Dean Sorensen, IBP Collaborative Sep 04, Integrated business planning IBP is a process that does exactly what its name implies—it brings together fragmented strands of strategic, financial and operational planning and performance management. Establishing mature IBP processes can be difficult, especially for larger and more complex manufacturers. While many factors contribute to this difficulty, the primary one has been the absence of technologies that fully support it. In so doing, IBP platforms address long-standing challenges that financial and operational professionals have struggled to overcome.
IBP helps manufacturers and distributors take the next step forward. Rather than enhancing supply chain processes in isolation, IBP seeks to involve a wide range of stakeholders in every supply chain decision so that the supply chain can truly drive the success of the entire business.
This is done at the aggregate level on a monthly basis, typically over a month or greater rolling planning horizon. Like every process, IBP has distinct steps.
Sense The Sense step is the process of building the demand plan at the local and global company level. Sensing demand is a key step in avoiding both inventory shortages and overstocked items. Your demand planners or analysts will then review your forecast against customer service levels and inventory levels at the beginning of each month.
This will help your decision-makers sense challenges from more angles so that you can update your forecast accordingly. Shape The Shape step is the process of building a forward-looking aggregated and optimized demand and supply plan at the local and global level.
By the end of the Shape step, your optimized demand and supply plan will be complete. Your demand plans and supply forecasts can both be improved through active collaboration with your key stakeholders—across your enterprise and beyond. This collaboration should include the sales organization, trading partners, suppliers, and customers.
Technology is the collaboration enabler. Many leading firms are already using social media to enhance collaboration—and the trend will only ramp up in the future. Integrate The Integrate step is the process bringing together all executives and stakeholders to approve the optimized demand, supply, and financial plans.
IBP requires buy-in across the organization as well as the extended supply chain. Everyone in the extended supply chain is operating with the same numbers and the same assumptions.
Orchestrate The Orchestrate step is the process of publishing the integrated plan and adapting to the changes in the business, thus allowing for continuous improvement.
Organizations are systems of people and interrelated functions and processes. You must operationalize and disseminate the IBP plan across your extended supply chain to optimize the flow of materials in ways that fulfill demand. Leveraging a single, integrated IBP platform can dramatically simplify your orchestration process.
By the end of the Orchestrate step, you will have achieved global cooperation with all your trading partners. Demand Solutions offers an online supply chain assessment that can help you understand the maturity of your current planning processes.Meet future demand profitably with SAP Integrated Business Planning, a real-time cloud platform for harmonized supply chain management and planning.
Aberdeen "Sales and Operations Planning has evolved to become Integrated Business Planning. It is a truly cross-functional, multi-dimensional process that includes all elements of demand, supply and financial analysis in relation to the business goals and strategy.".
This booklet aims to help you approach the question of how to develop sustainable practices in your business. It focuses on practical steps from understanding sustainability in terms of business, looking at examples and scenarios, defining a set of guiding principles, and applying them into a business plan.
SAP Integrated Business Planning is a next-generation planning application, powered by SAP HANA that helps companies engage stakeholders across the organization in a truly integrated planning process that aligns their business to profitable solution.
When this occurs, integrated planning is difficult to achieve and the resulting plans become fragmented and lose relevance to the organization as a whole • Fragmented teams undertake separate components of the planning process.
The EY - Integrated Business Planning EY. Integrated business planning (IBP) is a strategy for connecting the planning functions of each department in an organization to align operations and strategy with the organization's financial performance.