There are many differences between Sales & Operations Planning (S&OP) and Integrated Business Planning (IBP), but firstly it’s important to note that IBP is not a supply chain process; it has a much broader reach. IBP is the process that connects an organization’s strategy and business plan to ensure both are delivered.
The purpose of IBP is not to drive a better forecast with which supply chain can plan. It is the process that brings focus to the deployment of a business strategy and provides a framework for effective decision-making to drive growth.
IBP is a company framework to surface and solve problems and continually re-optimize plans as circumstances change. It enables organizations to create an aligned, cross-functional plan, based upon key assumptions. These assumptions, documented and updated each month, are based on insights.