Most companies have implemented some form of S&OP but few have really integrated the S&OP process into the business planning/financial process. This session will discuss S&OP as we know it today, the benefits and shortcomings of the traditional supply/demand review and how Integrated Business Planning will help your company gain cross functional alignment to move your business to the next level.

1. What’s in a Name
S&OP or IBP
Why IBP is becoming essential to an
organization

2. Jane Kaiser
Director, Supply Chain Kimberly Clark

3. At Kimberly-Clark how we work is deeply rooted
in our core Mindsets, Behaviors, and Values
Culture of Accountability
RESULTS
ACTIONS
BELIEFS
EXPERIENCES
• Focused Feedback
• Focused Recognition
• Focused Storytelling
• Accountability (See it, Own It, Solve it, Do it)
INNOVATIVE CARING
Build a Breakthrough Mindset

4. What’s in a Name
S&OP or IBP
Why IBP is becoming essential to an
organization

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

8. Common Pitfalls of S&OP

9. 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.

10. 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.

11. IBP creates a horizontal connections between
departments creating alignment to what the customer
wants.
Design Marketing Sales Planning Finance
Customer
* - waste exists both in the functional silos and in the handoffs between silos
Customer
From…
1
To…

12. 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

13. How do I implement IBP?

14. And… Is it possible?

15. Where do I start?
1. Use the talent of the people you already have.
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
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

16. Identify and education the IBP Process
Owners:
• 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?

17. IBP Review Design
Product Review
Objectives:
• 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:
Demand Review
Objectives:
• 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 Review
Objectives:
• 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:

18. 16
1
Financial Appraisel
Objectives:
• 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
Reconciliation
Objectives:
• 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:

19. If all else fails……
“Sometimes the key to a creative
breakthrough is a good old fashioned whack
on the side of the head.”

20. References
• Supply Chain Digest
• Oliver Wight
• RiverLogic
• Supply Chain Insights

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