What is Integrated Tactical Planning (ITP)?

Definition and Core Purpose

Integrated Tactical Planning (ITP) is a rigorous, weekly cross-functional re-planning process designed to ensure the business stays on track to deliver the commitments made during the monthly Integrated Business Planning (IBP) cycle.

While IBP creates the plan for the future (24+ months), ITP is the "control tower" responsible for landing that plan safely. It proactively seeks out changes to the core plans (Portfolio, Demand, and Supply) and rebalances them back to the signed-off IBP baseline. Its primary focus is not just creating a plan, but actively watching over and delivering it within the short-term tactical horizon.

The Missing Link: Above vs. Below the Line

ITP addresses the critical "execution gap" that often exists between high-level strategy and daily operations.

• IBP (Above the Line): Operates at an aggregate level over a long horizon. It focuses on medium-to-long-term strategy.

• ITP (Below the Line): Operates at a granular level of detail—often down to specific SKUs, days, or hours.

ITP serves as the heartbeat of execution. By running on a weekly cadence, it provides 52 opportunities per year to adjust and improve the plan, compared to just 12 opportunities in a monthly IBP process.

Mechanics: The Quorum and Time Fences

Effective ITP is defined by strict governance and physical reaction times known as Time Fences.

• The Planning Horizon: Typically covers the 0 to 13-week period. This horizon is usually determined by the Planning Time Fence (PTF)—the cumulative lead time of the longest critical material. Inside this fence, the "Quorum" must take control.

• The Quorum: Decisions in ITP are managed by a core cross-functional team known as the Quorum (Demand Execution, Supply Scheduling, Customer Service). They meet weekly to manage exceptions and resolve conflicts.

• The Emergency Zone: The period closest to "today" (usually 1-2 weeks). Changes here are highly disruptive and costly. ITP aims to stabilize this zone by freezing the schedule and managing only critical exceptions.

Decision Focus: Exception-Driven Management

ITP is fundamentally an exception-driven process. The Quorum focuses only on what has changed since the last week.

The goal is to empower middle management to resolve deviations at the lowest possible level, escalating to senior leadership only when a resolution cannot be achieved within agreed parameters. This operates on the principle of "silence is approval"—if senior management does not hear about an issue, they can assume the business is executing to the IBP plan.

The Simulation Advantage

In the tactical horizon, uncertainty is the norm. "Abnormal Demand" or sudden supply shocks can derail the schedule instantly.

Traditional spreadsheets cannot handle the complexity of rebalancing daily plans against 13-week constraints. Simulation-based ITP is essential here. It allows the Quorum to model "what-if" scenarios in real-time—such as the impact of a material shortage on customer orders three weeks out. By using Demonstrated Capability (proven performance data) rather than aspirational targets, simulation ensures that the tactical plan is always valid, feasible, and financially optimized.

About SIMCEL

SIMCEL unites your planning processes into one seamless platform. Whether you're optimizing inventory in Supply, refining forecasts in Demand, aligning financial strategy in Finance, or driving sustainability in Carbon—SIMCEL empowers your team to simulate, visualize, and align every decision across the business. Say goodbye to silos and hello to truly integrated, agile planning.