SAP Analytics Cloud and Integrated Business Planning: A Case Study on BestRun Bikes

BestRun Bikes, a fictional bicycle company, used SAP Analytics Cloud and Integrated Business Planning to optimize its supply chain and financial planning. The solution integrated demand and supply planning with financial planning and controlling, enabling automated transfer of planning targets and validated capacity plans. The process involved baseline analysis, target setting, integrated connection from SAC to IBP, supply optimization, validated plan return, and advanced analytics through Monte Carlo simulation. The solution helped BestRun Bikes to identify market gaps, set revenue targets, and optimize supply chain and financial planning.

BestRun Bikes, a fictional bicycle company with a global distribution of mountain bikes, cruise bikes, and e-bikes, has successfully employed SAP Analytics Cloud (SAC) and SAP Integrated Business Planning (IBP) to optimize its supply chain and financial planning. This integrated approach has enabled the company to address market gaps, set revenue targets, and enhance overall operational efficiency.

Integrated Planning Approach

The solution begins with a baseline analysis using SAP Analytics Cloud (SAC) to assess the current state of the company. Key metrics such as gross revenue by product and geographic split are examined to identify market gaps. For instance, while e-bikes are highly successful in the USA, they are absent from the German portfolio. This insight forms the basis for the integrated planning approach [1].

Target Setting and Demand Planning

The next step involves target setting with dynamic planning functions in SAC. BestRun Bikes set a new revenue target of 350 million EUR for e-bikes in Germany. Seasonality transfer from the USA to Germany is facilitated using deep copy techniques, ensuring that seasonal trends are accurately reflected. Gross margin calculations are automated through S/4HANA integration, providing real-time financial insights [1].

Integrated Connection and Supply Optimization

The integrated connection between SAC and IBP is crucial for seamless data management. Planning targets from SAC are automatically transferred to the demand planning module in IBP, which utilizes constraint-based algorithms for demand forecasting. Supply planning is optimized using multi-scenario analysis, allowing for capacity planning across various network topologies. Decision assistance tools evaluate different scenarios to identify the most feasible options [1].

Advanced Analytics and Risk-Based Planning

A highlight of the solution is the use of Monte Carlo simulation through SAP Analytics Cloud Compass for risk-based plan validation. The simulation considers various planning drivers such as sales volumes, prices, capacity utilization, material costs, and logistics costs. This comprehensive approach helps in understanding the probability of different outcomes and preparing for potential risks [1].

Benefits and Conclusion

The integration of SAC and IBP has led to significant improvements in planning time, quality, and agility. BestRun Bikes has achieved a more integrated and automated planning ecosystem that aligns strategic ambitions with operational feasibility. This solution has eliminated manual coordination between departments, Excel-based planning loops, and risk assessment based on assumptions, thereby enhancing overall business performance [1].

References

[1] https://community.sap.com/t5/technology-blog-posts-by-sap/integrated-enterprise-planning-how-sap-sac-and-sap-ibp-create-optimal/ba-p/14185046
[2] https://towerpointwealth.com/financial-planning-for-business-owners/