Managerial Financial On Sales Margin Forecast Improvement In Company A

Managerial finance forecast plays more and more important role in the modern enterprises.For the quoted company,finance forecast result would cause share price fluctuation.It directly impacts the stockholders’ fortune and benefit.Sales and sales margin forecast is the start of finance forecast which is critical for manufacturing company.Company A is a long-lived global company who engages in high-technology material products manufacturing.Sales margin forecast is a fundamental process in the company’s daily operation management.After studying the theory and literature about finance forecasting,IT system model and data management,this article investigates company A’s current forecast process and methodology,makes the key problem statement,and then provides the improvement suggestion,as well implement and control programs.The key problem is company A’s sales and margin forecast accuracy decreases in the past periods.The main improvements are to set up the managerial forecast target including forecast accuracy target with clear data value and the process efficiency target,all forecasters to share the accuracy target and to include the target in their annual performance review;to optimize the forecast approach on sales,manufacturing cost and margin combination,for instance,by detailing forecast information input,creating simulation model and the forecast proposal model based on history data mining,etc.;at the same time,to build the shared data warehouse framework and data model for all forecast data alignment and the reasonability checking in order to improve the sales and margin forecast data quality and work efficiency.By implement of these actions,company A’s sales and sales margin forecast deviation decreases from-9.3% and-4.5%respectively to within ±5% and ±2% each,the whole forecast process efficiency is also improved.This article investigates the optimization actions on managerial finance for sales margin forecast in manufacturing company.It shows the detailed practice approach in the company’s daily operation.The suggestion and practice described in the article could be shared to other manufacturing companies as a reference to their forecast system optimization and then to improve the whole company management level.It also provides a study case in managerial finance forecast area in our country.