# Concepts

To be done well, Integrated business planning requires some minimum fundamental knowledge in a variety of areas. In the concepts section, I'll get straight to the point on a number of key concepts while providing you with a load of useful and relevant links to explore as you return.

# How to use this section

Each of the 5 core IBP domains below contains pages ranging from foundational to advanced. Start with the fundamentals in any domain, then branch out as your needs require. Two cross-cutting topics — KPIs & Metrics and Planning Horizons — apply across all domains.

# Core concepts

The core concepts in Integrated Business Planning can fall into 5 main domains:

Pretty simple, right? Don't get too caught up in processes at this point, it will only bog you down.

# Portfolio Management

Portfolio Management — managing the product/service mix and why it matters to IBP
Product Lifecycle — lifecycle stages and their impact on planning

Cannibalization analysis and portfolio optimization
New product introduction (NPI) demand modeling

Inventory Policies — how lifecycle stage connects to stocking strategy

# Demand Planning

Demand Planning — overview, statistical & judgmental forecasting, ABC-XYZ segmentation
Forecast Accuracy — MAPE, bias, tracking signal, FVA

Demand Sensing & Shaping — real-time signals and proactive demand management

KPIs & Metrics — demand metrics in the broader IBP scorecard

# Supply & Operations Planning

Supply Planning — MTS/MTO/ATO, supply hierarchy, the supply review
Inventory Policies — (s,Q), (R,S), (R,s,Q) and other stocking policies
Supply Chain Costs — holding costs, transaction costs, cost optimization

Capacity Planning — RCCP, CRP, bottleneck management, capacity strategies
Procurement Planning — supplier risk, make vs. buy, commodity exposure

Planning Horizons — time fences and their impact on supply flexibility

# Financial Planning & Reconciliation

Financial Planning — translating operational plans to P&L projections
Gap Analysis — identifying and closing revenue, margin, and volume gaps

Scenario Planning — driver-based scenarios and decision frameworks

Supply Chain Costs — cost components feeding financial reconciliation

# Management & Approval

Management Business Review — the executive IBP meeting
Governance & Decision Rights — RACI, escalation, the one-number plan

Maturity Model — assessing and advancing IBP capability across 5 levels

KPIs & Metrics — building the executive scorecard
Planning Horizons — the monthly IBP calendar and cadence

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