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What is Integrated Business Planning?

Integrated Business Planning (IBP) is more than just Sales and Operation Planning (SOP), although it incorporates it into a company’s IBP. Most of the time integrated business planning and sales and operations planning are done by the senior management team, although other members of staff are sometimes asked to contribute their ideas.

 

Basically, SOP is needed to make certain that all a company’s business is conducted in accordance with the overall business plan. If it is, the company can be sure that all daily operations and monthly plans are focussed on the long-term goal set out in the company’s annual report. Everyone involved should be clear about the goals, from the contract manufacturers to the customers clients and shareholders. All involved in the company’s affairs should be clear about its goals.

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Every company needs an efficient, well-oiled supply chain and SOP helps to create a highly efficient chain. A supply chain cannot work if its separate entities don’t work as a whole unit. When a business operates as a family group, with lines of communication between departments, suppliers and others always open, there is every probability that the business will be successful. To this end, inter-departmental meetings should be held regularly. Those attending these meetings should be encouraged to give their views and opinions freely in a supportive, non-judgemental atmosphere.

A successful company will understand the value of teambuilding and will encourage all involved to support each other so that the common goal, the success of the company, can be achieved. Integrated business planning which takes into account the needs of all staff, customers and other stakeholders can ensure, with good communication channels, the success of the plan and the company.

The keys to successful implementation of an integrated business plan are the following (in no particular order):

  • Flexibility
  • Technology
  • Fully trained and qualified staff (and management team)
  • Supportive business culture
  • Good communication
  • Persuasive leaders who can build strong teams
  • Effective management
  • Defining reasons for success

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