IBP represents the evolution of Sales and Operations Planning (S&OP) from the supply and demand balancing process developed in the early 1980s Today it is a process that drives the alignment of all functions across an organization, models and creates readiness for alternate outcomes, drives deployment of strategy, and enhances collaboration 16 S&OP @ 100,000 Feet Executive S&OP A process to reconcile, agree upon, and communicate the company game plan Product Development (New Product Introduction) Finance (Dollars) Sales & Marketing (Units/$$ by product family) Operations (Units/Hours/Materials) 17To work properly, a process must be periodic Each months, several meetings needs to happen in order to reach at the end on the month an S&OP plan for the considered period This plan needs to be updated progressively depending on the meetings and the process We suggest to follow a 5 steps process for a full and efficient Sales & Operation
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