G17 - Financial Forecasting and SimulationReturn

With ongoing globalization and the resulting growing competitiveness on most markets, companies are under constant pressure to increase the effectiveness and efficiencies of their operations. The focus of this paper is placed on one of the core business management processes - on planning, namely on Sales and Operations Planning (S&OP) and its latest development stage, nowadays often recognized under the term Integrated Business Planning (IBP). The author's experience from leading the global implementation of IBP in a multinational chemical company is reflected in the proposition of how IBP can serve as an effective tool for execution of business strategy. The article further illustrates how different generic strategies and product portfolio models of the companies impact the set-up of an IBP process. As the IBP concept is applicable for almost all businesses and markets, it can be used broadly as an effective tool for facing the challenges of economic and financial crisis.