When the executive mindset and skills for aggregate planning are lacking, company leaders experience detail dysfunction. He explains the fundamentals of aggregate planning and the role of Integrated Business Planning in performing aggregate planning. Multiple-level planning helps to ensure the right people make decisions at the right level.
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.
The online assessment only takes five minutes. Click here to get started.Integrated Business Planning: How to Integrate Planning Processes, Organizational Structures and Capabilities, and Leverage SAP IBP Technology (Management for Professionals) May 19, by Robert Kepczynski and Raghav Jandhyala.
George has authored or co-authored four books: The Marketing Edge, Enterprise Sales and Operations Planning, and Demand Management Best Practices and just published is the Transition from Sales and Operations Planning to Integrated Business Planning book.
Why I like this book on Integrated Business Planning is that it. distinguishes the difference between Sales and Operations Planning and Integrated Business Planning. explains the integration of product portfolio management and financial planning and management. The Transition from Sales and Operations Planning to Integrated Business Planning - softcover book.
Two industry experts break down the steps involved in improving the bottom line through adopting Integrated Business Planning in this new book released by Oliver Wight. Enterprise Sales and Operations Planning is the precursor to The Transition from Sales and Operations Planning to Integrated Business Planning.
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