Effective Execution of S&OP/IBP Plans through Integrated Tactical Planning
Many companies that have embarked on an Integrated Business Planning implementation still find senior managers being dragged into short-term tactical issues and problem solving. Despite putting considerable effort and energy into executing their plans, many still struggle with poor customer service, high costs, high inventories, and frustrated employees. Whilst Integrated Business Planning is highly effective in aiding planning over a four to 24- or 36-month horizon right down to EBIT projections, it was never designed to control the execution of those plans within the one-to three-month tactical horizon.
This is the role of Integrated Tactical Planning. Unless plans are properly managed and coordinated during this time period, execution is problematic. Constant last minute changes and “firefighting”, poor service, high costs, and employee frustration, plague the business.