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A company’s performance is often restricted by fragmented decision making. To deal with increasing complexity, decision making has been split into functions such as Finance, Sales, Procurement, Manufacturing and Distribution. In many cases these functions act as separate silos, making decisions based on their own objectives, incentives and locally available data. Secondly with the advent of e-commerce, establishing an operating model with regards to procurement and fulfilment has become key.
Companies need a structured approach and process to drive a single set of forward-looking numbers . Each element of this number set must be translated into terms that key shareholders can understand and be made accountable for. Integrated Business Planning (IBP) is the mechanism that integrates strategic and tactical planning process across all functional silos.
Our Concurrent IBP Framework aims to bring all the planning components together, with supply chain updates being managed concurrently instead of sequentially. It focusses on creating an enabling and supporting environment and organisation through a pragmatic and phased design approach so that:
Experience has shown that a real financial benefit has been achieved by many companies who have embarked on the journey towards IBP. In addition, the following benefits are delivered:
1. A phased approach (based on maturity) – IBP is not a quick fix or fast implementation; based on maturity levels and organizational readiness, we start by defining the key planning objectives and underlying process.
2. Always focus on the value – At each stage of implementation, our focus is always on the potential value that can be extracted. We also consider your strategic objectives and risk.
3. Begin with the end in mind – By understanding what you want to achieve we reverse engineer the process to link information, process and reporting to key organisational objectives.
4. Providing effective leadership – IBP crosses organisational boundaries – that is its strength but also its vulnerability. Executive leadership is required to set clear ground rules and boundaries for working together. Only through cross-functional co-operation will your IBP journey lead to success.
The supply chain is the network of entities involved in the creation and delivery of a product or service, from raw materials to the end customer. It includes suppliers, manufacturers, distributors, and retailers, as well as the processes and systems that connect them.
Supply chain consulting is a service provided by consulting firms to help organisations optimise their supply chain operations. This involves analysing the organisation’s current supply chain, identifying areas for improvement, and developing and implementing a plan to improve efficiency, reduce costs, and increase customer satisfaction.
Integrated Business Planning (IBP) is a process that aligns an organization’s strategic, financial, and operational plans with its supply chain capability. It involves the integration of demand planning, supply planning and finance, to create a single, comprehensive plan that guides the organization’s decision-making.
Integrated Business Planning improves collaboration and communication across the organisation, ensuring alignment between strategic goals and operations, increased agility and responsiveness to market changes, and improved financial performance. IBP can also help to reduce costs, increase efficiency, and improve customer satisfaction.
Integrated business planning can improve supply chains by providing a single, comprehensive plan that aligns supply chain operations with the organisation’s strategic goals. By integrating demand planning, supply planning and financial planning, IBP helps to ensure that the organisation is producing the right products, in the right quantities, at the right time, and at the right cost. This can lead to improved efficiency, reduced costs, and increased customer satisfaction. Additionally, IBP can help to identify and mitigate risks in the supply chain, and to respond more quickly and effectively to changes in the market.
Our consultants are highly effective mediators, able to cut through corporate red tape and/or individual agendas in order to drive progress.
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