Our customer, a leading Consumer Packaged Goods (CPG) manufacturer and marketer of branded consumer lawn and garden products was managing very seasonal business demand with manual planning processes that were very iterative and time consuming and had to deal with the complexities of constrained warehouse and production capacity, and raw materials supply constraints. This situation was making it impossible for the business to break the cycle of reactive demand and supply adjustments, resulting in regular production capacity problems and too much inventory.
This situation was compounded with the challenge of managing across 7 global sales offices that were independently creating sales forecasts without any consensus between them and independent demand plans onto shared suppliers (both own and outsourced) at different times and across multiple iterations, resulting in poor forecasting accuracy.
The business was also undergoing a transformation and restructuring program including the implementation of SAP S4 HANA ERP platform.
Working as the SAP IBP Implementation partner across the full project lifecycle Rocket are responsible for:
Using the Rocket Cloud Accelerator Methodology for SAP IBP provided the client with three key success factors:
It was decided to tackle the planning challenges with the design and implementation of a globally aligned Sales and Operations Planning (S&OP) process underpinned by the SAP Integrated Business Planning (IBP) S&OP platform fully integrated using SAP Cloud Platform Integration Data Services (SAP CPI-DS) into SAP S4 HANA.
We created a tailored Consumer Packaged Goods (CPG) Sales & Operations (S&OP) cycle with planning views to support all steps across 7 countries:
Forecasting Preparation (Week 1)
- Revise Portfolio, Substitutions and Modifications
- Cleanse Sales History
- Revise Segmentation
- Revise Statistical Forecast Models
Demand Planning (Week 2)
- Statistical Forecast Calculation (Load and revise Statistical Forecast)
- Sales and Marketing Forecast (Discuss Sales & Marketing Forecast, Add Campaigns, Events, Promotions etc)
- Demand Corrections (Review Demand Plan Alerts & Take Action)
Supply Planning (Week 3)
- Release Forecast
- Supply Planning Calculation (Review Safety Stocks & Supply Targets, Run Heuristic Planning)
- Supply Corrections (Review Planning Alerts & Take Action)
S&OP Review (Week 4)
- Plan Versioning / Simulations, (What If Scenarios, Capacity Review, Supply & Demand Versions)
- S&OP Meeting (Review Planning Versions and Discuss/Agree Financial Adjustments)
- Publish Plan (Live Version)
The real time integration to and from SAP S4 HANA using SAP CPI-DS includes S4 master data (products, locations, customers, transportation lanes, vendors) and transactional data (actuals, stocks, forecasts, orders) sent to IBP. SAP IBP data interfaced back to S4 HANA includes planned orders, purchase requisitions, stock transfer requisitions to drive S4 supply chain processes.
The Rocket Cloud Accelerator Methodology for SAP IBP allowed the solution to be highly aligned to standard SAP IBP S&OP, with additional value being driven by a small number of key enhancements and Rocket IBP add-ons: