Challenges in rapidly changing markets
How profitable are your products across the entire value chain? How high are your overall material, manufacturing, and logistics costs? How are you affected by fluctuating commodity prices or exchange rates? How can you achieve transparency with regard to real transfer prices and inter-company profits?
These are just some of the questions that central controlling, sales, or product and supply chain management units of international companies are finding increasingly difficult to answer.
For companies with global value chains to be successful, it is more important than ever to be able to show, plan, and optimize all the added value. This is the only way of capitalizing on the potential gains from the digital transformation, which amount to an annual figure in the region of 250 million euros for industrial sector in Europe alone.
The Solution: Global Value Chain
Our Global Value Chain solution is intended for international corporations from all industries, whether the manufacturing, plant construction, or process industry.
The SAP add-on solution enables you to display your group costing and profitability in detail. More specifically, you can display planned and actual costs per division, product group and product across all production locations and systems without having to go through the laborious process of eliminating the intercompany profits manually. As a result, the solution not only provides you with a clear overview of your group costing and profitability, but also enables you to meet global statutory regulations and compliance requirements.
By default, you can use the current version of Global Value Chain to create reports and analyses to do the following:
Present a statement of planned and actual costs
Calculate consolidated profit
Determine intercompany profits
Show a clear overview of clearing methods and transfer prices
Display currency distribution and simulate the effects of currency fluctuations on profit
List unrealized gains in the portfolio
Imagine if you could…
Collect and calculate
your material, manufacturing, and logistics costs at all BOM levels
Have complete visibility
of planned as well as actual costs and profits across the global value chain at any level, product & product group
Drill-down and analyze
revenues, costs and (intercompany) profits on a dynamically created global BOM
Achieve full transparency
of consolidated costs and unrealized profits in inventory for all entities at plant and material level
Simulate the effects of fluctuations
in FX rates and raw material prices on your profitability
Achieve higher operating margins
through faster decisions, better sourcing strategies and optimized supply chains
Be free of system and country border constraints
EXA
Global Value Chain
Empower faster and better management decisions
Enable smarter purchasing and production strategies
Ensure greater supply chain efficiency
Assess the impact of currency fluctuations on costs and profitability
Solution Highlights
Global BOM
Generate the global Bill of Materials (BOM) for a selected product with local as well as consolidated costs available at each stage of the global BOM
Intercompany Map
Visual analysis of logistical and financial flows giving an overview of important financial figures – (intercompany and 3rd party) sales, COGS and profits – with the ability to drill-down on individual intercompany relationships
Cost Comparison
Comparison of (consolidated) revenues and costs of products on global BOM item level with the ability to analyze cost deviations due to price, foreign exchange and quantity fluctuations
Simulation
Simulate revenues, costs and profits based on changes in underlying parameters such as FX rates or raw material prices on different levels (e.g. group, plant and material)
Inventory, Stock in Transit & Work in Progress
Reporting across multiple dimensions, including year, period, plant, product type, and product with a split of local stock value into consolidated cost and intercompany profit
Seamless Integration
As a SAP add-on, GVC uses standard SAP HANA & NetWeaver technology
Customer Success Story
Global machine tools provider located in the Southwest of Germany
Key Challenges
Since almost every machine/product is customized uniquely at the factory, the final cost is only known when production is completed
Cost & profit planning is carried out on “dummy” machines
ERP and CO-PA permitted only for single entity reporting and analysis not excluding intermediate profits
Outcome and Benefits
Display a fully integrated view of its global value chain with planned and actual costs down to the last screw
Analyze revenues and cost for an almost unlimited number of attributes
Drill down from the company level aggregated date down to single items
Run analytics based on the true global product hierarchy
Distribute indirect costs (e.g. R&D, marketing or IT) correctly based on real-world allocations split across its products and services
Reference
MIGUEL GARAYALDE
Program/Project Manager (FISFG PMO & Governance)
F. Hoffmann-La Roche AG
EXA GVC is a unique solution, that enables companies to calculate consolidated product costs and profits along the entire global value chain, without losing track of the original underlying cost component split.
We use EXA’s GVC solution for multiple business functions and have found it very useful for all aspects of financial consolidation. Since implementing GVC, the accuracy of our cost and inventory calculation within group accounting has improved drastically. Considering that GVC works across ERP systems and across country boundaries, this is remarkable.
I personally think that EXA’s GVC solution is unmatched regarding its capabilities to create a truly global consolidated cost & profit footprint across the entire value chain.
I firmly believe that it can be leveraged for various business functions such as accounting, controlling and logistics.
As for EXA, I think the company has demonstrated an impressive growth path, and in my role as Program and Project Manager at Roche, I am delighted to work with functional and technical team members from EXA. EXA consultants not only bring a very high level of expertise, but their quality consciousness and eagerness to deliver successfully is also noteworthy. This is once again being demonstrated in the current collaboration project, where Roche and EXA are working closely together.
“Präzise Zahlen”
Read what the German-speaking SAP User Group (DSAG) magazine “Blaupause” has to say about the EXA Global Value Chain.
Note: DASG login is required to view the article.
You may also request a printed copy of the magazine by sending an email to gvc@exa-ag.com.
Technical Overview
Global Value Chain integrates easily into any SAP architecture landscape, thanks to the multiple options to use the system:
Run GVC as an SAP add-on
on your existing SAP ERP or SAP BW (regular DB or HANA) server
Run GVC on a sidecar
SAP ERP or SAP BW (regular DB or HANA) server
Use GVC BW content
to integrate with your existing SAP BW reporting landscape
Extract data from virtually any SAP ERP
using a plug-in (ECC4.6C and higher, Suite on HANA, S/4HANA)
Import data from other non-SAP ERP or business systems
using an external data interface
Modern Web-based User Interface
Native Views to drive Visual Analytics
with external tools like Lumira or Tableau#
#Coming Soon