How Sagemcom centralized and consolidated its data for financial planning in a multi-currency multi-currency and multi-company context
A look back at the world leader in communicating products and solutions for the Broadband, Audio & Video and Energy markets.
Context
Sagemcom faces the challenges of a fast-growing international company. Orchestrating its operations in a global context, the company faces the challenges inherent in the diversity of markets, currencies, purchasing and production sites
spread over four continents.
At the heart of this growth: 6,500 employees deployed in 50 countries.
Challenges
The real challenge lies in managing business issues, with the construction of a collaborative budget model.
Sagemcom also has to juggle with inter-company and multi-currency flows. A clear, reliable group vision is essential, and requires consolidation of data in order to make informed decisions. Centralized budgeting and
reporting is becoming a strategic pivotal point, for a solid financial foundation.
Contributors up to 300:
- Controlling manager: control and communication
- Central controlling: parameterization, control and consolidation
- Controlling at business unit level, entity: contribution and consolidation
- Controlling in production (plant), projects: contribution
- Buyer (niv BU)
- HR
Method
Sagemcom has chosen the Jedox EPM(Enterprise Performance Management) solution to centralize its budgeting processes.
Implementation of a multi-stage budgeting process (definition of sales, purchasing, production and margin budgets)
- Implementation of a workflow including data validation stages
- Collaborative application for management control at headquarters, in BUs and even in factories, and for purchasers of components or semi-finished products
Extended scope of use, from the collection of purchasing, plant and sales data, to the creation of P&L and WCF/Cash Flow figures
- Several populations concerned: CFOs, management controllers (plant or central), buyers
Costing
- Product BOM management (9 levels)
- All parameters taken into account (direct and indirect labor, transport costs, stock levels, etc.).
- Analysis based on inventory prices and variations
- Managing currency trends
Implementation of planning and simulations adapted to a multi-currency and multi-company context
- Monthly simulation of multi-currency assumption changes (exchange rate impact)
- Simulation and scenarios managed centrally or locally
- Taking into account (on a monthly basis) variations in purchasing or material costs, and deciding whether to produce or subcontract
- Cost price simulation/planning for profitability control
Benefits
Organizational
- Time-saving data entry and analysis
- One month's acceleration in the initial budget process
- Improved inter-team collaboration thanks to standardized processes
Decision-makers
- Faster, more efficient decision-making for better performance management
- Monitoring and calculating profitability to adjust sales forecasts
- Data reliability
- Data security
Budgetary
- Optimizing pricing policy
- Optimizing production costs
- Performance evaluation