Transforming Financial Planning in an FMCG

Case Study:

Transforming Financial Planning in an FMCG Company with Integrated Planning

Background:

A leading Fast-Moving Consumer Goods (FMCG) company faced significant hurdles in their financial planning process. Due to the nature of the FMCG industry, their sales planning was complex, involving a vast number of Stock Keeping Units (SKUs), a wide customer base, and multiple operating locations. Their financial planning process was fragmented, inefficient, and lacked the necessary governance to ensure data accuracy and consistency.

The company operated across multiple geographies with an extensive sales and product team, leading to challenges in data collection, version control, and consolidated planning. The absence of a centralized system made it difficult to track records, manage approvals, and maintain visibility into sales and inventory trends.

Key Challenges:

1) Complex Sales Planning

· Sales teams relied on spreadsheets for planning, leading to inconsistencies and difficulty in analyzing data at a granular level (SKU, region, customer, or sales representative).

· Sales forecasting lacked accuracy, making it challenging to align demand with inventory and financial planning.

2) Inefficient Data Collection & Governance

· The involvement of too many stakeholders resulted in an inefficient and time-consuming data collection process.

· Tracking records, maintaining approvals, and managing multiple plan versions was a challenge.

3) Lack of Integrated Financial Planning

· Financial forecasting and consolidation were manual, error-prone, and time-consuming.

· Different teams worked in silos, leading to data inconsistencies and delays in decision-making.

4) Limited Visibility & Insights

· The company lacked a consolidated view of business performance.

· Real-time insights at SKU, customer, brand, and sales team levels were unavailable.

The Integrated Planning Approach:

To overcome these challenges, the company implemented an Integrated Financial Planning (IFP) solution powered by Jedox, which transformed their planning process in the following ways:

1) Centralized Data & AI-Driven Forecasting

· Consolidated historical sales, inventory, and financial data into a unified platform.

· Leveraged AI-powered predictive analytics for improved demand planning.

· Provided real-time insights at SKU, customer, brand, and salesman levels.

2) Automated & Structured Workflows

· Introduced simplified templates with historical data insights to streamline forecasting.

· Automated approvals, version control, and governance workflows to ensure process transparency.

3) Seamless ERP Integration

· Integrated the planning solution with their existing SAP ERP, allowing smooth data flow between finance, sales, and operations teams.

· Enabled better collaboration between departments, ensuring aligned planning.

4) Comprehensive Business Performance Tracking

· Developed interactive dashboards with a T-1 view of business performance.

· Allowed drill-down analysis at various levels – SKU, salesman, customer, brand, and region.

Key Business Outcomes:

· 50% Reduction in Planning Cycle Time: Automating data collection, approvals, and versioning significantly accelerated the financial planning process.

· Improved Forecast Accuracy: AI-powered insights enhanced sales and inventory forecasting, reducing stockouts and excess inventory.

· Enhanced Governance & Visibility: Automated workflows ensured structured governance and approval tracking.

· Real-Time Business Insights: With a consolidated and real-time view of their business performance, leadership could make data-driven decisions more effectively.

Beyond Planning: A Future-Ready Solution:

The implementation of Jedox did not just transform the company’s planning process; it became the centralized platform for their entire financial data ecosystem. Moving forward, the company aims to leverage Jedox for:

· Automating Sales Incentive Calculations: Using predefined metrics and performance indicators to automate commission calculations for the sales team.

· Rebate & Discount Calculation Automation: Ensuring accurate and timely incentive payouts to customers based on predefined criteria.

· Further Expansion of FP&A Capabilities: Exploring additional automation areas such as procurement planning, workforce planning, and supply chain optimization.

Conclusion:

This case study showcases the power of Integrated Financial Planning in transforming an FMCG company’s financial processes. By leveraging Jedox’s advanced planning capabilities, the company not only improved its financial accuracy but also gained a strategic tool for business performance management. The transition from manual, error-prone processes to an AI-driven, automated system has positioned the company for future growth and operational efficiency.

If your organization faces similar challenges, let’s connect to explore how Finlytyx AI Labs can drive smarter financial planning for your business!