Before DLC

• Limited resources and expertise
• Poor financial visibility
• Issues and delays stemming from SAP implementation

After DLC

• Standardized financial reporting
• Development of detailed controlling general ledger handbook to foster alignment
• Time saved due to more visibility into key business areas

Overview

A large CPG company engaged DLC for support in establishing a reliable finance function after experiencing issues stemming from a recent technology implementation.

The client chose DLC for our proven ability to swiftly and efficiently tackle cross-functional issues.

Challenge

Following the launch of a new production plant in 2022 and a post-go-live SAP implementation, the client faced difficulties in analyzing results, troubleshooting technical errors, and creating standardized financial reports. There was a disconnect between the finance department and other operations teams due to competing priorities and a lack of employee resources and time.

Additionally, a global hierarchy mandated by the company’s headquarters complicated the creation of country-specific hierarchies, impacting purchase order approval workflows, financial reporting, and manual process creation.

Approach

The DLC team created a task force of finance, accounting, and other operational leaders to discuss initiatives and objectives weekly.

Next, we developed a detailed controlling general ledger handbook to align all parties with budgeting activities. This eliminated confusion among requisitioners and approvers, enabled efficient budgeting, and included all the latest updates and organizational changes.

Collaborating with the client’s IT department, we created a cost center dashboard to give owners a snapshot view of their department’s SG&A spend versus target.

We also developed a powerful Excel template to track budgets locally and drew up a project scope containing automation requirements for a seamless transfer of knowledge to the client’s global team.

To address the lack of cross-functional support, we wrote a close calendar SOP to clearly address pain points and establish a detailed process for the future.

Results

The client’s operational teams are now able to quickly find the information they need, identify key trends, and address the root causes of ongoing issues due to DLC’s provision of standardized financial reporting and analyses.

Our consultants also equipped the client with the ability to ensure purchase orders were coded to the correct general ledger accounts and cost centers. This reduced the number of manual journal entries and interventions needed by the finance team, enabling them to make rapid progress during critical close days where time was valuable.