Organizational Alignment Between IBP and MRP
Contrary to popular belief, integrated business planning (IBP) versus material requirements planning (MRP) is not an “either-or” choice. It is an “and” choice; both can work seamlessly together. It is entirely possible—even desirable—to be both an IBP and an MRP shop. Put simply, MRP is a process (and SAP functionality) to balance demand and unconstrained supply, to better facilitate procurement and production requirements and execution. IBP is a longterm planning process that incorporates cross functional inputs to develop a consensus forward looking plan. It is also an SAP advanced planning or decision support solution, modularized into activity areas. MRP and IBP can work in synchronicity, providing agility that improves forecast planning and on-time delivery when implemented correctly.
Keep in mind that SAP is built on best practices and there is no shortage of strategies. MRP and IBP have evolved to work together, hand-in-hand.
Supply chains thrive when we work together. And, when ECC or S/4HANA are working well with IBP, we are well on our way to balancing demand and supply, attaining financial targets, increasing speed and agility, and achieving our revenue goals.