DHL Global Forwarding Ireland is a multi-faceted, multi-layered organisation. Their budget accounted for 20 individual cost centres and branches, resulting in a model of more than 60 different but related budgets.
Managing this model in Excel was hugely cumbersome, error-prone and time consuming. It was taking a full week just to sanitize the information. The data was difficult to manipulate and comparing actual to plan, was slow and tedious. Too much time was spent crunching the numbers and too little actually analysing the data.
Our Work / DHL
3 weeks of manpower
saved
Client DHL
::
Sector Logistics
Challenge
Struggling to manage a complex budget model in Excel
Excel model was a nightmare...
As the sheets got larger and larger, trying to make a simple change in the Excel model was a nightmare. It would take more than a week just to sanitize the information and even then it was difficult to compare actuals to plan.
Andrew May, Managing Director, DHL Freight UKSolution
Move from old world FP&A to technologically empowered decision making
DHL sought to find a replacement for their complex Excel-based budget process with a smarter solution. They selected the Adaptive Planning platform and then chose Miagen as their implementation partner. Miagen’s specialist transport sector team helped DHL map and steer their course from beginning to end.
Determine KPIs and build financial models
Miagen structured the implementation process by setting up exploratory meetings to capture key requirements and information on existing business processes. From there, financial and operational planning models were created to enable detailed analysis of costs and profits. A clear, robust financial model was designed for deployment.
Implement FP&A technology
Using the Adaptive Planning platform, Miagen developed a clear reporting hierarchy and a multidimensional chart of accounts. Moving to an automated solution had an almost immediate impact, as the level of errors reduced overnight and financial accuracy improved. Adaptive was also integrated with DHL’s ERP system, providing a central repository for all data.
Empowering the DHL team
DHL now have a clear set of KPIs, custom accounts, budget plans and rolling forecasts. The internal team are fully trained and supported on the new models and systems, empowering them with the ability to make changes on the fly, in line with strategic direction, without a dependence on external consultants.
Outcome
A more empowered, more agile FP&A approach.
New approach saves 3 weeks manpower per annum
Under the previous FP&A system, the finance team had to manually collect data, validate it, format it and create reports. Thanks to the new automated system, DHL Global Forwarding Ireland have estimated that they are saving 25 days’ work per annum.
Reliable budget. Ability to understand actual against plan
Today DHL have a more reliable budget and can easily understand actuals data to plan. When they want to analyse variance against budget, all information is at their fingertips and they can easily drill into the supporting detail. The model features a rolling, live forecast that’s always up to date.
Planning is much more agile
Real time information which can be easily manipulated means more time is spent analysing the data and business decisions are more informed. DHL are empowered with the knowledge and ability to make changes on-the-fly, quickly and safely responding to the market.
Shared accountability for FP&A
Thanks to the implementation of an integrated and cloud based system, financial planning is open and accessible to all areas of the organisation. Accountability for FP&A has dramatically improved across the organisation.
Next year will be even faster!
Implementing Adaptive Planning with Miagen saved us at least 3 weeks of manpower across 3 people. Next year will be even faster!
Andrew May, Managing Director DHL Freight UK