One stop solution for P&L forecasting
In a global FMCG company, integration is a problem as it uses different methods/ KPIs/ tools to forecast their financial numbers across regions. Due to which it is very difficult to be ready for any unforeseen situation as these factors are not considered during the planning phase, and even faces operational inefficiencies due to high forecasting time.
Below are few challenges faced by the client:
- Lack of unified process for P&L forecasting
- Inefficient and less accurate forecast due to divergent process and tools
- Complex forecasting process due to data requirement from multiple sources
- Responsiveness to business’ dynamic requirements
The problem was approached with multiple whiteboard sessions to understand and map As-Is process and scope of improvements with the new solution. After careful consideration of the features required, Oracle Hyperion was selected for setting up a unified P&L forecasting process across geographies and performance measuring units of the organization. Different application was set up for different performance measuring units adhering to 80% global and 20% customization standard.
The problem was approached with multiple whiteboard sessions to understand and map As-Is process and scope of improvements with the new solution. After careful consideration of the features required, Oracle Hyperion was selected for setting up a unified P&L forecasting process across geographies and performance measuring units of the organization. Different application was set up for different performance measuring units adhering to 80% global and 20% customization standard.
We worked closely with pricing managers to gain complete insights on client’s pricing process and key objectives. SKUs were categorized in PPG (Product Planning Group) and key distributors were identified. The simulator was designed in collaboration with pricing experts and mathematicians to derive the fundamental equation to run the tool. User functionality was also provided to change the system’s recommended price and manually simulate the price to see its impact on P&L and key KPIs. The tool was set to provide different weightage to the KPIs basis the product, region and other influential factors.
The solution was rolled out to 150+ countries directly impacting 1200+ users. Overall, the solution was able to achieve efficiency and able to contribute to the growth of the organization through below,
- High-quality value forecasting to deliver ~30% reduction in forecasting time
- Enabled tracking of P&L actuals vs forecast & target to monitor performance & take margin improvement initiatives
- Decommissioned multiple out-of-support local legacy tool, manual excels
