Extended Supply Chain Management with SAP Integrated Business Planning and SAP SNC

  • by Christian Butzlaff, Senior Director, Value Prototyping, SAP
  • V. Krishna Anaparthi, Process Architect, SAP Labs India Pvt. Ltd.
  • November 17, 2016
Learn how to use SAP Supply Network Collaboration (SAP SNC) and SAP Integrated Business Planning to enable collaboration scenarios in extended supply chain management to monitor your supply chain more efficiently and be alerted in case of irregularities.
Learning Objectives

Reading this article, you will understand:

  • How an extended supply chain visibility scenario can be orchestrated by using SAP Supply Network Collaboration (SAP SNC) and SAP Integrated Business Planning
  • How to map the master data to SAP Integrated Business Planning using SAP HANA Cloud Integration
  • How to map transactional data to SAP Integrated Business Planning using SAP HANA Cloud Integration
  • How the alerts in SAP Integrated Business Planning help in efficient monitoring using simulation capabilities
  • How the SAP Integrated Business Planning collaboration helps in better collaboration between stakeholders
  • Other potential high-tech scenarios that can be handled using SAP SNC and SAP Integrated Business Planning
Key Concept

SAP Supply Network Collaboration (SAP SNC) has been used by many companies to support collaboration with their suppliers on purchase orders, advanced shipping notifications, inventory, and other information. By integrating the SAP SNC module with SAP Integrated Business Planning, you extend the monitoring capabilities of SAP Integrated Business Planning toward the extended supply chain, thus enabling the business with capabilities to monitor the extended supply chain in a more efficient and effective manner.

In addition to the internal planning process, companies use tools such as SAP Ariba or SAP Supply Network Collaboration (SAP SNC) to collaborate with the extended supply chain partners (for example, suppliers, customers, contract manufacturers, and third-party service providers). We discuss a use case in which the business can monitor its extended supply chain and be alerted about any issues potentially affecting the delivery capability by using advanced solutions such as SAP Integrated Business Planning.

SAP Integrated Business Planning provides unified planning across sales and operations, demand, inventory, supply and response planning, as well as the Supply Chain Control Tower for dashboard analytics and monitoring. It allows companies to engage stakeholders across the organization in a truly integrated planning process (see http://help.sap.com/ibp-ref and http://scn.sap.com/community/scm/ibp).

Business Scenario

As shown in Figure 1, the scenario considered in our example refers to a business that distributes computers. The business receives the computers from a sub-contractor who has been contracted to assemble the components and then the business stores the finished computers at a business site. The business provides the sub-contractor the components required to produce the computer by directly coordinating with suppliers and having suppliers directly ship the components to the sub-contractor.

Figure 1
Scenario overview

For such a scenario, we explain how a combination of SAP SNC and SAP Integrated Business Planning can increase the visibility into the extended supply chain and allow the business to react to any issues that occur. Besides the architecture and configuration of the scenario, we also describe the technical implementation of the integration between the two solution components.

Business Scenario: The Technical Landscape and Process Modelling

As depicted in Figure 2 (technical landscape overview), we have modelled the business’s supply chain using SAP ERP Central Component (ECC), SAP SNC, and SAP Integrated Business Planning. While ECC is modelled to take care of execution processes, SNC is modelled to enable the communication and collaboration link with external business partners, and SAP Integrated Business Planning is modelled to handle the internal planning and monitoring challenges considering the inputs from suppliers.

Figure 2
Technical landscape overview

Technical Landscape

ECC and SAP SNC are integrated via the Core Interface (CIF) for master data and SAP Process Integration (SAP PI) for transactional data such as purchase orders, purchase order confirmations, or advanced shipping notifications (ASNs). The sub-contractor and the suppliers can access SAP SNC via a web interface or via a message interface.

The SAP Integrated Business Planning tenant sits in the cloud, but does not currently provide the functionality required to allow for direct access by the sub-contractor or the suppliers (such as a visibility concept for different business partners, accessing the same system such as SAP SNC). The integration to SAP SNC uses SAP HANA Cloud Integration Data Services. (For more details on the integration setup between SAP SNC and SAP Integrated Business Planning for master data and transaction data, refer to the “Technical Implementation” section of this article.)

In addition, we use an SAP JAM tenant integrated to SAP Integrated Business Planning to enable the Control Tower case management functionality.

Christian Butzlaff

Dr. Christian Butzlaff is responsible for SAP Value Prototyping services at SAP America. Before that he held various positions in the SAP Development Organization. In particular, he was Development Manager for SAP Supply Network Collaboration (SAP SNC). In his current role he works with customers on prototype engagements, for example, in the area of SAP Integrated Business Planning.

Christian holds a PhD from the University of Hamburg, Germany. He is PMI certified and is currently pursuing a specialization in machine learning.


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V. Krishna Anaparthi

V. Krishna Anaparthi has vast experience in the field of enterprise consulting. Playing the roles of project manager and solution architect, he is instrumental in the successful implementation of multiple SAP projects across the consumer goods, pharmaceutical, and high-tech industries. He is currently serving as the process architect at SAP Labs India Pvt. Ltd. and is a part of the SAP Business By Design development team.

Krishna holds an MBA from NITIE, Mumbai, India. He has PMP, CPIM, and CSCP certifications and is proficient in supply chain and project management processes.

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