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You may not think of the activities performed within your organization as business processes, but that is exactly what they are.
Rather than enhancing supply chain processes in isolation, IBP seeks to involve a wide range of stakeholders in every operational decision, so that the supply chain can truly drive the success of the entire business.
In the simplest of terms, the IBP reconciles and harmonizes strategy and execution by aligning strategic plans into operational plans and bringing the practical aspects of execution (constraints, capacity availability, realistic throughput rates that have been achieved, detailed unit costing, and profitability) into the creation of strategic plans.
It is this journey to true IBP, which allows strategic, bottom-line oriented “what if” scenario modeling, and must be managed by a strategic process which can move at the pace of today’s global business environment.
These two processes are intricately connected and create the “company dialogue” that enables the business to understand and be lead by a common vision of the core values and objectives.
Sure, people may agree that some improvement may be possible, but without seeing the big picture they do not see the need for change.
At its core, the IBP takes rigid, independent processes and transforms them into flexible, choreographed business services that work together to create substantial business value.
This holistic business plan increases business alignment through the sharing of performance strategies and helps quantify business risks, enabling enterprises to rapidly adapt to meet challenges.
From S&OP to IBP Every organization has a number of processes in place, but there is also likely to be a certain amount of inertia because people are used to doing things in certain ways.
The objective is to get everybody driving to the same plan as quickly as possible.
The purpose of an effective S&OP process has always been to achieve alignment for the supply chain logistics, procurement, sourcing, and production, to sales, operations, IT, and finance while, IBP aligns sales, merchandising, marketing, R&D, operations, supply chain, finance, HR, and IT.