Look forward to Planning ?
When was the last time you looked forward to planning? Planning is an onerous task, its time consuming, involves a great deal of coordination, anxiety, expectation and is thwart with errors and quite often limited return for effort.
The Problem: Spread sheet Paralysis
Most planning systems are run by using multiply Excel worksheets flying back and forth across the organisation. Unfortunately, worksheets are generally cumbersome, prone to error, poor control and limited to administration of a single user. The AAMPS (Cognos TM1) application has developed a planning process which integrates with your ERP system.
How Useful is your Budget
It’s interesting when looking at the typical planning process it involves an annual budget process. A Budget is ideally where you want to go. But it is a line in the sand. Let me ask you a question how useful is a budget 7 months into your financial year when your budget was developed 3 months before your budget started? Since then what has changed? The Budget process is considered a necessary evil as it’s a way of formally telling your stakeholders where you think the organisation is going.
Forecasting deals more with the here are now. It represents, what really happened, your latest expectation and what has changed and what is happening in your business now. It is most useful if prepared every month.
What if Forecasting was easier would you do it?
To be financially effective you need to constantly build and be prepared to rebuild your forecasting process so management can realistically adjust expectations of profit and working capital. The AAMP Planning application provides a user friendly process to produce a rolling forecast month in month out developing scenarios in Sales Volume, Sales $, Gross Margin $ by company, customer, brand and sales territory. The planning process then integrates with your general ledger evaluating changes in your Profit and Loss and the potential impact in Working Capital.