Transforming procurement through cloud migration
Leveraging powerful alliances, test planning, processes, and data management for a food distributor
Transforming procurement through cloud migration
Leveraging powerful alliances, test planning, processes, and data management for a food distributor
Client
A major food distributor
Industry
Consumer and retail
Primary goal
Migrate all US facilities to a single cloud-based procurement platform
Platforms
Coupa, SnapLogic, SAP
When an acquisition doubles your revenue in your largest market, there are some big numbers at play—especially when you’re a $48 billion CPG company. And the bigger the numbers, the bigger the impact of every strategic and tactical decision you make. You can’t afford to have your visibility clouded and your decision-making hampered by having two disparate financial operations functions each with its own systems, software, and people. So, when a global CPG company found itself in this situation, it called on KPMG to drive fast, smooth, cost-efficient integration of financial operations.
1
and global alignment between cross-functional teams
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into consolidated spend driving meaningful insights and more proactive decisions
3
the monthly close cycle
4
revenue and sales forecasting
With a host of well-known retail brands and hundreds of processing facilities and supplier locations across the United States, our client is a leading distributor and processor of beef, chicken, and pork products, as well as the largest purchaser of feed corn in the industry. Yet for all its scale, until recently, the company was still managing billions in annual procurement using legacy software and disparate systems. Developing a seamless, connected process for procurement and spend management would require a transformation enabled by Coupa’s cloud-based sourcing solution, a modernized data integration solution, as well as guidance from a trusted integrator. As an established Coupa Global Elite Partner, KPMG was chosen to execute this complex, large-scale implementation.
Client transformation journey
Acquiring a large organic food and beverage business helped a global CPG company expand its operations and nearly double its revenue in the U.S. However, as with most mergers, the integration posed some challenges. Two disparate IT environments with different accounting and reporting models, separate enterprise resource planning (ERP) systems, and multiple business intelligence (BI) tools required extensive manual intervention and offline data manipulation, preventing uniform reporting and analysis. Data was trapped in silos. Visibility was insufficient. A new CFO and the finance and accounting teams lacked the insight to support effective forecasting and both strategic and tactical decision-making. In a sector as competitive and fast-changing as food products, this company needed to increase visibility quickly.
Acquiring a large organic food and beverage business helped a global CPG company expand its operations and nearly double its revenue in the U.S. However, as with most mergers, the integration posed some challenges. Two disparate IT environments with different accounting and reporting models, separate enterprise resource planning (ERP) systems, and multiple business intelligence (BI) tools required extensive manual intervention and offline data manipulation, preventing uniform reporting and analysis. Data was trapped in silos. Visibility was insufficient. A new CFO and the finance and accounting teams lacked the insight to support effective forecasting and both strategic and tactical decision-making. In a sector as competitive and fast-changing as food products, this company needed to increase visibility quickly.
While this CPG company’s business is spread across two continents (and originates from a number of acquired companies), its financial operations are now centralized and unified. A cloud-based platform extracts and loads data from numerous global sources, then configures and stores it in a central location. Accounting staff across multiple back offices work within a single governance structure and with a single set of streamlined processes, enabling effective reporting and supporting a swift, accurate close. Across the enterprise, visibility is excellent, and insights are at the ready, because analysts can perform real-time calculations and drill down swiftly to the meaning behind the numbers. Unified financial operations helps this $48 billion player predict accurately, plan effectively, and act swiftly—all crucial in a sector where windows of opportunity close as suddenly as they open.
While this CPG company’s business is spread across two continents (and originates from a number of acquired companies), its financial operations are now centralized and unified. A cloud-based platform extracts and loads data from numerous global sources, then configures and stores it in a central location. Accounting staff across multiple back offices work within a single governance structure and with a single set of streamlined processes, enabling effective reporting and supporting a swift, accurate close. Across the enterprise, visibility is excellent, and insights are at the ready, because analysts can perform real-time calculations and drill down swiftly to the meaning behind the numbers. Unified financial operations helps this $48 billion player predict accurately, plan effectively, and act swiftly—all crucial in a sector where windows of opportunity close as suddenly as they open.
There will be more acquisition targets in the company’s future. And with a cloud-based platform, governance framework, and standardized processes in place, integrating financial operations will be a swift, sure process. A successful integration inspired the CFO and global finance team to consider other areas for transformation. From evolving multiple layers of the target operating model within Finance, to jump-starting transformation across other functional areas, a powerful ripple effect began and continues across the enterprise. Having the right tools and processes to support a grander vision driven by meaningful insights will continue to empower positive change.
There will be more acquisition targets in the company’s future. And with a cloud-based platform, governance framework, and standardized processes in place, integrating financial operations will be a swift, sure process. A successful integration inspired the CFO and global finance team to consider other areas for transformation. From evolving multiple layers of the target operating model within Finance, to jump-starting transformation across other functional areas, a powerful ripple effect began and continues across the enterprise. Having the right tools and processes to support a grander vision driven by meaningful insights will continue to empower positive change.
Acquiring a large organic food and beverage business helped a global CPG company expand its operations and nearly double its revenue in the U.S. However, as with most mergers, the integration posed some challenges. Two disparate IT environments with different accounting and reporting models, separate enterprise resource planning (ERP) systems, and multiple business intelligence (BI) tools required extensive manual intervention and offline data manipulation, preventing uniform reporting and analysis. Data was trapped in silos. Visibility was insufficient. A new CFO and the finance and accounting teams lacked the insight to support effective forecasting and both strategic and tactical decision-making. In a sector as competitive and fast-changing as food products, this company needed to increase visibility quickly.
While this CPG company’s business is spread across two continents (and originates from a number of acquired companies), its financial operations are now centralized and unified. A cloud-based platform extracts and loads data from numerous global sources, then configures and stores it in a central location. Accounting staff across multiple back offices work within a single governance structure and with a single set of streamlined processes, enabling effective reporting and supporting a swift, accurate close. Across the enterprise, visibility is excellent, and insights are at the ready, because analysts can perform real-time calculations and drill down swiftly to the meaning behind the numbers. Unified financial operations helps this $48 billion player predict accurately, plan effectively, and act swiftly—all crucial in a sector where windows of opportunity close as suddenly as they open.
There will be more acquisition targets in the company’s future. And with a cloud-based platform, governance framework, and standardized processes in place, integrating financial operations will be a swift, sure process. A successful integration inspired the CFO and global finance team to consider other areas for transformation. From evolving multiple layers of the target operating model within Finance, to jump-starting transformation across other functional areas, a powerful ripple effect began and continues across the enterprise. Having the right tools and processes to support a grander vision driven by meaningful insights will continue to empower positive change.
Poor visibility threatened business objectives.
Acquiring a large organic food and beverage business helped a global CPG company expand its operations and nearly double its revenue in the U.S. However, as with most mergers, the integration posed some challenges. Two disparate IT environments with different accounting and reporting models, separate enterprise resource planning (ERP) systems, and multiple business intelligence (BI) tools required extensive manual intervention and offline data manipulation, preventing uniform reporting and analysis. Data was trapped in silos. Visibility was insufficient. A new CFO and the finance and accounting teams lacked the insight to support effective forecasting and both strategic and tactical decision-making. In a sector as competitive and fast-changing as food products, this company needed to increase visibility quickly.The preconfigured assets and technology accelerators delivered by KPMG Powered Enterprise let ambitious leadership teams take advantage of embedded leading practices to speed up the decision-making process while instilling confidence.
Unified financial operations support global success.
While this CPG company’s business is spread across two continents (and originates from a number of acquired companies), its financial operations are now centralized and unified. A cloud-based platform extracts and loads data from numerous global sources, then configures and stores it in a central location. Accounting staff across multiple back offices work within a single governance structure and with a single set of streamlined processes, enabling effective reporting and supporting a swift, accurate close. Across the enterprise, visibility is excellent, and insights are at the ready, because analysts can perform real-time calculations and drill down swiftly to the meaning behind the numbers. Unified financial operations helps this $48 billion player predict accurately, plan effectively, and act swiftly—all crucial in a sector where windows of opportunity close as suddenly as they open.
A strong foundation that can keep pace with continued growth.
There will be more acquisition targets in the company’s future. And with a cloud-based platform, governance framework, and standardized processes in place, integrating financial operations will be a swift, sure process. A successful integration inspired the CFO and global finance team to consider other areas for transformation. From evolving multiple layers of the target operating model within Finance, to jump-starting transformation across other functional areas, a powerful ripple effect began and continues across the enterprise. Having the right tools and processes to support a grander vision driven by meaningful insights will continue to empower positive change.
We have a long history of working successfully with Coupa, which made the client more confident in our ability to adapt the platform to meet their needs and objectives. And as a Coupa integrator, we don’t just come and help stand up a new system. We develop a core model of what good looks like for each specific company, we help them design the processes and capabilities, and then we quickly convert that into a real-world implementation.
Arvin Ravisekar
Advisory Managing Director, KPMG Lighthouse
The client had already selected Coupa as the platform for transforming its S2P process when KPMG was engaged. Their next step was to seek experienced support in configuring and integrating Coupa to address key business goals and move toward a new operating model. We assembled a team that combined data analytics knowledge and software integration skills from the KPMG Lighthouse Center of Excellence with procurement leaders and Coupa platform specialists. Key design and construction tasks included:
Leveraging our extensive Coupa experience, the KPMG team brought a prebuilt suite of test processes and assets that significantly expedited testing of the new system. Working closely with the client, most tests were conducted collaboratively, offering a sneak preview of Coupa's functionality and providing valuable insights into user acceptance levels prior to formal user acceptance testing (UAT). We also applied industry best practices to prioritize and schedule key process tests. Other testing and validation actions included:
After conducting pilot deployments at several cost centers and plants, the new Coupa procurement platform went live at the client’s headquarters and more than 500 other US locations. Thanks to our in-depth planning, design, and testing work, there were no significant postlaunch issues. Key benefits include:
Based on the successful US Coupa rollout, the client is expected to deploy the system to its locations in more than 30 other countries in the future. At home, meanwhile, the client can potentially benefit from our guidance on how to test, maintain, and expand the system to add functionality and meet future needs. This includes redefined test management processes for the client’s central procurement testing team and a roadmap for implementing additional Coupa modules and functions.
In a global marketplace, forward-looking businesses are looking for new ways to reduce costs, minimize supply chain risk, and exercise increased control over organizational spend. Together with Coupa, KPMG can help you use cloud technologies and automation to transform sourcing and procurement to add strategic value, increase process efficiencies, reduce costs, and improve free cash flow.
Let’s talk about how to improve procurement today and prepare for future changes.
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