Fleggaard Detail was using numerous linked Excel sheets for their financial processes such as month-end reporting, budgeting and distribution of actual data to store managers. Furthermore, the supermarket chain was managing several transactions per month from customer purchases, which all had to be reconciled to the bank account.
A choice was made for Oracle’s EPM suite in the Cloud. This platform covers all the relevant financial areas such as reporting, forecast and budget, account reconciliation and integration.
The first phase was to replace the large number of linked Excel sheets for the monthly reporting. The data for the reports was sourced from one central solution: Oracle Planning and Budgeting Cloud Service (PBCS). The update of the reports took seconds after actual data has been loaded to PBCS from the ERP system. This resulted in significant improvements to the reporting process, with faster time to market, improved audit trail, increased data validity and coherence in data.
The Fleggaard Detail business model is largely based on a high volume of fast-moving consumer goods with low margin. For this reason, it is important to closely follow the stock turnover, by sending out monthly reports with information about best and worst performing products. The procurement department then adds comments about future actions to improve stock turnover – this is then closely followed by management.
At the beginning of the project, Fleggaard Detail was working on implementing a new ERP system as well as changing the chart of accounts. During the course of the project, the whole reporting solution was updated with the new chart of accounts, including data migration and an update of the whole reporting package – which was finalised within a couple of days.
Further improvements have been made to the distribution of the monthly P&L per cost centre. This is now almost fully automated using the functionality in PBCS to link e-mails and cost centres. Before closing the month, an overview of all accounting documents per department is distributed for approval to handle potential errors in the booking of cost before close.
“This client was great to work with because they have so many ideas about what to use the solution for,” says Martin Lundbye, Consulting Director for inlumi Denmark.
With the newly implemented Oracle EPM Cloud platform, the team at Fleggaard Detail has significantly improved their financial processes. Changes in the system are reflected instantly, allowing the team to continue immediately with reporting.
The communication between controlling and the store managers has been streamlined, with reports automatically being distributed to each stakeholder each month. This process happens in less than five minutes, saving the team approximately one whole working day per month.
Fleggaard Detail can now report on an aggregated level: all accounts, summary accounts, per store, per region, and per chain. The planning cycle had been cut down by two weeks, and reporting – which used to take 2-3 working days – now takes approximately 1.5 hours with automated integration to the ERP system.
Fleggaard Detail now has a greater trust in the numbers. The team is no longer reliant on emails for collecting data, and all the information is located in one system. An audit trail can document and explain any changes, and the data no longer has to be questioned. Fleggaard Detail confirmed this by performing stress tests and checking if the numbers stayed consistent, which they did.
“If you can trust your numbers, you can make better decisions. After implementing PBCS with the help of inlumi, the result is a budget and forecasts that are accurate, trusted, and meaningful to everyone in the organisation,” says Brian Forsingdal-Nielsen, CFO at Fleggaard Detail.
Together with inlumi, Fleggaard Detail plans to further expand the use of the Oracle EPM Cloud suite. This includes improving rolling forecast for P&L and cashflow, integrating cost controlling and going live with account reconciliation.