Category

Integrated Business Planning

S&OPIntegrated Business Planning

S&OP vs IBP. What’s the difference?

It is often a common practice for businesses to think about Sales and Operations planning (S&OP) and Integrated Business planning (IBP) as terms that can be reflected interchangeably, however there are very distinct differences that are important to understand and are more than just nuances.    These differences can have important implications on how an organization approaches deployment with respect to ownership, accountability and how data is constructed for visibility and decision making.   Let’s compare these differences:   Characteristic S&OP IBP Purpose Balancing demand and supply to align appropriate capacity and resources Understand the consequence of integrated plans with respect to…
Debbie Evans
March 17, 2021
Integrated Business Planning

IBP – Where Decisions Are Made

In the movie Field of Dreams, the character played by Kevin Costner repeatedly heard the words, “if you build it, he will come”, implying that if he built a baseball diamond in his cornfield the famous Shoeless Joe Jackson would return to play ball once again.   If only this worked when implementing IBP, if you build it value will come.  Unfortunately building an IBP process doesn’t necessarily mean value from the process will miraculously just appear like Shoeless Joe Jackson and we are left with a mechanized IBP process but dissatisfied with the results. When designing an IBP process…
Debbie Evans
October 23, 2020
BusinessIntegrated Business PlanningOperations

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 Evans
September 24, 2020
Integrated Business PlanningStructure

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 Evans
September 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 Britton
September 21, 2020