Integrated Business Planning Software

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Enterprise resource planning (ERP) vendors do some or all of what you need for IBP.

But don't hesitate to mix and match ERP with best-in-class components. "unseemly" decision.) Vendors include the largest players -- Infor, Microsoft, Oracle and SAP -- and many more, including Epicor, IFS, Sage, SYSPRO and UNIT4.

The CFO will want to understand their labor, manufacturing, and procurement costs, as well as the cost of safety stock including raw materials, work-in-progress and finished goods.

The VP of human resources must ensure that there is adequate staffing to meet the sales and operations functions.

The CFO will want to understand the latest strategies, what capital expenditures are required to implement them and how these expenditures impact the budget.

Best practice is to hold regular monthly meetings at which executives come together to review the sales plan (demand) for the next quarter and how that demand will be met (operations) and funded.With IBP, the CFO can fund operations and help manage profitability.Finally, IBP helps all groups have informed discussions about product market strategy, including new product introductions and capital investments.Ideally, companies should integrate their business planning across multiple departments within each line of business (which is hard to do) and across lines of business that must work together -- which is even harder.That's exactly what integrated business planning (IBP) was intended to do.These functions include forecasting demand, procuring raw materials, delivering products to meet the demand, maintaining adequate staffing across departments and providing funds to support every department.The cross-functional nature of the process is why an integrated approach is so important.The CFO will want to understand the accuracy of their sales forecasts because there are consequences if the forecasts are too low (not enough product is being made to meet demand) or too high (there's too much inventory).Clearly, operations needs reliable forecasts from sales.Though the concept is hardly new, IBP requires new technology and a renewed commitment by executives to work within and across business units.The goal of IBP is to help a company integrate critical business functions, as shown in the diagram.


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