Coping with disruptive changes
Organisations will be throwing out their 5-year plans and trying to rapidly develop very tactical scenario plans.
At ABM Systems we believe the need for short-term planning has never been greater to answer the growing list of questions asked by the business.
With the current uncertainty and disruptions in the market caused by the corona virus pandemic, companies are struggling to deal with the volume and pace of changes.
Companies started the year conducting their business planning from a stable state. Now they are faced with new and moving variables that they couldn’t have planned for. They are now having to deal with:
Changes in legislation
– Business rates relief
– Loans available
– Support for employee wages
Changes to customer behaviour
A remote and potentially compromised workforce
Moving to electronic ways of working and transacting with other businesses
How ABM Systems can help
There are just so many different variables and scenarios to contend with;
- Overwhelming disruption to the global economy
- Supply chain resilience is at a huge premium
- Questions over whether China should continue as the global manufacturing hub
- Recession looming large and into focus
- Shoring up precious cash reserves
- Credit markets on the verge of seizing up
The majority of companies have never needed to plan this quickly and with such precision with these variables or for these scenarios and therefore don’t have the tools, processes or expertise to deal with them with the speed and agility needed.
At ABM Systems, we’ve been delivering planning solutions to some of Australia’s largest companies for the last 12 years. We have built up a wealth of expertise across a wide variety of industry sectors including manufacturing, services, utilities, financial services and retail.
Our methodologies, processes and tools are used by our clients to plan, model and manage their business enabling them to make the better decisions faster and to reduce the impact on their business, employees, customers and supply chain.
Increased Time to Value
Run your data through our pre-built planning models giving you the output and insight you need.
Cost effective solution
Get the planning outcomes you need to reduce the impact on your business without having to own the software or skill up your staff.
Reduce impact on business
Quickly run scenario modelling and see the impact on revenue, cashflow, profit, staff and supply chain.
Make better decisions, faster
Get actionable insights from real-time scenario modelling to make the right decisions, faster to keep your business moving forward.
The challenge with conventional planning approaches is that it often focused on long term outputs and requires significant time and detail to arrive at a final plan.
Our Coronavirus Planning approach is tailored to the immediate requirements companies are facing to assess the impact on their core financials and finance requirements. The ABM Systems planning solutions focuses on the following key areas;
- High-level approach to forecasting revenue and costs including best & worst case scenarios
- Focused planning for Working Capital and capture of likely receipts and payments
- High-level primary statements to facilitate key financing discussions
- Detail by country, company or BU, include translation
ABM Systems teams will work with you to use your data and leverage our pre-built planning models for P&L, Workforce, Balance Sheet and Cashflow. We will work with the knowledge base within your company and return the results via reports alongside our analysis.
This allows you to achieve the following:
- Understand current state and what areas to focus on
- Forecast cash and understand financing requirements
- Make informed short-term tactical decisions
- Run different scenario models across multiple variables
- Help their business adapt and survive
Tactical Planning Outcomes:
1. Revenue Management
- Get a forecast of revenue faster and more reliably.
- Get revenue and sales forecasts for all business units in collaboration with your finance, sales, and service teams.
- Get real-time visibility into your sales planning, staffing, and quotas.
- View sales actuals in interactive dashboards and reports, and compare them to forecasts and plans.
2. Expense Management
- See how expenses directly affect your margins and cash flow in real-time so you can manage more effectively.
- Immediately see the impact of changes. Increase or decrease a driver like headcount, and our solution automatically updates capital spend, rent allocations, benefits expense, and even anticipated potential revenue.
- Visualise key metrics, such as total cost per employee, operating expense ratio, and spend by business unit.
- Get full visibility into costs so you can better manage spend.
3. Profitability Analysis
- See the outcome of best practice models for allocation and driver-based profitability analysis and planning
- See the outcome of scenarios to model profit plans, track and analyse those plans against actual gross and net margins, and adjust drivers and operational processes, such as headcount to improve financial performance outcomes.
- Analyse your profitability by customer, product, channel, business unit, and geography based on detailed sales, cost, and margin data. Identify profit-and-loss spikes.
4. Cash Flow Forecasting
- Model different financing scenarios, DSO terms, cash flow forecasts and more to get greater transparency into investment income and liquidity, as well as to identify growth opportunities and fundraising needs.
- Get cash flow forecasting and other financial reports makes it easy to provide executive management with the critical metrics.
Get Started Today!
Get in touch and let us assist you with your Tactical Planning needs.