What’s new in supply chain planning?

I. Context

Supply Chain Planning (SCP) is a key process in supply chain management. It involves the strategic and tactical planning of the entire supply chain, from raw material requirements through to delivery of the final product to the customer.

SCP aims to optimise supply chain operations by aligning demand with supply, planning and managing resources and capacities effectively, minimising costs, maximising efficiency, and improving quality and customer satisfaction.

It includes activities such as demand forecasting, production planning, inventory management, distribution planning and transport management. SCP uses tools and techniques such as mathematical modelling, optimisation and simulation to help make informed decisions and improve supply chain performance.

It is in this context that CCH Tagetik is complementing its financial planning offering with a new IBP (Integrated Business Planning) module that harmonises financial, commercial, operational and strategic planning.

II. What are the challenges for businesses?

For years, CFOs have heard about the promises of Integrated Business Planning (IBP). In practice, the dream of breaking down silos and enabling real-time collaboration across all departments and business units has often remained just that.

Today, IBP is more important than ever. A mature process enables just-in-time scenario planning to respond to volatile market dynamics. In addition, IBP will enable CFOs to allocate critical resources in the most cost-effective way – a direct tool in the fight against inflation.

By reaching consensus on future demand and the supply response aligned with management objectives and financial budgets, IBP provides an effective tool to reduce inventory and increase margin by allocating constrained supply to the most profitable channels.

Here are some essential benefits of IBP as you navigate the complexity of aligning business activities:

Drive in the most effective way

CFOs need accurate forecasts and real-time reporting to effectively guide financial controllers, supply chain planners, sales teams and other stakeholders. Deploying predictive intelligence and advanced modelling to forecast demand, plan inventory and create supply and production plans will provide insights into the financial impacts of these decisions.

See far and fast – What-IF?

CFOs must consider more than a single scenario.  What happens when the best plans change?

By using a combination of real-time data, historical information, budgeting and supply chain data, CFOs can automatically forecast and revise supply chain units – and the resulting financial outcomes – over future time periods.

Planning will make it possible to analyse different scenarios and create rolling forecasts “Rolling Forecast” agile enough to respond to market uncertainty.

Improve margin

The heart of IBP lies in its ability to produce improved margin patterns. Using real-time data to see how changes to economic indicators ripple across the entire supply chain and ultimately be reflected in income statements is one of IBP’s major strengths.

By leveraging improved forecasts, supply chain planning can reduce projected inventory levels and improve production rates. Dynamic, connected plans can help maximise available revenue and achieve a more optimal margin.

III. cch tAGETIK: One platform, one plan, one set of numbers that runs your business

CCH Tagetik, ” Integrated Business Planning “, is a comprehensive platform for strategic, financial, commercial and supply chain planning. It brings together financial and operational information from all departments and business units within a company into an integrated planning platform powered by dynamic data, real-time automation and AI-based forecasting.

This solution was designed for everyone:

• Executives can develop strategic plans with a view of profitability and operations.
• Operational managers can create plans aligned with peripheral operations and financial objectives.
• Management controllers can create predictive forecasts while seeing how operational plans will impact performance today and in the future.

By aligning the organisation around a single set of numbers, CCH Tagetik offers increased resilience and closed-loop decision-making for greater accountability across the organisation.

If you would like more information on the subject and/or have any questions, you can contact us at jsaccona@meltone.com.