Sanko Tekstil, is an integrated textile group that operates cotton ginning, yarn production, dying, printing and ready-to wear garments in 4 legal entities, 6 divisions and 8 production units.

Each unit prepared its own budget on Excel and the HQ aggregated these independent budgets  into a single budget.  Since Excel does not have the simultaneous solution capability required for such a consolidation, the group could not make a single consolidated budget.

Until Reflex project Sanko lacked the the experience of ERP oriented budget and planning software.

The Solution:  The HQ integrated all production units end to end  on Reflex’s single MRP program.

Reflex forced  each production unit’s independent MRP to tie up with the single HQ MRP to be used collectively by the units.

This chain-like connection enabled each unit to trace the effects of its own decision on other group units. Each unit internalized  to evaluate the results of the decisions on the consolidate outcomes only,  and not on the outcome of the decision making unit.

Reflex automatically and simultaneously balanced the quantity flows of finished goods, semi-finished goods and raw materials triggered by the transactions among the group units.

Reflex recalculated the division costs based on the new general quantity  balances reflected on the inventories of the individual units that comprise the divisions.

For example, to produce the towels to be exported by Gaziantep Division, Reflex made the calculations to decide

• Whether to supply the required yarn from the Adıyaman or Başpınar Division
• Whether to use “low priced, high wastage” Adana cotton, or “high-priced, low wastage” American cotton

Solution Benefits: Sanko Tekstil realized that

1. Profit maximization at company level does not maximize the total profits of the group.
2. Group profits can only be maximized by overall  cost minimization.
3. Cost minimization decisions can only be based on real consolidation results.
4. The best cost minimization scenario can only be targeted by simulating consolidated results.
5. Taxes at the Division level cannot be minimized due to legally compliant transfer pricing.

Textile Sector yazısı ilk önce Reflex üzerinde ortaya çıktı.

The Excel based reporting system of Mercedes-Benz was blocked due to data size of the macros.  The internal and HQ reporting to Germany was delayed putting Financial Control (FC) department under stress and in a reactive mood.

The Solution:  By switching to Reflex, FC delivered what Excel could not do.

1. FC produced long-term plans at the detail level of the budget.
2. FC consolidated sales (İstanbul), production (İstanbul and Aksaray) and import-export (Free Zone) under a single virtual consolidated structure.
3. FC consolidated balance sheet, income statement and cash flow statement into one report showing for the first time that aggregated financials are different from consolidated financials.
4. FC decomposed the single account Cost of Goods Sold (COGS)value into its components. For example under the Bus Profitability section, FC showed in Bus COGS, the cogs of “engine”, cogs of “steering system”, cogs of “chassis frame”, cost of “chassis labor ”etc..
5. These components also became visible in balance sheet inventories.
6. FC could measure the effects of price increase of purchased items as well as effects of ending inventory levels on COGS and could run simulations changing input parameters.

Solution Benefits:  By using Reflex, FC

1. Eliminated delays and improved quality in Germany based HQ.
2. Proposed alternative budget and plan scenarios to HQ.
3. Started playing a proactive role in financial issues.

Automotive Sector yazısı ilk önce Reflex üzerinde ortaya çıktı.

Eczacıbaşı Holding and its foreign partner Baxter required Turkish Tax Procedural Law compliant reporting, however, since serum production was controlled by JD Edwards ERP software, all reports were based on USGAAP standards.  Therefore the partners needed to convert reports to Turkish regulation compliant.

The Solution:  All reports were produced by Reflex.

All ERP data were transferred to Reflex automatically while the reporting currency parameter was adjusted to TL so that all USGAAP based ERP data were simultaneously converted to Turkish Tax Procedural Law compliant.

All expenses were allocated among the departments, to come up with Global and Specific Business Unit income statements specific to Baxter.

Furthermore, the serum production flow was adjusted to Reflex “batch load” algorithm to simulate scenarios for decision making.

Solution Benefits:  Bu using Reflex, Eczacıbaşı-Baxter achieved multi-dimensional reporting such that:

1. Instead of Excel they used Reflex, a corporate platform with advanced capabilities.
2. Different requirements of partners were met simultaneously from the same single database.

Institutional Reporting yazısı ilk önce Reflex üzerinde ortaya çıktı.

The  company delivered tender specified CTP pipes and fittings to project sites.  Excel was unable to deliver future costs despite long time spent on calculations.  Since the tender was priced on the formula “cost + profit”, cost overruns and late site deliveries reduced tender profitability adversely affecting budgeted company profitability.

Solution:  Superlit used Reflex for tender based production planning and costing, enabling:

Automatic production planning of  tender specied pipes and fitting variants

Transfer of pre-tender stand-by cost to actual production costs after the tender was signed. This method calculated different costs for each tender signed leading to correct tender pricing while achieving budgeted tender profitabiliy.

Simulation of strategic scenario alternatives to mitigate tender risks.

Solution Benefits: By using Reflex, Superlit

1. Identified early the “loss bound” tenders to compensate as much as possible for the losses before the ending date of the projects.
2. Improved the “tender projects portfolio” by simulating the cash generation potential of prospective tenders.

Construction Sector yazısı ilk önce Reflex üzerinde ortaya çıktı.

Since all sales were made to pharmaceutical warehouses, no retail data for individual paharmacies were available. Meanwhile, the salespeople could not set their targets which led to low motivation. The human resources was burdened by increasing turnover rate.

The promotional discounts given to pharma warehouses in form of “free goods” were not traceable to SKU s since they were recorded as a single monetary value.

The Solution:  Reflex used the sectoral IQVIA reports which show market shares of individual products, to calculate the sales of individual pharmacies and to determine the monthly sales budgets of the individual salespeople.

Reflex identified on SKU basis the single value promotional discounts to complete and correct SKU costings.

Reflex also increased the efficiency of HR by transferring the personal data of salespeople to its automatic HR module.

Solution Benefits:  By replacing Excel with Reflex, Genvoen:

1. Increased the profitability of products by enabling cost control on SKU basis.
2. Updated retail sales budget despite heavy salespeople turnover.
3. Improved the performance of salespeople by reporting quqntity and price variance of individuals.

Pharma Sector yazısı ilk önce Reflex üzerinde ortaya çıktı.

The company involved in production and export of chocolate and confectionaries had a hard time to accept or reject sales orders, since they had no systematic solutions.

Exports were made on delivered duty paid (DDP) terms.  They based costs on accounting data and added customs tax and delivery  expenses of outsourced logistics.  Government Export Promotions were not included in order costing.

The Solution:  Bu using Reflex, the export manager

Could allocate government export promotions to orders received. Furthermore, instead of using accounting data, he could use global market prices for the basic ingredients at the date of the order.

Could estimate available capacity to meet the order before accepting the order to avoid delivery date delay penalties.

Could renegotiate order terms with the customer instead of outright rejection of unprofitable orders.  He simulated order parameters to make an counter offer.  For example, if the Saudi order was not in sufficient to fill the whole truck, he made a discount in price so that Saudi customer increased the order quantity to set the truck at full load.

1. Avoided unprofitable orders.
2. İncreased the profitability of already profitable orders.
3. Calculated the effect of government export promotions on order costing to find the real breakeven points.

Food Sector yazısı ilk önce Reflex üzerinde ortaya çıktı.

Ereğli sells rolled flat products made from slab.  If its slab production is not sufficient it imports slabs so that overall market demand for rolled flat products are always met.

Despite significant cost differences between imported and produced slabs, sales profitability was calculated on a mixed slabs average cost, since there were  no costing systems to account for imported slabs and produced slabs separately.  As such, sales pricing based on an average cost was misleading.

The Solution:  Two separate costing systems  were designed on Reflex  to account for different supply chains, namely slab imports and slab production.

Reflex first determined the amount and timing of slab imports. Next, Reflex  labeled slab SKU’s  automatically, depending on the source of supply chain. Then Reflex adjusted production routes and product trees permitting   “costing for imported slabs” and “costing for produced slabs” operate simultaneously as two separate process costing systems.

Reflex fed COGS for flat rolled products with separate cost flows to enable pricing and profitability decisions be based on correct costings.

Solution Benefits:  Bu using Reflex, Erdemir was able

1. Measure the added value of imported slabs and produced slabs separately, thus determining the optimum product range.
2. To make parametric simulations to measure its ability to service timely World Bank loans.
3. To set up automatic rotating letter of credit facility to finance coal imports required to maintain the energy balance at the regulated temperature for steel making furnaces.
4. Lead data based decision making process with the help of simulated financials.  For example, Erdemir simulated cost and cash flow implications of the labor union to develop  its negotiation strategy.
5. To produce Capital Market Board reports automatically by capitalizing interest expenses of fixed asset investment credits.
6. To calculate the NPV or IRR of new investment project’s marginal cash flows in conducting feasibility analysis of the new investment projects.

Iron & Steel Sector yazısı ilk önce Reflex üzerinde ortaya çıktı.