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Client Stories

Client stories

Client stories

Client: leading power and home electrical Specialist

Sector: Engineering

Project: digital transformation using SAP S/4 HANA and SuccessFactors implementation

Context and challenges faced

  • KPMG in India engaged with the client-to plan conversion from traditional SAP ECC 6.0 to SAP S/4 HANA 1709 and SuccessFactors Implementation as a strategic move towards their digital enterprise vision
  • Complex landscape with more than 50 servers, 20 different SAP/non-SAP-integrated satellite applications and involvement of multiple partners managing different applications
  • Less than optimal organisation structures, fragmented employee data, traditional PMS, non-systemic goals management and the need for compensation restructuring
  • Dealing with migration of humongous master data (four million customers in SAP) in consideration with hardware capacity
  • A dynamic business environment imposed the requirement for minimal down-time of the SAP landscape
  • Functional gaps in SAP preventing better monitoring of KPI framework, compliance with accounting principles and improved efficiency in certain business areas.

Benefits achieved

  • Implementation of new asset accounting procedures to post asset valuations for different applicable accounting principles
  • SAP SuccessFactors modules, including employee profile, employee central, performance/goal management, recruitment management, onboarding, compensation management, career development, succession planning, Learning Management System and reporting

Approach

  • Technical and functional migration from SAP ECC to S/4 HANA 1709 along with additional business-improvement areas for the core ERP, and a transformative SuccessFactors implementation
  • Our solution comprised a dual maintenance landscape and helped reduce business disruption
  • Leveraged new SAP S/4 HANA features to improve efficiency and transparency across business functions
  • Activation of analytical FIORI apps to enhance real-time reporting framework and DMS for easy document retrieval
  • Implementation of new S/4 functionalities e.g. Auto BRS for automatic bank reconciliation, Revenue Accounting and Recognition (RAR) to map business need for POD-based/deferred revenue recognition to comply requirements as per applicable accounting standards (Ind AS/IFRS).

KPMG in India’s insights

  • Brought in sustainable ‘business-relevant leading practices’ in the organisation
  • Mobility to perform business approvals with higher control and flexibility in terms of connectivity. Effective and predictive decision support system.
  • New functionality
    • Product costing, COPA
    • FIORI apps

Client: leading automobile manufacturer

Sector: Automotive

Project: SAP Business Planning and Consolidation [BPC] implementation for Office of CFO automation

Context and challenges faced

  • The company had an existing ERP; implemented planning on Hyperion Essbase and financial consolidation on Hyperion Financial Management. Significant manual effort, however, was spent on planning, consolidation and compilation of MIS reports
  • The company used to put in a significant amount of effort on data collation and aggregation during planning, financial consolidation and compilation of MIS reports
  • The company was not able to get granular analysis such as segment-wise, product-wise and variant-wise profitability
  • No sensitivity and ‘what-if’ analysis available in the deployed version of the Hyperion system
  • There was no version consistency and workflow for approval maintained in the Hyperion system.

Benefits achieved

  • Integrated planning and financial consolidation
  • Effective driver-based planning
  • Structured MIS reporting
  • Improved cycle time for financial consolidation and reporting
  • Business critical ‘what-if' analysis on SAP BPC (Microsoft Version) 10.0.

Approach

  • Assessment of the present issues and challenges specifically in the planning and compilation of MIS reports as per the required granularity
  • Assessment of the Oracle Financials ERP with the objective of alignment of the planning drivers in the planning solution
  • Refinements of the planning templates across planning areas
  • Implementation of planning on SAP BPC (Microsoft Version) 10.0 across various planning areas, such as capex planning, HR planning, sales planning, operating expenses planning, raw material planning and finance planning
  • Implementation of consolidation on SAP BPC (Microsoft Version) 10.0
  • Implementation of MIS reports and SMC reports on SAP BPC (Microsoft Version) 10.0
  • Integration of data from Oracle Financials with SAP BPC (Microsoft Version) 10.0.

KPMG in India’s insights

  • Planned financial reports (P&L, BS and cash flow) for the client
  • Planned financial reports (P&L) for SMC at segment level i.e automobiles, spare parts, two-wheelers
  • Marginal profitability at model\variant level
  • Product profitability at model\variant level
  • Region-wise profitability at model\variant level
  • Report to analyse and compare opex cost at cost-centre, region, department and vertical levels.

Client: leading automobile manufacturer

Sector: Automotive

Project: SAP SuccessFactors Employee Central implementation for HR automation

  • The company had an existing ERP; however, that was used only for basic employee information storage. Multiple in-house applications were in place with no real-time integration
  • No employee and manager self-service
  • Paper based or manual processes leading to inefficiencies and subpar productivity of employees
  • Incomplete employee master data
  • Different processes for different units that failed to reflect the organizational vision
  • The company was not able to get granular analysis such as segment-wise, product-wise and variant-wise profitability
  • Lack of long-term roadmap for HRIT and business

Benefits achieved

  • Real-time single source of truth for HR master data for the client
  • Enhanced employee experience
  • Improved analytical insights and visibility
  • Risk reduction and increased automation and efficiency.

Approach

  • Assessment of the present issues and challenges, specifically in the HR system and process
  • Review foundational HCM setup and map that is integrated into SuccessFactors Employee Central
  • Implement SAP SuccessFactors Employee Central and integrate the same with Oracle ERP, legacy payroll, third-party recruitment system – PARAM and Active Directory – to automate the core ‘hire-to-retire’ processes
  • Enablement of single sign-on and reporting dashboards
  • Integrate SuccessFactors’s vocabulary and methodology into client’s way of working
  • Deliver change management, communications and training to enhanced adoption.

KPMG in India’s insights

  • Printable standalone financial statements along with notes to accounts
  • Printable consolidated financial statements along with notes to accounts (Ind AS and IGAAP)
  • Detailed inter-company elimination report
  • Consolidated statement to be reported to the client in Japan as per required format.

Client: A large FMCG company

Sector: Consumer Goods

Project: digital transformation

Context and challenges faced

  • As a FMCG company operating in different divisions e.g. personal care, food, dairy and beverages, the client had been struggling to get a clear view of profitability across divisions affecting its ability to take informed business decisions. With a lot of manual number crunching, both speed and accuracy of reporting was a challenge.
  • There was a need to refine the client’s reporting framework and sales hierarchy before finalising the technology solution design.
  • The key objective of the engagement was to provide the management a clear and accurate view of cost and profitability starting at the division level going up to region, brand and SKU levels.
  • We also took up this opportunity to introduce a number of improvements and automation in the operations, especially around finance, supply chain and logistics.

Benefits achieved

  • Real-time reporting providing drill-down information of profitability to SKU level.
  • Management of inventory and products with better shelf-life usage for ever-increasing demands of the customer.
  • Optimisation of the production process by creating demand and capacity-based production planning across multiple plants both owned and exclusive third-party units.
  • Reduce transportation and freight cost from 6 per cent to approx. 3 percent of the SKU cost
  • Increased order fill rate by optimising the supply-chain and logistics process
  • Use of S4/HANA Transport Management module to optimise truck utilisation, routing of trucks and estimating costs for freight.

Approach

  • KPMG in India charted out a digital-transformation roadmap for the organisation across two years and three phases
  • The first phase consists of greenfield implementation of S/4HANA, SAP BPC (planning) and analytics on cloud to set up a digital core, enabling further adoption of intelligent automation
  • Phase I started with us establishing business and functional KPIs with the top management and drew business processes aimed at seamless reporting of the agreed KPIs.
  • To ensure result-oriented implementation of S/4HANA, we jointly identified six KPIs across the core functions that would be tangibly improved using relevant S/4HANA features – Project KPI approach
  • With a Powered Enterprise enabled approach, we ensured incorporation of leading CPG practices in solution design
  • KPMG in India proposed consolidation of all the interfaces using process orchestration for seamless exchange of data within existing system and set up a robust platform for future systems.

KPMG in India’s insights

  • While most of the technology implementation projects do not have a clear ROI, KPMG in India worked along with the management team to identify six KPIs across diverse functions such as finance, supply chain, logistics and operations with a clearly defined target for improvements
  • This ensured that the business case for the project was accepted and owned by business
  • Monitoring mechanisms have been deployed for the KPIs since going live on 1 April 2019 and improvements have been observed so far in line with the expectations.