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Sales and Operations Planning /
Integrated Business Planning (S&OP / IBP)

  • Definition of S&OP / IBP
  • The Transition of S&OP to IBP
  • FastTrack Methodology for Implementing S&OP and IBP
  • People, Processes, and Tools Approach

    • Definition of Sales & Operations Planning / Integrated Business Planning

    Here’s the accepted definition of S&OP / IBP, which reflects best practices.

  • A process led by senior management that evaluates and revises time-phased projections for demand, supply, product and portfolio changes, strategic projects, and the resulting financial plans. This is done at the aggregate level on a monthly basis, typically over a 24-month or greater rolling planning horizon.
  • A decision-making process that realigns the tactical plans for all business functions in all geographies to support the company's strategies, business goals, and targets.
  • A primary objective of S&OP/IBP is to reach consensus on a single operating plan to which executives of the management team hold themselves accountable and allocate the critical resources of people, equipment, materials, time, and money to most effectively satisfy customers in a profitable way.

    • How closely does your company’s S&OP or IBP process fit the best practice definition?

    The Transition of S&OP to IBP

    Companies have been achieving improved business performance for close to three decades by implementing and operating with an integrated business management process known as Sales and Operations Planning (S&OP). A significant number of companies have led the way evolving the S&OP process from fundamental demand and supply balancing to an internal strategic deployment and management process. This evolving process is known as Integrated Business Planning (IBP). Read this white paper on the transition from S&OP to IBP.

    Oliver Wight pioneered Sales and Operations Planning in the 1980s and has continued to play a thought leader role in helping companies to transition to Integrated Business Planning. We are skilled at helping companies implement Sales and Operations Planning and evolving their current S&OP processes into Integrated Business Planning. Read this book on Enterprise Sales and Operations Planning.

    FastTrack Methodology for Implementing S&OP and IBP

    We use a FastTrack Proven Path methodology that focuses on developing the executive and middle management teams to effectively utilize Sales and Operations Planning. We also provide the education and coaching needed to design the Sales and Operations Planning and Integrated Business Planning processes. Oliver Wight Principals provide guidance using S&OP software tools to develop executive views of the business. Finally, we provide coaching and mentoring to ensure that the process continues to mature and continues to provide substantial financial and operational improvements to the company.

    This approach enables companies to implement S&OP/IBP quickly – within three months – and to sustain the process year after year. Attend this IBP/S&OP course.

    People, Processes, and Tools Approach

    A first step in the FastTrack Proven Path methodology is a “diagnostic.” We spend two days reviewing your S&OP or IBP process. The diagnostic culminates with feedback for the leadership team.

    During the diagnostic feedback session, we provide our findings, provide high-level education on what S&OP/IBP is and is not, and provide insight on how your process and the results the process generates compares to other companies. We also facilitate a discussion with the executive team on the opportunity to improve company performance by operating the business using an integrated management approach.

    Contact an Oliver Wight representative to begin your diagnostic review.