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IBP versus S&OP; Again!

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A very interesting blog from Lora Cecere. Apparently she didn’t have enough after her blog ENOUGH! on the difference between S&OP and IBP. It’s more then worth to listen to somebody who helped over 400 clients in SCM and S&OP/IBP.

I agree with her that the S&OP-IBP discussion is just about the maturity of the process.  The discussion if finance should be part of S&OP, or tactical planning,  I don’t understand. To me that’s like asking;  ‘should we understand our supply chain costs?’. Every mature S&OP-IBP process has finance integrated, as it will drive a monthly updated P&L in the planning horizon, base don financial assumptions. If finance is not integrated, that’s ok, it just means the S&OP-IBP process is less matured from financial integration perspective.

Find her blog here: http://www.supplychainshaman.com/supply-chain-excellence/what-happens-in-vegas-should-not-stay-in-vegas/

And while we’re at the topic anyway. Here you can find a graphical overview of what Gartner thinks about the difference between S&OP and IBP. Also here the comment is made that IBP represent more financial integration

http://www.scdigest.com/ASSETS/NEWSVIEWS/11-04-28-1.php?cid=4489

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Written by ibpnews

May 7, 2011 at 1:09 pm

Posted in IBPnews

Tagged with , ,

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