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S&OP and Integrated Business Planning

S&OP and Integrated Business Planning

Sales and operations planning is a set of decision making processes with the three main objectives that enables organizations achieve the above said needs: balance demand and supply, align volume and mix, and integrate operational plans with financial plans which collectively called as “Integrated Business Planning” (IBP). Operational and Financial decision making is the essence of an effective IBP. The decisions are made on recent history, recommendations from middle management and operations managers, and the executive team’s knowledge of the business.

The decisions can be, change in sales plan or operations plan or change in inventory projections and lastly no decisions as well. These decisions become the authorized game plan for the company. As this IBP is not a onetime event, the activities start beginning of every month where the demand, supply and finance management work thru the monthly plan and come out with their recommendations for the executive decision making

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