Comments on: Why Integrate Cash Flow Forecasting in the Sales & Operations Planning (S&OP) Process? https://demand-planning.com/2011/05/13/why-integrate-cash-flow-forecasting-in-the-sales-operations-planning-sop-process/ S&OP/ IBP, Demand Planning, Supply Chain Planning, Business Forecasting Blog Mon, 16 May 2011 03:22:24 +0000 hourly 1 https://wordpress.org/?v=6.6.4 By: Jeff Baker https://demand-planning.com/2011/05/13/why-integrate-cash-flow-forecasting-in-the-sales-operations-planning-sop-process/#comment-172 Mon, 16 May 2011 03:22:24 +0000 https://demand-planning.com/?p=1203#comment-172 I like points 1-3, and 5; #4 makes me uneasy:

4) Better cash flow management. Building too much inventory can cause major issues with the company’s cash flow but by integrating financial data into S&OP the team was able to see the impact of the decision and adjust the inventory build to meet both demand and cash flow needs.

My read of that is that they are cutting into SS, therefore cutting service level / fill rate to meet cash flow needs. The real S&OP decision, I think, is to understand the drop in fill rate that will likely result from the reduced inventory, an agree that the increased cash flow needs warrant that.

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