Retail, Manufacturing, Services—Why the Same Logic Has Three Faces

The fundamentals of integrated business planning are the same in every company, because operational planning gives rise to the income statement, balance sheet, and cash flow statement. However, anyone who adopts a planning framework from a textbook or another industry often finds that it doesn’t fit their own business. The numbers may be mathematically correct, but they do not reflect how the company actually makes its money.

The reason lies in the adjustment screw. The basic framework is the same in every industry, but the key lever differs. A retailer depends on its profit margin, a manufacturer on its capacity utilization, and a service provider on the billable time of its employees. If you base your planning on the wrong factor, you’ll miss the mark when it comes to your own business.

In this free live webinar, we’ll use three example companies—a lumber dealer, a furniture manufacturer, and an agency—to show how the same planning logic manifests itself differently across industries. You’ll see which factors drive results in your industry and where typical planning mistakes tend to occur.

What the webinar is about

We start with the common foundation. Every integrated planning process leads from the operational level to the income statement, balance sheet, and cash flow statement, and this basic framework is industry-agnostic. We then shift our perspective to examine what sets each industry apart.

In retail, the cost of goods sold is the main focus, because purchasing, margins, and inventory turnover determine the bottom line. In manufacturing, the focus shifts to capacity. Machine utilization, production costs, and inventory levels determine whether an order is profitable. In the service industry, people become the key factor, because utilization rates, hourly rates, and labor costs drive the entire business.

Finally, we compare the three planning approaches side by side. The basic framework is the same across the board, but in each industry, a different line item determines success or failure.

This module is intentionally structured differently from the others in the series. It has a stronger workshop-style focus and allows more room for concepts and thought-provoking questions. The live demonstration in Corporate Planner [check] is intended for illustrative purposes and is not the main focus.

Typical questions from practice

Many companies plan according to a model that was adopted at some point and has not been questioned since. In this webinar, we’ll address the questions that are regularly critical in this context:

• Which factor determines profitability in my industry?
• Where should I start my planning—with margin, capacity, or billable time?
• Which key metric should I prioritize?
• What planning mistakes are typical in my industry?
• Why can’t a planning model simply be transferred from one industry to another?
• How do I incorporate the unique characteristics of my industry into an integrated planning system?

Your advantages in everyday working life

After the webinar, you’ll be able to understand why generic planning frameworks often fail to address the specific needs of your business. You’ll know the key drivers that determine results in your industry and understand where your planning should focus. This will help you avoid the typical mistakes in your industry and build a planning process that reflects how your company actually makes money.

The benefits become apparent in every planning cycle. You’ll steer your business based on the levers that drive it, rather than forcing numbers into a one-size-fits-all framework.

Who is the webinar suitable for?

This webinar is aimed at executives, CFOs, and controllers in the retail, manufacturing, and service sectors who want to align their planning more closely with the specific characteristics of their business model. It is particularly valuable for anyone whose existing planning model doesn’t quite fit their business and who wants to understand why that is.

Previous knowledge from the previous modules is not required.

Your benefits at a glance

You will learn,

• Why the basic framework of integrated planning is the same in every industry,
• which factor is decisive in retail, manufacturing, and services, respectively,
• where your planning should begin—with margin, capacity, or billable time,
• what planning errors are typical in your industry,
• how to incorporate the unique aspects of your business into an integrated planning process.

Part of our webinar series on integrated corporate planning

This webinar is Module 8 in a modular series. The modules build on one another in terms of content, but each can be understood on its own.

Why TD Trusted Decisions?

TD Trusted Decisions supports medium-sized companies in making their planning, reporting and corporate management clearer, more integrated and more decision-oriented.

Our experience with projects across various industries shows that the most effective planning is the kind that aligns with the business model. Additional complexity, in and of itself, does not improve decision-making. Those who understand the key drivers of their industry can plan more quickly, with greater confidence, and in a way that is more in line with reality. An understanding of the industry thus becomes the foundation for planning that drives results.

In this webinar, we combine our consulting experience with concrete examples from three industries. This will show you how a general planning model can be tailored to create a plan that fits your company.