According to recent research by J.P. Morgan, the COVID-19 pandemic has created a “perfect storm” of logistical problems for businesses. However, the pandemic didn’t create all of the problems that the global economy is currently facing. Long-standing structural and operational issues that were previously hidden have been laid bare by the crisis. As a result, many companies are struggling and won’t find relief from supply chain pains for at least another year.
To overcome these challenges, experts suggest integrated business planning (IBP). IBP allows companies to assess challenges on the horizon, develop their strategic plans, and take a bird’s-eye view of inventory, resources, and the company’s financial condition over the next two to three years.
To get started with IBP, companies must understand their exact place in the supply chain. This means reflecting on their industries, local economies, and potential impacts of supply chain disruptions. Leaders must also have a firm grasp of how their enterprise will overcome geographical challenges to selling products and services. They must consider alternative sales strategies and prepare for sudden shocks with goal-oriented statements.
Companies must also examine the maturity level of their business and decision-making process, especially during a crisis. During the IBP process, they can shorten decision-making stages and create greater efficiency. They may also need to reach out to outside consultants for an unbiased set of eyes.
Long-term investments, such as digitization or infrastructure upgrades, can be broken up into smaller, bite-sized pieces that focus on key performance indicators. Companies can turn to providers or platforms that seamlessly integrate with their existing systems, rather than layering on top of them.
Overall, IBP allows companies to reset and strategically plan for a post-COVID world. With greater resilience and a robust plan, businesses can navigate the current and future shocks around them.
