Financial Reconciliation in S&OP

19. October 2021

โ€œWhen we give ourselves permission to failโ€ฆwe at the same time, give ourselves permission to excel.โ€ (Eloise Ristad)

In yesterdayโ€™s iBsing pioneers call we discussed the ๐Ÿ๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐ซ๐ž๐œ๐จ๐ง๐œ๐ข๐ฅ๐ข๐š๐ญ๐ข๐จ๐ง ๐ข๐ง ๐’&๐Ž๐ between commercial and operations. Here some highlights from our discussion.

๐“๐ž๐œ๐ก๐ง๐ข๐œ๐š๐ฅ ๐‚๐ก๐š๐ฅ๐ฅ๐ž๐ง๐ ๐ž๐ฌ:

  • ๐‘ซ๐’‚๐’•๐’‚: must be comparable, units of measure need to be clear, average selling need to be accessible, level of error needs to be proactively communicated
  • ๐‘บ๐’š๐’”๐’•๐’†๐’Ž: Product families must be segmentedย  for reconciliation, statistical forecasts needs to be broken down at country/SKU level and dollarized
  • ๐‘น๐’†๐’‘๐’๐’“๐’•๐’Š๐’๐’ˆ: solid metrics and analysis capabilities (bias, FC evolution, etc.) to make disconnects visible

๐‚๐ฎ๐ฅ๐ญ๐ฎ๐ซ๐š๐ฅ ๐‚๐ก๐š๐ฅ๐ฅ๐ž๐ง๐ ๐ž๐ฌ:

  • ๐‘ป๐’“๐’‚๐’๐’”๐’‘๐’‚๐’“๐’†๐’๐’„๐’š ๐’‚๐’๐’… ๐’•๐’“๐’–๐’”๐’•: Failure is ok, hiding information is not ok
  • ๐‘ฌ๐’๐’ˆ๐’‚๐’ˆ๐’†๐’Ž๐’†๐’๐’•: If the commercial team does see the benefit of financial reconciliation to grow the business, the Finance team will get engaged with pleasure.
  • ๐‘ช๐‘ฌ๐‘ถ must be a role model for transparency, trust and engagement

๐“๐ก๐ž ๐œ๐ฎ๐ฅ๐ญ๐ฎ๐ซ๐š๐ฅ ๐œ๐ก๐š๐ฅ๐ฅ๐ž๐ง๐ ๐ž๐ฌ ๐š๐ซ๐ž ๐ญ๐ก๐ž ๐ญ๐ซ๐ข๐œ๐ค๐ฒ ๐จ๐ง๐ž๐ฌ! ๐€๐ ๐ซ๐ž๐ž๐?

Thanks to Fabienne Coombs for an exceptionally clear and creative presentation on the topic and all the participants for the excellent discussions in the breakout sessions! S&OP/IBP practitioners who want to join our regular cost-free calls, please let me know!

 

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