Integrated Business Planning

IBP Set Up

September 21st, 2016

Steve Clarke - Axina Ltd

We are totally focused on accelerating growth…........

• Business Planning

• Making trade terms work harder

• Global Customer Management

• Distributor Management

• Capability Building

We are strategic customer management consultants with more than 20 years experience of working in both establishedand emerging markets with some of the largest companies in the world

(FMCG, Pharmaceutical and Non- Food)

Who we are…..

We work hand in hand with our clients helping them to become the best performing most respected companies and recognised as experts in their chosen categories

We provide solutions by fully understanding your business and helping you to take a pro-active role in the strategic customer relationship

CONSUMER>SHOPPER>CATEGORY>CUSTOMER

How we work….....

You kindly completed our survey before

the seminar

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Where are you on the IBP journey?

Not started

Early stages40%

Implementing with key challenges30%

Up & running & refining10%

Established multifunctional approach20%

What does IBP mean in your business?

40%

20%

40%

How could/does IBP help my business?

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Brings many parts of the

S&OP process into one

place and has everyone

working from one source.

The system is also quicker

than using spreadsheets

previously

- Better alignment between supplier and

customer objectives& strategy

- Collaborative business relationships

- Aligned supplier approach (marketing,

shopper, trade)

- More effective & efficient trade investments

- Aligning all functions towards the same commercial goals

- Ensuring that the whole business are looking at the right

pieces of information in the right format to drive genuine

business insight, enabling the commercial team to have

richer conversations with customers

- Streamlining/efficiency of business. Reducing time

spent looking for data/info, explaining metrics

- Having a clear strategy to create plans to drive Net Sales

& EBIT.

Ensure in year plan meets long

term needs and its clear on what

we should all be working towards

End to end approach to avoid

silos and conflicting initiatives

How could/does IBP help my business?

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Aligned planning

between commercial,

financial and demand

planning.

Improved visibility and

review of promotional

plans

Consistent aligned forecast between

finance and commercial teams

IBP at a P&L level is manual due to

system constraints, moving to SAP in

June 2017 which should be an enabler

Flexibility (chaos) vs Process

(discipline) - finding the balance

One forecast, alignment of

volumes and financials

Clearly defined target backed

up by a plan

• Alignment

• Speed

• Collaboration

• Focus

• Effectiveness & Efficiency

• Common Language

• Transparency

• Drive sales and profit

What are the key challenges of IBP?

• Decisions often made outside of

Business Planning process

• General decision making

• Lack of structured process

• Keeping trade spend under control &

accurate

• Budget cuts

• Education from ALL functions on

end to end process at both the

leadership and operational level

• Getting “buy in” to the process

• Not enough resource to implement

level

• Changes to ways of working /

demand planning processes

• Different levels of customer

relationships (often for the same

customer in different markets)

• Limited relationship matrix -

typical KAM /Buyer relationship

in most cases (bow tie not

diamond!)

• Ability to analyse plans from our

customer perspective (52 / 72

week rolling) • Integration into the monthly cycle of the

business

• Short term objectives (which need to be

achieved) Vs long term strategy

• Deciphering the sequence of events -

when to look at what and in which order

• 2-5YP led by brand teams can be

disconnected from Business Planning

process

• Stretch targets disruption

• Keeping Out of stocks to a minimum

through good forecasting

• Forecasting accuracy

• Providing accurate data

Out of stocks / forecastingMindset / education

Decisions / Process

Customer

Short term vs Long term

How do we measure success?

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• Having a fully autonomous

process in which the whole

business are independently,

without any need for

pushing/pulling by an

Operations Team

• A fully working S&OP process

within our SAP system

• A completely satisfied business, with

no questions over the numbers that

is easy to use & saves time for

everyone.

• Minimize variance of actuals vs plan

• Greater insight and ongoing

commercial reporting

• Clear ROI metrics that recognize

different objectives (e.g. Brand share;

short term revenue; medium term

revenue; shopper penetration)

• Smarter KPIs - currently too short term

• Improvement in forecast accuracy

• Achievement and execution of

strategies, budget achievement

• Delivery of the AOP adding to the

foundations for the following year

Time with spent with customer

and generating new ideas

• Regular alignment conversation / forum

• Ability to consume the forecast with actual orders

• Linkage of forecast to customer service

• Forecast accuracy

Process

ROI

Insight / Numbers alignment

Customer

KPI’s

Forecast Accuracy

We must answer some critical questions

on IBP whatever our business situation

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We must answer some critical questions

on IBP whatever our business situation

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Integrated Business Planning – Critical Questions

Today we will see great examples of how

businesses have answered these questions

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SYSTEMS & COMMERCIAL LTD

Considerations for for the day……..

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Think broadly about your total business, not

just your role or function

Understand where your business is now

Determine what needs to happen to answer the

critical questions

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