“While a reliable FP&A function relies on a solid business strategy and a sound financial acumen, at the execution level, the future of FP&A depends on three key building blocks: Digital, Data and Analytics. What are these building blocks and why do they matter from the FP&A perspectives? “
“Many of these practices fly in the face of the traditional philosophy of just-in-time inventory management focused on cutting supply chain costs to the bone. The future calls for investment in supply chain professionals who can manage relationships and implement systems to integrate with and monitor suppliers. Continuing to run a supply chain that’s hostage to logistics bottlenecks, price instability, and poor visibility will ultimately result in increased business risk and disappointed customers.”
“Purcell said the tight labor market is increasing Hostess’ labor costs. “When you’re in a tight labor market, you pay overtime, you do things like that, and it’s a dynamic environment. I think the team has done a very good job operating through that environment, but it is something that we’re keeping a sharp eye on,” Purcell said.
So far, Hostess has held the line on profitability. “We feel great about holding margins for the year in a pretty volatile inflationary environment,” Purcell said.”
Manufacturing and supply chain professionals: How are you taking control of costs in your business during this volatile time?
“Transportation costs—typically a fraction of a finished product’s price—are emerging as another supply-chain hurdle, overwhelming some companies already paying more for raw materials and labor.”