"Lam Weston the White Dacha" created budget model based on Anaplan

2020: End of system implementation of budgeting

On April 13, 2020 it became known that the kartofelepererabatyvayushchy plant "Lam Weston White Giving" completed budgeting system implementation. As the basic solution for automation of budget processes the Anaplan platform was used. The project is implemented by ATOMs Consulting company.

As it was reported, when choosing the platform the customer was guided by the following criteria:

• implementation deadlines – no more than 3 months from start of the project before receiving the working model;
• participation in creation of model of specialists of financial service;
• possibility of further development of a system by own forces;
• possibility of operational review of budget scenarios and also quarterly budget update taking into account the come true fact.

As a result a choice was made for benefit of the Anaplan system as most meeting all stated requirements.

Among key tasks which the budgeting system had to solve, - coordination and a possibility of balancing of activity of agricultural, production and commercial divisions and also logistical function. Besides, we needed to consider different scenarios of business development in planning period with a possibility of quarterly adjustment and review of annual scenarios taking into account an available fact. Andrey Suslov, the deputy finance director of the enterprise told

Thus, the created budget structure is full model of business. It consolidates in a single system all key processes – from sales planning, production and logistics before planning of CAPEX, OPEX and financial activities. The result of a company performance can be estimated, analyzing reports – about cost value, income and expenses, cash flow and also balance.

Existence of several limiting factors when forming a budgeting model became feature of the project. Usually the budget is under construction from one limiting factor, most often, from sales volume. In the budget model "Lam Weston White Giving" it was necessary to consider:

• sales opportunities: expert evaluation of a market share which the enterprise is going to occupy in planning period;
• possibilities of import: planning of import deliveries to a case of force majeur circumstances for absolute performance guarantee of the obligations to consumers;
• production capacities of the enterprise: production planning taking into account structure of products, technology idle times, the speed of work of the line which including depends on quality of available raw materials;
• availability of raw materials of necessary quality: existence in the market (factors of productivity and seasonality) and its quality;
• possibilities of storage of finished goods and raw materials: volumes and cost.

The program of interaction with farmers – from transfer of landing material to them before receiving finished goods is reflected in the created model.

The important place in model is taken by cost accounting. It is conducted in cuts of the product range, managerial cost items – direct and indirect and also production lots, taking into account seasonality and technology breaks. Cost value is calculated by the FIFO method.

The implemented solution allows to perform planning of expenses on warehousing of products and raw materials. A system gives the chance to select optimal solutions on time of production and storage of products taking into account the capacity of own warehouses and also the cost of lease of warehouses and logistics.

The model includes the detailed block of planning of CAPEX. Its necessity is caused by use of the expensive equipment and modern production lines, significant investments which are enclosed in physical assets of the enterprise.

Feature of business of the enterprise is need of planning on two time cuts: to agricultural seasons and the calendar periods that is relevant for agriculture. The model considers products of one agricultural season which can be put, grown up and implemented in different calendar years.

The Planning of Waste block is also implemented. After completion of production process as waste there are a peel, scraps, starch, the earth, packaging waste. Layer management of the received waste, their cleaning, expenses on their sorting, utilization and also search of opportunities for their processing and implementation is the important task significantly influencing the profit of the company.

11 services are involved in process of budgeting.

Further development of a system will happen in the direction of creation of a strategy pattern of planning and the plan fact of the reporting. We hope to involve possibilities of Anaplan for solving of tasks of the management reporting and production planning in the long term. Andrey Gvoskov, the CEO of ATOMs Consulting company told