Integrated Planning

We Bridge Logistics and SAP Financials...

The basis for successful business performance management can be provided by globally integrated, cross-system information where quantities are based upon global targets. APS tools, such as APO can be used for this purpose, but in the absence of these systems, sales planning can also be based on data from MRP II or other bespoke and non bespoke tools in use.

What standard systems often do not support is cost and profit planning. This is where GCP (Group Cost & Profitability) Engine can be applied to assess quantities at local level, separate local from global costs, calculate intercompany profits at local and global level as well as external earnings. How the GCP engine can be complementary to the SAP planning cycle, is described step by step in the paragraph titled “planning steps with the GCP engine”.

If you want to know more about GCP, please follow the link “Facts about GCP” in the Flyers and Publications section.

The support provided by IT systems into planning often leaves a lot to be desired. For example, if intermediate goods have to be obtained from third parties or other plants, and APO provides the optimal subscription ratio, mixed costs should also be part of the ratio. This, however, does not happen because subscription ratios are not integrated with mixed costs and as a consequence budgeted costs are calculated on the basis of a scenario where 100 % of the production is in-house. These results in variances in the comparison between planned and actual data, which are not real variances but just inaccuracies based on unrealistic data. Furthermore, there are often initial stock figures based on purchased price rather than calculated throughout the planning period. The GCP engine can resolve the problems derived from these inaccuracies by indicating exchange variances and scheduling costs associated to each purchase option.