Recently, a Managing Partner of Oliver Wight, Mike Reed, provided Six Degrees with an overview of the S&OP/ IBP journey that a number of their clients had commenced in recent years.
It highlighted common challenges that many businesses face when implementing a truly integrated model, and conversely some key attributes for success.
When an organisation brings additional functions such as product management, finance and strategic planning into the traditional S&OP cycle, it can add further complexities, and therefore challenges, in delivering one seamless management process.
Challenges may include:
- Working to eliminate unplanned events (often known as ‘fighting fires’ in our day-to-day work lives) that are caused by a lack of focus on detail in the plan itself.
- Building trust across different business functions, especially in larger organisations. Demonstrating the benefits of sharing plans can be a difficult task.
- Correctly managing product lifecycles, and a willingness to take them out of the product portfolio when they are no longer contributing to the bottom line.
- Not utilising complex ERP systems when they are available.
However, there were a number of common themes that emerged which were indicative of a business performing well in their integrated business planning journey.
Good performance involves:
- Clearly communicating the company strategy from the top down, so that every employee understands the role they are required to play.
- Understanding what planning actually means; a set of actions designed to produce a particular outcome.
- Innovation. The top 10 companies in the world have a significant percentage of sales (an average of 63%) driven by new products for which they plan accordingly.
Six Degrees Executive is a leading specialist recruiter in the supply chain and procurement space. For more information on our organisation and any IBP focused vacancies please contact one of our specialist recruitment consutlants.
Luke Gunn
Specialist Supply Chain & Procurement Consutlant
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