Challenge: Timely HQ reporting
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.
- FC produced long-term plans at the detail level of the budget.
- FC consolidated sales (İstanbul), production (İstanbul and Aksaray) and import-export (Free Zone) under a single virtual consolidated structure.
- 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.
- 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..
- These components also became visible in balance sheet inventories.
- 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
- Eliminated delays and improved quality in Germany based HQ.
- Proposed alternative budget and plan scenarios to HQ.
- Started playing a proactive role in financial issues.