Published on 18-Sep-2009
"IBM Cognos Planning provides us with perfectly presented budgeting and actual data according to our group reporting standard, for our 1,000 accounts and 120 cost centres. The solution offers remarkable performance and efficiency." - Anton Haslinger, Information Manager. PaperNet
PaperNet standardized their enterprise planning activities with IBM® Cognos® Planning.
The PaperNet enterprise planning project included allocating primary costs for staff, depreciation and materials at a business unit level. It had to plan more than 1,000 accounts and 120 cost centers over 80 planned/actual periods, with the budgeting and presentation of actual data based on group reporting requirements. PaperNet’s high number of accounts also meant that different planning models needed to be mapped for each cost center and the cost centers consolidated into planning groups.
PaperNet uses both IBM Cognos Planning and IBM Cognos PowerPlay®
• Support for cost and profit planning, allocations implemented according to group guidelines • Time savings in planning and for structural changes, simple and rapid simulation of planned changes
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Part of the multinational PaperlinX group, PaperNet is a specialist wholesaler operating independently in the Austrian market from its premises in Vienna, Graz, and Innsbruck. The company markets and stocks graphic papers, stationery and complementary products, and views itself as a key link between paper mills and printing plants, processors, industrial buyers and the communications sector. Its multinational expertise allows PaperNet to quickly recognise new trends and developments, and the company’s global purchasing systems enable it to satisfy its customers’ current and future requirements.
A total commitment to quality
The commitment, experience and professionalism of PaperNet’s managers and employees are the driving forces behind the company’s strong performance.
Quality is an all-encompassing concept that lies at the very heart of the corporate culture. As well as products and services, it also applies to working processes and communication: PaperNet operates a Total Quality Management (TQM) system and performs standardized quality checks. In its business operations, the company continuously endeavours to meet the expectations of its customers, suppliers, employees and the general public in a responsible manner, as far as economically and ethically justifiable.
The IBM Cognos Planning requirements
The PaperNet enterprise planning project addressed a number of requirements:
- • Allocation of primary costs for staff, depreciation and materials at business unit level
• Planning of more than 1,000 accounts and 120 cost centres for over 80 planned/actual periods
• Budgeting and presentation of actual data according to group reporting requirements
• Complete crediting of all cost centres
• Ability to use a different allocation key for planned and actual
• Transfer of structural information (cost centres, accounts) and actual data from SSA ERP
PaperNet’s high number of accounts meant that different planning models needed to be mapped for each cost centre. The cost centres were consolidated into planning groups, and for each group a definition can be used to propose planning accounts to be displayed with actual values.
Integration with SSA ERP LN (ex Baan)
Structural information such as cost centres and accounts were transferred during the prototype phase. Actual data for each period, cost centre and account is being transferred on an ongoing basis from SSA ERP to the planning model.
Break even analysis by business unit
All costs and profits are displayed for each business unit. Costs are allocated on the basis of the ‘material costs’, ‘staff costs’ and ‘depreciation’ primary cost types. In the presentation of results for each business unit, this cost vector is divided into sales costs and administration costs. Allocations can be made according to transfer prices and ratios.
The actual vector includes monthly values for the previous two years and the current year. The plan vector consists of budget, forecast 1 and forecast 2 and also includes details for each month.
Vienna-based CBG Informatik GmbH, a long-term Cognos partner, successfully implemented the PaperNet planning solution at PaperNet. The company specializes in business intelligence applications and offers consultancy services to trading and industrial operations for implementations of controlling and planning systems in the core areas of purchasing, production, sales and accounting.
Some additional applications for IBM Cognos Planning are already emerging: In future, Cognos’ browser based planning module could provide optimal support for decentralised planning by cost centre and for sales planning.
About IBM Cognos BI and Performance Management
IBM Cognos business intelligence (BI) and performance management solutions deliver world-leading enterprise planning, consolidation and BI software, support and services to help companies plan, understand and manage financial and operational performance. IBM Cognos solutions bring together technology, analytical applications, best practices, and a broad network of partners to give customers an open, adaptive and complete performance solution. Over 23,000 customers in more than 135 countries around the world choose IBM Cognos solutions.
Products and services used
IBM products and services that were used in this case study.
Cognos 8 Planning
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