Sales Performance Management
SAP PCM provides granular detailed cost and profitability information driven by appropriate factors. Unlike higher level planning and consolidation tools, the full details traceable back to the ledger are present in PCM. This provides the foundation for a successful Sales Performance Management (SPM) analysis approach.
SPM provides direct insight into actual cost or revenue variances from budgets or forecasts. It significantly reduces the effort and time required to understand variances and can even facilitate real-time analysis during performance review sessions. In addition, it provides direct and measurable reasons behind variances, which make it far easier to take remedial action, directly impacting the bottom line.
As an example, variances among actual, budget, and forecast are not always explainable by reviewing price and volume mixes for products or services. With an effective SPM approach using PCM, other attributes of the variance are explorable such as support, capital expenses, etc… Costs that were thought of as variable may turn out to be fixed or step-fixed, surfacing as variances when volumes vary but do not provide a reduction in other costs within the range of variation.
Along with greater insight into variances, an effective SPM approach provides detailed and measurable performance indicators that provide all stakeholders with specific and actionable information to drive reductions in cost or increases in revenue. Companies don’t need to rely on high level aggregate metrics that often send mixed signals and are not actionable by managers within the organization.
Tartan Solutions can help develop and implement effective Sales Performance Management processes and tools to support deep and immediate insight into the drivers of cost, revenue, and variances to plans.
If you would like to learn more about how Tartan Solutions can help please email us and we would be happy to discuss your business and potential solutions with you.