An international aerospace company faced challenges developing a multiyear bottom-up forecast used to create operational plans, financial projections, and public earnings guidance.
An international aerospace company faced challenges developing a multiyear bottom-up forecast used to create operational plans, financial projections, and public earnings guidance. The existing process, based on over 5,000 Excel spreadsheets, was manually-intensive and prone to error. The forecast was developed on a quarterly basis by over sixty analysts with a cycle time of ninety days leaving little time for analysis of the results and creating difficulty answering management questions and accommodating the inevitable changes requests.
CT Global developed an optimized forecasting process using SAS Financial Management and SAS Forecast Server, world class financial planning and forecasting tools. The solution included a standardized forecasting process, standard data entry forms and business rules for converting functional costs to product costs. The forms were tied to a common data repository, and the calculation of results was in real time using the in-memory computation engine of SAS FM. The solution provided significant financial and operational benefits, and is lauded for ease of use, accuracy, flexibility, and on-demand calculation of forecasts. There is a complete audit trail and the solution complies with Sarbanes-Oxley.