Financial Planning White Paper
A QAD DynaSys Leadership White Paper for the Global Supply Chain

Bridge the Gulf Between Supply Chain Planning and Finance

According to the wisdom of Peter Drucker, “…the greatest danger in times of turbulence is not the turbulence itself; but it is to respond with yesterday’s logic…” In 2020 there is little doubt that global supply chains are going through disruptive and turbulent times. However, we are witnessing a continued reliance on ingrained planning methods by many manufacturers. Most manufacturing companies have two distinct forms of planning: the finance team, which determines the future budgets and capital requirements, and the operations team, which balances supply and demand and determines future capacity and material requirements. During prolonged periods of turbulence and volatility, the operations team continually makes major decisions to mitigate emerging risks or exploit unforeseen opportunities. Subsequently, the gap between the financial plan and the operations plan widens to the point where the two plans bear no resemblance. But serving two disparate plans is like driving your car with two GPS navigation devices giving you verbal directions to two different destinations in two foreign languages.

 

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