SAP Integrated Business Planning (IBP) features like risk assessment and trend monitoring are pivotal in helping manufacturers mitigate sudden demand spikes and ensure supply chain stability. Official SAP resources explain that "demand forecasting informs core operational processes such as risk assessment, which is crucial for modern supply chains facing fast-moving business climates and evolving customer behaviors." Risk assessment in SAP IBP involves "macro-level demand forecasting that looks at general economic conditions, external forces, and broad influences that may disrupt or affect the business, helping to identify regional and global risks or opportunities." This capability allows for proactive management of disruptions, such as those from increased distribution centers due to customer expectations for faster deliveries, reducing risks and potential losses by maintaining accurate buffers and stock levels using cloud-connected solutions.
For trend monitoring, SAP IBP utilizes "micro-level demand forecasting, which is specific to products, regions, or customer segments and is attuned to unexpected market shifts that might lead to sudden demand spikes, such as a heat wave increasing demand for portable air conditioners." Short-term forecasting, typically under 12 months, "involves consulting with sales and marketing teams for promotional events that might cause demand spikes," incorporating "qualitative data from external sources like news reports, social media trends, and competitor research, and quantitative data from sales numbers and peak shopping periods, analyzed with AI and machine learning to predict trends and handle demand variability." Factors like seasonality and competition are monitored to adjust inventory forecasting, ensuring stability.
These features outperform automated supplier contracts (related to SAP Ariba) or optimized delivery schedules (execution-focused), as they enable real-time alerting, scenario simulation, and proactive forecast adjustments. (Extracts from: https://www.sap.com/products/scm/integrated-business-planning/what-is-supply-chain-planning/demand-forecasting.html; SAP Help Portal on Demand Sensing).