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IBP500 Col2505 SAP Supply Chain Control Tower

The document is a participant handbook for an instructor-led training course on SAP Supply Chain Control Tower, detailing its objectives, course structure, and content. It covers various units focusing on enhancing decision-making, creating dashboards, and managing supply chain operations using advanced analytics and real-time visibility. The target audience includes application consultants, business process architects, and solution architects, emphasizing the importance of effective supply chain management in today's complex environment.

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IBP500 Col2505 SAP Supply Chain Control Tower

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com

IBP500
SAP Supply Chain Control Tower

.
.
PARTICIPANT HANDBOOK
INSTRUCTOR-LED TRAINING
.
Course Version: 2505
Course Duration: 1 Days

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SAP Copyrights, Trademarks and

Disclaimers

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Typographic Conventions

American English is the standard used in this handbook.

The following typographic conventions are also used.

This information is displayed in the instructor’s presentation

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Related or Additional Information

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Contents

vii Course Overview

1 Unit 1: Introducing SAP Supply Chain Control Tower

3 Lesson: Enhancing Supply Chain Decision-Making

15 Lesson: Optimizing Custom Alerts in SAP Supply Chain Control
Tower
23 Lesson: Navigating Case Management in SAP Supply Chain Control
Tower
29 Lesson: Analyzing Intelligent Visibility in SAP Supply Chain Control
Tower
37 Lesson: Leveraging Business Network Collaboration in SAP Supply
Chain Control Tower

49 Unit 2: Creating Dashboards and Analytics

50 Lesson: Creating Dashboards and Analytics

57 Exercise 1: Creating Analytics Charts and Dashboards
65 Exercise 2: Creating Planning Notes and Displaying Notes in
Analytics
71 Exercise 3: Creating a Drill-Down
77 Exercise 4: Creating Planner Workspace with Analytics
79 Exercise 5: Creating Analytics Stories

87 Unit 3: Modelling Custom Alerts

88 Lesson: Creating Custom Alerts

95 Exercise 6: Create Custom Alerts
101 Exercise 7: Create a Procedure Playbook and Add to the
Custom Alert
105 Exercise 8: Display Custom Alerts and Work with Procedure
Playbook
107 Exercise 9: Run Application Job for Custom Alerts Notification

113 Unit 4: Using Case Management

114 Lesson: Using Case Management

117 Exercise 10: Create a Case
119 Exercise 11: Create Case with Link to Custom Alert

125 Unit 5: Providing Transparency with Intelligent Visibility

126 Lesson: Providing Transparency with Intelligent Visibility

131 Exercise 12: Create an Intelligent Visibility Profile
135 Exercise 13: Use the Intelligent Visibility App

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141 Unit 6: Managing Navigation to Other Systems

142 Lesson: Creating and Using Navigation to Other Systems

145 Exercise 14: Set Up Navigation to a Web App
151 Lesson: Understanding Technical Integration Topics

157 Unit 7: Modelling Business Network Collaboration and Alerts

159 Lesson: Understanding Business Network Collaboration and Alerts

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Course Overview

TARGET AUDIENCE
This course is intended for the following audiences:
● Application Consultant
● Business Process Architect
● Business Process Owner/Team Lead/Power User
● Solution Architect
● User

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UNIT 1 Introducing SAP Supply Chain

Control Tower

Lesson 1
Enhancing Supply Chain Decision-Making 3

Lesson 2
Optimizing Custom Alerts in SAP Supply Chain Control Tower 15

Lesson 3
Navigating Case Management in SAP Supply Chain Control Tower 23

Lesson 4
Analyzing Intelligent Visibility in SAP Supply Chain Control Tower 29

Lesson 5
Leveraging Business Network Collaboration in SAP Supply Chain Control Tower 37

UNIT OBJECTIVES

● Effectively utilize the SAP Supply Chain Control Tower to enhance decision-making in
supply chain operations by running scenario simulations and interpreting real-time
analytics.
● Configure and manage supply chain issues by setting up, customizing, and monitoring SAP
Supply Chain Control Tower alerts, utilizing machine learning for dynamic alert
adjustment.
● Efficiently utilize SAP Supply Chain Control Tower's Case Management to create, track,
and resolve supply chain issues, leveraging real-time data and systematic documentation
for continuous improvement.
● Leverage the Intelligent Visibility functionality within the SAP Supply Chain Control Tower
to enhance transparency, predict potential supply chain issues, and foster collaboration
through customized data views and predictive analytics.
● Effectively utilize the SAP Supply Chain Control Tower's Business Network Collaboration
functionality, enabling enhanced real-time collaboration, risk management, and decision-
making

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Unit 1: Introducing SAP Supply Chain Control Tower

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Unit 1
Lesson 1
Enhancing Supply Chain Decision-Making

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Effectively utilize the SAP Supply Chain Control Tower to enhance decision-making in
supply chain operations by running scenario simulations and interpreting real-time
analytics.

Introduction to SAP Supply Chain Control Tower

From small businesses to global organizations, the success and efficiency of operations hinge
significantly on the management of the supply chain. In the present age of digital
transformation, businesses have realized that a robust, flexible, and fail-safe supply chain is
imperative. This is where SAP Supply Chain Control Tower comes into the picture. The SAP
Supply Chain Control Tower is much like an air traffic control system that manages, controls,
and optimizes a supply chain's every nuance.
The SAP Supply Chain Control Tower: endows businesses with a comprehensive and
consolidated view of their supply chain operations. By leveraging cutting-edge technology, it
provides up-to-the-minute information about the company's entire supply chain. This
exhaustive, real-time visibility enables businesses to make swift, informed decisions to rectify
issues and create continuity across the supply chain activities.
The SAP Supply Chain Control Tower can be envisaged as a virtual control room that offers
immediate insights into the supply chain's performance. It is integrated with SAP's HANA
platform for high-speed in-memory computing, enabling real-time alerts about bottlenecks,
delays or breakdowns in the supply chain. This proactive alert system helps companies to
respond more rapidly to potential disruptions, effectively preventing loss and maintaining
efficiency.
Another commendable feature of the SAP Supply Chain Control Tower is its ability to run
scenario simulations. Businesses can utilize this functionality to analyze the potential impacts
and outcomes of various decisions before they come into effect, and test different strategies,
enabling risk mitigation and safe experimentation.
Moreover, with the proliferation of big data in the business realm, the SAP Supply Chain
Control Tower's powerful analytics capabilities cannot be overlooked. It enables the
integration and analysis of data from various areas of the business, presenting complex data
insights in easy-to-understand visualizations. Such seamless data integration and advanced
analytics expand the boundaries of performance analysis, leading to improved decision-
making and operational enhancements.
The SAP Supply Chain Control Tower serves as the nerve center of supply chain operations,
enhancing control, boosting transparency, and creating robust resilience. Through its
innovative features, it assures businesses stay ahead of the curve by enabling agile, data-
driven decision-making processes, and maneuvering the supply chain with precision. This

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Unit 1: Introducing SAP Supply Chain Control Tower

powerful tool indeed represents a pioneering solution for navigating today's complex supply
chain environment.
Key Topics
As you progress through this lesson it's important to concentrate on several key topics that
are crucial for mastering the content. These areas of focus are not just topics to be learned—
they are your stepping stones to a deeper understanding and successful achievement of the
course's learning objectives. By emphasizing these crucial areas, you will develop a robust
knowledge base that will enhance your proficiency and effectiveness in supply chain
management.
SAP Supply Chain Control Tower: A tool that functions similarly to an air traffic control
system for supply chain management, providing oversight, management, and optimization of
all aspects of a supply chain.
Real-time Visibility:The ability to access and analyze data about the supply chain
instantaneously as events happen, allowing for swift decision-making and immediate action.
Scenario Simulations:The practice of using software to model the effects of different
decisions and actions on a supply chain, helping to predict outcomes and mitigate risks
before implementing changes.
Advanced Analytics:Techniques and tools used to analyze complex data sets to make better
decisions, understand patterns, and predict future outcomes.
Resilience:The capacity of the supply chain to anticipate, prepare for, respond to, and recover
from disruptions to continue operations at an acceptable level of performance.
Agility:The ability of a supply chain to quickly adapt to changes in the environment, customer
demand, and other factors, without compromising on cost, quality, or customer service.
Integration:The process of combining data and systems from different sources to create a
cohesive, unified view of the supply chain operations.
Supply Chain Resilience:The strategies and measures a company employs to prepare for,
manage, and recover from disruptions to its supply chain.
Risk Mitigation: The process of developing strategies and actions to minimize the impact of
potential risks on supply chain operations.
Complexity and Challenges of Supply Chain Management
In recent years, supply chains have become more volatile due to the following major
geographic and demographic trends:

● Shift of market power towards the end consumer, which was amplified by the financial
crisis in 2008 and 2009
● Maturity of the millennial generation who require individualized products that are delivered
immediately and purchased through new channels
● Emerging middle class in the developing marketplace due to the growth of the population
to 7.5 billion people, which has resulted in a global rebalancing across geographies

Today’s end consumers research and purchase products in real time, and expect them to be
delivered with a high sense of urgency.
At the same time, the complexity of supply chain and the challenges that need to be
overcome are growing exponentially.
The most recent major incidents affecting supply chain management include the following:

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Lesson: Enhancing Supply Chain Decision-Making

COVID-19 global pandemic:

● Many plants shut down, supply chains are disrupted
● Surging demand of supplies on very short notice

Climate change events:

● Droughts
● Australian bush fires resulting in road closures, air pollution, increased health spending,
lower crop yields
● Rising sea levels threatening coastal regions

Visibility is one of the biggest organization challenges faced by today's supply chain
professionals.

Figure 1: Concepts of SAP Supply Chain Control Tower

Figure 2: SAP Supply Chain Control Tower within SAP IBP

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Unit 1: Introducing SAP Supply Chain Control Tower

Considering the entire SAP IBP solution, the SAP Supply Chain Control Tower supports end-
to-end visibility, as well as monitoring, customer alerts and intelligent visibility in the Supply
Chain.

Figure 3: Why Do We Need a SAP Supply Chain Control Tower? (I/II)

Figure 4: Why Do We Need a SAP Supply Chain Control Tower? (II/II)

The statements in the figures, Why Do We Need a SAP Supply Chain Control Tower. represent
very real and reasonable issues posed by business leaders daily and throughout their
respective planning cycles. In a traditional scenario, operational and financial decisions are
scattered, uncoordinated, and are often made using a gut feeling or without the use of all
available facts. The decision making process is slow and often based on outdated information,
introducing two sources of error into the planning process. Reaction time to major events is
also compromised, often driving organizations to panic into error. This results in a higher risk
in terms of errors and omissions insurances, published financial results that include surprises
or missed expectations, loss of market share and possibly key customers.

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Lesson: Enhancing Supply Chain Decision-Making

Figure 5: What is the challenge? (I/II)

Figure 6: What is the challenge? (II/II)

SAP Supply Chain Control Tower, as a Big Data application, can connect data from different
systems, whether in-house- or external, SAP or third party, Supply Chain Execution, or
Planning systems.
Integration to those systems is done via Middleware "Cloud Integration". There are templates
available to integrate the most common objects from SAP into Supply Chain Control Tower,
for example Master data load for Location or Product from SAP ERP, when SAP IBP is
purchased.

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Unit 1: Introducing SAP Supply Chain Control Tower

Figure 7: SAP Supply Chain Control Tower (I/II)

Figure 8: SAP Supply Chain Control Tower (II/II)

In the figures, SAP Supply Chain Control Tower, observe the following:
● Unlike in a supply chain planning system you do not only see what happens within your
company (LOCATIONS in BLUE COLOR).
● On the one upstream side are Tier 1, Tier 2, Tier 3, and so on. All of the suppliers are
contributing to your value chain.
● On the downstream side are direct customers, whether retailing, wholesaling (or Original
Equipment Manufacturers) with their distribution center and stores.
● Unlike a transactional system, you would not only look at the individual plants or locations
to see what is the current inventory level but also track down where shipments (stock) are
currently

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Lesson: Enhancing Supply Chain Decision-Making

● Imagine there is an extreme whether situation and you would like to find out if your
shipment is on the sea or somewhere else. You could see it from there.
● Therefore, we imagine to have total visibility on the shipment level to answer these
questions.
● In short, with SAP Supply Chain Control Tower, you enable your Supply Chain
Professionals to navigate, analyze and profitably manage the end-to-end supply chain in
real-time.

What can you do with that?

● With better visibility, you always know about the impact on the "real" customer. Make
decisions in context and put the customer in center. This results in increased on-time
delivery performance to the customer.
● If you have better information about what happens in your supply chain and you can
identify fundamental drivers, and reduce risk in your supply chain. This results in
decreased overall inventory levels while reducing risk.
● Reduce supply chain cost. This results in better and on-time information to handle
exceptions, allowing you to reduce associated costs, for example, for transport and
production.
● Increase supply chain agility. This results in being more agile and productive by having one
source of truth.

Key Facts for SAP Supply Chain Control Tower

The SAP Supply Chain Control Tower is a critical business tool for managing, controlling, and
improving supply chain operations. Here are the main key facts you need to know about this
powerful solution:

1. Detailed Visibility: SAP Supply Chain Control Tower provides end-to-end visibility across
the supply chain, enabling businesses to have a comprehensive view of their operations in
real-time.

2. Real-Time Alerts: With this system, businesses can receive instantaneous alerts on
potential disruptions in the supply chain, enabling quicker decision-making and rapid
responses.

3. Scenario Simulations: The platform allows industry leaders to run simulated scenarios to
analyze the possible outcomes and impacts of decisions before implementing them,
reducing risk and aiding informed decision-making.

4. Advanced Analytics: Leveraging SAP's HANA platform, the Supply Chain Control Tower
offers advanced analytics capabilities, integrating diverse data for better performance
analysis and reporting.

5. Enhanced Control: With this solution, businesses gain enhanced control over their supply
chain processes, which helps to improve efficiency, flexibility, and overall supply chain
resilience.

6. Easy Integration: The SAP Supply Chain Control Tower can easily integrate with other SAP
products and applications and, the compatibility with different data types and sources
enhances its versatility in various business environments.

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Unit 1: Introducing SAP Supply Chain Control Tower

7. Better Decision-Making: With real-time visibility, predictive analytics, and scenario

simulations, business leaders can make data-driven decisions that improve operational
effectiveness and business continuity.

Personal Reflection
Reflect on a time when delayed or inadequate information affected a decision you had to
make. How might access to real-time data and the ability to simulate different outcomes
(similar to the SAP Supply Chain Control Tower's capabilities) have altered your approach
and the eventual outcome? Consider the value of agility and resilience in your reflection.
Pause here for a moment and take some time to jot down your thoughts on the personal
reflection question. Once you've recorded your response, you'll have the opportunity to
compare it with an answer from an expert in SAP Supply Chain. This exercise will give you
insight into your understanding and how it aligns with professional perspectives.
Expert Response
As an experienced SAP Consultant specializing in the SAP Integrated Business Planning (IBP)
Supply Chain solution, I recall a project where a client faced significant disruptions in their
supply chain due to unforeseen supplier issues. The lack of real-time visibility and predictive
insights made it challenging for them to quickly adapt and mitigate the impact on their
operations. Decisions were made based on outdated information, leading to suboptimal
responses and increased costs.
Had the SAP Supply Chain Control Tower been implemented, our approach would have
dramatically shifted. With its real-time data and advanced analytics capabilities, we could
have identified the potential for disruption early on. By leveraging the tool's scenario
simulation features, we could have evaluated various strategies to address the supplier issue,
such as finding alternative sources or adjusting production schedules in advance, thereby
minimizing the disruption's impact.
The SAP Supply Chain Control Tower would have also enabled us to provide the client with a
clear, comprehensive view of their entire supply chain. This visibility, combined with the ability
to run real-time scenario simulations, would have empowered them to make informed, agile
decisions, significantly reducing the disruption's negative effects on their operations.
This experience solidifies my belief in the transformative power of SAP IBP and the Supply
Chain Control Tower. It serves as a prime example of how leveraging the right technology can
provide businesses with the agility and resilience needed to navigate the complexities of
today's supply chains.
Challenge Question
The following scenario presents a real-life situation that often arises in the world of supply
chain management. So, it's time to put your knowledge to the test! Put on your thinking cap
and tackle the questions below. After you've responded, take a moment to compare your
answers with those of an SAP Supply Chain Expert. Are you ready? Let's go!
Real-World Example
You are the supply chain manager for a global manufacturing company that is facing a
significant challenge. A critical component supplier has just announced an unexpected
shutdown due to equipment failure, and you need to make a decision quickly to prevent
production delays. You have the SAP Supply Chain Control Tower at your disposal.
Using what you've learned about the SAP Supply Chain Control Tower, answer the following.

1. How would you use the tool's capabilities to assess the impact of the supplier shutdown
on your production schedule?

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Lesson: Enhancing Supply Chain Decision-Making

2. What features of the SAP Supply Chain Control Tower would allow you to identify
alternative suppliers or solutions to mitigate the disruption?

3. Describe a scenario simulation you might run to decide on the best course of action.

4. Considering the tool's advanced analytics, what specific data insights would you look for
to support your decision-making process?

Artificial Intelligence (AI)

Leveraging Artificial Intelligence (AI) in SAP Integrated Business Planning
Artificial Intelligence (AI) plays a critical role in several modules within SAP Integrated
Business Planning (IBP), enhancing them with machine learning capabilities. Let’s delve into
the specifics of how AI is incorporated into these key modules:
● SAP IBP for Demand: In the Demand module, AI specifically bolsters demand sensing and
forecasting. Machine learning algorithms analyze historical sales data, future promotions,
holiday trends, and other influential factors, refining the accuracy of future demand
forecasts. It also assists in identifying and analyzing any potential outliers or anomalies,
ensuring more reliable and accurate forecasting.
● SAP IBP for Inventory: AI in the Inventory module identifies and optimizes safety stock
levels. Machine learning techniques assess the demand and supply volatility, lead times,
service levels, and other variable factors, providing a significant advantage in inventory
optimization.
● SAP IBP for Sales and Operations: AI-powered predictive analytics helps align business
strategies, demand, supply, and financial goals, thus improving overall business efficiency
and productivity. It also provides data-driven insights to make well-informed decisions
regarding sales and operations planning.
● SAP IBP for Response and Supply: Applying AI in this module aids in optimizing inventory
and managing the production plans more flexibly. Machine learning predicts supply chain
disruptions or material shortages by analyzing patterns and relations between different
parameters. This predictive capability advises on optimal decisions, which helps mitigate
the risk and reduce costs associated with excess inventory or potential supply chain
disruptions. AI is especially beneficial for executing a supply plan in the short term,
including the management of supply chain disruption and predicting delivery delays. The
AI algorithms assist in predicting the order fulfillment and capacity allocation by analyzing
historical patterns, thereby increasing supply chain responsiveness and customer
satisfaction.
● SAP IBP for Demand-Driven Replenishment: This module utilizes AI to minimize excess
and obsolescence, maximize fill rates, and optimally deploy working capital by predictively
modeling and managing supply chains based on actual consumption.
● SAP Supply Chain Control Tower: This module utilizes AI to provides invaluable insights
into supply chain operations, speedy identification of potential challenges, and aid in swift
decision-making.

By combining machine learning and the capabilities of SAP HANA, these modules benefit
from enhanced accuracy, predictive power, and increased efficiency. This remarkable
combination empowers SAP IBP to transform vast quantities of data into actionable insights,
aiding businesses in making well-informed decisions, enhancing the customer experience,
and, most importantly, staying competitive in their respective markets in the long run.

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Leveraging Artificial Intelligence (AI) in SAP Supply Chain Control Tower

AI plays a pivotal role in revolutionizing the capabilities of the SAP IBP Supply Chain Control
Tower. It provides invaluable insights into supply chain operations, speedy identification of
potential challenges, and aid in swift decision-making. Here's a detailed look at AI's crucial
impact on the Supply Chain Control Tower:
● Real-Time Supply Chain Insights: AI algorithms compile and analyze vast amounts of real-
time data in the Supply Chain Control Tower, transforming it into actionable insights. For
example, it can highlight customer orders that are at risk of being fulfilled late, allowing
managers to take immediate action to resolve any issues.
● Predictive Analytics and Forecasting: The Control Tower makes use of AI for predictive
analytics, enabling businesses to anticipate future supply chain disruptions and prepare in
advance. For instance, an electronics manufacturer that relies on components from
overseas suppliers could use AI to predict potential supply disruptions caused by
geopolitical issues, natural disasters, or public health crises.
● Exception Handling: AI is used to predict and manage supply chain exceptions. For
instance, if a company's AI algorithm identifies recurring issues with a specific supplier
consistently delivering parts late, the system can flag this supplier as a potential risk and
suggest finding alternate sources.
● Supply Chain Risk Management: AI can model and evaluate numerous potential risks and
scenarios. For instance, by analyzing patterns in past natural disasters, AI may predict
future incidences, enabling contingency preparations, rerouting supplier sources if
needed, and mitigating business disruption.
● Collaborative Decision-Making: AI assists in providing data-driven recommendations in
real-time and streamlines cross-functional collaboration. For example, if there's a sudden
surge in demand, AI provides intelligent, data-backed recommendations, such as
increasing production or tapping into reserve inventory, facilitating fast and efficient
decision-making.
● Performance Monitoring: The Control Tower can use AI to track Key Performance
Indicators (KPIs) continually. For example, it can monitor delivery times and warn if too
many shipments start to fall behind schedule, triggering further investigation and action to
maintain customer satisfaction.

Through AI and advanced analytics, the SAP IBP Supply Chain Control Tower allows
businesses to have complete visibility of their supply chain operations, effectively respond to
potential disruptions, and act on data-backed decisions. By leveraging this state-of-the-art
innovation, companies can significantly improve their performance, profitability, service
levels, and enhance their competitive edge in the market.

SAP Standard Planning Areas

Sample Planning Areas
The SAP Integrated Business Planning solution is delivered with sample planning areas, which
can provide an excellent starting point for SAP IBP projects and for Proof of Concepts. These
sample planning areas support planning on different time and data granularity. Of these
sample areas, SAPIBP1 is the most comprehensive and widely used. The majority of expert
business users, consultants, and others who are creating, changing, or extending a company
planning model, will be referencing SAPIBP1 in one way or another.