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Customer Source of supply

Dear IBP Experts, I am working as part of the IBP Project for a customer based in Hamburg DE. We are implementing IBP S&OP module 1711. The client’s supply planning network consists of Vendors in China and DC's in Europe. The network is single sourced across all products. We also use IBP demand to calculate Stat forecasting to arrive at final un-consensus demand which is released to IBP Supply (Heuristics). The question is since we are releasing the Forecast / creating Sales Order / Safety stock etc at DC level, do we need to model Customer in the network /create Customer Source of supply MDT etc, in my APO experience we don't need to do this and i am guessing it should be the same case with IBP. Want to get an expert IBP opinion from you...please revert when you see this message - many thanks and appreciate your help in advance - Cheers

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2 Answers

  • Best Answer
    Feb 19, 2018 at 02:25 PM

    Hi Odell

    whether you need customer source of supply MDT or not is a question that needs to be answered based on few AS IS business process. From your query I assume that this project is a migration from APO to IBP.

    1) As per process from where do you get the forecast numbers ? If forecast is derived using stat forecasting, which is based sales history, then you can aggregate history from customer to DC level and do the forecasting their. In this case Customer Source of Supply is not required.

    2) Now in case you are planning for a MTO scenario then it is always better to have Customer Source of Supply ( for which the source will be a DC mostly). Also if you want to prioritize you supply based on demand type then it is better to have Customer Source of Supply for sales orders and forecast data at DC level.

    Hope this clarifies

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  • Jan 26, 2018 at 04:15 PM

    Hello Odell,

    No, it's not necessary to configure Master Data Customer Source of Supply. For the demands, then it's possible to use Key Figure INDEPENDENTDEMAND, which is an anonymous demand for location products. This is available for scenarios similar to yours, for example, where customers are not modeled explicitly. In these cases, the customer demands for all customers for a certain product can be defined as an independent demand at the distribution center from which the product is supplied.
    You can find this information in our SAP Help Portal - Location Product.

    You could also schedule Copy Operators to copy the information from KF storing statistical forecast results and store them in KF INDEPENDENTDEMAND.

    Best regards,

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