Supply Chain and Integrated Business Planning
Process, people, and information considerations
Integrated Business Planning (IBP) is described 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.
An article published in APICS Magazine, Five Success Factors for Integrated Business Planning, indicated that large numbers of organizations are sill struggling to properly execute a transformation to IBP. The five key factors for effective transformation were defined as:
- Displaying Unflinching executive commitment to an IBP process.
- The leveraging of an IBP enabled technology strategy that can free up process chasing and collecting data into higher value analysis actions.
- Articulating a business case for change to ensure alignment between all process stakeholders as to expected operational and financial outcomes brought forward in the process.
- Employing a proven IBP transformational and structured methodology to lead overall change management journey.
- Having the right organizational talent, effective governance and incentive mechanisms to maintain momentum and sustain change.
Our objective in this two-part research advisory is to put into context the process, people, and information implications in achieving an integrated business planning capability. We will address 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. The second part of this advisory will have special emphasis on business systems technology implementation considerations with a special emphasis for SAP environments.