Which SAP solution is specifically designed for forecasting in Supply Chain Planning?

Integrated Business Planning (IBP) is the solution specifically designed for forecasting in Supply Chain Planning. It leverages advanced analytics and machine learning to enhance the accuracy of forecasts and integrates various planning processes across the supply chain. IBP supports collaborative planning by providing a centralized platform that combines demand planning, inventory optimization, and supply planning, enabling organizations to respond quickly to changing market conditions.

The focus of IBP on real-time data and advanced forecasting techniques distinguishes it from other solutions. For instance, while Material Requirements Planning (MRP) is concerned with scheduling and inventory control based on demand, and Capacity Requirements Planning (CRP) focuses on ensuring that the capacity aligns with planned production, IBP’s primary function is to forecast demand accurately and create a cohesive plan that aligns the entire supply chain.

Supply Chain Management (SCM) encompasses a broader scope that includes various functions such as logistics, procurement, and production planning. However, it does not specifically hone in on forecasting as IBP does. This makes IBP the most suitable option for the task at hand in the context of forecasting in Supply Chain Planning.