Demand planning has a big impact on business performance. Planning error can put revenue at risk by driving component shortages. Persistent planning biases can tie up cash by driving excess inventory. Furthermore, the act of planning and dealing with planning error is time consuming and drives costly overhead. In fact, it is common for supply chain management executives to cite "planning errors" as the greatest obstacle they face to achieving their goals and objectives.
Analyst Insight: A number of factors are drawing increased attention to the order-to-cash (OTC) process. Achieving a perfect order, one that is filled to completion and arrives at the customer undamaged and properly documented, is under stress from doing new ways of business and increasing customer expectations. - Alex Bajorinas and Jim Morton, both Senior Managers, Ernst & Young LLP