Supply Chain and Integrated Business Planning (IBP)
Technology deployment with special considerations for SAP customers
In our prior marketing research advisory in this series, we referenced Oliver Wight’s definition of Integrated Business Planning (IBP) as a best practice business process model that extended the principles of sales and operations planning (S&OP) throughout the supply chain, product and customer portfolios, customer demand and strategic planning, to deliver one seamless management process. Led by senior management, it is described as a common-sense process for aligning the company plans every month, which will help to allocate the critical resources – people, equipment, inventory, materials, time, and money – to satisfy customers most effectively, in a profitable way.
The objective of our initial research advisory was to contextualize the process, people, and information implications in achieving an integrated business planning capability. We addressed specific implications to end-to-end supply chain and integrated business-planning information and decision-making needs, including our view of the morphing of supply chain and sales and operations planning needs, and the implications for consideration and adoption of augmented technology support. In this follow-up advisory, we focus specifically on the technology system deployment aspects and considerations for IBP.
The notions on IBP must also be able to support operational, tactical and strategic business decisions that include the various phases of current sales and operations planning processes. That implies different and distinct data and information granularity analysis capabilities that can range from product groupings to individual line-item stock keeping units (SKUs).
We now explore the import business systems and technology development implications that teams need to consider for supporting various levels of IBP process needs to focus more on the needed business insights rather than constantly having to collect, synthesize or contextualize data and information.