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Group 524

A global CPG major transformed its Procurement Planning process through SAP Integrated Business Planning

Group 524

A global CPG major transformed its Procurement Planning process through SAP Integrated Business Planning

Business Problem and Asks

  • Model custom MRP in IBP, as this requirement cannot be modelled in SAP ECC.
  • Integrate end to end sourcing process in IBP to eliminate siloed planning.
  • Enable flexibility to include business inputs for planning purpose like New Product scenario
  • Consider multiple Base UOMs esp. for Raw Materials
  • Manage custom Ten Day Period Bucket & Cluster level, which is not available in ECC

Solution Design Approach

  • RM / PM Dependent Demand Generation through infinite Heuristics
  • Norm Qty calculation at Cluster Level through rolling aggregation logic
  • Cluster Level demand propagation to vendors with MOQ and Pack Size considerations
  • Multi-tier Procurement Plan review and approval before releasing it to Suppliers

Business Process Flow

A global CPG major transformed its Procurement Planning process through SAP Integrated Business Planning

Business Impact

  • Reduced Manual Intervention – 40% of Planners quality time saved
  • Increased RM/PM utilization – 20% reduction in SLOB loss
  • Real-time visibility to procurement KPIs for proactive actions
  • PR finalization in IBP & integrated PO generation in ECC

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