Achieving a Flexible and Relevant Budget For Your Organization
Everyone talks about their budgets and the issues that go along with it, but rarely take any action. A new AFP member survey of finance professionals, Is Your Budget Relevant? , found that the majority (55%) of respondents said their company had a rigid or ironclad budget process. This keeps them from being agile in an increasingly flexible world. On the other hand, 30% of respondents said their budgeting was “loose”. An answer to solving this is adopting and budgeting for a rolling forecast. You can’t tell in advance where your customers will be, but it is important to budget for them.
Creating Synergy for Manufacturers Will Lead to Higher Profitability
The amount of data that management teams have access to can be overwhelming. Despite the advanced technology available today, there are still three key issues that adversely affect manufacturers of all types and sizes- data management, inventory, and gross margin. Although each has its own silo, they are also interrelated. Examining and scrutinizing data management, inventory, and gross margin results in a more reasoned picture about how the use of controls can generate greater productivity and profitability. Creating synergy among these departments will ultimately lead to a positive impact on profitability.
Data Insights in the Real World
“A California CIO uses data to help citizens survive earthquakes, landslides, floods, and volcanos; a Dutch executive uses it to visualize solutions to rising sea levels; a Chinese CIO sells the cloud to his culturally risk-averse boss. Data, often hundreds of years old, is the untapped resource for many executives tasked with digitally transforming their organizations. We spoke to five CIOs who are on multiyear journeys revamping their companies’ systems for the cloud. They share their thoughts on data gravity, data sovereignty, data access, and other human factors related to data. Indeed, the one goal they all had in common was to gain the ability to obtain real-time insights from vast stores of data.”
The Right Technology Can Save Your Supply Chain
There are five trends causing the most stress in today’s supply chain industry – individualization, globalization, connectivity, mobility, and sustainability. Most of these challenges can be solved by technology, so it is important for specialists to understand how their organization can excel with innovative solutions. These solutions include an integrated business planning tool and an integrated e-commerce, warehousing, and transportation system allows you to streamline your order fulfillment processes for quick, efficient, and flexible customer delivery. Once supply chain specialists can get a handle on their technology, they will gain the agility and responsiveness to be successful.
Finance Function Cost vs. Strategic Value
“CFOs should decide how to balance their focus on the cost of the finance function versus its strategic value.”
CFOs are increasingly expected to accomplish more with fewer resources, so it’s important that they track how much it costs to run the finance function. This can be done by considering the total cost of the finance function as a percentage of revenue. Total cost includes personnel, systems, overhead, and any other costs necessary for day-to-day operation of the finance organization. CFOs should decide how to balance their focus on the cost of the function versus the strategic value they are trying to add. They need to look for opportunities to improve transactional efficiency and reinvest those savings into activities promoting strategic growth.