Integrated business planning in the age of the digital transformation
Strategic, tactical, and operative planning processes
Integrated business planning in the age of the digital transformation unites the strategic, tactical, and operative planning processes in one system environment, for example SAP.
Strategic planning includes the business planning: determination of the network nodes to be planned (sales locations, warehouse, production plants, suppliers), financial and budget planning, strategic sourcing (internal or external) of components and production capacities, and incorporation of sales & marketing plans.
Tactical planning includes the process of the portfolio; demand, supply, and inventory planning; also called Sales, Inventory & Operations Planning (SI&OP). It consolidates all information relevant for the sales plan and, in the process of comparing demand and supply, creates a feasible plan taking into account goals defined internally (e.g. inventory level or service level).
Sales & Operations Execution describes the operative planning and includes customer order management, operative disposition, and production in the course of detailed production planning and processing. Regarded are all topics relating to customer order entry and accounting, operative material disposition and the provision of materials for production supply, as well as transport and warehouse management.