These opportunitiesstem from coordinating and optimizing resource allocation acrossfunctions and entities.
A key enabler of such coordination isthe integration of
financial PBF processeswith sales and operations planning (S&OP)—a continuous processfor balancing supply
and demand and, from a financial perspective, a more
mature form of driver-based planning.While some companies have tried to integrate PBF and S&OP,this hasn’t
been a traditional area of strength for EPM or S&OP
applications.
EPM2 applications are poised to addressthisintegration challenge, especially forsmall and mid-sized MSCOs
with revenue lessthan $2 billion to $3 billion. Unlike
global MSCOs,they don’t always need all the operational
planning capabilities of traditional S&OP applications.
Here’swhat you need to knowabout EPM2 applications:
◆ They provide key capabilitiesthat traditional EPM
applications don’t.
◆The value of these capabilities can approach 5% ofsales.
◆ Tacticalsavings can often self-fund EPM2 investments.
Addressing these issuesstartswith an understanding of
the currentstate of PBF and S&OP in MSCOs and the
management challenges MSCOs continue to face