Optimizing Your Planning with SAP S/4HANA: The Practical Value of MRP

In an uncertain economic environment, supply chain planning strategy is more important than ever. Between demand variability, fluctuating lead times, and pressure on inventory levels, companies need robust tools to make the right decisions. This is where SAP S/4HANA comes into play.

DBC recently conducted a full simulation to illustrate the power of the MRP (Material Requirements Planning) integrated into SAP S/4HANA, in collaboration with Groupe Deschênes. The goal: to clearly demonstrate how to align operations with forecasts and reduce the risks of stockouts or overstocking through optimized planning.

MRP as a driver of proactive planning

The SAP MRP engine automatically generates procurement suggestions based on demand calculations, available stock, lead times, and the configured parameters in the material master data.

Here are some key features used during the simulation:

– Dynamic safety stock, calculated according to the desired service level.
– Reorder point, adjusted based on actual consumption and lead times.
– Coverage profiles, which allow stock thresholds to be adapted based on seasonality or sales trends.

SAP vs. Mincron: beyond theory

When comparing the results of SAP’s MRP with those from the old system (Mincron), several advantages emerged:

– Better responsiveness to gaps between forecast and actual demand.
– Automation of complex calculations (for example: lead times, mean absolute deviation between forecast and demand, service levels).
– Greater granularity in managing seasonal or slow-moving items.

For example, SAP can dynamically adjust safety stock based on monthly demand fluctuations, offering much better adaptability than rigid methods based on simple rules.

A concrete and convincing demonstration

The demonstration showed how SAP anticipates needs and generates the right purchasing or transfer suggestions, even in a complex operational context, through practical scenarios involving items with varying behaviors (standard, seasonal, irregular).

It’s also a tool that simplifies the day-to-day work of procurement teams:

– Better visibility on future needs.
– Reduced manual tasks.
– Effective prioritization of actions.

What’s next?

This simulation is just a glimpse of what SAP can offer in terms of planning. It highlights the importance of proper configuration, in-depth analysis of historical data, and a strategic vision of inventory.

At DBC, we help your organization optimize your supply chain using SAP best practices.
Want to take it further? Let’s talk: https://dbcsap.com/contact/