The automotive parts business of Super Group, Super Group Auto Parts, has brought its financial reporting function in line with a requirement for information accuracy and improved visibility across the organisation. Auto Parts distributes a wide range of vehicle parts to the South African automotive aftermarket. Its business combines wholesale and retail outlets, comprising six well-known brands and, as such, relies on reporting for effective management of what is essentially a volume-driven business.
The Microsoft-based business intelligence (BI) solution, designed and implemented by Microsoft solution provider, IS Partners, has provided Auto Parts with the capability to easily extract information for financial reporting purposes. The company has also reduced the formerly lengthy cycle of getting information from its ERP system, while also improving efficiencies.
"Our business revolves around sales and customer maintenance. Having implemented BI across our sales functions, we had the capability to analyse information to identify sales trends and manage our customer and product base better. In terms of the financial side of the business, we needed the same capability to drill down to data for exception reporting, added confidence in the accuracy of our reports and prompt report processing," says James Brodie, Divisional Financial Manager of Super Group Auto Parts.
The nature of Auto Parts` business generates millions of transactions per month, a factor that contributed to reporting being one of the company`s biggest problems. Auto Parts also has a complex management and statutory structure, with diverse business units across the company making it difficult to identify errors and change processes.
"We needed user-friendly information and the ability to analyse a massive database. The only way to gain an advantage in the market and grow our business is to use information to the benefit the organisation. BI is doing that, while creating an efficient working environment for individuals," says Brodie.
Another significant problem was analysing sub-ledgers from the ERP system. It was difficult to manipulate sales and stock data and to identify journal details, something that is virtually impossible to trace on print-outs.
"BI allows for the analysis of number manipulations while also improving management of data for error elimination. Uniformity across our budgeting and reporting functions has also saved time. Where it would take up to three weeks to load budgets on our ERP system, we can now perform this function in half a day. Information accuracy, a key factor in the BI implementation, has also been achieved with ledgers being reconciled on a daily basis," he says.
Auto Parts now reports off the same structure at the press of a button and has cut month-end reporting by up to three days. The creation of a second database has also reduced the risk of being entirely reliant on the ERP system. "BI has improved visibility throughout the business, and has addressed two key issues for Auto Parts - improved decision-making and risk management," says Brodie.
"IS Partners` approach showed results from the start, with demonstrations done on live data. The price point was also impressive, and the Microsoft-based solution was easily integrated into our existing environment, circumventing the need to make a massive investment in new technology. IS Partners` approach was detailed and gave us exactly what we needed. The results speak for themselves."
Benefits
* Cut down on reporting by at least two days on all levels.
* Audit hours have come down.
* Problem resolution.
* More information about the business enables reporting on strengths and weaknesses.
* Identify major group trends.
* Exception highlighting.
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