Integrated Business Planning: A Game Changer for Manufacturing and Heavy Asset Businesses

December 4, 2023

Integrated Business Planning: A Game Changer for Manufacturing and Heavy Asset Businesses

In the dynamic world of manufacturing and heavy asset businesses, managing customer service levels, stock availability, inventory working capital, and operating costs efficiently is critical. Integrated Business Planning (IBP) emerges as a strategic approach that holistically combines demand, supply, and financial planning to drive business performance. This article explores how IBP can transform these crucial aspects for manufacturing and heavy asset industries.

What is Integrated Business Planning (IBP)?

Integrated Business Planning is a process that extends the principles of Sales and Operations Planning (S&OP) across the end-to-end supply chain, product and customer portfolios, customer demand, and strategic planning, to deliver one seamless management process. IBP synchronizes the strategic goals of a business with its operational capabilities, ensuring a balance between demand and supply while maintaining alignment with corporate objectives.

Improving Customer Service Levels

Meeting Customer Expectations

IBP plays a pivotal role in understanding and meeting customer demands. By integrating customer data into the planning process, businesses can predict demand more accurately and plan their operations accordingly.

Forecast Accuracy

With IBP, companies can achieve higher forecast accuracy, which is crucial for anticipating customer needs and avoiding stockouts or excess inventory.

Responsiveness to Market Changes

IBP allows businesses to quickly adapt to market changes. This agility ensures that customer service levels remain high, even in volatile market conditions.

Enhancing Stock Availability

Balancing Inventory Levels

Effective inventory management is a critical component of IBP. By aligning inventory levels with predicted demand, businesses can ensure optimal stock availability.

Reducing Stockouts and Overstock

IBP helps in minimizing instances of stockouts and overstock situations. This balance is crucial for maintaining customer satisfaction and reducing carrying costs.

Improved Lead Times

With better visibility and coordination across the supply chain, IBP can significantly improve lead times, ensuring that products are available when customers need them.

Optimizing Inventory Working Capital

Efficient Use of Capital

IBP aids in making more informed decisions about inventory investment. This efficiency in capital usage ensures that funds are not unnecessarily tied up in excess inventory.

Inventory Turnover

A key benefit of IBP is improved inventory turnover. Faster turnover rates mean less capital is tied up in stock, improving overall financial health.

Demand-Driven Inventory

IBP promotes a demand-driven approach to inventory management, ensuring that working capital is invested in products that are in demand, reducing obsolete stock.

Reducing Operating Costs

Streamlining Supply Chain Operations

IBP offers a holistic view of the supply chain, enabling businesses to identify and eliminate inefficiencies.

Lowering Inventory Carrying Costs

By maintaining optimal inventory levels, businesses can significantly reduce the costs associated with storing and managing stock.

Enhanced Supplier Collaboration

IBP fosters closer collaboration with suppliers, which can lead to cost savings through improved terms and economies of scale.

Key Technologies in IBP

Advanced Planning Systems (APS)

APS are critical in IBP for providing sophisticated analytics and decision-support tools that enhance planning accuracy.

Enterprise Resource Planning (ERP) Systems

ERP systems are the backbone of IBP, integrating various business processes and ensuring data consistency across the organization.

Analytics and Business Intelligence

These technologies play a pivotal role in interpreting vast amounts of data, aiding in informed decision-making.

Implementing IBP in Manufacturing and Heavy Asset Industries

Strategic Alignment

The first step in implementing IBP is ensuring it aligns with the strategic goals of the business.

Process Integration

Integrating processes across various departments, such as sales, operations, and finance, is crucial for effective IBP.

Culture and Change Management

Implementing IBP often requires a cultural shift within the organization. Effective change management is essential for successful adoption.

Case Studies

Manufacturing Success

A leading manufacturing company implemented IBP and saw a 20% reduction in inventory levels while maintaining customer service levels.

Heavy Asset Industry Transformation

A heavy asset business adopted IBP and achieved a 15% reduction in operating costs through improved supply chain efficiency.

Challenges and Solutions

Data Accuracy and Integration

Ensuring accurate and integrated data is a challenge. Solutions include investing in robust ERP and APS systems.

Cross-Functional Collaboration

Breaking down silos and fostering collaboration across departments is essential for effective IBP.

Integrated Business Planning is not just a planning process; it's a strategic framework that can revolutionize how manufacturing and heavy asset businesses operate. By improving customer service levels, enhancing stock availability, optimizing inventory working capital, and reducing operating costs, IBP provides a comprehensive approach to navigating the complexities of modern business environments.

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Planning, Forecasting, S&OP and IBP
March 13, 2025

Refreshing S&OP and IBP in 2025: A Strategic Edge for ANZ FMCG and Manufacturing

Supercharge your S&OP and IBP in 2025 with Microsoft Power Apps and forward-looking strategies for ANZ FMCG and Manufacturing. Trace Consultants shares expert insights.

Refreshing S&OP and IBP in 2025: A Strategic Edge for ANZ FMCG and Manufacturing

For Fast-Moving Consumer Goods (FMCG) and Manufacturing companies in Australia and New Zealand (ANZ), Sales and Operations Planning (S&OP) and Integrated Business Planning (IBP) are vital for staying competitive in 2025. As supply chains face volatility—from fluctuating consumer demand to logistical disruptions—a refreshed S&OP and IBP process can align your teams, cut costs, and boost agility. At Trace Consultants, we’re committed to helping ANZ businesses transform these processes into strategic assets that deliver results.

This article explores how FMCG and Manufacturing firms can refresh their S&OP and IBP, focusing on key enablers like technology (e.g., Advanced Planning Systems and Microsoft Power Apps), executive support, and a single set of numbers. We’ll explain why good S&OP should be forward-looking, assess trade-off decisions, and deliver actionable insights, and show how Power Apps can supercharge your workflows and reporting. Finally, we’ll highlight how Trace Consultants can guide you through this journey with tailored solutions.

Why Refreshing S&OP and IBP Matters in 2025

S&OP bridges sales, operations, and finance to balance supply with demand, while IBP integrates strategic and financial planning for a holistic view. For ANZ FMCG companies like Goodman Fielder or Manufacturing firms like Fletcher Building, these processes are critical to managing fast-moving SKUs or complex production schedules in a region with long lead times and seasonal fluctuations.

The ANZ Challenge

In 2025, ANZ supply chains face unique pressures: port delays due to cyclones, dairy export volatility, and shifting consumer preferences toward eco-friendly products. An outdated S&OP or IBP process can lead to stockouts, overstocking, or misaligned priorities—costing time and money. A refresh ensures your business stays responsive and aligned.

Key Enablers for a Successful S&OP and IBP Refresh

To make S&OP and IBP effective in 2025, ANZ firms need to focus on three core enablers: technology, executive support, and unified data.

1. Technology: Powering S&OP with APS and Beyond

The Role of APS

Advanced Planning Systems (APS) like SAP IBP, Oracle, or Kinaxis are foundational for S&OP and IBP. They enable real-time data integration, demand forecasting, and scenario planning—essential for FMCG’s rapid cycles or Manufacturing’s production schedules.

ANZ-Specific Tech Needs

ANZ’s geography demands tech that handles complexity, like forecasting for remote plants or managing delayed shipments. APS tools provide the visibility to simulate disruptions (e.g., a flood’s impact on logistics) and adjust plans dynamically.

How Trace Consultants Can Help

Trace Consultants excels in tech integration. We’ll evaluate your systems, recommend the best APS for your needs, and ensure it powers your S&OP/IBP process effectively.

2. Executive Support: Leading from the Top

Why Leadership Counts

S&OP and IBP succeed when executives champion them. In ANZ, where silos between sales and operations can disrupt FMCG or Manufacturing workflows, leadership buy-in aligns teams toward shared goals—whether it’s cutting costs or improving service.

Fostering Collaboration

Executive support means prioritising regular S&OP meetings, encouraging data-driven decisions, and holding teams accountable. It sets the tone for a unified strategy.

How Trace Consultants Can Help

We’ll partner with your leadership to secure buy-in, designing S&OP/IBP frameworks that align with your goals. Our change management expertise ensures executives lead effectively, driving adoption across your organisation.

3. One Set of Numbers: A Single Source of Truth

The Value of Unified Data

Conflicting data—like sales forecasts differing from finance budgets—undermines S&OP and IBP. A single set of numbers ensures everyone works from the same playbook. For Manufacturing, this aligns production with demand; for FMCG, it matches stock to sales.

Overcoming ANZ Data Hurdles

ANZ firms often face fragmented data—think rural plants with delayed ERP updates. A unified platform, often powered by APS, eliminates discrepancies and builds trust.

How Trace Consultants Can Help

Trace Consultants will unify your data into a single, reliable source. We’ll create reporting dashboards that provide real-time visibility, ensuring your S&OP/IBP decisions are grounded in facts.

Leveraging Microsoft Power Apps to Supercharge S&OP and IBP

Beyond APS, Microsoft Power Apps offers a powerful way to enhance S&OP and IBP by integrating with existing ERP and APS technologies, automating workflows, and improving reporting.

1. Automating Workflows with Power Apps

Streamlining Processes

Power Apps lets you build custom applications that automate repetitive S&OP/IBP tasks—like data entry, approvals, or meeting prep—directly within your ERP or APS environment. For FMCG, this could mean automating stock updates during a promo; for Manufacturing, it’s streamlining production plan approvals.

ANZ Benefits

In ANZ, where teams are often spread across regions (e.g., a plant in Tasmania vs. a head office in Auckland), automation reduces delays and errors, ensuring S&OP/IBP cycles run smoothly.

How Trace Consultants Can Help

Trace Consultants will design and deploy Power Apps solutions tailored to your S&OP/IBP needs. We’ll automate workflows, integrating with your ERP and APS, to save time and boost efficiency.

2. Enhancing Reporting Capabilities

Better Insights with Power Apps

Power Apps integrates with Power BI to create dynamic, user-friendly dashboards that pull data from your APS and ERP. This gives your team real-time insights—like demand trends or inventory risks—during S&OP/IBP meetings, making discussions more actionable.

ANZ-Specific Reporting Needs

ANZ firms need reporting that reflects local realities, like seasonal demand spikes or shipping delays. Power Apps dashboards can highlight these, ensuring your S&OP/IBP process is data-driven and relevant.

How Trace Consultants Can Help

We’ll build custom Power Apps dashboards that enhance your reporting, pulling data from your APS and ERP for a seamless view. Our solutions ensure your insights are clear, actionable, and ANZ-focused.

What Good S&OP and IBP Look Like in 2025

A refreshed S&OP and IBP process is a strategic driver, not just a meeting. Here’s what “good” looks like for ANZ FMCG and Manufacturing firms.

1. Forward-Looking: Anticipating the Future

Why Forward-Looking Matters

Good S&OP/IBP looks ahead, forecasting demand, risks, and opportunities. For FMCG, it’s predicting a summer beverage boom; for Manufacturing, it’s planning for a construction surge.

Forward-Looking in ANZ

In ANZ, this means preparing for disruptions—like a wet season delaying shipments—or opportunities, like a new trade deal boosting exports. Predictive analytics, enhanced by APS and Power Apps, keep you proactive.

How Trace Consultants Can Help

We’ll design your S&OP/IBP to be forward-focused, embedding predictive tools into your APS and Power Apps dashboards. Our S&OP Template Decks will guide your team through strategic discussions, ensuring plans are future-ready.

2. Assessing Trade-Off Decisions: Making Smart Choices

The Importance of Trade-Offs

S&OP/IBP should evaluate trade-offs: do you hold extra stock to avoid shortages, or cut inventory to save costs? For FMCG, it’s balancing shelf-life risks; for Manufacturing, it’s production costs vs. lead times.

Trade-Offs in ANZ

ANZ’s long supply routes amplify trade-offs—stocking more in Perth costs extra but ensures service during floods. Scenario planning in S&OP/IBP helps you decide wisely.

How Trace Consultants Can Help

Trace Consultants embeds trade-off analysis into your process. We’ll implement scenario tools in your APS and Power Apps, and provide training to assess options, ensuring decisions are balanced and informed.

3. Actionable Insights: Turning Data into Decisions

From Insights to Action

S&OP/IBP meetings often get bogged down in data—good ones deliver insights you can act on. For FMCG, it’s adjusting stock for a promotion; for Manufacturing, it’s tweaking schedules to meet a deadline.

Actionable in ANZ

ANZ firms need insights that address local challenges—like adjusting for a late harvest in Hawke’s Bay. Clear KPIs, powered by Power Apps dashboards, ensure discussions lead to outcomes.

How Trace Consultants Can Help

We’ll ensure your S&OP/IBP delivers actionable insights. Our Power Apps dashboards provide real-time, ANZ-relevant metrics, and our coaching helps teams turn insights into decisions that drive results.

Challenges of Refreshing S&OP and IBP

Revamping S&OP/IBP comes with challenges for ANZ firms:

1. Data Fragmentation

Siloed systems—like separate ERP for plants—create conflicting data.

2. Change Resistance

Teams may resist new processes or tools like Power Apps.

3. Resource Limits

ANZ’s tight budgets can constrain tech or training investment.

4. Regional Complexity

Long lead times and diverse demand add planning layers.

These hurdles are manageable with expert support.

Opportunities with a Refreshed S&OP and IBP in 2025

A modern S&OP/IBP process offers ANZ businesses:

  • Cost Efficiency: Align stock with demand to reduce waste.
  • Improved Service: Meet customer needs without overstocking.
  • Agility: Respond faster to market shifts.

For FMCG, it’s fresher products; for Manufacturing, it’s smoother production. With Power Apps enhancing workflows, 2025 is your year to lead.

How Trace Consultants Can Help ANZ FMCG and Manufacturing Thrive

At Trace Consultants, we bring proven expertise to ANZ’s FMCG and Manufacturing sectors. Here’s how we support your S&OP/IBP refresh:

1. Design

We’ll create an S&OP/IBP framework tailored to your business, aligning sales, operations, and finance.

2. Implementation Support

From APS and Power Apps integration to process rollout, we’ll ensure a seamless refresh.

3. Change Management

We’ll guide your teams through the transition, addressing resistance and securing buy-in.

4. RACIs

Our Responsibility Assignment Matrices (RACIs) clarify roles, ensuring accountability.

5. Reporting Dashboards

We’ll build custom dashboards—leveraging Power Apps and Power BI—for real-time visibility.

6. S&OP Template Decks

Our pre-designed S&OP Template Decks streamline meetings, focusing on forward-looking strategies.

7. Training

We’ll train your teams on S&OP/IBP best practices, including Power Apps usage.

8. Coaching

Our ongoing coaching ensures your S&OP/IBP matures, delivering actionable insights.

We work hands-on, turning strategy into results. With Trace Consultants, your S&OP/IBP becomes a competitive advantage.

Looking Ahead: Your S&OP and IBP Advantage in 2025

In 2025, refreshing S&OP and IBP—powered by APS, Power Apps, executive support, and unified data—sets ANZ FMCG and Manufacturing firms apart. Plan proactively, weigh trade-offs wisely, and act on insights decisively to stay ahead. For CFOs, it’s efficiency; for CSCOs, it’s alignment; for CIOs, it’s innovation.

Don’t let outdated processes hold you back. Contact Trace Consultants today. Let’s refresh your S&OP and IBP—because in ANZ, success demands better.

Planning, Forecasting, S&OP and IBP
June 5, 2023

Mastering IBP & APS in the FMCG Industry: A Guide for Australian CEOs

Mastering Integrated Business Planning & Advanced Planning Systems in the FMCG Industry

Fast Moving Consumer Goods (FMCG) companies are operating in an increasingly competitive and ever-evolving market, necessitating efficient and cost-effective business operations. Now more than ever, FMCG leaders in Australia must harness the power of Integrated Business Planning (IBP) and Advanced Planning Systems (APS) to steer their organisations towards sustained profitability and improved service delivery. This article will delve into how Australian CEOs can effectively implement these modern strategies and systems to optimise performance, reduce costs, and elevate service levels.

The Power of Integrated Business Planning

IBP is a holistic and coordinated approach to business planning that aligns operational plans across various business functions with financial plans and corporate strategy. It can deliver significant advantages in the highly competitive FMCG sector by driving cross-functional alignment, improving forecast accuracy, reducing stockouts and overstocks, and enhancing decision-making.

Involving Key Stakeholders

Effective IBP starts with engaging key stakeholders across all business functions, including sales, operations, finance, and supply chain. By promoting a unified view of the organisation's objectives, this inclusivity facilitates better decision-making and ensures the alignment of individual goals with the overall corporate strategy.

Implementing Standardised Processes

Standardisation in IBP implementation is crucial for ensuring consistency and achieving measurable results. A uniform approach allows for the comparison of data across different segments, divisions, or geographical areas, enabling better monitoring, benchmarking, and optimisation of operational efficiency.

Fostering a Culture of Continuous Improvement

Incorporating continuous improvement in your IBP model can help to identify areas of inefficiency, reduce waste, and streamline processes. This strategy drives a culture of ongoing learning, adaptation, and enhancement, ensuring your organisation stays agile and competitive.

Advanced Planning Systems: An Essential Tool

Advanced Planning Systems are a vital component of a successful IBP strategy. These sophisticated software solutions provide tools for demand planning, inventory optimisation, supply planning, and integrated business planning.

Adopting the Right APS

Choosing the right APS for your organisation is crucial. The system should have features that address your unique challenges, facilitate real-time data access, promote collaborative planning, and deliver predictive analytics for improved forecasting accuracy.

Integrating APS with Existing Systems

For APS to be effective, it needs to be properly integrated with existing IT infrastructure. This ensures seamless data flow between systems, improves accuracy, and reduces the risk of information silos.

Training and Support

Proper training and ongoing support are crucial to leveraging APS's full potential. The right vendor should provide comprehensive training and round-the-clock support to ensure the system is used effectively and any issues are promptly addressed.

By mastering the art of integrated business planning and leveraging advanced planning systems, FMCG companies can achieve their objectives in cost reduction and improved service levels. Australian CEOs should remember that successful implementation involves stakeholder engagement, standardisation, continuous improvement, and the right choice and effective integration of APS.

The FMCG market is a challenging terrain, but with the right planning tools and strategies, CEOs can navigate their organisations to a position of competitive advantage, driving growth, profitability, and customer satisfaction in an ever-evolving business landscape.

Contact us today, trace. your supply chain consulting partner.

Planning, Forecasting, S&OP and IBP
April 13, 2023

Major Event Supply Chains in Australia: Challenges, Opportunities, and Success Stories

Delving into the intricacies of organising supply chains for large-scale events, with a focus on Australian experiences and global best practices

Major Event Supply Chains in Australia: Challenges, Opportunities, and Success Stories

Australia has a rich history of hosting prestigious international events, including the Olympics, sporting World Cups, and Commonwealth Games. Successfully organising these events requires meticulous planning and flawless execution, especially when it comes to supply chain management.

Large scale events in Australia are also complicated by our massive geography and multiple population centres. In this article we will focus on leading Australian experiences and global best practices with organising major events with complex supply chains.

Challenges and Opportunities:

Tight Timeframes and Scheduling

Challenge: Major events typically operate on strict deadlines, making it crucial to ensure that all aspects of the supply chain run smoothly and efficiently. Delays in delivery or installation can jeopardise the success of the event, potentially damaging the host country's reputation.

Opportunity: By adopting agile project management methodologies and investing in real-time tracking technology, event organisers can effectively manage tight timeframes, ensuring that all elements of the supply chain stay on schedule. Moreover, increasing visibility by digitising the supply chain - enabling scenario planning can also drive significant benefits.

Complex Stakeholder Management

Challenge: Major event supply chains involve numerous stakeholders, including government entities, private sponsors, vendors, and suppliers. Coordinating and aligning the interests of all parties can be a complex and time-consuming process.

Opportunity: Implementing a robust communication and collaboration platform can help streamline stakeholder management, promoting transparency and fostering cooperation among all parties involved.

Case Study: Sydney 2000 Olympic Games

The Sydney 2000 Olympic Games was a prime example of effective supply chain management in a large-scale event. The organisers developed a comprehensive logistics plan, which involved the coordination of over 6,700 suppliers, 40 competition venues, and 65,000 staff and volunteers. By leveraging real-time tracking technology and employing an integrated logistics control centre, they were able to manage tight deadlines, complex stakeholder relationships, and high levels of security, ultimately ensuring the successful delivery of the Games.

Statistics: According to a report by the University of Technology Sydney, the Sydney 2000 Olympic Games generated an estimated AUD 6.3 billion in economic impact, showcasing the potential benefits of well-managed major event supply chains.

Sustainability and Environmental Impact

Challenge: Large-scale events often have significant environmental impacts, including carbon emissions, waste generation, and resource consumption. Balancing the demands of the event with sustainability goals can be a challenging task for event organisers.

Opportunity: By incorporating sustainability principles into the procurement process and engaging eco-friendly suppliers, event organisers can minimise the environmental footprint of major events while still meeting operational needs.

Case Study: Gold Coast 2018 Commonwealth Games

The Gold Coast 2018 Commonwealth Games focused on sustainability, setting ambitious targets for waste reduction, carbon emissions, and resource conservation. The organisers implemented a sustainable procurement policy, engaging environmentally responsible suppliers and prioritising the use of reusable, recyclable, and compostable materials. These efforts resulted in a 40% reduction in waste sent to landfill compared to previous events, highlighting the potential for sustainable supply chain practices in major events.

Effective Procurement in Major Event Supply Chains

Challenge: Procurement for major events involves sourcing a wide range of goods and services, often within tight budget constraints. Ensuring the timely delivery of high-quality products and services at competitive prices, while also considering sustainability, local economic impact, and social responsibility, can be a complex task for event organisers.

Opportunity: By adopting strategic procurement practices, leveraging technology, and prioritising transparency and collaboration with suppliers, event organisers can drive efficiency, cost savings, and positive social and environmental outcomes.

Strategic Procurement Practices:

a. Centralised Procurement: Centralising procurement processes for major events can help organisers achieve economies of scale, improve contract negotiation, and streamline supplier management. By pooling the purchasing power of various stakeholders, organisers can secure better deals and ensure consistent quality across all goods and services.

b. Market Analysis and Supplier Evaluation: Conducting thorough market analysis and supplier evaluations can help organisers identify the best suppliers for their needs. By assessing factors such as price, quality, delivery times, and sustainability credentials, event organisers can make informed decisions and establish long-term partnerships with reliable suppliers.

c. Collaborative Contracting: Developing collaborative relationships with suppliers can promote innovation, improve service quality, and facilitate risk sharing. By involving suppliers in the early stages of planning, event organisers can leverage their expertise and foster a sense of shared responsibility for the success of the event.

Technology Solutions:

a. E-Procurement Platforms: E-procurement platforms, such as SAP Ariba or Coupa, can help streamline the procurement process by automating tasks, improving visibility, and facilitating collaboration between organisers and suppliers. These platforms can also provide valuable analytics and reporting tools, enabling event organisers to monitor performance and make data-driven decisions.

b. Supplier Relationship Management (SRM) Systems: SRM systems can help organisers effectively manage their supplier relationships, track performance, and identify opportunities for improvement. By centralising supplier information and facilitating communication, SRM systems can promote transparency and trust between organisers and suppliers.

Case Study: London 2012 Olympic and Paralympic Games

The London 2012 Olympic and Paralympic Games showcased effective procurement practices in action. The organisers implemented a centralised procurement strategy, established collaborative relationships with suppliers, and prioritised sustainability and local economic impact in their sourcing decisions. As a result, the Games achieved cost savings of over £100 million, while also supporting the local economy and minimising the environmental footprint of the event.

Effective procurement is a critical aspect of organising successful major event supply chains. By embracing strategic procurement practices, leveraging technology solutions, and fostering collaboration and transparency with suppliers, event organisers can achieve cost savings, ensure timely delivery of high-quality goods and services, and create positive social and environmental outcomes for their host countries.

Organising major event supply chains is a complex and demanding endeavour, with challenges ranging from tight timeframes to stakeholder management and environmental concerns. By learning from the successes of past events, such as the Sydney 2000 Olympic Games and Gold Coast 2018 Commonwealth Games, and leveraging technology solutions and sustainable practices, future event organisers can overcome these challenges and create lasting, positive legacies for their host countries.

Contact us today, trace. your supply chain consulting partner.