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- Apri 28, 2011 -

 
     
 

Supply Chain Graphic of the Week: S&OP versus Integrated Business Planning

 

Does the Term Really Matter? This is Where We are Headed, Whatever Term is Used

 
     
 

By SCDigest Editorial Staff

 
 

 

As we note in our most recent edition of the Supply Chain Digest Letter, focused on Sales & Operations Planning (S&OP), there is a minor holy war going on between traditionalists who like the term S&OP and a new generation who think we need to move on to a more comprehensive concept called Integrated Business Planning (IBP).

To download an e-copy of the Letter, and access other resources, please visit our S&OP Information Center.

What's the difference? In our view, it's mostly just nomenclature, though as we note in the Letter, the analysts at Gartner believe that "IBP is a “higher state of maturity” than traditional S&OP.

While we could get into more details, at a high level IBP simply involves more specifically incorporating the company's financial plans and budgets into the S&OP process at various stages, as shown in the graphic below.

 

 

Source: SCDigest Letter on S&OP 2011

 

Whatever term is used, clearly this is the direction we are headed.

As we ask in the Letter, could we settle for S&OP 2.0?

 

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