Standardizing Material Cost Planning with SAP Analytics Cloud for a Leading Manufacturer
Client Overview
A prominent manufacturer of ceiling materials and finished products recently partnered with Tekrise Solutions to streamline and standardize their material cost planning and financial planning processes. Having recently completed a functional S/4HANA migration, the company sought a robust planning solution leveraging SAP Analytics Cloud (SAC) with SAC Planning to enhance cost control, profitability analysis, and financial forecasting.
The Challenge
The client’s existing cost planning processes were fragmented, with limited visibility into key areas like raw material and freight costs, impacting overall profitability and financial statement accuracy. They needed an integrated solution to support standardized, reliable cost planning for product materials, sales, and profitability planning, eventually extending to full financial statement planning. Tekrise was chosen as the strategic analytics partner to lay the groundwork for a scalable, standardized solution with SAC Planning.
Key challenges included:
- Developing a cohesive roadmap for SAP Integrated Financial Planning that could evolve from product cost planning to profitability and financial statement planning.
- Integrating planning data with SAP BW/4HANA, ensuring seamless data flow between actuals and forecasted values.
- Educating stakeholders on the most effective methods of data integration, such as API subscriptions, Data Export Services, and OData.
Solution and Implementation
Tekrise Solutions brought extensive expertise in SAP Analytics Cloud Planning, guiding the client through each step of the transformation. Our team of architects, planners, and developers worked closely with the client’s purchasing and executive teams to build an end-to-end SAC Planning solution aligned with their strategic objectives.
Key Contributions
Roadmap for SAP Integrated Financial Planning
Tekrise designed a roadmap for integrated financial planning, beginning with Product Cost Planning and Sales & Profitability Planning, ultimately progressing to full Financial Statement Planning. This roadmap provided a clear path for the client to follow as their SAC Planning requirements grew.
Strategic Architecture Design
We architected a solution for integrating SAC Planning data with SAP BW/4HANA, ensuring data consistency across planning and actuals. Tekrise helped the client’s technical team understand key integration options, including API subscription, Data Export Services, and OData, enabling them to make informed decisions for future scalability.
Material Cost Planning Solution
Working closely with the purchasing organization, Tekrise implemented an SAC Planning solution for material cost planning. This solution included detailed planning for raw material and freight costs, with purchase price variance calculations that directly impacted the P&L, providing actionable insights for the finance and purchasing teams.
End-to-End Planning Architecture
We designed a comprehensive architecture that encompassed data flow from the S/4 system, a forecasting process, and analytics that allowed comparisons across multiple versions of planning data. This end-to-end setup supported the client’s need for flexibility in analyzing and revising plans.
Workshops and Process Standardization
Tekrise engaged with the client’s stakeholders in workshops, discussing their current processes and recommending a low-code, standardized future process using SAC Planning. These sessions provided clarity on how SAC Planning could enhance efficiency and accuracy.
SAC Data Actions and Planning Models
Tekrise developed SAC Data Actions, Allocation processes, and Verification steps within the Planning Model, creating SAC Planning Stories that supported the client’s complex cost structures and allocation needs.
Project Management and Delivery
Our team managed customer expectations, ensuring that the BI team delivered the SAC and SAP BW/4HANA solution seamlessly. Tekrise utilized CDS views, the ODP framework, data extractions, and transformations to implement a solution that aligned with the client’s requirements.
The Outcome
With Tekrise Solutions’ guidance, the client successfully standardized their material cost planning and financial planning processes using SAP Analytics Cloud Planning. The new solution has enabled them to gain deeper insights into material and freight costs, efficiently manage variances, and conduct accurate profitability analysis.
Key Benefits
Standardized Planning Process
The client now benefits from a streamlined planning process that enables consistent, reliable cost forecasting across raw materials, freight, and profitability.
Integrated Data & Real-Time Insights
The integration of SAC Planning with SAP BW/4HANA ensures real-time data access and comparison across actuals and forecasted plans, supporting data-driven decision-making.
Improved Cost Control
With comprehensive planning models, the client can now track and control material and freight costs effectively, impacting P&L accuracy and financial forecasting.
Conclusion
Tekrise Solutions empowered this leading manufacturer to establish a modern, standardized planning solution with SAP Analytics Cloud, setting the foundation for integrated financial planning and profitability analysis. By developing a scalable roadmap and implementing advanced SAC Planning features, Tekrise has enabled the client to gain more control over costs and make informed financial decisions with greater confidence.
This project highlights Tekrise’s commitment to delivering strategic, customized solutions that meet each client’s unique needs, setting them up for success in today’s competitive landscape.