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Sales and Operational Planning - SAP PP Implementation

Sales and Operational Planning Sales Forecast is the amount of sales (in units or rupees) a company expects to achieve during so... thumbnail 1 summary

Sales and Operational Planning

Sales Forecast is the amount of sales (in units or rupees) a company expects to achieve during some future period under a given marketing plan and expected market conditions. The sales forecast identifies the amount of units that are likely to be sold and/or the dollar value of what is likely to be sold.
Sales Forecast is used for transferring data to Production, which will be maintained by Marketing Department of MYCOMPANY. Currently, marketing department at MYCOMPANY prepares a rolling sales forecast for 12 months. The first three months are kept frozen for changes.

Planning department every month receives Rolling Forecast from marketing department (MSD) for the next 12 months and on the basis of the forecast, the planning department prepares MPS used for calculating raw materials and packing materials requirement and then forwards it to commercial/materials management department.
In certain cases, MYCOMPANY may also receive Direct Sales Order from international markets. The direct sales orders and RSF constitute together to form the tentative demand program.
The process remains essentially the same for International markets. However, the factors for deriving RSF for International markets are different and these include the following:
  • Country-wise forecast for Trade
  • Country-wise forecast for Physician Samples
  • Direct Sales Orders
  • New launches.
MSD sends the RSF for both local and international markets to Supply Chain. Supply Chain consolidates the forecast.

Creation of RSF


Process
Description
Process owner
Triggering event
Upload the RSF to create Marketing forecast; version 100
The planning Manager receives the RSF from MSD every month and would upload it in the SOP info structure to create the Marketing Forecast.
Planning Manager
Monthly activity triggered by the receipt of RSF from MSD.

The RSF created at MyCompany could be broadly classified into Local Trade (MandP plus Head Office), Physician Samples, International Business, Contract Manufacturing and Toll Manufacturing.
The RSF created by MSD would be uploaded into Sales and Planning info structure. To enable this activity, following planning hierarchy (Planning Hierarchy is a user-defined combination of characteristics from an information structure that is used in Sales and Operations Planning) would be created:
  • Plant
  • Material
  • Region/Sub group: (This would be used purely for the mathematical purposes and would only be required in the case of Local trade i.e. Head office sales and MandP).
The planning data, in Sales and Operations Planning (SOP), in an information structure can exist in one or more versions. The multiple versions facilitate in maintaining multiple plans of the same information structure in parallel.

Configuration data for SOP Info structure S786:
Following is the configuration data for the planning table:
SAP Info Structure
S786
Planning type
ZS786

Note: The planning type would be configured in such a way that it must display the forecast of at least one last period.
At MYCOMPANY, the RSF would be managed in SAP using the following steps:

Creation of Marketing Forecast; Version 100:

The planning Manager would upload the forecast received from MSD into the Sales and Planning Table (S786) and save it as Version 100. This version would be termed as Marketing Forecast and would be used for reference purposes only. It would not be used directly for planning.

Creation of Demand Plan; Version 200:


Process
Description
Process owner
Triggering event
Create Demand Plan (Inactive version); Version 200
The planning Manager would run a query to calculate the MandP order value. The query would update the MandP forecast and its consolidated results would be exported on an excel sheet. This excel sheet would be uploaded into the SAP info structure and thus a demand plan: version 200 would be created.
Planning Manager
Creation of Marketing Forecast: version 100.

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