Recent headlines tell a tale of industries being impacted by supply chain disruptions: factories imposing temporary shutdowns due to rising coronavirus cases; war and political conflict interrupting shipments; raw materials shortages as a result of swift consumer preference or market shifts. As a result, companies around the world are pivoting their operations to meet the needs of their customers. In tandem, leaders of those organizations are challenged with quickly determining answers to questions like, “What are the overall costs of changing the location of our production line for this project?” and “How much of a financial impact will a month-long delay have on our company’s bottom line?”
Traditional supply chain management and budgeting processes rely on manual data entry, disparate data sources, and spreadsheets shared over back-and-forth emails for planning. Such processes lack the speed needed to answer these questions quickly enough to keep up with rapidly changing conditions and to help companies maintain a competitive advantage.
Corporate Performance Management (CPM) software is a comprehensive solution that helps businesses better and more agilely manage all their budgeting and finance activities. These software tools can help organizations streamline their supply chain management and budgeting processes by giving them a better understanding of internal and external data to make more confident and timely decisions through the power of trusted insights – even amidst unpredictable supply chain challenges. With CPM software, companies can automate repetitive and complex tasks, freeing up time for valuable scenario planning so organizations can quickly model the implications of “what ifs.” With CPM tools, companies can develop plans to mitigate supply challenges and improve strategic planning, increase agility and reduce risk.
Model supply chain scenarios and plan for the unexpected
Organizations often race against time to modify budgets and forecasts as economic conditions rapidly change. Having multiple “what if” scenarios can help companies optimize production capacity, inventory planning and resource utilization in the face of market uncertainty. In other words, these tools enable companies to plan for the unexpected.
With business moving faster than ever, companies don’t have time to get bogged down by manual planning when trying to circumvent supply chain disruptions. Automating scenario planning through CPM software helps companies quickly build and evaluate plans for a supply chain disruption before they happen and foster the collaboration needed to tackle challenges before they occur. Scenario planning in CPM software offers real-time tracking, measurement and monitoring of costs against key business drivers, helping businesses make informed decisions on their supply chain and production strategies.
Projects often fail when budgets change and plans can’t adjust quickly enough. CPM software provides companies with high-level visibility, organizational agility and control, and the power to adjust quickly when unforeseen events occur. This technology allows companies to see the immediate impact of supply chain disruptions by producing multiple forecasts based on potential scenarios or a real-world change in supply chain conditions, and adjusting strategy and operations to deliver better outcomes for customers.
Save time & improve agility
CPM software’s greatest strength lies in its automation capabilities: It’s estimated that the time required to collect and analyze data can be cut by 70% through automating financial planning and analysis processes. For companies working to adjust their budgets to reflect a change in production or delivery time, this time savings is essential – that time can be reinvested into adapting business operations to shifting market conditions.
Without the automation capabilities of a CPM solution, adjusting budgets can take weeks, delaying crucial decisions that have significant impacts to the bottom line. CPM software expedites forecasting, planning and budget adjustments, enabling business leaders to proactively plan for shortages, delays and price hikes in the supply chain, and quickly pivot their strategies when needed, ensuring company finances don’t take a hit and customers don’t switch to a competitor that found a solution faster.
Data is a star player in the digital transformation of business operations. When addressing the supply chain, businesses deal with a large sum of complex data from multiple sources – manufacturers, production plants, freight and delivery companies, etc. Manual entry of this data leaves room for human error and renders it nearly impossible to forecast based on real-time intelligence. CPM software integrates data directly from the source, preventing mistakes caused by sticky keys, tired eyes and outdated information. CPM software’s ability to model multiple scenarios can also help identify and avoid financial decisions that could create risk for the business with ease.
A healthy supply chain is essential for smooth business operations. But from factory shutdowns to staffing shortages, the ramifications of the pandemic are still reverberating throughout the supply chain in nearly every industry. Companies must be more involved in the day-to-day management of their supply chain, but to make informed decisions, leaders need access to real-time information on production levels, inventory volumes, projected demand, utilization of resources and more. An innovative CPM software solution that can automate budgeting and forecasting and help companies take the guesswork out of strengthening their supply chain, and could make the difference between thriving and barely surviving the continued turbulent times ahead.