Demand-Planning-Forecasting

28 May 2020

Bridging the gap between Demand Planning & Financial Forecasting

The Great Pandemic created the great disruption although not a dislocation yet - all of us are huddled inside our homes for the most part except for those noble souls namely Front line workers and Essential workers.

The great disruption is magnifying the importance of risk identification and mitigation across the entire economy - companies need to look at their planning process carefully to be better prepared.

Despite the enormous amounts of stimulus and support, companies will run the risk of a cash crunch. Although liquidity could be solved by the Government support, solvency is not something the Governments can solve.

S&OP process is an important tool to assess potential risks to the business and alternative strategies in a proactive way.

Although demand planning has been around for over 20+ years, the time has come to expand this and bridge this to develop a cash flow forecast. In many companies, this is a siloed process based on some deterministic assumptions.

Are you facilitating a cash flow forecast? How can you develop a process that bridges the demand plan into arriving at a financial forecast with impact on expected cash flow?

To know more about our consulting services visit www.valuechaniplanning.com

Leave a Reply