Financial Alignment

Financial Alignment is a very key step often ignored by supply chain practitioners during the supply – demand matching process or during the initial steps of the Sales & Operations Planning. It is key because it allows the supply chain stakeholders to understand their high cost items on the costing side, and high revenue or high margin items on the sales side. Often we have found that once the forecast is extended to dollars or to margin percentages, the sales team has an ‘aha’ moment and the sales stakeholders are able to prioritize the demand to optimize or maximize not only revenue but also profits.