Inventory Optimization

SAP Integrated Business Planning (IBP), which is powered by SAP HANA, is a cloud-based next-generation planning solution that can help overcome key supply chain challenges and enable organizations ensure smooth and efficient supply chain and planning processes. The solution was designed to improve efficiency, accuracy, and speed as a result of getting, organizing, and analyzing significantly large amounts of data with ease.

Inventory is a crucial module of SAP IBP. It enables organizations to manage the increased risks to supply chain, such as fluctuations in customer expectations, volatilities in demand, variabilities in supply, and uncertainties in the economy. In order to remain competitive, organizations need to have improved planning, analyzing, and collaboration tools in place to ensure the long-term growth and profitability of the company. Inventory optimization is the procedure by which you try to balance the costs of carrying excess inventory, with the costs associated with failing to meet the customer service level targets. With SAP’s IBP for HANA, it is possible to extend inventory optimization planning throughout the entire global organization. As a result, inventory optimization in different stages simultaneously and accounting for variability provide inventory targets that can meet and even exceed customer service levels, at the same time reducing working capital. SAP IBP allows for a system wide optimization of inventory, not just a particular set of finished goods in the warehouse.