What’s in a NameS&OP or IBP

Why IBP is becoming essential to an organization

Jane KaiserDirector, Supply Chain Kimberly Clark

At Kimberly-Clark how we work is deeply rooted in our core Mindsets, Behaviors, and Values

RESULTS

ACTIONS

BELIEFS

EXPERIENCES

Culture of Accountability

Build a Breakthrough Mindset

• Focused Feedback• Focused Recognition• Focused Storytelling• Accountability (See it, Own It, Solve it, Do it)

INNOVATIVE CARING

What’s in a NameS&OP or IBP

Why IBP is becoming essential to an organization

It’s not enough to just show up, you have to have a plan!

Common Pitfalls of S&OP

Why change the name?

Sales and operations planning (S&OP) is a decades-old, cross-functional, consensus-driven planning process dutifully performed by middle management. But as companies seek a competitive edge amid global volatility, advanced S&OP is fast becoming an executive imperative

Integrated business planning (IBP) refers to the technologies, applications and processes of connecting the planning function across the enterprise to improve organizational alignment and financial performance. IBP accurately represents a holistic model of the company in order to link strategic planning and operational planning with financial planning.

Do we need IBP?

Well-run companies are also committing to Integrated Business Planning (IBP), the holistic decision-making process leveraging prescriptive analytics to link important strategic, operational and financial planning functions. They challenge and empower employees to consider all significant and quantifiable activities in their IBP process.

IBP creates a horizontal connections between departments creating alignment to what the customer wants.

Sales PlanningMarketing Finance

* - waste exists both in the functional silos and in the handoffs between silos

Design Customer

Customer

From…

11

To…

So… What is IBP exactly?

The IBP process is designed to have multiple coordinators orchestrating

the individual steps. A natural camaraderie

develops between the coordinators, especially during the difficult early cycles as the process is being rapidly improved

How do I implement IBP?

And… Is it possible?

Where do I start?

2. Make it your own - “The road of life twists and turns and no two directions are ever the same. Yet our lessons come from the journey, not the destination.” Don Williams, Jr. (American Novelist and Poet, b.1968

1. Use the talent of the people you already have.

3. Hire an IBP Leader - The role of IBP Leader is not an administrative role, but a key role in orchestrating the IBP process. The coordinator should be the "right-hand person" to the owner of the respective step in the process

If you can afford it – Hire a Consultant to help

• Product – What changes are being made to the product portfolio in the planning horizon (~ 3-24 months)

• Demand – What is the customer demand for these products and the price they are willing to pay

• Supply – do we have the supply to meet this demand and what are the options to close the gap and what is the cost

• Financial – Does the demand for the product and the margin meet our financial commitments?

Identify and education the IBP Process Owners:

Product ReviewObjectives: • Identify changes to current/future

portfolio• Reach consensus and address

issues on status of projects• Recommend actions to keep

projects on-scope, on-schedule, and on-budget, communicate downstream impacts (demand, supply, financial , strategic goals)

Process Owner: Director of Product Management/Mrktg

Process Coordinator: Product Manager

Participants :• Sourcing/CM• NA LCM/Innovation: • Marketing and Sales: • Planning• Finance: • Quality:

IBP Review Design

Demand ReviewObjectives: • Reach consensus on unconstrained

demand (both volume and revenue)• Document and agree upon actions and

assumptions of demand plan• Review risks/opportunities, connect to

strategic initiatives

Process Owner: Dir NA Sales

Process Coordinator: Demand Manager

Participants :• Marketing and Sales Mgt:

• Key Account Mgr: • Product Mgr:• Customer Service: • Supply Review Coordinator: • Finance: • Market Insights: • Customer Logistics: • Demand Planning:

Supply ReviewObjectives: • Align supply with demand• Develop alternatives/options when

demand and supply cannot be aligned• Ensure critical resources are

available to support supply plan, identify inventory/service impacts of supply plan, review strategic initiatives

Process Owners: Director of Supply Chain

Process Coordinator: Planning Manager

Participants (14):• Manufacturing: • Supply Chain:• Procurement: • Quality: • Finance: • Demand: • Product Management:

April 14, 2023

18

Financial AppraiselObjectives: • Understand latest financial

projections/assumptions• Identify issues/gaps in achieving

objectives and required investments• Align with commercial and supply on

assumptions behind financials

Process Owner: Director of Finance

Participants (5):• Demand: • Product: • Supply: • Reporting:

IBP Review Design

ReconciliationObjectives: • Make recommendations on decisions

required at Management Business Review based on well-defined scenarios

• Ensure adequacy of performance improvement plans

• Ensure all plans are aligned and optimized

• Create agenda for MBR

Process Owner: IBP Leader - TBD

Participants (7-8): • Product:• Demand: • Supply: • Finance:

Management Business Review

Objectives: • Approve updated plans, make

decisions to ensure plans are aligned and resources are available to execute

• Review gaps in latest plans to strategic and business goals

• Review scenarios on upside/downside and put contingency plans in place

Process Owners:

Process Coordinator: IBP Leader

Participants (14): • IBP Process Owners:r• Tier 5 Leadership: • IBP Coordinators:

“Sometimes the key to a creative breakthrough is a good old fashioned whack on the side of the head.”

If all else fails……

• Supply Chain Digest• Oliver Wight• RiverLogic• Supply Chain Insights

References

Don’t Forget to Complete the Evaluation!

Download the conference app and rate this session.

Start by choosing: “Cornerstones and Tracks” on the main menu and follow the prompts to this session’s landing page.