Integrated Tactical Planning is a near-term process for optimizing and synchronizing changes in product portfolio, demand and supply plans, and associated financial implications. The ITP time frame is within the ‘planning time fence’ as opposed to Integrated Business Planning (IBP) which focuses on the planning periods beyond the planning time fence. This creates a seamless interaction of the key core processes – product portfolio, demand, supply and the resultant financials – between near-term ITP and longer-term IBP. Whereas the monthly Integrated Business Planning process manages resources and supply capability to meet the product portfolio and demand plans longer term, the key concept of the Integrated Tactical Planning process is managing product portfolio and demand to meet the typically less flexible supply resources and capabilities inside the planning time fence.
“It is useful to think of Integrated Tactical Planning as the cogs in a gearbox – it doesn’t matter how big or small those cogs are, if one is broken, the car stops. Each cog relies on the next, but a clutch is required to separate them and change gear to speed up, climb hills, slow down, or prepare for tight cornering. To do this requires mechanisms to be designed into the gearbox in the first place and not force-fitted afterwards.”