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For example: 4 weeks from current date for Family 1 8 weeks from current dates for Family 2, etc. Given these complex business environment (volatile firm demands, unstable firm supply), Response Planners provide delivery lead time guidelines to the Order Entry teams per configurable product or product family.Planners have to walk the tightrope of accepting requested dates in order to win the order, and at the same time, are held to a high standard of 95%+ On-Time Delivery.
Customers can continue to refine their desired configuration and requested dates even after placing a ‘firm’ order on the High-Tech or complex equipment manufacturer. Customers often drop sales orders within the cumulative lead time required to procure and manufacture from scratch.Response Planners in the High-Tech industry and/or in the Make-To-Order industries have a double whammy of a volatile sales order backlog coupled with complex configurable build, which is constrained by both capacity and critical materials with long lead times.See overall IBP Solution Architecture view below before we dee-dive into Demand Management processes.
ORDER MANAGER APP MANUAL
With this Demand Management enhancement developed by GitaCloud team, planners can get the best of both worlds: tight integration offered by SAP IBP standard software as well as a loose coupling that enables the planning business process to have a manual validation and date edit capability both ways. It accelerates value delivery due to the out of box data integration, but it limits the options for planners to influence the planning process and apply their judgment in terms of planning in IBP with alternative requested dates or publishing alternative confirmed dates back to S/4HANA. However, the tight integration is a double-edged sword. This helps sales orders to be planned and confirmed from SAP IBP into S/4HANA. As you may know, SAP S/4HANA is tightly integrated with IBP Response and Supply for bi-directional data transfer (using S/4 Add-on for IBP and Smart Data Integration SDI). This enhancement is built on top of the standard SAP IBP Response and Supply application, S/4 add-on for IBP, and S/4HANA Sales Order Processing capability. Read content below to understand the business requirement, SAP IBP functionality gap, solution approach, and business value, when it comes to sales order confirmations using IBP Order Based Planning. I wanted to share a key enhancement (Demand Management) to the SAP IBP Order Based Planning OBP capability to support the sales order confirmation process.