S&OP is widely considered to be one component of integrated business planning (IBP), which is a more comprehensive, longer-term planning process that places a greater emphasis on financial forecasting. Adopting IBP can be considered the next step for companies with an S&OP cycle already in place. It extends the principles of S&OP throughout the entire organization, seeking to align all business functions with the company’s financial performance and strategy. While S&OP is focused on balancing supply and demand over the short to medium term, IBP works on a longer time scale, looking further ahead to find ways to improve the bottom line and determine budgetary requirements while also supporting operational requirements.