency in completing a task and getting those results to supply planning means that the demand planner

is more effective and efficient and that the supply planner can better manage inventory investment.

What to Do

Open the Model Variant ID Input Help, then choose some variants

Mark Copy Statistical Forecast To Final Forecast checkbox, then click Run Statistical Forecast for the

selected variant.



3.2.4 Forecast Horizon

What to Say

Introduction

Explain the defining of the forecast horizon. Show the History Start, which can be adjusted for the statistical

calculation. The Forecast Actuals key figures might have come from the ByD system or through import of Excel

spreadsheets, which can be adjusted later on in case of outliers which should be considered for forecast calculation.

Move to the Forecast Start again, and show that the system copies the statistical forecasts to the final forecasts.

These can be adjusted, in case you have information that the system can’t predict.


ByDesign Demand Planning allows for complete horizon control from the look back into history to the look forward for

the forecast. Control of the horizons allows the planner to look at larger or smaller amounts of data than is being

actually forecasted, giving him the tools he needs to best perform his task

Value Statement

Horizon control gives the planner the tools he needs to be more efficient

What to Do

Click Move To, then choose History Start

Click Move To, then choose Forecasting Start



4 Scenario Quick Guide and Key Master Data

4.1 Supply Planning Integration

Steps Summary

Path Data to Use/Enter Activity

Step 1 – Product Planning Overview

WoC: Supply Planning

Products

Show: All Products by Selection

P120101

Step 2 – Planning parameters


Products Product P120101

View

Click View All

Choose Planning tab

Step 3 – Statistical Algorithms Introduction


Products

4.2 Demand Plans

Steps Summary

Path Data to Use/Enter Activity

Step 1 – Demand Plans Overview

WoC Demand Planning

Demand Plans

Demand Plan ID: DP_10

Step 2 – Planning Mechanism Overview

WoC Demand Planning

Demand Plans Planning

Board view

Select active plan click Plan

Step 3 – Planning Models

Mark Copy Statistical Forecast To

Final Forecast

Click Model Variant ID Input Help

Step 4 – Forecast Horizon

Click Move To History Start

Click Move To Forecasting Start



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