Why process mapping is the foundation for a successful IBP implementation?

According to several market reports, the global Advanced Planning System (APS) software market is projected to grow significantly. It was valued at approximately $1.49 billion in 2021 and is expected to reach $2.94 billion by 2028, with a compound annual growth rate (CAGR) of around 9.0% during the forecast period from 2021 to 2028. This growth is primarily driven by the increasing need for efficient supply chain operations, the adoption of cloud-based solutions, and the digital transformation across industries like manufacturing, pharmaceuticals, and retail.

Source: https://www.researchandmarkets.com/reports/5313982/advanced-planning-and-scheduling-aps-software

When embarking on an IBP implementation, it's tempting to dive straight into the cool new features (AI; ML; Cloud-based; Scenario Planning, Intelligent Visibility; Gating factors, Demand Sensing), however, the success of your project hinges on one critical foundation: process mapping, specifically, ensuring that your Level 1 to Level 4 (L1-L4) processes are clearly defined.

In the discovery phase of an IBP project, we often find that many organizations lack a clear understanding of their existing planning processes. This knowledge gap creates challenges for the implementation team, as we need to first uncover and define these processes before moving forward with the system configuration, which can slow progress and increase complexity.

Here’s why mapping L1-L4 processes is essential for ensuring that your investment in SAP IBP delivers maximum ROI:

1. Alignment Between Strategy and Execution

L1-L4 process mapping provides a structured breakdown of strategic objectives (L1) all the way to the day-to-day tasks (L4). This ensures your APS is implemented to support not only the Top-Down Planning (Big Picture) , but also bottom-up planning activities (Daily work).

2. Clear Communication and Collaboration

Mapping these processes fosters better cross-functional collaboration. Teams involved in demand planning, inventory management, or supply planning gain a shared understanding of how their tasks connect and contribute to the bigger picture.

3. Improved Data Flow and Integration

Advanced Planning Systems thrive on data. Mapping L1-L4 processes allows you to identify data sources and integration points early on, ensuring that the system can pull the right data at the right time for optimal performance and visibility.

4. Risk Mitigation

Unclear processes can lead to misconfigurations, delays, and even project failure. By mapping your processes, you minimize the risk of overlooking critical steps.

5. Scalability and Flexibility

With well-defined processes, your APS becomes more scalable. Whether expanding to new business units or countries, having a clear operational blueprint gives you the agility to adapt.

Before jumping into your APS project, take the time to map your processes from L1 to L4. It’s the key to unlocking the full potential of your planning system, while minimizing risk and maximizing ROI.