… is the next generation of S&OP, being a decision-making process that aligns the strategic, tactical and operational plans for all business functions in all geographies to support the company's strategies, business goals, and targets.
The earlier generations of S&OP – matching demand and supply within manufacturing companies – enabled a conduit between the sales and supply sides of the business, and provided a bridge between the tactical and operational activities.
The evolution of IBP has incorporated product planning and financial planning into the process, and extended the planning horizon into the strategic level of management. This broadening of scope has also enabled take up by organisations other than manufacturing: basically any organisation that is resource constrained can benefit from the principles.
The results of introducing IBP/S&OP can be dramatic: significant reductions in inventory; improved equipment utilisation and lower downtime; better staffing availability and reduced overtime; improved customer satisfaction; better funds management; and enhanced staff collaboration. Breaking down the silos within the organisation is a common outcome.
But implementing the concept is not a simple or short term solution: it is hard work and involves a whole of business approach to ensure the many benefits are realised. At SCD, we have implemented and trained large and small organisations in the principles and practicalities of implementing IBP/S&OP.
Our approach to IBP enables rapid integration of the culture and concepts required through any or all of these elements:
Whether it is new markets, new products, greater top line revenue, lower costs, better margins, or improved customer service, supply chain capability impacts each and every one of these directly.Visit Page
We have established a successful practice of assisting local government municipalities in improving their service to their community and in reducing costs to serve.Visit Page
We are able to offer a range of services to assist your organisation to cope with the many personnel issues that arise from time to time, whether they relate to interpersonal conflict or critical incidents.Visit Page
Supply Chain Diagnostics
82 Newton St
Kensington VIC 3031
+61 417 667 450
+61 3 9376 8830
+61 3 9376 8840