Forecasting

Fast, integrated forecasting

TCM’s forecasting software allows you to forecast and reforecast, based on integrated and validated data, giving you instant access to information to make modifications easily as conditions change.

TCM streamlines the planning, budgeting and forecasting process, reducing the time spent by your management and finance teams, and removing your reliance on error-prone spreadsheets.

Everyone involved in the forecasting process can see comprehensive, updated information and make informed decisions, based on reliable information, reflecting changes in your business environment.

TCM’s forecasting software includes the following functionality:

// Centralised, integrated, validated data

// Integrated top-down and bottom up forecasting

// Consolidates data automatically, providing accurate forecasts from summary to detail level

// Scenario modelling and predictive analysis to demonstrate the effect of decisions on corporate results

// Auto profiler to define the behaviour of each line item, such as links to trends

Using TCM forecasting software, you can:

// See instant updates to changes in key business drivers and changing market conditions

// Dramatically reduce the time it takes to prepare accurate forecasts and ad hoc reports

TCM provides a powerful, integrated solution for the most complex budgeting and forecasting applications

Tel: +44 (0) 845 50 50 350Email: info@tcminfosys.com

www.tcminfosys.com

Long-term forecasting

The issue

As one of the largest companies in its sector, this TCM client was struggling to extend its rolling forecasts to cover an 18 month period. Extended forecasting would facilitate the budgeting process and allow the company to monitor and modify its performance over the long-term, as opposed to the constraints of a short-term focus.

Operating in two countries, with multiple geographic locations and over 100 reporting entities, the company was challenged with using Excel spreadsheets to produce monthly rolling forecasts for 14 different product lines, including revenues, costs of sales and overheads. Each month, the forecast was updated for the current year based on the latest actual results.

Although the finance team had developed a large Excel model, the process was cumbersome and difficult to maintain. The model was also prone to formula errors and could only be updated by one or two people, creating bottlenecks and frustration with the process.

The TCM Solution

TCM’s forecasting software was deployed to provide three distinct functions:

1) TCM created a forecast version that copied the previous month’s data and allowed updates to be modelled without interfering with the live forecast. This enabled the analysts to review the data, make assumptions and adjustments, and conduct scenario modelling using differing factors. They could then use this information to provide a realistic forecast and make any necessary adjustments to the business plan. When the process review and update is complete, the model is transferred into the live, formal forecast and becomes the base of reporting going forward.

2) A series of calculation rules were created to apply to each entity. Using TCM, these calculation rules automatically update revenue, costs and volume forecasts based on assumptions and drivers defined by the business. The calculations were also applied across the 14 product lines. Input templates were also created for managers and regional managers to directly update certain key rates and assumptions (e.g. average lease rates/selling prices). Managers were also now able to review the forecast as calculated by TCM’s default rules and make changes as required. These changes are submitted directly to the TCM model and immediately included in the overall monthly group forecast. With this solution, managers could also now review the latest forecast against the previous forecast across the product line, by entity or by individual account item.

3) TCM’s ad hoc reporting functionality provided the company with the ability to create exceptional, or single-use reports. These reports can be generated to account for instances in which the average rates are distorted by non-recurring events (e.g. a short-term contract for which special rates have been negotiated). TCM software allows this information to be entered separately and consolidated into the overall picture.

Using TCM, the company now has a well-defined model and a streamlined process that provides the mechanism to see beyond the end of the current year, and allows decision-makers to monitor performance and look ahead to facilitate longer term planning.

consolidation / reporting / budgeting / forecasting / strategic planning