Steelwedge Software

Steelwedge Software

Guest Perspective: S&OP Q&A with Oliver Wight

Posted: 19 Jul 2012 11:32 AM PDT

Ed. Note: In today’s guest post, Eric Deutsch, principal with Oliver Wight consulting, provides some insights into the Oliver White method of sales and operations planning, answering some of our most-asked questions. For more from Eric, see our June webinar, Developing Corporate Muscle Memory with IBP You seem to use the terms S&OP (sales & operations planing) and IBP (integrated business planning) interchangeably. What is the difference in your minds?  Is there a difference? There is a difference, and it mainly has to do with process maturity. An integrated business planning process (IBP) shares fundamental elements with sales and operations planning (S&OP) from its evolution (e.g. Demand/Supply/Inventory balancing, disciplined monthly process, etc.), but has evolved to include more robust financial integration, more robust and routine scenario planning, integration with supply chain partners, and integrated strategic planning over a longer horizon. George Palmatier, innovator and pioneer in IBP, says it simply:  “A major difference between S&OP and IBP from a leadership/management perspective is that the process is the primary process used to run the business. This includes strategic management dealing with the essence of the business. It is not just a supply chain management process.”  We often use S&OP and IBP interchangeably when we are speaking to audiences at mixed levels of process maturity, especially when we are speaking to commonalities between the two.… Read the rest

Posted by computer at 9:05 AM  

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