The IBP blog

professional articles, expert analysis

S&OPOperations

Order Control Gone Haywire: A Hilarious Guide to managing orders during a constrained supply situation

One of the challenges in the Integrated business planning (IBP) process is aligning the outcome of the monthly IBP process with the short-term tactical horizon.  It happens like this:  The demand review from the commercial team provides an unconstrained demand plan.  Supply Chain review responds with their known constraints that cannot be overcome, it is decided that the commercial team is then forced to constrain the demand plan and then supply chain is able to develop a supply plan that is both realistic and achievable.  The process works great! Right?  But not so fast, the customer, aware that there is…
Debbie Evans
July 12, 2023
Integrated Business Planning

“Independence Day: When Integrated Business Planning Declares Its Own Freedom!”

Introduction: As we celebrate Independence Day, we can't help but draw a hilarious parallel between the spirit of freedom and the world of Integrated Business Planning (IBP). Yes, you read that right! IBP, the strategic planning process that aims to synchronize and liberate business operations, has a comedic connection to the day we celebrate independence. So, grab your party hats and let's embark on a lighthearted journey through the intertwined worlds of IBP and the 4th of July. Breaking Free from Silos: Just as our founding fathers fought to break free from the chains of tyranny, IBP strives to break…
Debbie Evans
July 3, 2023
Integrated Business Planning

“The Comedy of Integrated Business Planning: An Unparalleled Adventure”

Integrated Business Planning (IBP) - a concept that sounds as exciting as a spreadsheet party! While it may be a critical business process, let's take a lighthearted approach and dive into the world of IBP, where strategic decisions meet the unexpected twists and turns of corporate life. The Perils of Forecasting: IBP starts with forecasting, where businesses try to predict the future like fortune-tellers armed with spreadsheets. But alas, forecasting can sometimes feel like gazing into a crystal ball that stubbornly refuses to reveal its secrets. Just when you think you've got it all figured out, reality does a cheeky…
Debbie Evans
June 29, 2023
CapabilityIntegrated Business Planning

Why is my Integrated Business Planning process not working?

Why is my Integrated Business Planning (IBP) process or Sales and Operations Planning (S&OP) process not seem to work? I have encountered many frustrated IBP or S&OP leaders with a question on why they seem to have a good output from their monthly IBP or S&OP process, which includes an agreed plan that balances demand planning with supply chain. However, what is actually produced in the plant ends up being completely different. Delivery performance doesn’t seem to improve, commercial teams are frustrated that customer orders are not being fulfilled.  Supply chain leader continues to blame an inaccurate Demand plan, finance…
Debbie Evans
June 14, 2023
pexels-photo-704767.jpegBusiness

Aligning Business Chaos with 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…
Debbie Evans
May 31, 2023
Business

Integrated Business Planning for New Start-up businesses

Integrated Business Planning (IBP) is a comprehensive planning process that aligns business strategy with operational plans and financial forecasts. It is an essential tool for any business looking to achieve its goals and objectives. While IBP is often associated with established businesses, it can also benefit new start-up businesses. In this article, we will explore the benefits of integrated business planning for a new start-up business. Provides a framework for growth: IBP provides a framework for growth by aligning business strategy with operational plans and financial forecasts. This helps start-ups to identify areas of growth and to create a plan…
Debbie Evans
May 1, 2023
pexels-photo-704767.jpegIntegrated Business Planning

IBP Challenges, no one wants to talk about

Integrated Business Planning (IBP) is a management process that aims to bring together different business functions to plan and execute an organization's strategies. IBP goes beyond traditional Sales and Operations Planning (S&OP) by including functions such as finance, marketing, and human resources in the planning process. While IBP can provide many benefits, such as increased visibility, better decision-making, and improved alignment, it also comes with several lesser-known challenges or rather taboo sensitive challenges that can make implementation difficult. Basic supply chain capability is lacking in any ability to execute the plan. There is a misconception that if you build it,…
Debbie Evans
April 24, 2023
Managment

Leadership Accountability

Supply chain leader and a market leader are sitting at a bar, looking somber and frustrated. Supply Chain Leader: "We need to figure out how to explain our nonperformance to leadership. Any ideas?" Market Leader: "Yeah, we need to come up with something convincing." The supply chain leader starts brainstorming, looking stressed. Supply Chain Leader: "Maybe we can say there were delays in the supply chain due to unforeseen circumstances?" Market Leader: "No, that won't work. We've already used that one before." The market leader takes a sip of their drink, looking pensive. Market Leader: "What about blaming it on…
Debbie Evans
April 9, 2023