Cockroaches under Tesla’s Hood ? An S&OP Perspective on financial reporting

Posted on November 15, 2013

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We recently wrote a blog article on this site where we used Tesla as a “in the news metaphor” to draw attention to manufacturing and supply chain strategy.  Or how “things” are built is at least as important as what is built.  When design and build approach are designed together it is hard to fail but rarely done.     We feel a topic quite honestly not understood by the the public but even more troubling how few business execs and leaders really understand.

 

Our sopbook.com site is dedicated to this awareness.  Think of sopbook.com as the RAID for cockroaches providing education and solutions for competitive advantage of which much is centered around key principles and concepts in the art and science of Sales and Operations Planning.   Proactively laying the fabric of seeing true cashflow, looking forward, measuring efficiency of working capital providing synchronization to your outsource supply chain,

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We recently stumbled on this Bloomberg article titled  

Are There Cockroaches Under Tesla’s Hood?

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where finance gurus dig into Tesla’s latest  Q3 2013 earnings.   We somewhat predicted the lack of meeting expectations by looking at Tesla’s supply chain but are  pulling for them as hopeful they can exploit its strengths for continued wins.

We feel this article is another great example (metaphor) of what is missing in financial performance metrics.  GAAP accounting vs. cashflow and working capital.   In this case a disagreement about lease financial reporting of which we really don’t have an opinion but we do believe over reliance on GAAP accounting to run a business is a great way to end up with less business.   We also have seen and worked around the die hard financial engineers using GAAP to pump and dump business that don’t really have a strong foundation

Thus leads us back to S&OP (Sales and Operations Planning) as much more then a supply chain solution but in reality and alternative, complimentary financial reporting operating method for both execs and investors to benefit from

What do you think ?  Are the cockroaches in your world where some S&OP Raid might help ?  Or maybe you need to scare away a few bears ?

 

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