Dec 26, 2018

How is it that CFOs can use analytics to their advantage?

Over the years it can be seen that the role of CFO's has changed. Apart from financial planning and financial analysis it now also includes strategic structuring and involvement in ensuring the smooth running of the company. CFO's a prime position as they are involved in managing the company's finances. 

A financial advisor needs to understand the role of analytics for improving business performance and managing risks wisely. Also in addition, it is important to understand that in order to steer the company forward managing and increasing operational efficiency is important. 

A Volatile market needs to be monitored 

FMCG industry is one which seems to be constantly evolving. CFO is responsible for taking decisions so as to maintain certain profit margins and also to avoid risks. 

Prices of commodities drive the industry 

One of the effective policy is the intervention of the government especially when it comes to prices of the commodities. It becomes even more challenging for the government to operate in such a volatile environment. It is said that analytics is responsible for assisting the role of a CFO. 

Decision-making an important role 

CFO's understand the value of integrating and analysing data in order to help them make effective decisions for their companies. Analytics and  data does give CFO's direction however the veto power still resides with the government. 

Post GST era an important milestone 

One of the important milestone in the FMCG sector has been the introduction of GST. CFO's task has been reduced due to the removal of the procurement of a C Form. 

Working Capital Management 

For the pricing of the product various factors needs to be considered. Analysing consumer market and taking up effective strategies in alignment with the current market scenario are some of the factors on which profitability depends. 

Collaborative decision 

Collaborative decisions are important to make since stakeholders are also considered to be important assets. It is also necessary to conduct an extensive survey in order to get an understanding of the ground reality.

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