1. Good planning is a cross-functional framework that deals with strategic and
tactical issues and drives value-based agendas to create incremental margin
Integrated Planning and Performance
• Reduce • Reduce write-offs • Demand
safety • Increase ROA Strategic shaping to
incidents Risk Management Internal Controls • Increase working Product Planning phase-out old
Planning
capital efficiency stock
• Reduce
margin
pressures due • Increase ROA
Planning,
to ineffective Capital Asset • Reduce
Budgeting &
planning Business Planning depreciation
Forecasting Finance
• Reduce cash- • Value-added agenda Planning expense
to-cash cycle • Critical decisions
• Increase Internal /
visibility of External
variances • Increase
Reporting S&OP forecast
MPS/MRP accuracy
• Reduce write- • Plan critical
offs resources
• Increase ROA • Reduce non-
• Increase Demand Supply value-added
working capital Planning Planning Production
Sales forecast buffer
efficiency Planning
• Reduce SKU
proliferation
• Reduce
shortages
and backlog New Product Procurement Inventory Distribution
• Reduce Promotions
Introduction Planning Planning Planning
returns
• Reduce • Reduce NPI cycle times • Effective planning • Reduce excess and • Reduce non-value
promotional • Demand shaping to strategy tied to obsolete inventory added expediting
shortages phase-out old stock market conditions to • Reduce write-offs • Reduce premium
reduce direct • Reduce shortages & costs
material costs backlog 1