Which SAP applications can be used for forecasting in Supply Chain Planning?

In SAP S/4HANA and its broader ecosystem, forecasting for supply chain planning is supported by advanced tools:

Integrated Business Planning (IBP)(A): SAP IBP is a cloud-based solution designed for advanced supply chain planning, including demand forecasting. It uses statistical models, machine learning, and real-time data integration to predict demand, making it a primary tool for forecasting (e.g., SAP IBP for Demand).

Supply Chain Management (SCM)(B): SAP SCM, particularly its Advanced Planning and Optimization (APO) module (e.g., Demand Planning - DP), provides robust forecasting capabilities using historical data and planning algorithms. While SAP is transitioning APO functionalities to IBP, SCM remains relevant in on-premise or hybrid setups.

Material Requirements Planning (MRP)(C) in S/4HANA focuses on material planning based on existing demand (e.g., PIRs or sales orders) and does not perform forecasting itself; it relies on inputs from Demand Management.Capacity Requirements Planning (CRP)(D) deals with capacity leveling and scheduling, not demand forecasting. These distinctions are clear in SAP’s supply chain planning documentation.