Financial Implications of Supply Chain Design and Operation
Course description:
Despite significant investments in ERP systems, annual financial plans and supply chain operating decisions are often out of sync. This separation leads to:
- Unpredictable profit plans
- Large revenue and cost variances
- Misalignments with business strategy
- A culture of excuse generation and finger pointing
Don’t let your annual financial plan be another worthless spreadsheet. Instead, learn how to drive and prioritize the right actions and initiatives across your supply chain and understand their consequences. In this course, you will:
- Learn about crucial underlying supply chain dynamics and how they appear on financial statements
- Identify internal organization and incentive misalignments that cause undesirable behavior, decision-making and results
- Demonstrate cause and effect in annual financial plan variances
- Discover how to structure, drive and control monthly financial operating reviews
- Determine how to integrate risk and uncertainty in the development of business cases, such as for outsourcing and capital equipment selection
- Find out how to optimize and control working capital/inventories throughout the system
- Establish how to incorporate customer service goals and their implications into your budgeting process
Who should attend:
- Controllers, financial managers, financial officers
- Vice presidents of operations
- Operations/plant managers and directors
- Supply chain managers
- Procurement and logistics managers
Why you should attend:
- Learn new, practical approaches to develop business cases that balance working capital and customer service goals
- Understand how supply chain dynamics are revealed in the income, cash flow and balance sheet statements
- Integrate risk and uncertainty into your operating plan
- Maximize the likelihood of achieving your operating plan
- Make better strategic and tactical decisions by incorporating uncertainty explicitly
- Learn how to develop business cases to address outsourcing, capital investment and other supply chain design decisions
- Learn how to create and drive an effective S&OP process linked with your financial operating plan
Agenda:
Program Content Notes – Day 1
Annual Budgeting
- In the annual budgeting process, how can we balance capacity, inventory and service?
- How do equipment and labor budgets affect supply chain performance and business strategy?
- How is customer service impacted by budgeting?
Sales and Operations Planning
- Can a sales and operations planning (S&OP) process help us integrate tactical decisions with our annual financial plan?
- How can we improve the effectiveness and relevance of our current S&OP process?
Program Content Notes – Day 2
New Perspectives on Inventories
- Why are RM, WIP and FG insufficient for controlling decision making?
- How can you determine management drivers and follow up actions?
- What is a robust process for optimizing and controlling inventories?
A Finance Model for Supply Chain Operations and Decision Making
- How do supply chain decisions impact the income, cash flow and balance sheet statements?
- How should customer service goals be incorporated into the financial plan?
- How can we integrate risk and uncertainty into the financial plan?
- How can we put it all together in the form of a process for business case generation?
Schedule
Day 1 — 8:30 a.m. - 5:30 p.m.
- Registration and Session
- Fundamentals of Supply Chain Systems
- Linkages between Financials and SC Operations
- Annual Budgeting: Balancing Capacity, Inventory, Service
- Sales & Operations Planning w/ Financials
Day 2 — 8:00 a.m. - 4:30 p.m. Session
- New Perspective on Inventories
- Finance Model for SC Operations and Decision Making
- Evaluating an outsourcing proposal
- Integrating Risk and Uncertainty into the Business Case
The University of Wisconsin-Madison, as a member of the University Continuing Education Association (UCEA), authorizes this course for 1.5 Continuing Education Units (CEUs) or 15 hours.