How to Setup Demand Planning in SAP Advanced Planning and Optimization

Improve Forecast Accuracy, Balance Demand and Supply, and Optimize Resource Utilization

SAP Advanced Planning and Optimization, demand planning allows a business to perform forecasting of their materials while considering all the factors that affect the demand. Demand planning is periodic and contains multi-step processes such as data gathering, statistical analysis, reviewing market intelligence reports, and performing adjustments against budgeted forecast to drive material requirements planning. SAP Advanced Planning and Optimization, demand planning is designed as a platform so it must be tailored to an organization’s product types and nature of their business with various key figures, characteristics, data aggregations or disaggregation factors, planning object structures, planning areas, planning books, macros and data views to execute the process.

This article will provide steps for implementing the solution, along with reasoning behind the configurations, prerequisites, navigation with transactions codes, relevant SAP notes, and tips and tricks for troubleshooting issues during implementation.

In this article you will learn:

- The essential steps of SAP demand planning configurations including time series, planning books, statistical forecasting, background job set up, and demand plan release to ECC;
- Explanation of each configuration step involved with navigation path, transaction codes, and tables; and
- Tips and tricks on configurations, performance optimization, and error resolutions.

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Venkata Ramana Nethi, CSCP, CPIM Manager IT Build-Run Operations & Quality, Schlumberger
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Venkata Ramana Nethi, Manager IT Build-Run Operations & Quality at Schlumberger, has 20 years of experience including SAP and domain expertise in manufacturing and planning. He joined Cameron in 2010, which was acquired by Schlumberger in 2016, and is responsible for SAP production planning, advanced planning and optimization (APO), and Quality modules including process study, design, implementation, and support in manufacturing and supply chain business transformation solutions. Before joining Schlumberger, Venkata was an SAP production planning consultant at Wipro Technologies, where he led SAP PP implementation and support projects for a global client base. Prior to that, he was manager at VOLTAS manufacturing unit based in India where he was responsible of production planning and shop floor manufacturing processes of refrigerator and commercial cooler products for CPG customers.Venkata has CSCP and CPIM certifications and his expertise ranges from business case analysis to implementation and production support engagements in manufacturing and supply chain planning transformation initiatives. He is also involved in sales and operations planning supported by SAP Integrated Business Planning and the solution’s integration with various systems to support demand and supply planning.