Reconciliation and Executive SIOP
After the supply review team has concluded with their analysis of the demand plan, the differences between supply and demand will need to be balanced and reconciled in Weeks 3 and 4.
This is where, as I call it, the food fight between marketing, finance, and the supply chain occurs.
In accounting terms, reconciliation is defined (by Wikipedia, Investopedia, Merriam-Webster, and other dictionaries) as the action of making financial accounts consistent. It also encompasses the actions of making one view or belief compatible with another and the restoration of friendly.
So, all of the definitions apply in coming to terms with supply and demand. Everyone comes to the table with a different language and number. Finance and sales measure dollars, whereas the supply chain metrics are around units. All of this has to be reconciled against the annual plan. This is where alignment transpires with the development of One Number.
This is also where the business leader places bets on the next 12 to 18 months. Meaty stuff and all done over the course of 4 weeks.
