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Business case Ravago

Ravago group: key information

  • Sector: industry (synthetics)
  • Company established in 1961
  • Head office in Belgium
  • Operating in more than 50 countries
  • 180 entities included in the statutory consolidation and more than 200 in the management reporting
  • 100 users of the software, spread across the whole world
  • More information: ravago.com

The return on investment: in a few words

  • A single version of the truth, by using one single flow of information
  • Enhanced decentralization process
  • The necessary flexibility for local users
  • One single reporting system

The situation

The group’s consolidation and reporting team used two different applications that also worked with different exchange rates for the conversion of foreign currency and a different group structure. The result:

  • Different data input flows
  • Numerous exchanges between both services
  • A high risk of errors
  • Data that were difficult to reconcile with each other
  • Accounting for the information produced took up a lot of time

So, the group’s Financial Management went in search of reliable software that allowed one uniform data supply for each type of reporting, for both consolidation and for management reporting. The improvement of the process also comprised an important project within the financial department.

The solution

Different international software suppliers were contacted and Consolidation & Reporting was selected for the following reasons:

  • The reliability of the software
  • The ease of use (essential when one works with a considerable number of entities across the whole world, that do not necessarily have permanent finance teams)
  • Fast implementation (100% web)
  • An excellent price/quality ratio
  • The possibility of giving more responsibility to the subsidiaries to shorten the production time for the accounts.

The team of experts from Sigma Conso researched the wishes of the finance team to be able to offer the best solution to their needs. A completely new work method formed the basis of this project – for example, the group account system was fully reviewed with the harmonising of the processes of the consolidation and reporting teams in mind. The project was launched in March 2011 and the implementation of the software had already been completed in August 2011. Finally, 100 users of the software spread across the whole world were given training, and the group was operational before the close of year 2011.

The result

  • One single reporting system for a single version of the truth

Although the group is of a considerable size with much diversity, consolidation can take place using one system. After initial use in 2011, time savings of one month were already apparent compared to 2010. The information is entered once and automatically updated in real-time. This means that the consolidation and reporting team always work with the same information, ensuring a considerable improvement in the quality of the information. Security is also guaranteed by the central management of the access rights of all users.

  • Enhanced decentralization process

The subsidiaries load the data in the system themselves and are fully responsible for their reporting, including the entry of monthly flows and booking monthly local reprocessing. This is possible thanks to the software’s multilingual and user-friendly interface, while ensuring a considerable saving of time (the monthly preparatory work in Excel is no longer required at all).

  • The necessary flexibility

The flexibility of the software allows local users to create reports according to their specific needs, while also concentrating on analyses that have priority for group management (e.g. local cash flow report).

  • Easy monitoring of the process

One can monitor the status of the reporting in a single glance using traffic lights (red for errors, orange for warnings and green for correct). Furthermore, the central reporting team no longer has to manually follow Excel files, considering the budget figures are also reported in Consolidation & Reporting.

Geert Stoops, Manager Business Planning & Analysis and Hilde Wellens, Consolidation Manager explain:

“The increase in quality and responsibility for the local users was crucial for us, and in the near future will certainly result in more high quality analyses. Put briefly, the central team has much more control of the local figures with much improved ability to improve the group’s financial performance.”

Do you want to improve your consolidation and reporting process? Contact us today and we’ll take a look together at how you can reach your goals!