AI in SAP Supply chain S4 HANA IBP

From SAP APO to SAP IBP: cloud-based tools for a new era in supply chain planning

For many years, SAP Advanced Planner and Optimizer (APO) has been the backbone of supply chain planning. But with end of life in 2027, what’s next? The logical step is  SAP Integrated Business Planning, APO’s cloud-based successor. Here are five reasons why upgrading to the cloud makes sense.

More complex planning, calls for new tools

Sure, we know that change isn't easy and APO was already smart: integrated planning, real-time capabilities, and powerful heuristics. But it also had its limits. Scenario building and financial integration weren’t always straightforward.

In today’s VUCA world, supply chains demand more: advanced reporting, seamless finance integration, and real-time collaboration across teams and partners. That’s exactly what SAP IBP delivers, plus built-in analytics, AI-powered forecasting and a user-friendly experience that brings everything together in one cloud-based platform.

Curious where your supply chain stands today?

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Curious where your supply chain stands today?

5 ways you'll benefit from SAP IBP:

Real-time integration - but smoother

APO’s real-time link with ECC was a strong point. IBP keeps that integration and extends it with seamless connectivity to S/4HANA and beyond. You get

  • one harmonized planning area that unites master and transactional data for both operational and tactical planning
  • real-time alerts popping up directly in the tool
  • native financial integration to align supply chain with business outcomes.

TIP: Not on S/4HANA yet? IBP still integrates with ECC, so why not start right away? Your planners can benefit immediately and you’ll gain extra time when transitioning to S/4HANA later.

On-the-fly reporting

With IBP, reporting and analytics are built-in, powered by Analytics Stories based on SAP Analytics Cloud (SAC) technology. Planners no longer need to extract or transform data in separate tools. They can create advanced reports on the spot, right inside the planning environment. If you already have a SAC license or are considering SAC as central reporting tool, IBP connects to it in real-time as well.

More fluid and intuitive user experience

While APO's modules sometimes felt like silos, IBP unites demand and supply planning together on one data model. This means that features like slicing and dicing works consistently across the board. Add to that the modern Fiori-based UI and the online Planner Workspace, which brings planning, alerting, reporting, and master data maintenance into one environment. And yes, spreadsheet fans can still work in their familiar Excel environment.

Collaboration inside and outside company borders

With IBPsales managers can update forecasts directly in the system, while suppliers and customers collaborate with your team in real time through the SAP Business Network. No more back-and-forth via spreadsheets or emails.

And, of course, AI

IBP comes with advanced machine learning models out of the box. On top of that, SAP Joule, SAP’s built-in AI assistant, gives planners a complete new user experience and provides them with a virtual planning assistent right at their fingertips. That means smarter predictions, and faster, more accurate decisions.

What is SAP Integrated Business Planning (IBP)?

Think of IBP as the next generation of value chain planning. It bundles Sales & Operations (S&OP), demand, supply and inventory planning into one cloud platform. It allows internal collaboration but also enables external collaboration via a seemless integration with the SAP Business Network.

  • APO’s Demand Planning (DP) and Supply Network Planning (SNP) are now covered by IBP.
  • APO Production Planning & Detailed Scheduling (PP&DS) and Global-Available To Promise (G-ATP) live on as embedded functionalities in SAP S/4HANA.

Want to see how it all fits together? Discover the key features of SAP IBP.

Get ready for next-level planning

So, moving from APO to IBP is more than a technical replacement. It’s a chance to break silos between demand, production, and finance, boost collaboration, and link planning directly with business outcomes. The result? Happier customers, greater efficiency and stronger sales.

The good news: you don’t have to switch at once. With Flexso’s three-step approach, tailored to your current situation, you can move gradually and confidently towards SAP’s cloud-based planning solution.

Flexso Kontich 010425 1128

Don't wait until 2027

Unlock the power of SAP IBP now. Get in touch to discuss how we can help.


Written by

Eric de Vriendt

Eric De Vriendt