Centrient modernizes financial planning process with SAP Analytics Cloud
Centrient is a global leader in sustainable, enzymatic antibiotics, next-generation statins and anti-fungals. With about 2,200 employees in 14 locations around the globe, Centrient was facing process and platform challenges for their financial planning. So they decided to modernize the financial planning process with SAP Analytics Cloud.
For several years, financial planning at Centrient was following the same traditional process. Extra requirements from the management were managed with local excel processes on the side and hardly ever integrated in the overall financial planning process. Finalizing the basic overall planning process therefore involved manual steps and tended to be time-consuming.
Centrient realized their financial planning process was due for an overhaul. They defined the main requirements for the new platform:
- an end-to-end managerial view on the cost of sold goods with the right level of detail;
- solid integration between the S&OP process and the financial planning process;
- better and faster insights in the planning figures in the as-is process.
Apart from the new wish list on the process level, the legacy platform offered some challenges. The implemented business logic was overly complex and non-transparent. To understand the planning process, controllers had to reverse engineer the outcome of the data, which was very time-consuming. They also lacked simulation capabilities to quickly run and compare different business scenarios.
SAP Analytics Cloud Planning as integrated xP&A platform
Centrient opted for SAP Analytics Cloud Planning as the right platform for innovation. It could solve their platform challenges, like simulation capabilities, FP&A managed business logic and strong reporting and dashboarding capabilities. All on the same platform.
Beside the core platform functionalities, SAC also enables some process improvement. The native connection to IBP, where Centrient implemented their sales and operations planning (S&OP) process, helped bridge the gap with the supply chain department and was a first step toward xP&A (Extended Planning & Analysis). And finally, the integration with SAP ERP helped in building a complete managerial view including the correct end-to-end cogs.
SAC Accelerated implementation & sprint methodology
To accelerate the implementation of financial planning in SAC, Flexso supported Centrient by starting from the SAP best practices “integrated financial planning”. The objective? To leverage the standard content as much as possible and adapt or extend possible gaps between the standard and Centrient-specific processes. Working in sprints allowed the key users to get acquainted early in the project with the new platform.
End-to-End P&L planning process with simulation capabilities
The solution included all elements of an end-to-end P&L planning process.
- Sales & profitability planning
- Product cost planning
- Overhead costs
- Manufacturing OPEX planning and financial manufacturing KPI's
- Other operating income & expense items
Simulation in the product cost planning was a key requirement. Scarcity in raw materials and their price effects and increasing energy prices are market circumstances that required powerful scenario simulation.
Leveraging the Flexso “standard cost simulation tool”, Centrient was able to perform driver based resource simulation with on the fly variance reporting comparing different scenario’s. Curious about our new SAC best practice solution? Get in touch.
The benefits of SAP Analytics Cloud Planning
With the implementation of SAC as a modern planning and reporting platform, Centrient now performs their planning cycle faster, more accurate and with better analysis capabilities. Together with the simulation capabilities, this results in taking better strategical decisions and identifying efficiency improvements. The integration with S&OP planning (IBP) and with the SAP ERP back-bone is streamlining the planning process cross-department, evolving toward a full xP&A process. With all business users now seamlessly collaborating and driving data-based decision-making, Centrient Pharmaceuticals is now planning to win.