Softline SAP BusinessObjects for retail

The situation in the market of retail demonstrates significant growth in the competition among the companies. To provide increase in overall effectiveness of development of the enterprise competent resource management which is performed by setting of the financial purposes and control of their accomplishment is necessary. The solution of such task is not possible without modern and high-quality instruments of financial planning (budgeting) now.

The companies in which budgeting is conducted quite often face a number of problems: long terms of formation of budgets, untimely reports on execution of the corresponding budgets, a large number of the errors connected with accomplishment of manual transactions and use of paper carriers of information, not the effective analysis of achievement of target indicators and others. For ensuring operational and effective planning heads need to think of budgeting process automation which at any successful company should have the following qualities allowing to achieve effective objectives:

• opportunity to set to the head target financial performance;
• plan "from top to down" and "from below up" – the choice of the optimal approved plan variant;
• forecasting of business development, its financial results;
• carrying out scenario analysis;
• feedback coupling and control of execution.

The Softline company developed the standard solution on budgeting on the SAP platform for the companies of retail which has all potential for automation of the main financial budgets and covers the following planning processes:

• Determination by the management of target indicators of financial performance and profitability - filling of the plan of key and strategic indicators for income, establishment of limits of the most important (critical) expenses. Display of target values at the planning level on structural divisions as a reference point.
• Forecasting of financial results - on the basis of historical data and using automatic models of planning.
• Maintaining several versions of the budgets considering different succession of events. Including taking into account opening and closing of new sales points.
• Maintaining the income and expenditure budget (income and expense budget) on elements of a financial structure – filling of planned values under the articles on shop or cost center according to one of versions with control of compliance to target indicators. Calculation of a financial result.
• Allocation of costs (allocation) – rules for apportionment of total amounts on detailed analysts, the total costs of the region of shops on the basis of historical data, the planned indicators (revenue) or statistics (shop area, number of staff, etc.).
• Maintaining the budget of cash flow (BCF) – planning of arrival of money on all sources and a funds expenditure in a required temporary section, calculation of an opening and final balance. Compliance to the liquidity level set by the management.

Approval, statement and control of budget implementation – existence of the monitor of the head for tracking the system of the statuses of filling of plans, variance analysis of planned data from target indicators and from the fact of previous year. A rejection of versions with a possibility of the indication of the reason in the comment. Comparison of the approved versions and reflection of the made changes. The approval of versions by structural divisions and the final version on the company.

Increase in discipline of budget process - fixing of areas of responsibility of participants of planning for formation, execution and control of the corresponding budgets. Optimal interaction of divisions of the company at all levels of management within budget process.

Analytical reports on planning process, including the plan fact the analysis – constant control behind a financial status of the company, an exception of cash gaps. Efficiency analysis of work of outlets (shops), identification of the spheres of business activities, directions of structural adjustment, most preferable to further development (closing of some and development of other divisions).

"Our solution for the industry of retail is the ready tool covering all main aspects of process of drawing up the main budgets of the company. It allows heads to predict a financial status and cash flows of the company taking into account historical data, to record regulations of budget process, to control execution of the planned indicators due to operational obtaining exact actual data and the plan fact of the analysis. So to select the correct development strategy and to exercise effective management of resources. At the same time the implementation cost of the solution is fixed, and the term of accomplishment of "turnkey" such project is only 4 months", - Lyudmila Surikova, the Head of Department of a business intelligence of SAP of Softline company emphasizes.

Use of the standard solution of Softline for creation of financial budgets provides a basis for optimization of financial performance and transparency of expenses of the company. Permanent monitoring and control of change of a financial situation in the company allows to increase financial stability and to improve a financial status both the companies in general, and its separate structural divisions.

The Softline company proposes the standard solution on budgeting for the companies of retail on the SAP platform within a special offer which includes installation of the standard solution, loading of historical data and training of users. Implementation term – 4 months. Cost – 2,000,000 rub including VAT.