What is a Single Operating Plan?

Definition and Core Purpose

The Single Operating Plan is the definitive consensus roadmap generated by the monthly Integrated Business Planning (IBP) process. It represents the agreed-upon direction for the entire business, consolidating product portfolio, demand, supply, and financial projections into one common organizational plan.

More than just a forecast, it is a commitment. It serves as the single set of integrated numbers that the executive management team holds themselves—and their departments—accountable for achieving. Its primary goal is to maximize company profitability and efficiently allocate critical resources (capital, inventory, time) to satisfy customer demand in the most financially viable way.

Key Characteristics: Feasibility and Financialization

A Single Operating Plan is distinct from a budget or a sales target because it is grounded in reality. To be effective, the plan must meet strict criteria over a 24-month rolling horizon:

• Technically Feasible: The plan must be "doable." It is built on Demonstrated Capability—proven operational performance data—rather than aspirational targets.

• Financially Viable: It is fully integrated with rolling financial projections. It creates a "Committed Sales and Operations Plan" that serves as the basis for projected P&L, profit, and working capital outcomes.

• Holistic Integration: It eliminates functional silos. There is no separate "Marketing Plan" or "Operations Schedule"; there is only the Single Operating Plan that aligns all functions toward a shared corporate strategy.

Strategic Context: Connecting Strategy to Execution

The Single Operating Plan serves as the central transmission gear in the planning hierarchy. It operationalizes corporate strategy by ensuring that high-level goals are consistently met across all functions.

It functions through a bidirectional alignment process:

1. Top-Down/Bottom-Up Reconciliation: It reconciles the top-down strategic direction set in the Management Business Review (MBR) with the aggregated bottom-up planning capabilities derived from the Portfolio, Demand, and Supply Reviews.

2. The Feed for Execution: Once approved, the Single Operating Plan provides the non-negotiable framework for shorter-term execution processes. It sets the baseline for Integrated Tactical Planning (ITP), which operates weekly to rebalance execution back to the goals set in the monthly signed-off plan.

The Simulation Advantage

Achieving a Single Operating Plan is difficult when departments use disconnected data sources. Often, the "consensus" is just a compromise reached on a spreadsheet, brittle to the slightest market change.

Simulation-based planning transforms the Single Operating Plan from a static document into a dynamic decision framework. By simulating scenarios across the entire value chain, SIMCEL ensures that the "one number" isn't just a guess—it’s a stress-tested strategy. Leaders can visualize the financial impact of demand shifts or supply constraints instantly, ensuring that the Single Operating Plan remains robust, profitable, and executable even in volatile markets.

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.