How To Calculate Pipeline Coverage in SAP ERP | Arithmix

Calculating pipeline coverage is an essential aspect of any business strategy. It helps you to determine the number of deals that are likely to close in a given period. Pipeline coverage is a metric that is used to measure the ratio between the value of opportunities in the sales pipeline and the sales target. It is a crucial tool for sales managers to forecast their sales performance and make informed decisions about resource allocation and sales strategies.

What Is Pipeline Coverage?

Pipeline coverage is a metric that helps you to understand the health of your sales pipeline. It is calculated by dividing the total value of opportunities in the pipeline by the sales target. The resulting ratio shows you how many times your sales target is covered by the value of your pipeline. For example, if your sales target is $1 million, and the total value of opportunities in your pipeline is $2 million, your pipeline coverage ratio is 2x.

Pipeline coverage is an important metric because it helps you to understand the likelihood of achieving your sales target. If your pipeline coverage ratio is low, it means that you need to generate more opportunities to meet your sales target. On the other hand, if your pipeline coverage ratio is high, it means that you have a healthy pipeline and are likely to achieve your sales target.

When Is It Valuable To Calculate Pipeline Coverage?

Calculating pipeline coverage is valuable in several situations. Firstly, it is useful when you are setting sales targets. By understanding the value of opportunities in your pipeline, you can set realistic sales targets that are achievable. Secondly, it is valuable when you are forecasting your sales performance. By calculating your pipeline coverage ratio, you can predict how many deals are likely to close in a given period and adjust your sales strategies accordingly.

Thirdly, pipeline coverage is valuable when you are managing your sales team. By understanding the value of opportunities in the pipeline, you can allocate resources effectively and ensure that your sales team is focused on the right opportunities. Finally, pipeline coverage is valuable when you are reporting on your sales performance. By tracking your pipeline coverage ratio over time, you can identify trends and make informed decisions about your sales strategies.

In conclusion, calculating pipeline coverage is an essential aspect of any business strategy. It helps you to understand the health of your sales pipeline, set realistic sales targets, forecast your sales performance, manage your sales team, and report on your sales performance. By using this metric, you can make informed decisions about your sales strategies and achieve your sales targets.

How Do You Calculate Pipeline Coverage in SAP ERP

SAP ERP itself isn’t naturally geared towards letting you calculate complex metrics like Pipeline Coverage. As an alternative, teams typically use products like Arithmix to import data from SAP ERP and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like SAP ERP, combine it with data from other systems, and create calculations like Pipeline Coverage.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Pipeline Coverage in Arithmix

Calculating metrics like Pipeline Coverage is simple in Arithmix. Once you've created your free account, you’ll be able to import your SAP ERP data, and use it to create natural language formulas for metrics like Pipeline Coverage.

Arithmix is designed to give you the power to build any calculations you want on top of your SAP ERP data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.