![]() ![]() This will require a common platform to allow both teams to access accurate information that fuels data-driven decisions.Ī cloud-based financial management system can be that platform, delivering a single source of truth across people, functions, and departments. If lack of communication and visibility are the cause of the chasm between finance and operations, then a free flow of information and deep insights are the solution. Usually, companies in this position experience declines in metrics such as time-to-market, net promoter scores, employee retention rates, and asset utilization percentages. Poor decision-making and lower profits often lead to finger-pointing, low morale, higher rates of employee attrition, and even a loss of confidence in senior leadership. As a result, this seemingly simple disconnect can lead to higher inventory carrying costs, backorders, lower profitability, and lost sales. For example, without insight into cash flow, operations leaders cannot make the most informed decisions about how much inventory to buy. The disconnect between finance and operations can have serious negative consequences for an organization. ĭecision-making and margins are the victims As this happens, finance and operations teams tend to communicate less and often end up with siloed tech stacks that limit visibility to their area of responsibility. As these companies grow, however, they tend to hire leaders and build departments dedicated to a single function. Within smaller companies and start-ups, leaders often wear multiple hats. Lack of communication and visibility are the culprits Sage Intacct recently offered insight on building a bridge between finance and operations in a new eBook, Bridging the Finance and Operations Gap. ![]() The most successful organizations are those able to bridge the gap between these two essential functions and focus their combined efforts on improving the business’s overall health. It’s a gap that grows larger as companies get bigger. We all understand that both teams provide essential functions, but when they cannot communicate well, and share data and insights, the gap between them grows. Finance speaks in terms of cost centers, balance sheets, and cash flow, while operations may speak of inventory turns, lead times, and resource management. Sometimes it seems that finance and operations teams speak totally different languages. The company also recently named a new leader for its Old Navy division.DecemBridging the Gap Between Finance and Operations Gap's former CEO Sonia Syngal stepped down from her role abruptly in July. "While our elevated inventory and pressured margins are current realities against unsettled market conditions, they do not define our ability to capitalize on Gap Inc.'s strengths to win," said Gap's interim CEO Bob Martin, who is also executive chair. Some of this was intentionally packed away to be sold in another season, and some of it is still in transit, Gap said.Īs part of its cost-cutting efforts, the company said it reduced the number of new Old Navy stores it planned to open in the back half of the year. The company ended the latest quarter with inventory of $3.1 billion, up 37% from the prior year. However, the company is not offering a forecast for its full fiscal year due to ongoing uncertainty around consumer behavior and promotions at other retailers. Gap said in prepared remarks that it started to see an improvement in sales trends in July and into August coinciding with a drop in gas prices. At Banana Republic, comparable sales rose 8%, which the retailer chalked up to its investments in quality and shifting consumer trends. That included a 15% decline at Old Navy, which the company said was hit by inventory delays, "product acceptance issues" in key categories and slowing demand among lower-income shoppers.Īt the company's namesake Gap banner, global comparable sales fell 7%, in part due to ongoing and planned store closures.Ĭomparable sales at Athleta were down 8%, with the company noting a shift in consumer preference from athleisure to work-based categories. ![]() Personal Loans for 670 Credit Score or LowerĬomparable sales, which track revenue online and at stores open for at least 12 months, were down 10% from a year ago. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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