Often, Supply Chain is the focus for CPG based planning projects, but FP&A is just as critical for these manufacturers. FP&A (Financial Planning and Analysis) supports CPG companies when it involves forecasting, budgeting, and analyzing financial and operational data to support decision-making processes, introduction of new products, cost-savings, and achieving the financial goals of the company.
With Anaplan, CPG companies can utilize technology for improved forecasting, data management, cost management, pricing strategies, and overall strategic planning. At Accelytics, our CPG experts have worked with a variety of CPG companies to create custom Anaplan solutions to connect key aspects of their business, like supply chain and finance.
Let's discuss how Anaplan can facilitate solving the 5 critical financial planning challenges CPG companies face:
1. Forecasting Accuracy: Forecasting is a vital part of FP&A, and it can be challenging in the CPG industry due to fluctuations in demand, supply chain disruptions, and market changes. CPG companies must have reliable data and analytical tools to make accurate forecasts and adjust them in real-time.
Anaplan provides robust forecasting capabilities, enabling CPG companies to create highly accurate demand forecasts, which in turn is a critical component of revenue forecasting, cost forecasting, profit forecasting and cash flow.
The platform can integrate data from multiple sources, including point of sale data, supply chain data, and marketing data, to create comprehensive forecasts. Anaplan also offers real-time updates, allowing companies to adjust forecasts quickly as market conditions change. With the collaboration of the system, real-time updates populate for financial forecasts based on the demand plan. Finance has instant access to any changes happening with other reports that feed into their plans.
2. Data Management: CPG companies collect vast amounts of data from various sources, including sales, marketing, and supply chain. Managing and integrating this data to provide meaningful insights can be challenging, especially when data is spread across multiple systems and departments. Finance is reliant on the data being accurate.
Anaplan's data integration capabilities allow CPG companies to consolidate and integrate data from multiple sources, making it easier to analyze and make informed decisions. The platform also provides a single source of truth, ensuring that all stakeholders are working with the same data. Here are 4 ways Anaplan’s data management comes into play:
3. Cost Management: CPG companies operate in a highly competitive market, and managing costs is critical to maintaining profitability. FP&A teams must continuously analyze costs, identify areas for improvement, and develop strategies to reduce expenses without impacting product quality or customer satisfaction.
Anaplan offers cost modeling capabilities, enabling CPG companies to create accurate cost models and analyze various cost scenarios. Companies can use these models to identify areas for cost savings and develop strategies to reduce expenses without impacting product quality or customer satisfaction. CPG companies can optimize its supply chain costs by analyzing different transportation routes, shipping schedules, suppliers, and inventory levels to reduce costs, while maintaining product quality.
4. Pricing Strategy: CPG companies must develop effective pricing strategies that consider market demand, competition, and customer preferences. FP&A teams play a critical role in developing and analyzing pricing strategies to ensure that products are priced competitively while maintaining profitability.
Anaplan's pricing optimization capabilities allow CPG companies to develop effective pricing strategies that consider market demand, competition, and customer preferences. The platform can analyze various pricing scenarios and provide recommendations for optimal pricing strategies.
5. Strategic Planning: CPG companies must continuously adapt to changes in consumer preferences, market trends, and regulatory requirements. FP&A teams must work closely with business leaders to develop and implement long-term strategic plans that align with the company's objectives and goals.
Anaplan's strategic planning capabilities enable CPG companies to develop long-term strategic plans that align with their business goals and take into consideration a variety of what-if scenarios. The platform can help companies analyze market trends, consumer preferences, and regulatory requirements to identify opportunities for growth and make informed decisions.
Overall, the FP&A function in CPG companies faces a range of challenges, and successful management of these challenges requires strong analytical skills, data management capabilities, and a deep understanding of the industry and market dynamics.
Anaplan can help CPG companies address the challenges they face in FP&A by providing robust forecasting with AI and ML capabilities, data management, cost modeling, pricing optimization, and strategic planning capabilities. By leveraging these capabilities, CPG companies can improve their decision-making processes, reduce costs, and achieve their business goals.
If your CPG company is ready to take the next step in their planning capabilities, reach out to our experts at email@example.com.