7 Create Strategic Target Task
The Create Strategic Target task is enabled through the Strategic Target module in Modular MFP. It is intended for executive or strategic planning users who need to set high-level financial targets before downstream target and plan work begins. They help align the corporate objective with MFP planning by defining executive level expectations for key KPIs.
Strategic targets are planned at a higher-level intersection than the detailed merchandise plan. The planning level is Division, Channel, and Half; the workbook wizard selection is Division, Channel, and Year. The primary strategic versions used in this task are Working Plan (Wp), Target (Tgt), Last Year (Ly), and Last Last Year (LLy).
Create Strategic Target is used by executive managers to create higher-level financial targets that align the merchandise financial plan with corporate planning direction. It creates a common baseline for planners and managers, reducing misalignment between executive expectations and detailed planning decisions. By publishing these targets first, the process flow gives downstream tasks a clear financial guardrail for target creation, reconciliation and approval.
The task creates strategic Working Plan values, reviews the planned key performance indicators, and publishes the approved strategic target values to the Target version.
This task includes the following steps:
- Create Strategic Target
Create Strategic Target Step
The Create Strategic Target step contains the complete Strategic Target workflow. Use it to initialize the plan, enter or adjust the key strategic KPIs, review the results, publish the Target version, and confirm the published values.
Tabs and Views in this step:
- Create Targets Tab
- Seed Plan View
- Sales & Gross Margin View
- Review & Publish Targets Tab
- Review Targets View
- Publish Targets View
- Review Published Targets View
Create Targets Tab
Use the Create Targets tab to create the strategic Working Plan. The work typically begins with Seed Plan and continues in Sales & Gross Margin, where the executive manager reviews and adjusts the high-level KPI values.
Application Actions
Seed Plan: Use this action to seed the plan which copies Ly and/or Fcst into Wp version.
Clear Plan: Clear the seeded Wp plan.
Seed Plan View
Use Seed Plan to initialize the Strategic Target Working Plan from historical reference data. Seeding gives the executive manager a starting point based on Last Year values, which can then be adjusted to reflect the current strategic objective.
Seeding is optional. If the target should not be influenced by historical values, leave the plan unseeded and enter the Working Plan values directly in the Sales & Gross Margin view.
Note:
To clear the seeded plan, use Clear Plan action.Sales & Gross Margin View
Use the Sales & Gross Margin view to plan and review the key strategic KPIs for the selected Division, Channel, and Half. This view allows the executive manager to enter or adjust Working Plan values for sales, gross margin, average inventory, turn, and related productivity measures.
The view helps compare the strategic Working Plan against historical reference values such as Ly. Before publishing, review Net Sales, Gross Margin R, Gross Margin R %, Average Inventory, Turn, AUR, CMU %, and GMROI % to confirm that the target is financially balanced. If the values do not support the strategic objective, update the Working Plan in this view and review the impact before moving to Review & Publish Targets.
Module Reference: Strategic Target. For more details on modules, refer to the Oracle Merchandise Financial Planning Cloud Service Starter Kit Guide.
Review & Publish Target Tab
Use Review & Publish Targets after the Working Plan values have been seeded and edited. This tab is used to review the strategic target, publish it from Working Plan to Target, and confirm the published Target values.
Application Action
Publish Target: Moves the Wp (Working Plan) to Tgt (Target) values on click of publish.
Review Targets View
Use Review Targets to validate the strategic Working Plan before publication. The review should focus on whether the planned sales, gross margin, inventory and derived KPI values align with the intended executive target.