Global Financial Planning & Forecasting Jens Grotheer. IBM Business Connect 2013, Mannheim

Transcription

1 Global Financial Planning & Forecasting Jens Grotheer IBM Business Connect 2013, Mannheim

2 Outline Company Presentation Business Requirements Technical Concept and Realization Business Acceptance Live-Demo

3 Beiersdorf at a Glance Founded in 1882 The inventor of modern skin care More than 130 years of research and development expertise Around 17,000 employees More than 150 affiliates DAX-listed since Group sales of billion

4 We are a Global Skin Care Company

5 Outline Company Presentation Business Requirements Technical Concept and Realization Business Acceptance Live-Demo

6 Objectives, approaches and measures Objectives Approach & measures Design efficient planning & forecasting process with short duration and focused use of resources Cover increased business demands towards more detailed items and dimensions (products, channels, customers, month ) Separate company plan for target setting from detailed budgeting Integrate Supply Chain Planning (S&OP) in financial planning & forecasting processes Implement one planning tool serving corporate, regional and local needs and providing real planning functionalities Decentralized planning by business functions directly in the tool

7 Financial planning and forecasting overview Develop strategic financial targets Year 1 Year 2-5 Beiersdorf vision and long-term targets Midterm financial plan years 1-5 Annual plan year 1 Company plan (focus on targets) Board approval Operational plan (detailed budgets) Target Steer financial forecasts against annual plan Financial forecast year-end focus Sales forecast 18 months rolling Year 1 Year 2-5 Focus

8 Number of users worldwide Plan in 2013 Role Forecast June 2013 Users Role Finance Marketing Sales Users Plan in 2012 Finance 342 Role Users Marketing Sales Finance Marketing Sales Total Users of the affiliates as of Sept. 2013: 822 Expected named user end of 2014: min (concurrent: up-to 300)

9 Main content and level of details Operational plan, Target, FC/LE SoI Structure Organization Product Channel Segment Time Quantity National Gross Sales, Discounts Product Sales, Rebates Net sales Cost of Manufacturing / Purchasing Gross margin Variances, DCS Net margin Marketing Budget Margin II General Expenses Board & 5 Regions 19 Management Units >100 Affiliates Products 52 Brand Groups 1-4 Channels 1-3 Segments 12 Months WD Rec v, Distr. Roy., OI / OE EBIT Year Financial Result & Taxes PAT / Result of Balance Sheet

10 The components of the integrated planning and forecasting process Market Information Gross and Net Margin Marketing Budget Economic Environment 1) Cosmetic Market 1) Brands Market Information 2) QTY NS CoM / CoP Reporting SOI line values Marketing Budget 3) Margin II down to PAT General Expenses to Ebit (3rds) SOI line values Quantities change average NG(S)/ PCE NGS down to Net Sales National Gross Sales per Piece NGS /PCE Product Discounts & Rebates NS /PCE Product Quantity & Net Sales Generate Sales View for planning support Customer NGS to NS Customer Total Products 1) NGS to NS Customer / Brand Subcategory Adjustments NGS to NS National Gross Sales to Ebit (IC & PC) Financial Result & Taxes 2) Risk & Opportunities/ Events Risk & Opportunities and Events SOI line values Data flow between data entry forms Data entry forms

11 Screenshot Example Workflow Status Dimension Selection Yellow cells for data entry Black Cells show current values User Specific Navigation Tree Data Entry on different levels of the product hierarchy Annual values will be splashed to the months

12 Outline Company Presentation Business Requirements Technical Concept and Realization Business Acceptance Live-Demo

13 The components of the integrated planning and forecasting process Market Information Gross and Net Margin Marketing Budget Economic Environment 1) Cosmetic Market 1) Brands Market Information 2) QTY NS CoM / CoP Reporting SOI line values Marketing Budget 3) Margin II down to PAT General Expenses to Ebit (3rds) SOI line values Quantities change average NG(S)/ PCE NGS down to Net Sales National Gross Sales per Piece NGS /PCE Product Discounts & Rebates NS /PCE Product Quantity & Net Sales Generate Sales View for planning support Customer NGS to NS Customer Total Products 1) NGS to NS Customer / Brand Subcategory Adjustments NGS to NS National Gross Sales to Ebit (IC & PC) Financial Result & Taxes 2) Risk & Opportunities/ Events Risk & Opportunities and Events SOI line values Data flow between data entry forms Data entry forms

14 Technical Cube Design & Connections Market Information Gross and Net Margin Marketing Budget Margin II down to PAT Reporting NGS down to Net Sales Reporting FX Rates Customer NGS to NS Risk & Opportunities/ Events Rules TI - Processes The TI processes cause currently performance issues!

15 Technical Cube Design & Connections - Reporting Market Information Gross and Net Margin Marketing Budget Margin II down to PAT Reporting NGS down to Net Sales Reporting FX Rates Customer NGS to NS Risk & Opportunities/ Events Rules TI - Processes

16 System Landscape: 3 system environment Development TM1 + Web Transport Tool Test TM1 + Web Transport Tool Production TM1 + Web Maintenance TM1 + Web Training TM1 + Web Always separate TM1 application and Web-Server Development System for main enhancements Special Maintenance System for error corrections between release cycles 10 TM1 instances on 6 servers, Production system with 176 GB Controlled / Managed transfer between system required (Transport tool) Transfer Rules, Processes, Sheets Copy of the System on request

17 System Landscape: Interfaces SAP BW 1 2 TM1 MS SQL 1 Import Master Data & Actual Transactional Data from SAP BW Monthly process & on demand IBM package connector in place 2 Export plan & forecast data via MS SQL (temp. Solution) Individual start via workflow (triggers batch night processing) SAP BW as single point of truth, no direct interface to other systems Currently a critical process with performance problems

18 System Landscape: Import in Detail SAP BW BW Query 10 Queries (Master Data + Actual Transaction Data) Duration full import: 3 h TM1 Import Instance 1:1 Query Result (Layer 1) Enrich Data Provide Data (Layer 2) Volume: approx 3,6 GB Data Duration Data transfer: 2 h Planning Instance 1:1 Master Data and Actual Data Volume: approx 110 GB Data (MD, Actual and Plan Data)

19 Workflow Submit Corporate Region Management Unit Affiliate Reject General initializing of Plan / Forecast process Local setting Start / Stop of planning elements Local start of special processes (Export, Import) Submit to next level => Write protection Option: Reject Data => Adjustments possible Monitoring of the current status via WF Monitor Individual Workflow development required

20 Outline Company Presentation Business Requirements Technical Concept and Realization Business Acceptance Live-Demo

21 Business Acceptance: how can we increase it? 3 Process 2 Training Does local P&F process fit into TM1? 1 Tool Are people enabled to properly use the tool? Does the tool have enough functionalities and performance to support P&F efficiently? Project Team To provide a stable tool To train local Finance key users; To advise and support; To advise and support; Local Finance To train local Marketing and sales; To change mindset; To adapt their processes; To change way of working; To decentralize planning Current main Challenges: Performance & Process Change Management

22 Contacts for discussions Jens Grotheer Jens Peglow Senior Process Consultant Senior Consultant / Team Manager Jens.Peglow@cundus.de