HOW TO BUILD AN INTEGRATED BUSINESS PLANNING PROCESS?
Why is it crucial to build an Integrated Business Planning process?
Integrated Business Planning (IBP) is an evolution of Sales and Operations Planning (S&OP), adapted to provide greater cross-functional coordination with finance.
IBP is a forward-looking mechanism (24 to 36-month horizon) designed to align strategic and financial goals with operational feasibility by reacting quickly and in advance to changing conditions. Long-term proactive and cross-functional coordination reduces volatility in plans and enables a business trajectory in line with strategic ambitions.
Reducing volatility removes reactive, sub-optimal decision making and releases time to make informed critical decisions that add value and maximise profitability.
An embedded and successful IBP process will deliver gains to the end-to-end supply chain.
KEY PERFORMANCE INDICATORS (KPI)
ALIGNMENT TO FINANCIAL TARGETS
COST TO
SERVE
DEMAND FORECAST ACCURACY & BIAS
INVENTORY
HEALTH
(TURNS, DAYS)
CUSTOMER SERVICE
LEVEL
What are the challenges companies are facing when building an IBP process?
IBP is a well-established and proven business integration process that, when implemented well, will improve growth and profitability in your organisation. In principle, the model is established, but it is challenging to build an effective process with sufficient cross-functional buy-in to fully leverage the potential benefits in practice.
Covid-19 impact on building an IBP process
IBP processes and principles deliver even higher value in times of long-term uncertainty than otherwise. Scenario planning is a critical component of a resilient supply chain function. Using IBP, a business can develop a deep understanding of the impact of different circumstances on business performance.
This understanding of the impact of uncertainty, coupled with the ability to simulate performance, enables a business to confidently take balanced and low-risk decisions in the short, medium and long terms.
Download this full Best Practices white paper and discover
the 5 Key Pillars of building an IBP journey!
In this white paper, you will also learn:
- Who’s concerned by building an IBP process?
- How to build IBP? The journey towards IBP – The 5 Key Pillars
- How can FuturMaster help you build IBP?
DISCOVER THE WHOLE SUPPLY CHAIN BEST PRACTICES SERIES
