global sales and operations planning to integrated business planning summit

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Global S&OP and Integrated Business Planning Summit

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Summit Introduction

Global disruptions have caused major headaches, pains and long restless nights for planners, forecasters and managers who have had to grapple with market shocks due to the pandemic, an ongoing war between Russia and the West and continued tensions between China and America. On a daily basis, constant challenges to SMEs to large companies are putting strain on the preexisting operational model’s companies have in place. If businesses are able to drive levels of excellence in their own departments, knowing how to build resilient pillars of the strategy is imperative to safeguarding against external threats and insecurity. Many companies remain inactive, while the most progressive prefer to solve the problems that have arisen. At our Global S&OP & Integrated Business Planning Summit you will get the chance to learn from the best, solve the issues surrounding your own dilemmas and be able to network with thought leaders and industry professionals.

Key Themes & Topics:

• The Journey to creating world class demand planning
• Unlocking the digital key to inventory management success
• Adaptive sales and operations planning
• Achieving supply chain resilience in an unstable world
• Common pitfalls to avoid when implementing S&OP

Who Should Attend:

Presidents, VP’s, CXO’s, Directors, Heads and Managers of:

• Integrated Business Planning
• S&OP Planning
• Deployment Leads
• Forecasting
• Planning & Analytics
• Supply Chain
• Heads of Product & Innovations
• Sales Operations
• Demand Planning
• Business Process Optimization
• Business Strategy

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8th Annual S&OP to Integrated Business Planning Summit

As supply chains mature and S&OP advances, leading companies have continued evolving their planning processes. Integrated Business Planning represents the evolution of S&OP from its production planning roots in the 1970s into a fully integrated management and supply chain collaboration. Lucy Jacobs, Partner at Oliver Wight, will be presenting an Expert Talk at 9.50am (Day One) on 'Leading from the Top Down: How to Gain and Maintain Executive Support for S&OP/IBP' . She will cover the essential role of executives in successful IBP practices and implementation, and how to engage your executives with the business and plans. The S&OP to Integrated Business Planning Summit will be a timely event at which cross-sector leaders share their experience of advanced S&OP and IBP . This event is taking place in Amsterdam, The Netherlands.

30 November 2023

For further information

[email protected]

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You are successfully registered for the webinar : 8th Annual S&OP to Integrated Business Planning Summit

Renuld Robinson is a visionary Strategic Planning Executive with over a decade of experience in SIOP/S&OP, S&OE, IBP, PFEP, Project Management, Analytics, and end-to-end Supply Chain Management. Recently, he embarked on an entrepreneurial journey, founding RENascence Solutions, a consulting firm dedicated to transforming business operations. Previously, Renuld served as the Director of SIOP & S&OE at Carhartt and refined SIOP and S&OE processes at Fortune 500 companies, including Celanese, Collins Aerospace, and Corning. He is a proud alum of Florida Atlantic University and holds a B.A. in Business/Operations Management. He also holds both highly coveted APICS certifications of Certified Supply Chain Professional (CSCP) and Certified Production and Inventory Management (CPIM), as well as IBF’s own S&OP and IBP Certificate. Renuld’s commitment to excellence and innovation continues to drive his success in the field.

Timothy Gladden is a supply chain process and forecasting specialist with experience in Project Management, Inventory Optimization, and Automated Forecasting. He is currently providing project leadership for Rolls Royce businesses supporting aerospace service and turbine power applications. Over the last 20 years he has worked in operations/services with previous roles for Rockwell Automation, as well as Baldor Electric (ABB). Tim is an alumnus of Purdue University where he earned a B.S. in Electrical Engineering Technologies, and holds an MBA from Indiana University. He has maintained a CPIM certification since 2005.

Todd has extensive experience in coordinating demand planning processes and S&OP. He was involved in Finance, Customer Service, Supply Chain, and Sales Planning. He is an Advanced Certified Professional Forecaster (ACPF) and holds a BS degree from Boston College and an MBA from University of New Hampshire with a focus in Supply Chain Management and Marketing. Todd is also a member of the Institute of Business Forecasting & Planning (IBF) Board of Advisors and has served as a keynote speaker & panelist for IBF Executive Forums and conferences. Todd has also published in the IBF’s Journal of Business Forecasting.

Patrick Bower has a wide area of expertise, including S&OP, Demand Planning, Inventory, Network Optimization, and Production Scheduling. A recognized expert on demand planning and S&OP, and a self-professed “S&OP geek” - Patrick was previously Practice Manager of Supply Chain Planning at the consulting firm, Plan4Demand where his client list included Diageo, Bayer, GlaxoSmithKline, Pfizer, Foster Farms, Cabot Industries and American Girl. Patrick’s experience encompasses tenures with Cadbury, Kraft Foods, Unisys, and Snapple. Patrick also worked for the supply chain software company - Numetrix, and was Vice President of R&D at Atrion International. He was also the recipient of IBF’s 2012 award for Excellence in Business Forecasting & Planning.

Denise Sena is a strategic and forward-thinking executive with a proven track record of accelerating revenue and enhancing customer experience in the life sciences industries. With more than 25 years of comprehensive achievements at Fortune 500 Companies, her career includes positions within Global Planning, Strategic Marketing, Patient Centricity and End-to-End Supply Chain Optimization. Ms. Sena is known for her ability execute S&OP strategies for Fortune 500 and startup companies including Johnson & Johnson, Merck & Co., Celgene, Gilead Sciences, and Celularity. Additionally, she advocates and mentors female leaders as a committee member with the Healthcare Businesswomen’s Association while also competing as an endurance athlete and coaching first-time triathletes.

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CPF Certification

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Reserve Your Space Without Obligation

Need time to get approval? No worries. Reserve seat, lock-in discounted rate, and pay later.

IBF’s S&OP & IBP Global Conference in Chicago on June 14-16, 2023 is the premier annual event and global gathering of the brightest minds in the industry. It is the most well-known S&OP educational and networking event where leaders come to share knowledge, network, and advance their collaborative planning processes with professionals like you.

Whether you are new to implementing S&OP or looking to take S&OP/IBP to the next level, leaders from top global companies will lead you down two maturity streams that will either help you take your first steps in S&OP or evolve an existing process to best in class:

Track One: Essentials will meet the skills needs for new professionals who want to start implementing S&OP

Track Two: Next Level will be offered to professionals who want to improve on their existing S&OP strategies to take their companies to the top.

The event will feature a pre-conference session, interactive round-table exercises and an exclusive event reception that will provide opportunities expand your network, share best practices and build your confidence to lead efforts at your company.

At the event, you will learn to:

• Effectively use forecasting and demand planning in your S&OP process
• Employ integrated business planning techniques
• Enhance collaboration across sales, marketing, finance and supply chain
• Extend S&OP outside your organization and throughout the supply chain
• Manage and mitigate risk
• Use S&OP to enhance new product launches
• And so much more

See full conference agenda HERE

Now in its 14th year of hosting the most recognized S&OP/IBP conference in the world, IBF continues to prepare professionals on how to manage change and thrive during times of great uncertainty.

Speakers include:

As part of your registration you’ll have the opportunity to complete an online S&OP self assessment, using IBF’s proprietary maturity model. It’ll gauge where you are in your S&OP journey and provides valuable feedback on how to progress to the next level. It includes a one-to-one consultation with a subject matter expert who will review your assessment and provide practical advice to improve.

The Institute of Business Forecasting & Planning – IBF is a membership organization recognized worldwide as the premier full-service provider of S&OP/ IBP, Demand Planning, Forecasting, Business Analytics education, benchmarking research, training, certification, world-class conferences, and advisory services. Since 1982, the IBF has been helping businesses improve their forecasting and planning performance in an effort to enhance growth, optimize supply chains, improve cash-flow and their bottom line. It has been said that no other organization on the globe has as much depth in its services and educational content for S&OP/IBP, Demand Planning & Forecasting as IBF.

Having some of the world’s most well known global companies as its members, the IBF is constantly finding and disseminating better ways to manage demand, improve organizational efficiency, and company performance. By becoming an IBF member, you can ensure that you stay current with proven best practices, link with global professionals facing similar challenges, ascend in your career, and bring your organization to best-in-class levels in performance. The IBF is a pioneer in developing a Demand Planning, Forecasting, and S&OP Certification program that can help boost your credentials, as well as, give management greater confidence in its people. The IBF is known for two levels of certification: Certified Professional Forecaster (CPF®️) and Advanced Certified Professional Forecaster (ACPF®️).

TERMS & CONDITIONS :

• PAYMENT: Payment in full is required prior to the scheduled date of IBF event. Unless payment is received before the start of the scheduled event, your registration will be canceled.
• CANCELLATION POLICY: All cancellations must be received in writing a minimum of 15 days prior to the IBF event. Cancellations received less than 15 days prior to scheduled event are subject to a $195 (USD) service charge. No refunds will be given for cancellations made on the event date and thereafter of scheduled program. If you have received training material for the event, then regardless of time before the event, no refunds will be given. Furthermore, if your package includes IBF Membership, membership is non-refundable. Therefore any approved refunds that include IBF Membership will be returned minus IBF Membership at the advertised price.
• MATERIALS: Any materials delivered by IBF in reference to this program are for personal use only.
• SPEAKERS: The Institute of Business Forecasting & Planning - IBF, reserves the right to substitute, eliminate, and/or reschedule sessions and speakers if necessary.
• Plus, as a registrant or speaker, you agree that you may be included in group pictures or videos taken at the event that could be used for IBF services, including marketing in the future.
• For event packages that include IBF membership, registrants will be billed annually for each member. Membership can be cancelled at any time by unselecting membership renewal on your IBF profile.

Use what you learn from this conference to become a Certified Professional Forecaster. Simply select the Gold Certify Package below and gain access to the conference plus the CPF exams and preparation materials.

The CFP program is the gold standard in demand planning certification, identifying you as a value driver in demand planning, forecasting and S&OP. It places professionals in the elite group of forecasters, with many CPFs saying it helped them secure a new job, promotion and pay raise. Find out more about the CPF program , or register below.

Keyamma Garnes, SPF

Benefits For Employees

• Accelerate your career growth, leadership opportunities, marketability, and job security
• Validate your professional experience, knowledge, and skill-sets in the field
• Build confidence knowing that you’re prepared for today’s rapidly changing marketplace
• Complement your supply chain education & certifications with IBF
• Become more recognized at your company, as well as in the field

Benefits For Employers

• Save time and resources as IBF certified individuals are pre-qualified, allowing you to quickly identify the right person for an S&OP or forecasting/demand planning job
• Gain assurance that an IBF Certified individual has the background to help improve forecasting performance and hit the ground running
• Increase the value of your forecasting and demand planning staff, department, and company
• Save time and resources in training — CPF or ACPF professionals already have a verified body of knowledge

When you register for the conference, you have the option of earning IBF’s S&OP/ IBP Certificate, which validates your knowledge gained through the program. This digital certificate demonstrates an understanding of the fundamentals of Sales & Operations Planning (S&OP) and Integrated Business Planning (IBP), and reveals to employers that you have a working knowledge of the associated processes and best practices.

To gain the Certificate you will have 1-hour to take a knowledge check which validates your understanding of the course content. This knowledge check covers the end-to-end planning process and best practices.

Upon successful completion of the knowledge check, you will be awarded with IBF’s internationally recognized S&OP/ IBP Certificate.

This digital certificate is shareable on platforms such as LinkedIn. To get your S&OP/ IBP Certificate, select the ADD-ON: CERTIFICATE IN S&OP/ IBP at checkout.

• Get recognized in S&OP/IBP by the leading organization in the field
• Demonstrate to employers that you have a working knowledge of S&OP/ IBP best practices
• Stand out to employers and secure the best remunerated planning roles
• Use the skills gained to improve KPIs including customer service, inventory turns, forecast accuracy, cash flow, revenue, and EBITDA
• Add to your credentials and share your certificate on LinkedIn

• Pre-Conference Fundamentals of S&OP/IBP Tutorial Jun 14, 2023
• Conference Day 1 Jun 15, 2023
• Conference Day 2 Jun 16, 2023
• IBP/S&OP Process Overview
• Maturity model & barriers to advancement
• Cross-functional involvement
• Gaining Buy-in to the process from key stakeholders
• Tools to measure and improve for more effective S&OP process meetings
• Building the bench for a sustainable process in the future
• Meeting overview, agenda and outcomes
• Who needs to be involved and when
• Key inputs and outs of every step
• Importance of measurement and analysis
• Monitoring, reducing, and cost of error
• Introduction to key performance indicators you need
• Formalizing the process to create sustainability for the future
• Incorporating continuous improvement tools into IBP & S&OP
• Participant feedback mechanism to strengthen the overall process

Member’s discount: -$100

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Become an IBF Member and Start Improving Your Forecasting & Planning Performance Today.

IBF members include well-known company professionals that span a broad array of business sectors. By joining our organization, you can make certain that your company sets up the right forecasting & planning process and uses the best techniques available. Moreover, you can be sure that your forecasting and demand planning staff has the proper knowledge and skill set for success.

• A subscription to the Journal of Business Forecasting, which is primarily written by and geared toward practitioners.
• Our Research Reports which include valuable benchmarking information and provide you with eye opening information on various topics in Business Forecasting and Planning.
• Special discounts on our Conferences, Workshops, Training Seminars, Certification Program, as well as on any new products and services we will offer in the future.
• Access to Journal of Business Forecasting Past Articles (FREE)Access to our growing online Knowledge section & Action Templates
• Complimentary 1-day Tutorials at select Global events ($1000 USD Value)

• CANCELLATION POLICY: All cancellations must be received in writing a minimum of 15 days prior to the scheduled IBF event. Cancellations received less than 15 days prior to the event are subject to a $195 (USD) service charge. However, the fee is waived if a credit is selected. For cancellations made on the event date or thereafter, a credit will be applied, no refunds. If you have received training material for the event, then regardless of time before the event, only a credit will be given, no refunds. Furthermore, if your package includes IBF Membership, membership is non-refundable. Therefore any approved refunds that include IBF Membership will be returned minus IBF Membership at the advertised price.

Global S&OP Integrated Business Planning Summit

• May 11, 2023 at 9:00 to May 12, 2023 at 18:00 UTC+02
• Location: Overtoom 503H, 1054 LH Amsterdam, Netherlands
• Latest Activity: Jan 10, 2023
• The Journey to creating world class demand planning
• Unlocking the digital key to inventory management success
• Adaptive sales and operations planning
• Achieving supply chain resilience in an unstable world
• Common pitfalls to avoid when implementing S&OP

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Global S&OP Integrated Business Planning summit 11th – 12th May 2023

• Amsterdam, The Netherlands

We are looking forward to join the Global S&OP Integrated Business Planning summit 11th – 12th May 2023 in Amsterdam, the Netherlands.

We are looking forward to join the Global S&OP Integrated Business Planning summit 11th – 12th May 2023 in Amsterdam, the Netherlands.

Join our presentation on May 11 th at 10:40 am to learn from our expert Willem Gerbecks on how to unleash the power of driver-based forecasting. Where he will elaborate on drafting the demand planning world where we are living in, how to realize predictive business in a volatile market, driver-based forecasting put in practice, and more…

Next to that our experts Sander de Groot , Jeroen Vermeulen and Andrey Averyanov are happy to drink a coffee with you.

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Global S&OP & Integrated Business Planning Summit

• 13-15 Nov 2024
• Hamburg, Germany

Description

The Global S&OP & Integrated Business Planning Summit is dedicated to the adapting challenges that businesses are facing in a changing eco-system.

The Global S&OP & Integrated Business Planning Summit covers topics such as:

• Embedding Financial Forecasting into S&OP
• Operational Excellence Management
• Performance Indicators Driving Accuracy in Forecasting
• How to establish integrated sales and marketing behavior
• Looking into New Planning Methods
• The Journey of Implementing S&OP in a Multinational Company

The Global S&OP & Integrated Business Planning Summit brings together senior attendees with job titles such as:

• Senior Directors
• Demand Planning Managers

The Global S&OP & Integrated Business Planning Summit will be held in Hamburg, Germany on 13-15 Nov 2024.

More Details

Future events.

• Global S&OP & Integrated Business Planning Summit - 13-15 Nov 2024, Hamburg, Germany (93597)
• Global S&OP & Integrated Business Planning Summit - 2025, (88263)

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The Progression from Traditional S&OP to a Strategic IBP Process

Evolving traditional Sales and Operations Planning (S&OP) to a more strategic Integrated Business Planning (IBP) process has become critical to thrive in an increasingly complex and volatile global market. The shift from S&OP to IBP is not merely a change in terminology; it represents a fundamental transformation in how companies approach planning, decision-making, and collaboration across the organization.

Historically, many departments operated in silos, with supply chain, finance, merchandising, and other functions working independently. In our recent webinar: Aligning Strategic and Tactical Supply Chain Planning with Finance , our panel of supply chain experts discussed how these silos have to be broken down, and all stakeholders need to move together, not in isolation. IBP is the catalyst for this transformation, as it encourages a collaborative approach to planning that spans the entire organization.

The more advanced IBP process empowers companies to break down the barriers between different departments to foster a holistic understanding of the business landscape. This encourages cross-functional collaboration, enabling supply chain planners, finance experts, merchandisers and other key stakeholders in the organization to work synergistically towards common organizational goals. By improving alignment across the business and involving input from different perspectives in the planning process, companies benefit from more robust and resilient strategies.

What are the Key Differences Between S&OP and IBP?

When discussing the key differentiators between S&OP and IBP during the session, Richard Herrin, industry leader in advanced S&OP and IBP strategy, underscored a significant limitation of S&OP. He affirmed the traditional approach often fell short because it primarily focused on volumes and short-term objectives, while neglecting financial considerations. Richard noted: “9 out of 10 S&OP implementations never really delivered on the full promise, because it was just a volumetric exercise every month.” He then explained how IBP emerged as the solution to bridge these gaps, recognizing the need for a more comprehensive approach that integrates financial impacts into the decision-making process.

Rebecca Haerter, Vice President of Supply Chain at Full Compass Systems, elaborated on this, highlighting the tactical nature of S&OP, where the focus was on checking boxes without considering the broader consequences. In contrast, she said IBP promotes “great strategic discussions across the organization, with the key decision makers involved and aligned.” She added that in this process, the key decision-makers understand that the plan is only as good as its adaptability to changing circumstances.

The agility that IBP brings to the table is vital for businesses to adapt and remain competitive. It allows companies to shift inventories as market conditions change, avoiding the worst-case scenario where inventory is stuck in a declining segment while the business's growth drivers remain underfunded. The ability to adjust strategically and promptly to industry shifts is a game-changer, ultimately elevating revenue and margin.

In essence, IBP is all about collaboration. It brings together diverse teams and departments, fostering open and transparent discussions that allow for the best decisions to be made. As Rebecca mentioned, it's a process where individuals challenge each other's thought processes, bringing different perspectives to the table. This collaborative approach ensures that organizations can make the most informed decisions, adapt to change swiftly, and navigate the complexities of the modern business landscape successfully.

Watch the webinar to learn how your peers are making the most of advanced supply chain planning software to align operations across a robust IBP process: Aligning Strategic and Tactical Supply Chain Planning with Finance (johngalt.com)

Just for you:

Aligning strategic and tactical supply chain planning with finance.

In this webinar, we’ve brought experts to share their experiences aligning operations across a robust integrated business planning (IBP) process.

Leveling Up S&OP for a Well-Orchestrated Supply Chain

Download this ebook to assess the maturity of your S&OP process and explore steps to evolve your planning capabilities.

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Sales & Operations Planning and Integrated Business Planning: 2022 Current State

This infographic highlights data APQC collected in late 2022 from global supply chain professionals about the current state of Sales & Operations Planning and Integrated Business Planning.

Sales & Operations Planning (S&OP) is a process that closely integrates and aligns cross-functional supply, demand, and production plans to establish a tight connection between an enterprise’s strategic objectives and operational plans. Integrated Business Planning (IBP) is a process that includes S&OP and focuses on translating desired business outcomes into financial as well as operational resource requirements.

To view the article, click here . To view the quick poll summary report, click here .

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Sales and Operations Planning, Integrated Business Planning: The Current State

Driving the type of culture where these processes can make the most impact requires support from the top and incentives to break down silos, roll up sleeves, and undertake the difficult but ultimately value-driving work of collaboration.

In late 2022, APQC carried out a quick poll of 301 supply chain professionals about the current state of Sales and Operations Planning (S&OP) and Integrated Business Planning (IBP) in their organizations. S&OP is a process that closely integrates and aligns cross-functional supply, demand and production plans to establish a tight connection between an enterprise’s strategic objectives and operational plans. IBP is a process that includes S&OP and focuses on translating desired business outcomes into financial as well as operational resource requirements. This article reviews the prevalence, benefits and implementation challenges for these key supply chain planning processes.

Prevalence and Adoption

S&OP is far more common than IBP. APQC finds that 42% of respondents report that their organization is currently using S&OP. Another 29% are currently exploring the process, and almost two thirds of this group (64%) say that it is extremely or highly likely they will adopt S&OP in the next two years.

Respondents from organizations that adopt and use either S&OP or IBP report that the top benefit is faster resolution of bottlenecks, which in turn helps to drive stronger collaboration between functions. We also found that customers benefit through improved customer service and order fill rates. More broadly, these organizations see better alignment between financial and operational plans, better inventory optimization, and greater visibility over supply and demand across the enterprise.

Hurdles to Widespread Adoption

The benefits of these planning processes would seem to make their adoption a no-brainer for supply chain organizations. Who doesn’t want better visibility into inventory, better customer service, or more collaboration between functions? Unfortunately, not everyone sees it that way. Respondents told us that the biggest barrier to widespread adoption is a lack of executive support for the process.  

S&OP and IBP are both collaborative processes that take engagement from multiple stakeholders to work effectively. Getting stakeholders engaged means breaking down silos and other barriers to cross-functional collaboration, which is often easier said than done. One common challenge for removing barriers to cross-functional collaboration—and the second hurdle to widespread adoption of these processes—is that rewards are not aligned to common goals.

When functional leaders pursue goals and rewards that don’t align at the enterprise level, they often end up reinforcing silos and working at cross-purposes. Even if some functions or groups “win” by hitting goals for their area, everyone loses because the process does not collectively drive enterprise value. To drive collaboration, goals and measures for the process need to incentivize behaviors that break down silos rather than reinforcing them.

Moving Forward

The need for accurate and timely data is greater than ever. Some organizations today may be managing S&OP manually through a spreadsheet, but these organizations will be increasingly at risk of being less resilient in the face of unexpected change. S&OP and IBP are evolving as process automation and emerging technologies continue to become more accessible, more reliable and more secure. Adopting these technologies in a siloed environment where functions don’t talk or collaborate will be ineffective at best and likely counterproductive. Driving the type of culture where these processes can make the most impact requires support from the top and incentives to break down silos, roll up sleeves and undertake the difficult but ultimately value-driving work of collaboration.

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How to transition to integrated business planning for enhanced performance.

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Guru Rath is the managing principal at Grath and Associates and is a supply chain and digital transformation expert.

The business environment is constantly evolving, and companies must adapt to remain competitive while balancing customer expectations with shareholder goals. One way companies can do this is by transitioning from sales and operations planning (S&OP) to integrated business planning (IBP). S&OP is a planning process that aims to align sales, marketing and operations with the overall business strategy. On the other hand, IBP takes this a step further by incorporating financial planning, product development and risk management into the process.

Basic demand, supply and inventory management processes are achievable through traditional S&OP, but there is not much progress beyond a certain threshold limit. Hence the problem is: How do we manage the volatility of the business environment while dealing with business process management?

Benefits Of IBP

Here are some of the benefits of switching to IBP.

• Higher agility: Integrated business planning enables companies to respond quickly to the business environment and market volatility by providing a detailed and comprehensive view of their operations. This can help companies streamline operations and grab customer opportunities.

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• Seamless collaboration: IBP requires and enables cross-functional collaboration between various business departments. This inhibits teams from working in silos and brings collaborative team effort, which can enable accurate decision making and operations execution.

• Financial planning: I've found IBP is the key integration process between operational and financial planning. IBP can help companies align their operational and financial goals, resulting in optimized material and financial allocations

• Better risk management: Due to an integrated and holistic end-to-end view between finance and operations, companies can catch the risks upfront and plan for mitigation.

Challenges Of Transitioning From S&OP To IBP

While the benefits of transitioning from S&OP to IBP are significant, there are also some challenges that companies may face. Here are a few.

• Change management: Transitioning from S&OP to IBP requires significant changes in processes, systems and organizational culture. Companies must manage this change effectively to ensure a successful transition.

• Data integration: IBP requires data from multiple sources, including sales, operations, finance and supply chain. Companies must ensure that this data is accurate, reliable and integrated to avoid errors and inconsistencies.

• Technology infrastructure: IBP requires a robust technology infrastructure to support data integration, analytics and reporting. It's important for companies to invest in the right technology to support IBP effectively.

Best Practices For Transitioning To IBP

To ensure a successful transition from S&OP to IBP, I suggest companies follow these best practices/

1. Define the scope.

Start by defining the scope of the transition, including the key business units and functions that will be included in the IBP process.

When thinking about the scope, consider the planning horizons (operations, tactical and strategic), the KPIs (customer satisfaction, on-time delivery, inventory turns, revenue growth, working capital), process governance structure, data and technology requirements. All of these should be in alignment with the organization's strategic objective.

2. Engage stakeholders.

IBP requires cross-functional collaboration, so it is important to engage stakeholders from across the organization in the transition process. The first step is to identify your stakeholders. Then, some of the best ways I've found to engage stakeholders are to discuss the benefits of deeper process involvement, address any questions or concerns that arise, provide training as needed and, last but not least, identify a measure to monitor the progress.

3. Align processes and systems.

Align your processes and systems to support IBP effectively. This includes integrating data sources, defining workflows and ensuring that technology infrastructure is in place. Avoid relying on unavailable or only partially available data.

4. Provide training and support.

Ensure that employees understand the new processes and systems and are able to use them effectively. To make this training effective, make sure you have the support of the management leadership. Consider customized training as per the organization's needs (generic content can be provided as an overview). Measure effectiveness, and ensure clear communication between the trainer and participants.

5. Monitor and evaluate.

Finally, monitor and evaluate the IBP process to ensure that it is delivering the expected benefits. This includes tracking key performance indicators (KPIs) and making adjustments as needed. Some of the KPIs that leaders should pay attention to include forecast accuracy, inventory turns, customer service levels, working capital, etc. The key would be to set a baseline before implementing IBP and measure against the baseline for benchmarking.

Transitioning from S&OP to IBP is a strategic move that can help companies to improve their business performance. IBP provides a comprehensive view of the business, enabling companies to make more informed decisions and respond more quickly to changes in the business environment. While there are challenges to the transition, companies can follow best practices to ensure a successful transition and reap the benefits.

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Evonik’s Integrated Supply Chain Transformation

In the area of supply chain, Camelot is a global leader in end-to-end supply chain orchestration: From strategy, process, and application consulting to software implementation and adoption. Our unique combination of industry, functional, and application knowledge enables us to transform complex business processes as well as IT ecosystems in supply chain to realise competitive advantages for our customers. During our collaboration with Evonik, our objective is to transform their supply chain to achieve organisational excellence, improve process efficiency and, capacity utilization as well as increase service levels accompanied by lower inventories overall.

Establishing the Supply Chain Function

Evonik was undergoing a comprehensive supply chain transformation program to set up a best-practice supply chain organisation. This initiative encompassed various business lines and addressed their unique needs. The newly formed "functional solutions" business line embarked on a three-phased journey to establish its supply chain function. Firstly, Evonik and Camelot created a dedicated organisation, integrating sales, production, and supply chain management (SCM) aspects to cater to the specific requirements of the diverse value chains. Secondly, a redesigned mid-term planning process was implemented, with a strong emphasis on employee roles and training to ensure smooth adoption. Interim tools facilitated this transition. Finally, we laid the foundation for an optimiser solution to enhance S&OP (Sales and Operations Planning) decision-making. This solution was built upon a thorough understanding of production constraints and an updated Enterprise Resource Planning (ERP) mapping. Having successfully transformed its organisation, processes, and systems, the business line was positioned as one of the front runners for the first Integrated Business Planning (IBP) roll-out.

Optimising Global Supply for Post-Pandemic Market

The "smart materials" division, facing ongoing disruptions from the COVID-19 pandemic, prepared an optimised supply chain setup to efficiently serve overseas markets from its EU-based production sites. This initiative commenced with defining clear service level objectives for each market, considering customer expectations and evolving competitive dynamics. Subsequently, we analysed material flows and alternative scenarios involving warehousing and postponement strategies. The final network design was chosen based on a business case evaluation and its alignment with the overall business strategy. Lastly, to ensure the achievement of service level targets, regional SCM organisations implemented detailed material-level inventory planning. This approach enabled a reduction in overall inventory levels while still ensuring higher service levels despite demand fluctuations.

Enhancing Global Planning With IBP Supply and Inventory

Evonik has introduced a global program to implement IBP processes built on SAP IBP. Following the successful completion of demand planning, our focus now shifts to global supply planning with the following objectives:

• Standardisation: Establishing a consistent framework for end-to-end supply chain planning by implementing standardized processes and IT systems across all business lines. This includes both time-series and order-based planning approaches.
• Improved Performance: Driving better planning accuracy, efficiency, and capacity utilisation through integrated planning across relevant business lines. This ultimately translates to lower supply chain costs (particularly inventory costs) while simultaneously achieving higher service levels.
• Successful Global Roll-Out: Assessing and addressing global and local business requirements to harmonize and replace legacy tools. This paves the way for further improvements and the integration with execution systems in areas like sales order processing, Production Planning and Detailed Scheduling (PP/DS), and supplier collaboration.

Overall, the project examples clearly show how Evonik is ensuring the future competitiveness of its supply chain management transformation in an integrated approach which covers the three main dimensions: Setting up a skilled organisation, implementing best-practice processes, and using best-in class integrated technology to realize the overall SAP strategy end-to-end. From demand via distribution to factory and back for improved demand and supply elements and better planning overall.

Read the full story HERE.

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