Avantor has embarked on a comprehensive overhaul of its financial operations, partnering with PwC to enhance visibility and accuracy in reporting without disrupting existing ERP systems.
Avantor, a prominent player in the pharmaceutical and life sciences sector, has undertaken a significant transformation of its financial operations geared towards improving visibility and accuracy in financial reporting. This initiative also aims to reorganise their external reporting segments into core business units for enhanced clarity and efficiency. The company sought to achieve these objectives without disrupting its existing enterprise resource planning (ERP) systems.
The drive for this transformation was detailed by Katrin Ragaz, Senior Vice President of Enterprise Solutions and Integrations at Avantor, who noted, “To do so, we needed to reorganise our products and offerings into new operating segments.” This included establishing a robust master data management solution alongside the implementation of the SAP S/4 Central Finance platform, which would enable financial consolidation, planning, and reporting at both summarised and detailed levels.
To facilitate this major overhaul, Avantor enlisted the professional consultancy services of PwC. The partnership focused on integrating various functionalities such as Central Finance (CFIN), Master Data Governance (MDG), Group Reporting (GR), ERP Data Warehouse (Sidecar), and SAP Analytics Cloud (SAC). These tools would allow Avantor to replicate financial transactions from source systems in real-time, providing immediate monitoring of errors and enhancing overall reporting capabilities.
PwC’s involvement was pivotal. The consultancy assisted Avantor in integrating legal entities and financial master data from their existing general ledger systems, effectively creating a universal CFIN repository. This comprehensive system enables reporting on newly established operating segments, a move described by Ragaz as crucial for attaining the desired outcomes of the project.
“The solution provides real-time visibility in one system with transparency down to the transactional level,” Ragaz explained, highlighting the strides made in financial consolidation and analytical processes. The successful establishment of group reporting and the implementation of SAC Reporting, coupled with the ERP Data Warehouse’s HANA Sidecar, have contributed to reducing manual work while improving communication across the organisation.
PwC’s application of its Phase 0 approach also played a substantial role in expediting the design phase, cutting down the implementation time by one to two months. This approach was informed by PwC’s deep understanding of SAP industry practices, allowing Avantor to anticipate and navigate program challenges effectively.
As a result of these collaborative efforts, Avantor is now positioned to meet the reporting requirements set forth by the Securities and Exchange Commission. The company has significantly enhanced its analytical capabilities, relying on consistent master and transaction data for effective business analysis.
Ragaz remarked upon the impact of these changes, stating, “Embracing this new technology has been a game-changer for us.” She emphasised that the restructuring of business segments, the streamlining of financial processes, and the improvement in data reliability are testament to the successful alignment of innovative technology with Avantor’s business goals.
This ongoing finance and analytics transformation at Avantor not only exemplifies the significant potential of integrating advanced technologies into business practices but also highlights the value of partnering with experienced professionals to navigate the complexities of such substantial operational changes.
Source: Noah Wire Services
- https://sapinsider.org/webinars/how-avantor-transformed-its-finance-function-with-sap-s4hana-central-finance-and-group-reporting/?hs-embed-af=t – This link corroborates Avantor’s transformation of its finance function using SAP S/4HANA Central Finance and Group Reporting, and the integration of various SAP tools.
- https://sapinsider.org/webinars/how-avantor-transformed-its-finance-function-with-sap-s4hana-central-finance-and-group-reporting/?hs-embed-af=t – This link explains how Avantor leveraged SAP Master Data Governance and SAP S/4HANA Central Finance for segment reporting and financial consolidation.
- https://www.prnewswire.com/news-releases/avantor-hosts-investor-day-announces-new-strategic-operating-model-to-drive-growth-and-productivity-302009441.html – This link supports the reorganisation of Avantor’s external reporting segments into core business units, such as Laboratory Solutions and Bioscience Production.
- https://sapinsider.org/webinars/how-avantor-transformed-its-finance-function-with-sap-s4hana-central-finance-and-group-reporting/?hs-embed-af=t – This link details the implementation of SAP Analytics Cloud (SAC) and the ERP Data Warehouse’s HANA Sidecar, which enhanced reporting capabilities and reduced manual work.
- https://sapinsider.org/webinars/how-avantor-transformed-its-finance-function-with-sap-s4hana-central-finance-and-group-reporting/?hs-embed-af=t – This link highlights the role of PwC in integrating legal entities and financial master data, creating a universal CFIN repository for reporting on new operating segments.
- https://sapinsider.org/webinars/how-avantor-transformed-its-finance-function-with-sap-s4hana-central-finance-and-group-reporting/?hs-embed-af=t – This link explains how PwC’s Phase 0 approach expedited the design phase and reduced implementation time by one to two months.
- https://www.prnewswire.com/news-releases/avantor-hosts-investor-day-announces-new-strategic-operating-model-to-drive-growth-and-productivity-302009441.html – This link supports the changes in Avantor’s operating model and organizational structure, including new leadership roles effective January 1, 2024.
- https://sapinsider.org/webinars/how-avantor-transformed-its-finance-function-with-sap-s4hana-central-finance-and-group-reporting/?hs-embed-af=t – This link details the successful establishment of group reporting and the implementation of SAC Reporting, which improved communication across the organisation.
- https://www.prnewswire.com/news-releases/avantor-hosts-investor-day-announces-new-strategic-operating-model-to-drive-growth-and-productivity-302009441.html – This link mentions Avantor’s cost optimization initiative and the goal to deliver $300M in run rate savings by the end of 2026, aligning with the financial transformation goals.
- https://sapinsider.org/webinars/how-avantor-transformed-its-finance-function-with-sap-s4hana-central-finance-and-group-reporting/?hs-embed-af=t – This link highlights the overall impact of the transformation on Avantor’s analytical capabilities and its ability to meet SEC reporting requirements.
