Driving Excellence Through Integration: The Power of IBP and Financial Strategy

For Massimo Giannetto, Integrated Business Planning (IBP) Director at AkzoNobel, achieving seamless alignment between operations and financial strategy is at the heart of their success. With over 20 years of experience, Massimo emphasizes the transformative potential of integrating IBP with financial planning to deliver sustainable growth.

Supply Chain and Logistics Summits Global Series speaks to key leaders in the industry about the tools and strategies they are employing to drive resilience, agility, and innovation in today’s complex global markets.

Under Massimo’s leadership, AkzoNobel has achieved a remarkable advancement in IBP maturity, leveraging xP&A and AI-driven insights to optimize decision-making, improve forecasting accuracy, and reduce planning bias—setting a new benchmark for operational excellence.

SCLS Global Series: In your experience, what are the key trends or disruptions reshaping the industry, and how is your organization adapting to these changes?

• Supply Chain Resilience The COVID-19 pandemic highlighted vulnerabilities in global supply chains, emphasizing the importance of robust systems. We have strengthened risk management frameworks, conducted regular risk reviews, and enhanced visibility across the end-to-end supply chain. By fostering stronger relationships with first-tier partners, we’ve proactively mitigated potential disruptions.
• Customer Expectations for Speed and Customization E-commerce has significantly reshaped customer expectations, making faster delivery and greater product personalization standard. To address this, we’ve implemented demand sensing practices to respond in real-time to customer needs and adopted advanced manufacturing solutions to refine product customization and shorten lead times.
• Digitalization and Automation Technologies like AI, machine learning, and robotics are transforming the industry. Tools such as digital twins and predictive analytics optimize networks and improve forecast accuracy. AkzoNobel has initiated digital IBP solutions, integrating machine learning-driven forecasting and scenario planning to enhance agility and resilience.
• Geopolitical and Economic Volatility Trade wars, regional instabilities, and fluctuating costs are driving companies to focus on nearshoring and deglobalization. We’ve optimized regional supply networks to improve flexibility and ensure business continuity in the face of uncertainties.
• Sustainability and the Circular Economy Increasing regulatory and customer demands for sustainable practices are pushing companies to reduce carbon footprints and adopt circular economy principles. We’ve prioritized green logistics, optimized routes to cut emissions, and collaborated with suppliers to promote environmentally responsible sourcing.

SCLS Global Series: If you had unlimited resources to overhaul one aspect of your supply chain or procurement process, what would it be, and why?

If I had unlimited resources, I would prioritize end-to-end (E2E) supply chain visibility and traceability by investing in a fully integrated, real-time digital ecosystem. This would provide:

• Proactive Risk Management: Early identification of potential disruptions, enabling timely mitigation.
• Improved Decision-Making: Real-time data and predictive analytics for better insights into inventory, demand, and supplier performance.
• Sustainability and Compliance: Full traceability to ensure adherence to environmental and regulatory standards.
• Increased Agility and Resilience: Enhanced responsiveness to market changes and customer demands.
• Collaboration and Integration: Stronger partnerships among suppliers, manufacturers, and customers, leading to a synchronized supply chain.

SCLS Global Series: AI is often seen as the golden solution for supply chain challenges, but some argue it’s just a buzzword being overused. Do you think the industry is truly ready to implement AI at scale, or is it being oversold as a quick fix for deeper systemic issues?

AI, while often hyped as a "quick fix," holds transformative potential when implemented thoughtfully. It is not a standalone solution but a powerful tool for enhancing efficiency.

• Information Analysis: AI processes vast data sets, identifies patterns, and delivers actionable insights.
• Data Quality: Automates data cleansing, ensuring consistent and accurate master data.
• Real-Time Decision-Making: Facilitates proactive operations, predicts disruptions, and dynamically reallocates resources.

While the chemical industry and other sectors are increasingly ready for AI, organizations with unresolved systemic issues like poor data quality may face challenges in realizing its benefits.

SCLS Global Series: What is one innovative project or initiative you’re most proud of, and what impact did it have within the industry?

One of the most impactful initiatives I’ve led was the implementation of the Integrated Business Planning framework and its drive to maturity. By seamlessly integrating IBP with all pre-existing planning processes, including financial planning, we created a cohesive and agile planning framework that revolutionized decision-making within the organization. First, the integration ensured that decision-makers had access to relevant and meaningful data, allowing them to act with confidence and speed. This reduced decision latency and improved alignment across functions, from operations to finance. Then, the enhanced visibility and real-time insights provided by IBP allowed us to anticipate and respond effectively to supply chain disruptions. Whether dealing with geopolitical challenges or demand volatility, the company was able to steer operations swiftly and minimize impact. Finally, this initiative not only improved internal operations but also served as a benchmark for the industry’s best practices. By demonstrating how IBP can drive business agility and resilience, it inspired other organizations to adopt similar frameworks. I’m proud of how this initiative positioned AkzoNobel as a leader in supply chain planning maturity, setting a new standard for data-driven decision-making.

SCLS Global Series: If you could solve one major challenge facing the supply chain or logistics industry today with a snap of your fingers, what would it be, and why?

If I could solve one major challenge instantly, it would be to eliminate geopolitical turmoil and uncertainty that disrupt global logistics routes and destabilize transportation costs. It would ensure stabilized logistic routes, as geopolitical tensions pose significant risks to key shipping lanes and trade routes. Removing these uncertainties would ensure uninterrupted flow of goods and raw materials. It would grant predictable transportation costs, when we consider that political instability often leads to fluctuating fuel prices, increased insurance premiums, and surcharges, which disrupt cost planning and reduce profitability. Stabilizing geopolitical landscapes would result in more predictable and manageable freight rates. It would dramatically boost Supply Chain resilience through reduction of the need for costly contingency measures, such as overstocking inventory or over-reliance on nearshoring, enabling companies to build leaner, more agile supply chains. Geopolitical stability is a cornerstone of efficient and reliable supply chains. Addressing this challenge would foster a more predictable, cost-effective, and resilient global logistics network, unlocking significant opportunities for growth and innovation across industries.

SCLS Global Series: With such a diverse lineup of industry leaders and topics, what excites you the most about the conversations and connections you’ll have at this year’s summit?

This year’s summit excites me with its focus on AI, resilience, and digital transformation. Engaging with global thought leaders, particularly on Middle Eastern logistics challenges, promises to inspire practical strategies for today’s pressing supply chain issues.