Kıraça Group of Companies. June, 2004

Transcription

1 Kıraça Group of Companies June, 2004

2 AGENDA The Kıraça Group Kıraça Group Budgeting And Reporting Structure Kıraça Group Budgeting And Reporting Issues Implementation of SAS FMS The Infrastructure Lessons Learned Post Implementation

3 ACTIVITIES OF KIRAÇA GROUP Manufacturing Karsan Sanayi Light Commercial Vehicles Multi-brand Production Domestic & Export Sales Kırpart Spare Parts Brand Free Domestic & Export Sales Trading Kıraça Dış Ticaret International Trading Chemical Raw Materials & Textile Silco S.A. Procurement & Finance Partner of Kıraça Dış Ticaret Kıraça Otomotiv Parent Company of the Group Investments Distribution Karland Brand Free Spare Parts Distribution Domestic & Import Suppliers Domestic Sales Dealers Karsat Peugeot Dealer Karland Dealer After Sales Consultancy İMA Danışmanlık Consultancy (esp. On HRM) HAY Group Local Partner

4 KIRAÇA GROUP BRIEF Kıraça Group includes six companies operatting mainly in the automotive sector. The parent company is Kıraça Automotive Inc. and the locomotive company is Karsan Automotive Industry and Trade Co. that manufactures the light commecial vehicles and spare parts of Peugeot S.A.. Another manufacturing company is Kırpart Automotive Parts and Trade Co. that manufactures no-brand spare parts especially thermostat for OEM companies, such as Renault, Ford, Fiat etc. On the marketing side, we have Karland Automotive Parts Marketing and Trade Co. that is the Turkish aftermarket leader with 500 countrywide dealers. It has also a subsidiary called Karsat Automotive Marketing Co. operating as a dealer for Karland. Kıraça Foreign Trade Co. is principally active in the trade of chemical raw materials and textile products. İma Consulting is a human resources consulting company that has a strategic partnership with Hay Group Belgium.

5 BUDGETING PROCESS Depending on need, at least 2 months forecast for current year and 12 months budget for the following year. 6 companies start budgeting at the same time, using standard budgeting forms and macro-economic assumptions, supplied by Kıraça. Kıraça Administrative Staff controls every budgeting step for each company. M.E. Assumptions Sales Production Purchasing Investments Total Expenses Bank Loans VAT Cash Flow Inventories P&L Balance Sheet

6 REPORTING PROCESS CENTRAL REPORTING Weekly, semi-monthly, monthly, quarterly, and annual reports. Actual financial and statistical data of group companies are collected. Consolidation performed in Kıraça, goodwill, minority interest and profit on stocks calculated Kıraça Staff report to top management with actual budget comparison in-company REPORTING Weekly, semi-monthly, monthly, quarterly, and annual reports. Reporting up to company s top management requirements

7 BUDGETING AND REPORTING ISSUES Reporting and budgeting are important for all. BUT In countries with high Inflation like Turkey, Budgeting, with continuous revisions and scenario analysis, Reporting, accurate and on time, on all levels, Consolidation, to see the real group performance, is more important and critical for survival especially in the organizations Kıraça Group targets for growth.

8 BUDGETING AND REPORTING ISSUES + Budgeting in excel sheets No control during budgeting process Consolidating budgets of group companies in excel sheets Collecting actual financial data of group of companies in excel sheets Consolidating actual financial data of group of companies in excel sheets Wasting time controlling data ( in group companies and parent company ) Reporting to top management in excel sheets ( in group companies and parent company ) HIGH PERSONNEL COST HIGH RISK OF MISCALCULATION DELAY IN STRATEGIC DECISION MAKING

9 We Chose SAS Financial Management Solutions

10 IMPLEMENTATION OF SAS FMS 1. Started project as early adopter at the begining of We made serious changes on our companies financial structures. (standard chart of accounts, etc) 3. At the mid of the project, product had some problems at budgeting side and the project stopped for a while. 4. After the problems were solved, the project started again. 5. Because of the complex budgeting cycle and some business requirements special to Turkey, the project took longer than planned. 6. At the end, the project finished and in second half of 2002 we started to use FMS for budgeting, consolidating and reporting.

11 AFTER the IMPLEMENTATION Budgeting in the software environement Controlling ability in every step of budgeting process Consolidating budgets of group companies in SAS Planning automatically Automatic data transfer from operational system (ERP) to SAS FMS Consolidating actual financial data of group companies in SAS FMS automatically + Reporting to top management either in SAS FMS or On demand usage of SAS Excel functionality ON TIME REPORTING LOW PERSONNEL COST NO POSSIBLE MISCALCULATION ON TIME STRATEGIC DECISION MAKING

12 KIRAÇA-Net (A partial view for SAS FMS) THE INFRASTRUCTURE Akçalar-Bursa Orhangazi-Bursa Antalya Sarıgazi/İstanbul Levent/İstanbul Ankara Ceneve INTERNET Nilufer-Bursa Acıbadem/İstanbul DMZ Cisco 3524/2924 Clients IE 5.x & 6.x TS 5.0 Client Win XP SAS FMS Server FMS SAS 6.12 Access to Oracle W2000 (Service Pack 3) DB+Appl. Server Oracle e-business Suite Oracle 9.2i W2000 (Service Pack 3) WEB Tier SAS Web Publisher Apache/Tomcat JDK W2000 (Service Pack 3) Terminal Server W2000 AS W2000 (Service Pack 3) Actual Figures Client Usage for Reporting Budget Entry/Amendments General Maintenance

13 Lessons Learned A well defined Financial Structure must be in use and standard over the related organizations, Reporting and Budgeting requirements in all levels must be analyzed and committed, Requirements Vs Solution analysis must be done and committed, Local facts and legal requirements must have fitting places in the solution.

14 MEETING WITH SAS R&D At the end of 2002, SAS R&D visited us and we talked about the following demands and the possible solutions. Budgeting including product costing Automatic calculation of goodwill, goodwill depreciation,minority interest and profit on stocks. ( we defined the solution in excel sheets ) Excel-like logic for business drivers and being able to use previously calculated business driver in a new business driver, Reducing the processes ( preferably one process) in order to see the results immediately, avoid wasting time for submitting, approving etc. and easy usage for top management Standard scenario analysis tool Flexible forecasting functionality In June 2003, we had a demo for SAS TFM V.4, With pleasure we saw that; SAS have taken us into consideration THANK YOU SAS, we are waiting for the next version

15 Kıraça Group of Companies June, 2004