Marching to the Same Beat:

Synchronize Planning Decisions

from Finance to Execution

Jay Foster
Global Solution Management/ Product Marketing
2024
Synchronize Planning Activities Through xP&A

Challenge: Finance is often accused of being disconnected from business realities

1 Goal: Understand operational realities for financial planning

relevance

2 Challenge: Supply Chain often Focuses on delivery at the expense of profitability

Goal: Make value based operational planning decisions.

Challenge: Different lines of business not focusing on the same goals

3 Solution: Composable, interoperable business planning solutions

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WHAT DOES ENTERPRISE BUSINESS PLANNING LOOK LIKE?

Strategic
• Markets / products
• Investments / projects
• Long Range

Financial Planning (FP&A)

 Budgeting / reporting / ROA
 Funding for operations
 All time horizons

S&OP ➔ IBP (process)

 Financial alignment /commitment to marketplace
 Constrained supply/demand balancing / delivery feasibility
 Mid to long term time horizon

Operational Planning & Execution

 Manufacturing / Distribution
 Transportation / Warehousing
 Short term inside and up to cumulative lead time

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 Extended Planning & Analysis (xP&A) Business Execution

PLANNING
PROCESSES
CAPABILITIES ACCELERATORS Approved
Sales & Plan Design to Lead to
Strategy
Collaborate Model Marketing Operate Cash

Proven Industry
Practices
Record to
Finance
Visualize Analyze
Live Analytics, Report
Modular
Packages (Master) data
sync
Plan &
Predict Supply Hire to Source to
Forecast Workforce
Chain Retire Pay

BTP: Data orchestration, governance, automation and extensions

BUSINESS DATA FABRIC interoperability powered by SAP Business Technology Platform

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 Unified planning process flow: FP&A Perspective

Reporting Group Reporting Planning

Integrated Financial Planning Balance Sheet Planning P&L Planning

Capital Expense Planning Financial Statement Planning

CAPEX Planning Balance Sheet Planning Cashflow Planning
Reporting / Analytics

Depreciation Planning P&L Planning

Deductions Percentage Sales & Profitability Planning

Sales Prices Planning
Planning
Reporting / Analytics
Consensus Demand Sales Revenue and
Sales Quantity Planning Profitability Planning Net Revenue /
Plan from IBP Deductions Planning
COGS to IBP

Raw Material Price Product Cost Planning

Planning
Reporting / Analytics

Quantity Structure Product Cost Simulation

Reporting / Analytics Inverse Calculation Cost & Activity Planning

of Activity Quantities
Allocations Expense Planning
Indirect Activity Allocation

Activity Price Planning & Statistical Key Figure

Activity Quantity Planning Activity Type Splitting
Calculation Planning
Fix / Variable Fix / Variable

Financial Planning
SAP IBP Process
(SAC)

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Unified planning process flow: S&OP Perspective

Financial
Planning
Annual Demand Supply Review - Reconciliation Management
Operating Plan Review Heuristic, Optimizer Review Business Review
Constrained Aligned Demand Balanced Demand

Managed Cases and Exceptions

Marketing Consensus

Supply Chain Control Tower

Planning Demand Plan Demand Plan & Supply Plan & Supply Plan
Marketing
Plan Inventory
Optimization
Inventory
Sales Demand Plans
Planning Planning
Sales Global
Forecast Demand Plan
Supplier Commit Supply and
with SAP Ariba Allocations Planning
Sales Order Demand Committed Supply Proposals.
Processing Sensing Forecast Product Allocations
Open,Confirmed,Delivered Sensed
Sales Orders Demand
Response Procurement
Planning
Supply Proposals, Purchase Orders
Sales Order Confirmations

SAP IBP Process External Processes Available-to-Promise Stock Production

Financial Planning Processing Transfer
(SAC) Sales Order Stock Transfer Production Orders
Confirmations Requisitions

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 Value & Volume Planning
Value Drivers Volume Drivers

PLANNING
PROCESSES
FP&A S&OP/IBP

Price Planning Supply Planning

Indirect cost Supplier Network

Supply
Finance
Chain
Commercial
Planning Demand Planning

OPEX/CAPEX Inventory
Optimization

BUSINESS DATA FABRIC interoperability powered by SAP Business Technology Platform

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 Value & Volume Planning
Value Drivers Volume Drivers

Commercial Unconstrained Overhead, Opex Planning Financial

FP&A Product Costing S&OP/IBP
Plan Net Revenue & Capex Statements

Maximize returns & minimize costs

Price Planning Supply Planning

Top-Down Integrated Plan

Reconciliation review
Indirect cost
Inputs Approval / MBR Supplier Network

Integrated alignment and insights

Commercial
Planning Demand

Demand Demand Inventory Supply

OPEX/CAPEX Planning Sensing Optimization Planning
Inventory

Optimize demand & supply (feasibility)

BUSINESS DATA FABRIC integration powered by SAP Business Technology Platform

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Bring Volume and Value Together in an Planning Process SAP Solution
Integrated Fashion ERP
Group Reporting Strategic Planning
Financial Accounting
Financial Planning (FP&A) SAC Planning
Consolidations
Supply Chain Planning
Execution IBP
MRP/Production/ (S&OP/IBP)
Logistics Commercial Planning TMA (TPM, CPB)
FP&A
Strategy Budgeting
Workforce Planning SuccessFactors, SAC

ERP S/4HANA

Financial Planning &

Range & Market Reporting
Forecasting
Planning

HRMS Recruitment
Constrained Volume, Revenue & Cost Targets
Rough Cut Margin

Workforce Management Hiring/Termination Plan

Management Business S&OP/
Review IBP
Succession Planning
Marketing Planning

Integrated Product Portfolio

Reconciliation Commercial Planning Sales Planning

Trade Promotion
Planning
Consensus Demand
Supply Planning Planning

Annual process FP&A – Monthly/Quarterly/Annual process S&OP – Monthly/Weekly process Commercial Planning - Monthly process Workforce Management – Monthly/Quarterly/Annual process Execution – Daily Process

Maximize returns & Optimize demand & Integrated alignment

minimize costs supply & insights
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 SAP IBP and SAP Analytics Cloud for xP&A

“ In a rapidly fluctuating market and with continuing supply chain challenges caused by the COVID19 pandemic, forecasting is crucial for us. We
need it to ensure we produce enough of the right products at the right time and understand the financial impact of various planning scenarios
on our P&L. By harmonizing our planning processes across multiple regions and business functions, we can align operational
planning with financial performance.

Franco Giacomini, Vice President Big Markets EMEA, Freudenberg Home and Cleaning Solutions GmbH
”
Faster planning Days to create an initial Single point of truth

10x despite larger data

volumes and greater
granularity
Two top-down production
plan at the beginning of
the planning phase
One for all data (actual
and planning) and
functions (finance
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and production) 10
 “ SAP S/4HANA is integrated with SAP IBP enabling a single source of truth for demand and supply planning and aiding
production planning. User friendly dashboards help supply chain teams forecast demand more accurately and manage
supply and demand more effectively. Integrating SAP Analytics Cloud with IBP and S/4HANA allowed financial
experts to access deeper insights and make better, and faster decisions.
”

“ By Integrating SAP S/4HANA, SAP IBP for Supply Chain and SAP Analytics Cloud we have created the perfect conditions
for an intelligent, data-driven cooperative that provides the best value for our growers.

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Steven Birgfeld Vice President, Information Technology & Services
” 11
Marching to the Same Beat:
Synchronize Planning Decisions
from Finance to Execution

Jay Foster
Global Solution Management/ Product Marketing
2024

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