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Financial Planning for Fashion: spotting trends, boosting performance

Dec. 17 2020 by Jérôme Vial, Country Manager Switzerland - CCH Tagetik

Performance Management Budgeting & Planning

Four seasons, shop fronts, cash registers and print ads in newspapers and magazines. Nobody ever said fashion was straightforward, but compared with the omni-channel, 52-seasons reality of today’s global industry, it was certainly more predictable from a financial planning point of view.

Add to that the economic and social disruption caused by the pandemic, accompanied by a dramatic shift to online sales, and financial planning & reporting systems for this industry find themselves in uncharted territory. Never has there been a greater need for real-time, actionable information.

The reality in today’s turgid conditions is that all common performance indicators are way off every planned value. Which means insight into the financial impact of, for example, outstanding orders, commitments or bottlenecks in the entire value chain, on working capital and especially cash flow is needed on a daily or at least weekly basis.

Fashion companies in particular need insight into their performance and the ability to move with a mercurial market. This is where CCH Tagetik’s Budgeting, Planning and Forecasting for Fashion & Apparel solution steps in, allowing finance to evolve through modernization and agility where traditional planning and reporting processes based on legacy systems, reliant on systematically-outdated spreadsheets, fall short.

Users of CCH Tagetik Planning for Fashion & Apparel will typically view in a single report the data which might previously have been spread across literally dozens of reports. Meanwhile, key capabilities include custom fashion drivers which enable the use of brand, product line, vendor, SKU, inventory, supply chain, channels, suppliers, purchase prices, volume, sales price and costs to budget, plan and forecast.

CCH Tagetik brings the agility fashion companies need by streamlining the planning, reporting and profitability analysis process with a centralized cloud-based solution (or on premise if required, with no compromise on capabilities) powered by the CCH Tagetik Analytic Information Hub that is enabling a granular data approach to planning and modeling, as granular as you need. Finance has a more complete view of financial performance, can adjust quickly to the exceptionally dynamic market conditions which prevail in fashion and define alternative scenario based on key financial and non-financial drivers for the business.

Through CCH Tagetik Budgeting and Planning you can target the sector’s needs directly by enabling 6 simple but powerful milestones to cope with daily planning and forecasting:

  • Improve confidence with unified business planning. Numbers are more convincing when they’re based on a single version of the truth, with financial and operational data aligned thanks to CCH Tagetik’s automated real-time and historical data
  • Reduce cycle time, improve accuracy. With a single source of data that dynamically populates, CCH Tagetik shaves days off the planning cycle and drastically improves data accuracy.
  • Model and forecast the future. With many more product lines, you’ll appreciate CCH Tagetik’s easily-created what-if scenarios with the ability to slice, dice and drill into the data data to uncover underlying trends in custom dashboards and reports.
  • Optimize supply chains, production and capacity. CCH Tagetik enables you to reduce cycle times and improve control over operational costs by connecting business objectives to resource requirements.
  • Understand true revenue and true costs. Analyze profitability by anything from brand to SKU and respond fast to changes in demand, thanks to CCH Tagetik’s allocation engine
  • Zero in on revenue-generating activities. Focus on the activities that drive revenue and cut out the ones that don’t with CCH Tagetik’s unified rolling forecasts and S&OP

What does Future success look like? Future success depends on the ability to gain greater visibility and control of the planning and reporting process at multiple levels. The office of finance needs to provide more granularity to run models and adjust business plans based on real-time performance to protect margins and manage inventory & cash flow.

Adaptability, agility and creativity have always been the most important characteristics for a fashion company to thrive. Today this needs to be fed fast by reliable, accurate and actionable information with context through a modern planning, reporting and analysis system. That’s why now, more than ever, it’s time to act and replace your legacy system to unlock your potential and be ready to anticipate future opportunities and risks.

CCH Tagetik has the distinction of being a finance-owned, reliable and unified CPM solution, equally applicable on premise or on cloud, with no compromise either way. Above all it is designed for fashion companies to evolve through modernization. Nothing could be more tailored to fashion…

Many companies have already started their modernization journey with CCH Tagetik. We asked Prada what is making the difference in daily business life while using CCH Tagetik and here is what we heard from them:

“We’ve experienced many improvements using CCH Tagetik. First, our timing has improved. We’ve expedited our processes by automating all calculations. Secondly, we’ve streamlined our workflow reviews and approvals.”

Check out the full capabilities and features of CCH Tagetik’s Budgeting, Planning and Forecasting for Fashion here.

CCH Tagetik B&P


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