Supply Chain Roadmap


The Path to Integrated Business Planning (IBP) Many organisations have a basic S&OP process in place and now want to take the next step to integrated business planning (IBP) in order to maximize the benefi ts of the process. Supply Chain Media and Involvation have developed this roadmap showing typical obstacles on the path to IBP and how to overcome them.


MANAGEMENT


èFocus the IBP process on tactical decision-making


S&OP only offers information exchange


‘Jungle’


èCreate alignment between IBP managers and line managers


èFocus on the future and achieving targets rather than looking back


èIntegrate IBP in the operating framework


S&OP offers too little value due to suboptimal decision-making


SCENARIOS


èOnly allow carefully prepared decisions onto the IBP agenda


èDefi ne scenarios for both Operations and Sales èWhen analysing information, include relevant averages and aggregation levels


‘Roundabout’ FINANCE


Disconnect between fi nancial planning and S&OP


Wobbly bridge


èIntegrate fi nancial planning processes in the IBP process


èGive Finance an explicit role in the IBP process


èTranslate forecast volumes into value and expected margins


COMMERCE


Insuffi cient involvement of Sales and Marketing


Slippery road SUPPLY CHAIN


No integration with customers and suppliers


Junction closed


èSeek dialogue with major customers about expected volumes


èInclude the capacity plans of critical suppliers and subcontractors in the IBP cycle


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èEnsure complete integration of sales planning and marketing planning within IBP


èMake managing the gap between forecast and target part of IBP too


èTalk the same language as Sales and Marketing èIntegrate portfolio management into the IBP process


èSet company-wide KPIs as the basis for decision-making (margin, revenue, market share) èOrganize IT support for what-if simulations


FROM S&OP TO IBP


SUPPLY CHAIN MOVEMENT, No.29, Q2 2018


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