SAP Implementation for Efficient Management of Finance & Procurement Functions

SITUATION
Vastly distributed office locations and disparate operations resulting in data inaccuracy and poor communication between departments.

IMPACT
Development of duplicate functionalities, inefficient processes and high cost of operations.

RESOLUTION
Implementation of SAP Finance, Controlling, Procurement and Billing Solution to improve control and governance models to reduce operational expenditure, and create a holistic view across more than 100 centers worldwide.

The Customer
Our customer is the world leader in the steel industry, with 310,000 employees in over 60 countries, an industrial presence in more than 28 countries, a turnover of 77 billion and a production output exceeding 120 million tones. The steel giant is a leader in all major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks.

Challenges
Several inefficiencies and inaccuracies caused by the
existing legacy system

Migration of master and cut-over data through

customized programs

Multitude of interfaces and duplicate functionalities Lack of control over enterprise-level data Multiple locations and languages across countries Zero-tolerance for testing defects due to the very
nature of business

High transactional and master data traffic with multiple

interfaces and third party applications

Solution: Implementation of SAP Finance, Controlling, Procurement and Billing Solution

Our customer wanted to achieve better governance and control of their corporate functions. ITC Infotech implemented SAP Finance, Controlling, Procurement and Billing functions to integrate multiple legal entities across seven countries in Europe. Our objective was to adopt best of the business processes availed across corporate locations to facilitate improved data quality, reduced complexity and increased transparency. ITC Infotech established an integrated data model of financial and non-financial information, enabling consistent data across all business units. Using SAPs solution, we streamlined finance operations, reducing costs and cycle times. Since the new system implemented by ITC Infotech experts was highly integrated, it also helped reduce overall IT costs and decrease the total cost of ownership. It enabled better decision-making by providing enterprise-wide visibility into processes across organizational boundaries and by delivering instant access to information in a secure environment. We also implemented solutioning on the ECC 6.0 and BI 7.0 platforms along with multiple interfaces with SAP and non-SAP applications. ITC Infotech followed the ASAP Methodology while using implementation assistants such as the Q&A database, ASAP Roadmap and BP Master lists. We installed the following SAP modules for the customer:

Financial Accounting Controlling Materials Management Sales and Distribution Business Warehouse Interfaces
An important aspect of this implementation was the intensive rounds testing during each go-live. The phased approach to the go-live stage required multiple rounds of testing in addition to regression tests. ITC Infotech also conducted Unit Testing, Development and User Acceptance Testing, Interface Testing, System Integration and Data Migration Testing to ensure data accuracy in the final production system. The highlight was focused communication and advanced coordination with the customers internal teams and third-party teams for effective collaborative testing.

Highlights
A common harmonized platform was accomplished
establishing control between the various business functions All modules such as Project Management, Finance and Procurement, SCM, CRM and HR were implemented in duration of 10 weeks SAP Business ByDesign add-ins for Microsoft Office were used for easy maintenance of data Complete, secure, insightful, and innovative solution via the cloud that allowed the client to focus on its core business SAP Business ByDesign implemented was managed, monitored, and maintained by SAP from secured worldclass data centers Upgrades and support were provided as a part of the service Enabled carving out of non-harmonized corporate functions from distributed SAP systems to a common & harmonized platform Facilitated multi-GAAP reporting requirements through the usage of parallel Ledger functionality of ECC 6.0 Introduction of common chart of accounts for more than 100 company codes spread across seven countries Adoption of advanced features like parallel ledger accounting to enable multi-GAAP reporting foreign currency re-valuation assessment & distribution cycle functions reclassification functions profit centre accounting workflow based parking posting functionalities workflow based approvals & alerts for procurement functions

Development of robust and complex interfaces such as:

BI enabled financial reporting Banking interface Treasury interface Mobile workplace to enable release processes Interface with invoice scanning system SRM based procurement Centralized vendor management system HR & Savings systems

Centralized master data management process for

COA, cost centers, vendors, customers, assets, material masters Accelerated implementation by using ITC Infotechs templates and accelerators, and ASAP methodology Creation of global template to address the globally accepted business functions and developments Facilitated strong Technical Change Management processes in line with ITIL framework for all change requests Conducted business workshops and multiple training sessions for core team and end users to facilitate project awareness Facilitated third party review of the business solution which included internal and external agencies from the customer Ensured adherence to internal controls and SOX across the identified business functions Project documentations were made available in multiple languages to facilitate global roll-outs

Benefits
Complete integration of corporate functions across
companies resulting in high data integrity, consistency and transparency Delivered business solution is flexible and scalable for all future roll-outs Process rationalization through shared services resulting in improved service levels and reduced redundancies Unified view and a single platform access to accounting information across different legal entities Risk mitigation through strong authorization controls Improved processes and financial controls leading to easier SOX auditing and compliance Enhanced control over operational expenditure across various departments

Increased efficiency of transaction processing added

with robust interfaces like SRM, BI, Scanning System, Mobile workplace, Treasury & Banking Interfaces Reduced the cycle time when dealing with intercompany invoices and transactions with respect to affiliates Reduced support cost with rationalized business processes, across corporate offices Adoption of best of the business processes available across corporate offices delivered improved organizational knowledge and learning on business processes

ITC Infotechs Enterprise Resource Planning Practice ITC Infotech is an SAP Consulting partner (North America) with multiple certifications including SAP Application Management Services Certified Partner, SAP Co-Innovation Partnership on Supply Chain Performance Management & Sustainability Performance Management, SAP Net weaver Certification, SAP Chemical Template Certification, and SAP Gold Partner

For more information, please write to: contact.us@itcinfotech.com www.itcinfotech.com

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