SCENARIO PLANNING
Despite significant investments in financial and operational planning and performance management software, effective scenario planning remains a key challenge for global manufacturers. Most lack a single scenario planning process that can evaluate the impact of potential actions, from both financial and operational perspectives. What’s missing are models and processes that can:
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- Provide a realistic representation of the end to end business
- Simultaneously project financial and operational resources and cash flows
- Simultaneously expose and optimally resolve financial and operational risks and constraints
- Quantify the volume and mix of products and services that optimizes cash flow
- Quickly execute scores of “end to end” scenarios across functions and entities
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A key component of such models and processes is prescriptive analytics. These tools are not new, as supply chain optimization tools have been available for years. What is new are modeling and process execution platforms that address the limitations of traditional supply chain tools. This includes:
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- Modeling the entire enterprise, not just the supply chain and individual entities
- Distributing ownership of parameters to quickly update models for business changes
- Maintaining analytical master data to simplify maintenance of complex models
- Reconciling results to financials, by embedding charts of accounts
- Optimizing profits and cash flow, not just costs
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We help financial and operational executives to leverage these tools. Our holistic approach helps them to understand the nature of capability gaps in existing planning tools, along with options for fixing them. One such option being a “PlugIn” solution that augments existing financial and operational tools.
