Talking Supply Chain: Why IBP is the Future of Procurement

For decades, procurement leaders have employed the S&OP blueprint for success. But, the process continues to be plagued by complications, from a lack of an enterprise-wide approach to supply chain disruptions.

Ben Sellers, a business advisor with Oliver Wight, says now may be the time to embrace a more modern approach called Integrated Business Planning, or IBP. He tells Talking Supply Chain host Brian Straight that most companies struggle to plan for easy-to-predict tasks, let alone for more complicated or unknown disruptions. The reason is not necessarily the process, but rather a lack of leadership.

IBP helps solve that problem by better preparing companies for sudden change, bringing together multiple departments, and constantly evaluating procurement processes regularly. Two-year planning cycles need to be updated monthly and even in some cases weekly or daily.

Sellers says that it often takes a crisis for a company to acknowledge a different approach is needed. IBP, on the other hand, enables good management and leadership and through constant evaluation ensures the company is positioned properly for change. But it is hard, Sellers notes, and requires sponsorship and engagement from leadership.

Listen to this episode of Talking Supply Chain as Sellers explains the value of Integrated Business Planning and how your organization can modernize its S&OP.