Integrated Business Planning

I have a business with a great product and tremendous opportunity with a great team, however I am concerned with our ability to achieve our aggressive growth targets. It seems like we have so many issues with just getting through the month on plan that I am concerned our longer-term goals just won’t happen.  Our current sales plans continue to decrease each month and yet supply chain backorders continue to increase.  My sales team is suggesting that revenue growth will turn around next quarter, but our supply chain continues to struggle with the current demand claiming that the forecast is…

Every time a company decides to “implement IBP,” the conversation usually starts the same way. “We need a better forecast.” And just like that, the entire organization begins a heroic quest to improve forecast accuracy — new software, new models, more meetings, more spreadsheets, more debates about whether next month should be up 3% or down 2%. Meanwhile, leadership is quietly hoping this will somehow fix inventory, service, profitability, growth, capacity constraints, and the general feeling that the business is being run by a series of surprises. Unfortunately, a better forecast will not solve those problems. A forecast is simply…

Think of the demand plan as the company’s best read on the market—an unconstrained forecast of what customers will buy if nothing gets in the way. It’s built from history, seasonality, price and promo plans, sales pipeline, and a healthy dose of competitive intel. It should be honest about uncertainty and explicit about assumptions, because its job is to preserve a clean market signal and highlight revenue risk and opportunity. The supply plan hears that signal and replies, “Great—here’s the constrained, feasible way we’ll make, buy, and ship it.” Supply translates the demand plan into real-world actions: purchase orders, production…