SAP Integrated Business Planning IBP 1705 Release: What's New?

SAP recently came out with Integrated Business Planning IBP release 1705. Here is a summary of what's new & exciting. Quick heads-up: We are launching our next IBP S&OP workshop starting June 10th, 2017.

Demand Management

  • Manage Product Life-cycle / Phase-in with pre-configured curves: Define phase-in start & end dates. Forecast not generated for periods before phase-in date. Assign pre-configured curves (linear, super-linear, sub-linear). Custom curves in next release.
  • Manage Forecast Models App has been enhanced. Specify frozen forecast periods. Forecast for these periods is not updated next time a run is taken. 
  • Demand Sensing: You can define business meaning when defining key figures, which are understood by Demand Sensing to automatically populate which key figures to use for consensus forecast, future orders, historical ordered qty, and delivered qty. 
  • Change history now available for forecast model assignments for a specific planning object. For example, forecast model changed from X to Y for a specific Product/Customer combination on a specific date. 

Inventory Optimization

  • IBP can now run Multi-stage Inventory Optimization in batch mode to run long running simulations without having to maintain connection to Microsoft Excel. Ability to run multiple simulations simultaneously to perform sensitivity analyses. 
  • Model Assemble To Order / Make To Order: Model customer facing product/location nodes as non-stocking. Inventory Optimization operator in IBP then propagates the demand, demand variability, and service-level requirements to upstream stocking product-location nodes. Benefit: Model different supply network configurations, e.g., automotive industry. 

Supply Planning

  • IBP Supply Optimizer supports Production Lead Time. Only Supply Heuristic supported it prior to 1705. You can define capacity consumption policy within the production process. Component Offset determines the planning period in which a specific component is consumed during the production process. Default is consumption at the start of production process. Component WIP: defines how many units of a component are released to an ongoing production process. Resource Capacity Consumption Offset: specifies the start and end period in which capacity on a given resource is consumed. This supersedes header level capacity consumption policy. Enhanced business logging for supply planning operators. Technical and business messages separated in different logs. Sort by message type or master data to navigate the log in a user-friendly way.

Business Network Collaboration

  • Supplier Forecast Collaboration Process: Run Supply Planning unconstrained (Supply Heuristic). Propagate demand throughout network. Explode BOMs. Generate net requirements for components. OEM Customer (Buyer) transmits unconstrained component forecast to Supplier or Contract Manufacturer as Time Series data. Supplier reviews component forecast and publishes forecast commit back (confirmed qty - supplier commit) back to the OEM Customer (Buyer). OEM Customer (Buyer) receives commit from all suppliers / CM, analyzes alerts / reports for variances, performs scenario planning to resolve issues, makes adjustments, and publishes constrained forecast.
  • New Fiori App to enable Supplier Forecast Collaboration: Data Sharing Plan Management: This app provides a framework for sharing data with business partners: what information to share, to which partners, and how to share it. This app allows mapping of source and target data structures, and create / manage data sharing plans & arrangements. Data Sharing Plan is an agreement between business partners that governs, what data is shared, with whom, and how. Provider plan: for partner sending data out (unconstrained forecast). Source is Planning Area in IBP, target is cXML (csv or another planning area will be supported in future). Consumer plan: for partner receiving data (e.g., receiving forecast commit back from supplier). Source can be csv, cXML, or XML; target is IBP Planning Area. One data sharing plan can have multiple data sharing arrangements, typically one per external business partner. Data sharing arrangements consist of sharing mode (XML - this is available in 1705, email, and direct - these will be available later), communication arrangement, mapping, and visibility filter. Visibility filters help define the scope of the data being shared with the external partner. New Sample Collaboration planning Area: SAP4C in 1705 to illustrate: 1. how business partner entity is modeled with supplier and customer extensions and 2. Ability to view relevant key figure data in the context of external partner, e.g., supplier commit from supplier. 

Response Management

  • Analyze Supply Usage: Get an overview of component supply and how it is used by primary demands. This is mainly about pegging. Supports use cases like high-priority demands covered by unsafe supply, low priority demands covered by order supply or stock, unused supply, competing demands on the short-term horizon. Filter component supply by material, location, supply type, date horizon, or any other supply attribute. Similarly, filter primary demands by material, location, customer number, or any other primary demand attribute. See only pegged supply, unpegged supply, or both. 
  • Response Management Settings: Version specific key figures: for forecast, constrained forecast, product allocation, safety stock + periodicity, resource capacity + periodicity, supplier constraint + periodicity. Optimistic vs, pessimistic version of data. Graphical order network. Run Response Management (constrained planning run) as a background job from Excel as a Planning Operator. Forecast attributes: Consider forecast, perform forecast consumption, or prioritize forecast on additional level / attribute.
  • Enhance SAP7 template Planning Area: Create new Master Data Type (e.g., Location/Material/Custom Attribute like Customer), create new planning level, assign relevant key figures, adjust key figure calculations, etc. Consume forecast and prioritize sales order demand by this new level. Set Response Management settings: Maintain sales order field assignments, Maintain Planning Level assignment, maintain Forecast Consumption profile, create relevant Prioritization Rules

Deployment Planning

  • IBP For Response & Supply: S&OP tactical (time series) Supply Planning: Unconstrained (heuristic) or Constrained (optimizer). What-if analysis. Operational (order based) Supply Planning: Generate supply orders (production, procurement, distribution). Generate allocations for ATP process.Unconstrained planning (heuristic), Constrained priority-rules driven planning (heuristic), Constrained Optimization (on roadmap). What-if analysis. New order data store with SDI based integration to ERP. Response Planning (Order Based): Generates supply orders and reschedules sales order items (optional). What-if analysis. New order data store with SDI based integration to ERP.
  • Deployment Planning within IBP Response & Supply: Short-term planning over next 4-6 weeks. Deployment is a process to distribute available supply from upstream stocking nodes to downstream stocking nodes with demand to meet expected service level. Deployment re-plans distribution considering current demand and supply situation, creates stock transfer requisitions, and confirms sales orders. Order based, constrained Deployment Heuristic (considers priority). Multi-stage planning (covers entire network). What-if analysis. New order data store with SDI based integration to ERP.
  • Deployment use cases: Short-term demand increase: sales peak in one market; demand forecast not consumed in another market. Short-term supply change: production delay requires re-planning of replenishment to DCs and customers.


  • New Analytics App in Fiori: Key figure filters (remove long tail part of data), contextual navigation to excel (analyze in Fiori, make changes in excel), new chart types (Scatter, 100% stacked bar & column), enhanced drill down with multiple paths and multiple levels,select a few products on a line chart and drill down to a heat map for them, then drill down to see weekly quantities for a specific product. Support for mobile usage (tablet or phone). Mark a chart as favorite. Ability to put values in chart. Custom colors. 
  • New Dashboard App in Fiori: Dashboard filter: filter all chars on the dashboard at once, e.g., see data only for a sub-set of locations across all charts. Multiple process management instances on the same dashboard. Old Analytics Apps will be discontinued in next release IBP 1708. 

IBP Excel Add-in 1705.2.0

  • Flexible time axis with multiple period types (weeks, months, quarters) in the same planning view. Must set global configuration parameter Max_Time_Levels to state how many different periodicities can be present in the same planning view.
  • Business logging: more detailed logs on planning object level.
  • Folders were introduced in 1702 to manage planning view templates. With 1705, we can flexibly organize Templates, Favorites, and Master Data Favorites. Drag-and-drop, sorting, deletion of folders are all possible.
  • Misc. enhancements: Major usability enhancement: We can now copy current planning sheet including all content, sheet specific code, and IBP definitions. Set default values for the Planning Unit in Settings. We could set default values for currency and UOM before. If someone shares a favorite with you, you now have the option to 'opt-out', which removes those shared favorites from your list. Error message are more detailed and easier to understand. 

IBP Model Configuration Enhancements

  • Time Profile App: to create and manage time profiles.
  • Master Data Type App is now enhanced: new attribute checks and consistency checks.
  • Application Logs App now displays long texts to support error analysis. 

Identity and Access Management

  • Business Catalog for Product Lifecycle Management enhanced: new restriction type to control who can change the assignment level of reference products.
  • New business catalogs for Business Network Collaboration: Data Sharing Plan Management, Data Sharing Plan Execution.
  • Visibility Filters: New viewing / filtering options, change history

SAP Best Practices IBP RDS

  • New scope and changes in v7.1705: RDS now based on IBP 1705. IBP RDS now has ABC-XYZ segmentation. Forecast models now delivered in SAPIBP1. New charts. Learn more at
  • Unified Planning Area: Four forecast models now shipped with SAPIBP1. These are Triple Exponential Smoothing, Demand Sensing, Demand Sensing Update, and a new model called StdDevDelivQty to calculate standard deviation of the key figure 'Delivered Qty' (check results in excel template DP110). Copy SAPIBP1 and activate the new planning area, then check out the 'Forecast Models' App. Three forecast error profiles. Check out 'Manage Forecast Error Calculations' Apps. 
  • Segmentation profile. Check out 'Manage ABC/XYZ Segmentation Rules' App. 
  • Demand Sensing: configuration enhancements related to end of quarter handling
  • Demand Planning: new key figures used for cleaning sales history (MEANDELIVQTY, STDDEVDELIVQTY, STDDEVDELIVQTYTS)
  • S&OP: New key figure to specify maximum number of future sub-periods during which any quantity of received product can be kept in stock at a location. 
  • Supply Planning: Production Lead Time, Capacity Usage, Component WIP, etc.

If you would like to learn more or need help to evaluate / implement / run SAP IBP, you can reach out at