The hard and soft benefits of IBP

Most people who are working on IBP can sum up the goals they’re trying to achieve with this process. Those goals usually are defined in their KPI’s and linked to their performance program. These goals and KPI’s are the hard benefits of IBP. Amongst these hard factual goals or benefits of IBP are improved: – Working capital – Forecast accuracy – Customer service levels – … Continue reading The hard and soft benefits of IBP

The impact of company culture on IBP part III: Sustain IBP

In my recent survey on Sales and Operations Planning (S&OP); the S&OP pulse check 2010, survey participants that had implemented S&OP for longer then 5 years showed higher satisfaction in the S&OP process. More important, they showed higher satisfaction in the value that S&OP creates for their functional area and the business. Higher satisfaction often means higher engagement, more effective decision making, which will drive … Continue reading The impact of company culture on IBP part III: Sustain IBP

The impact of company culture on IBP part II: Change

Implementing Integrated Business Planning (IBP) processes may challenge many existing values and behaviours in a company. For IBP to be effective a set of behaviours  are required. Some important behaviours are: 1. Group thinking: take a holistic business view rather then functional or silo view. 2. Feedback: the ability to provide and receive open and honest feedback on IBP effectiveness. 3. Collaboration: open and honest … Continue reading The impact of company culture on IBP part II: Change

The impact of company culture on IBP part I: Strategy

Most experts agree that advanced Sales and Operations Planning (S&OP) or Integrated Business Planning (IBP) has a monthly check and balance with the strategic plan and objectives of a business. In this way, a well executed IBP, can monthly measure progress against business objectives and strategy with an 18-36 months horizon. The strategic plan itself is a reference in this process. It is usually updated … Continue reading The impact of company culture on IBP part I: Strategy

The S&OP-IBP illusion

Over the last year or so, in many Sales and Operations Planning (S&OP) expert blogs and interviews the question comes back. What is the difference between S&OP and Integrated Business Planning (IBP)? Seven differences between S&OP and IBP are given in one interview, ten differences in another. Some experts believe there is no difference at all as advanced S&OP equals IBP in their opinion. The … Continue reading The S&OP-IBP illusion

The behavioural Supply Chain

Supply chain professionals love telling one another how important the supply chain is. In magazines, at congresses and online, we convince each other of the importance of our professional field. And as supply chain professionals, we can honestly be rather proud of how far we’ve come. From MRP and DRP via JIT and multi echelon inventory on to CPFR. From supply chain via demand chain … Continue reading The behavioural Supply Chain

The change paradox

In last year’s second edition of the McKinsey quarterly, an article about change management revealed that according to a 2008 McKinsey study of 3,199 executives around the world, only 30% of change transformations are successful. The article mentioned that the groundbreaking 1996 change study – Leading Change – from John Kotter, found the same success rate for change programs.  Although the scope of a change … Continue reading The change paradox

The Supply Chain come-back

The private equity companies that bought half the world in the last couple of years, in search of quick money and the highest possible returns for their investors, are starting to sell some of their portfolio again. Companies are being floated on the stock market, or sold to bigger multinationals that easily survived the financial crisis and still have enough cash in their pocket. As … Continue reading The Supply Chain come-back