Irish Distillers required an open and flexible system, for the budgeting and forecasting cycles, which could integrate fully with management reporting and that was liked and adopted by end users.
Company: Irish Distillers
Industry: Manufacturing - Beverages
Before the implementation of Essbase and Infor Performance Management, Irish Distillers had to undergo a lengthy process of ensuring the integrity of data coming from various sources in the preparation of reports, budgets and forecasts.
Irish Distillers needed to improve the level of version control, performance as well as incorporate complex currency translation requirements by the business.
Created by the link-up between Pernod and Ricard in 1975, Pernod Ricard has based its development on both organic growth and acquisitions. The purchase of part of the Seagram businesses (2001) and the acquisitions of Allied Domecq (2005) and Vin&Sprit (2008) have propelled the Group to the position of leader in the Premium segment, and world co-leader in Wines & Spirits.
Irish Distillers Pernod Ricard (IDL) is Ireland’s leading supplier of spirits and wines and the producer of Jameson, a huge success story for the company being the world’s fastest growing international brand of whiskey. IDL also produces four of the top ten spirit brands in Ireland (Powers, Paddy, Huzzar and Cork Dry Gin), West Coast Cooler and distributes top international brands such as Absolut, Havana Club and Malibu.
In December 2011, Irish Distillers announced a €100m investment in its plant at Midleton in Co. Cork and the creation of 60 new jobs in Cork and Dublin. This expansion was necessary to meet increasing demands for its Jameson whiskey worldwide and saw employment grow to 560 people.
Irish Distillers searched for a performance management system that could be used to deliver management reporting and integrate these with budgets and forecasts. Irish Distillers required a flexible architecture, based around a central repository with a user friendly Excel interface for their finance end users. A common platform was required that could control and streamline the IDL’s budgeting and forecasting processes and enable data to flow from and to it’s SAP ERP.
CAs well as this system needed to have the following features:
- A multi-user system
- Interface with SAP systems
- Recalculate changes quickly
- Easy to use interface – spreadsheet support
- Handle multiple currencies and rates
- Budget-Forecast timeframe require immediate what if scenarios outputs
- No issues with data integrity
Codec was asked to deliver the system and in conjunction with IDL, delivered management reporting followed by budgeting and forecasting in 8 weeks.
Today, the application has a number of benefits which were not available in the previous systems.
The income statement by product brand and market is available on the same day as IDL close their books in SAP. This means that information is immediately available to Irish Distillers and also to the Pernod Ricard group. As well as income, all overheads are available for analysis.
All budgets, forecasts and plans are collected, consolidated and reported on using the same product eliminating the need to train end users up on separate applications; while ensuring that all reporting needs are satisfied in one centralised system. There is no issue with data integrity as the information is stored and managed in the same system.
The finance department solely administer and maintain the application and there is no requirement for IT resources apart from the maintenance of the infrastructure.
All currency translation requirements are satisfied and calculated automatically giving analysts more time to perform variance analysis and respond to ad-hoc requests using the powerful reporting capabilities of Infor PM and Essbase.