DSF Balance & BPC Financial Integration

Customer benefits

  • Better guidance from Demand plan to report to the financial markets
  • Better alignment with Sales and Business Units on the revenue, margin, and inventory goals
  • Increased predictability of revenue, gross and operating margins
  • Less inventory excess and obsolescence reserves leading to Improved gross margins
  • Lower inventory balance leading to improved cash flows

Solution highlights

  • Balances Demand and Supply across Supply Chain for cost based Financial BPC and Supply Chain Alignment
  • Creates Demand driven profitable supply response
  • Translates Volume plans into Revenue and Profit projections
  • Unconstrained and Constrained Revenue Plan
  • Revenue projections based on constrained Demand-Supply-Financials
  • Shipment Forecast based on Projected delinquency
  • Build Demand adjusted through Demand-Supply-Finance balance process
    • Historic delinquency | Supply Constraints | Target Delinquency
  • Integration with BPC to achieve
    • Fixed cost planning | Cash flow forecast | Currency fluctuations | Profitability scenario analysis

Planning Levels

Material | Customers | Time in Months, Quarters, Years

KPIs

COS/ Revenue | Gross Margin | Operating margin | Gross Profit | Operating Profit | Inventory Turnover | Current ratio | Cash to Cash cycle time | Revenue growth | Revenue per customer

What-If Scenario Planning

  • Inventory holding costs - Safety stock variation with varying Service levels & Lead Time
  • Analyze impact of the changing costs on Profitability