Blog - IBP Blogger

The S&OP Merry-Go-Round

“Demand and supply are happening at the same time, don’t separate them integrate them”. The notion that ‘demand’ occurs and ‘supply’ responds is a fallacy, in fact, the two are symbiotic whereby one is as dependent upon the other as much as the other on the one. These two entities have a mutually beneficial relationship that should, must, be leveraged however there’s one significant issue; they speak different languages. When I say ‘different languages’ I don’t mean variants of the Germanic language, I mean one speaks Klingon and the other Dothraki. Although by no means an expert linguist I can’t…

Kim BrittonOctober 6, 2020

Business Integrated Business Planning Operations

The Importance of Capable People in the IBP Process

Integrated business planning facilitates a systemic cadence that enables leadership to make the appropriate business decisions to achieve their long-term ambitions. This is accomplished by aligning plans, understanding assumptions, evaluating opportunities and vulnerabilities, and perpetually reviewing the different scenarios for optimization. Too often during an IBP implementation, the process is focused on establishing the various reviews centered on the mechanics of the process rather than the intent. The process itself will not yield the desired results for the business, it is dependent on the right capability of the people to be thoughtful about what is important for discussions. Consider…

Debbie EvansSeptember 24, 2020

Structure

Value

I call it the relentless search for value realization. No sooner has the enterprise decided IBP is necessary as the question of ‘where’s the value’ starts. You’ve been given a month following your appointment, why is IBP not deployed, fully functional, and delivering the proclaimed value? The simple answer is that the first six months is spent uncovering rocks that have laid dormant for many years. It’s akin to an architect survey the land on which to build; to a large extent, the final structure depends both on the plot upon which it is to be built and the skills…

Kim BrittonSeptember 24, 2020

Integrated Business Planning Structure

The Importance of Strategy for IBP

Integrated business planning designs a business structure that facilitates alignment across the organization with transparency to performance issues, that enables the business to focus on the critical decisions in order to achieve business long-term ambitions. Although many leaders in an organization are eager to realize the potential benefits that are derived from a fully operational IBP process, many are not cognizant of the significant change such an implementation will need to endure. It is common that deployments of IBP began within the supply chain organization by enabling alignment between supply and demand, however, it quickly becomes exhausted by foundational capability…

Debbie EvansSeptember 21, 2020

Integrated Business Planning

Basics

IBP, Integrated Business Planning, the most wanted yet unwelcome process ever devised! In most circumstances, IBP enters the enterprise to resolve issues associated with supply and demand; demand plan bias, poor service levels, excessive inventory. In reality, many issues of supply are the manifestation of decisions made elsewhere in the business well before manufacturing and distribution are called upon. Ironically, it’s arguable the challenges thrust upon manufacturing and distribution by the broader business consume every ounce of resource, in doing so prevent Supply identifying and addressing deficiencies in their own operational capabilities. So here’s where the promises of IBP improving…

Kim BrittonSeptember 21, 2020

Structure

A Reflection on Implementing IBP

My journey with IBP began on Halloween in 2013. A day to remember as that was the day of the first MBR workshop with the leadership team and it was a day full of challenges, contention, and even hope. Oliver Wight consultants did their best to keep this group together while being challenged from every imaginable angle but never faltering from the barrage of questions thrown at them like cannons in a war zone. With much of the tension centered around trust, alignment, behaviors that would need to change for a fully functioning IBP process, and after much deliberation…

Debbie EvansSeptember 21, 2020

Business Operations

Discovering A New Idea

It’s been decided, the benefits are too great to be ignored, the business case is indisputable, the business is going to implement integrated business planning. Three months later the design workshops have been completed, key roles have been defined and appointments made. Notions of advancements in demand planning, inventory reduction, service level improvements now await, it’s only months away! The enterprise now looks to the integrated business planning leader in excited anticipation of fulfilling the promises which lead the business here. So, it begins! There’s a belief the decision to implement integrated business planning (IBP) itself brings the implied rewards…