Issues to consider
Questions you may be asking yourself
Procurement and supply chain
- Is it taking longer than a 3 months to create budget information and there are still large variances in some line items?
- Have you experienced a decrease in free cash flow and do you know how you compare to your competitors in terms of days sales, inventory, and payables outstanding?
Business process activities
- Do you know what percentage of indirect spend is controlled by the procurement department?
- Are total IT or finance costs more than 1% of total revenue?
- Are your financial plans consistently misaligned with shifting operational activities?
- Have your SG&A costs remained flat or increased with decrease in demand?
- Do you have clear visibility into your company’s current performance? Do you have actionable management information at your finger tips?
- Is this information continuously reviewed and in line with the overall company strategy?