The holistic approach to operations offered by IBP enables manufacturers to have greater visibility of the performance of all functions, and that agility is vital in 2024 and beyond.
In an increasingly complex world, with the list of threats and opportunities rapidly growing, how can business leaders gain value from a more straightforward – but not simplistic – and streamlined approach to managing people and processes? The answer is IBP, which Oliver Wight has been championing for decades.
Indeed, IBP has emerged as a transformative approach in 2024 that enables manufacturing and CPG organisations to gain a holistic view of their operations as a single entity – including its portfolio, supply chain, and customers – rather than disparate functions. Further, it aligns every function around a well-defined strategy to drive success.
Put another way, by re-tooling processes in a more joined-up way and arming leaders with real-time data, IBP generates a deeper understanding of an organisation’s performance, what it is capable of, and how to achieve that optimal level.
It helps management plan for agility in the short term by having greater visibility into operations while staying true to clear, value-enhancing objectives over longer horizons.
However, without the data, processing power, and analysis from the systems, the direction of travel may be altered, meaning the desired destination is never reached.
A new chapter for IBP
Effective IBP requires aligning three key elements: people and behaviours, processes, and technology. It begins with having a clear vision and the right people in the organisation who understand their roles in achieving enterprise objectives.
A clear strategic vision and the right talent possessing the necessary skills and motivation form the foundation for effective IBP implementation. Streamlined processes that efficiently drive performance across local and corporate objectives are equally vital. The processes should be designed to run efficiently and effectively, with correct inputs and outputs. That is exactly what Oliver Wight has done with many clients in manufacturing, CPG and healthcare for the last 50 years.
But true synergy is achieved when technology amplifies the potential of people and processes, empowering organisations to adapt swiftly to market dynamics. Only at this stage Board, Oliver Wight’s technology partner, becomes instrumental in this IBP journey: technology plays a crucial role in monitoring and manipulating processes, generating and analysing data, and providing a reliable foundation for aligning functional plans and financial projections.
Tools for today
In an ever-transforming business landscape, business leaders must address the present challenges, plan for the future, and align their organisation’s strategies accordingly. External factors such as geopolitical events, economic fluctuations, and unexpected crises can disrupt even the most well-laid plans.
Here’s where an agile and adaptive approach to IBP allows business leaders to understand the current situation, make informed decisions for the next steps, and align their long-term objectives with ongoing operational plans. Manufacturers can navigate through uncertain times, seize opportunities, and minimise risks by aligning the organisation’s strategic objectives with ongoing operational plans.
And now, Board’s technology and Oliver Wight’s change management expertise together offer value-creation options, aid quicker ROI, greater flexibility, better information accuracy and speed-of-data. For example, dislocations to the supply chain, delays to container traffic, or high energy costs – may be short-term, long-lasting, or permanent. Recalculating as a situation unfolds enhances management’s ability to adapt to long or short-term impacts.
A case in point
Lamb Weston, a global frozen food processing company consolidated its position in the Australian market following an acquisition strategy. Following those changes it recognised the need to enhance operational planning. Lamb Weston partnered with Oliver Wight and Board to access process and transformation expertise underpinned by market leading technology. Lamb Weston had the ability to launch rapidly, with a demand plan live within 2 months enabling confidence in sales forecasting to deliver against plan.
Ultimately, IBP provides tools and insights for decision-making and scenario planning, allowing organisations to adapt to changing circumstances effectively. If you, as a business leader, are seeking a way to improve your business’ performance, IBP is a great place to start.
Understanding the benefits of IBP
Integrated Business Planning is a strategic planning process that combines all business aspects, from sales and operations to marketing and finance, to create a single, integrated plan. IBP is designed to help businesses make better decisions, improve efficiency, and increase profitability.
There are many benefits to implementing IBP, including:
- Improved decision-making: IBP provides organisations with a more holistic view of their operations, allowing them to make better decisions about things like product development, pricing, and marketing.
- Increased efficiency: IBP helps organisations to streamline their operations and reduce waste.
- Improved profitability: IBP enables organisations to identify and exploit new opportunities and to reduce costs.
- Increased agility: IBP helps organisations respond faster to changes in the market.
- Improved collaboration: IBP requires organisations to collaborate across different departments, which breaks down bias to enhance communication and understanding.
Download the white paper to learn more here.
