09 Aug 2023

How does IBP ace the financial and operational objectives of the CPG Industry?

Streamlining planning & setting key performance indicators helping organizations measure their performance, the IBP platform brings collaboration & transparency, aiding CPG industries to optimize their full potential.

Home > Insight> How does IBP ace the financial and operational objectives of the CPG Industry?

Chain Reaction.

A term widely used in day-to-day parlance. It means setting off a chain of events whose root causes either make or break the subsequent state of the intended goal. From an organizational perspective, these events can put them on the upward or downward trajectory of financial & operational objectives. A supply chain management does everything in power to ensure that its factions, however diverse their functioning, work together to achieve a common purpose. Working in siloes is a canon event that is bound to have a detrimental impact on an enterprise.

This is where an Integrated Business Platform (IBP) kicks in, helping stakeholders collaborate & align themselves across the end-to-end stages of supply chain planning & execution and boost a company’s Sales & Operations Planning (S&OP) while integrating far more challenging financial aspects. This holds truer for the consumer packaged goods industry, where the journey from raw material to marketplace moves at a higher frequency and needs an agile value chain software to accommodate the variable demand & supply parameters of the economy & the targeted group.

By enhancing cross-functional engagement, the CPG organization sets KPIs that aid in making decisions that benefit the overall business strategy. In this write-up, we’ll focus on the two significant pillars of finance & operations that IBP assists and how it simplifies the complexities of the consumer packaged goods industry.

Table of Contents

How can Financial Planning be achieved with IBP?

No execution & planning ventures ahead without comprehending the financial aspects attached. An organization prioritizes its regular cash flow to align its business-as-usual activities, long-term & short-term goals. The biggest economic challenge a value chain faces is during a disruption which requires the business to be more flexible in its operations and, of course, in handling its economic activities. With IBP, finances become more streamlined with transparent requirements laid out by the cross-functional teams, making the financial model more attuned to real-time planning scenarios. This generally involves:

Achieving Financial Planning with IBP
  • Effective Planning: Aligning supply chain & operations planning with metrics of volume, time, cost, margins & revenue generation.
  • Strategy Transparency:Focusing on short-term disruptions & their financial impact on the mid-to-long-term timeline.
  • Opportunity Management: Providing relevant data for the correct deployment of an action plan. Finance-led scenario planning to leverage opportunities & minimize risks.
  • Monitoring Performance: Taking business decisions based on performance metrics & taking calls that aid profit and loss (P&L) statements.

How can Operational Objectives be achieved with IBP?

The uncertainty surrounding the market is always challenging for management. And such challenges become twofold when departments work in isolation and need a clear plan for mitigating an unwarranted scenario. The core shift an IBP tool brings in is that it parts ways with siloed Business Process Management (BPM) and embraces a transparent, sustainable, organization-driving framework involving top executives.

Let’s look at how exactly an Integrated Business Planning fulfills operational objectives with its duly data-driven & comprehensive process.

Achieving Operational Objectives with IBP
  • Linking Finance to Operations: A plan’s efficacy is driven by how well its finance has been charted out. No management wants a retrograde phenomenon caused due to lack of funds during an execution process. An IBP platform integrates the financial metrics firsthand, not as an afterthought after the planning stages.
  • Enhancing Cross-Departmental Functioning: All operations work in tandem to drive a company’s growth prospective, and the Integrated Business Planning platform does that but in a finetuned manner to convert a potential customer opportunity. An IBP, with its comprehensive abilities, lays the perfect roadmap for finalizing the forecast, aligning stakeholders & providing a successful engagement blueprint.
  • Aligning Strategy with Operations: There are instances when senior leadership has to make tactical decisions during impromptu value chain bottlenecks. During handling such tasks where time is of due importance, IBP’s comprehensive dashboard keeps higher management updated on the ground actions that have been undertaken. Aligning strategies with operations makes the titular platform a must-have for the CPG industries.
  • Balancing Supply & Demand: With streamlined operation courtesy of IBP, companies find it easy to maintain robust day-to-day workflow in the face of strenuous market volatility. This helps in enabling operations to be responsive under testing circumstances.

3SC IBP aids companies in extending their planning process in a more simplified & exhaustive manner that ultimately drives its scalability & revenue prospects. By aligning an enterprise’s financial & operational objectives – Integrated Business Planning provides a sure-shot way for an all-season supply chain.

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