Visteon Standardizes Global Financial Planning and Management Tools to Improve Cash Management, Budgeting, and Forecasting
 
 

Visteon Standardizes Global Financial Planning and Management Tools to Improve Cash Management, Budgeting, and Forecasting

  • Oracle Customer:  Visteon
    Location:  Van Buren Township, MI
    Industry:  Automotive
    Employees:  27,000
    Annual Revenue:  Over $5 Billion

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Visteon is a leading global automotive supplier that designs, engineers, and manufactures innovative climate, electronic, interior, and lighting products for vehicle manufacturers. With corporate offices in Van Buren Township, MI; Shanghai, China; and Chelmsford, United Kingdom, the company has facilities in 27 countries and employs approximately 27,000 people.

Visteon’s used of a homegrown financial management system, along with multiple spreadsheets, made it very difficult to obtain an accurate, up-to-date view of cash flow and profitability worldwide. It needed a financial planning and budgeting system that enabled it to drill down to the part level—a key functionality for the automotive industry. The company also wanted to ensure that its regions and offices used standard methods for inputting financial data, so its reports could truly support wise business decisions.

Visteon worked with CheckPoint Consulting and Emerging Solutions to implement Oracle Hyperion Financial Management and Oracle Hyperion Planning to provide meaningful, real-time revenue and profitability data—down to the part level—for improved cash management, planning, and budgeting. Through the implementation, Visteon decommissioned 10 systems and eliminated 15 interfaces by replacing a homegrown tool and multiple spreadsheets with the new centralized system for 1,500 users—ensuring data transparency and consistency for more accurate planning.

 
 

 
 

Challenges

A word from Visteon

  • "With Oracle Hyperion Financial Management, we can pull accounts payable, accounts receivable, and cash balances daily. We can look at the current status and develop more accurate forecasts. Having a day-to-day look at our cash is critical.” – Robert Omillian, Senior Manager, Global Financial Systems, Visteon

  • Implement a financial planning and budgeting system that drills down to the part level—a key functionality for the automotive industry
  • Reduce offline and add-on applications, and ensure that the company’s offices in 27 countries use standardized methods for planning and budgeting
  • Ensure data transparency and provide real-time business intelligence to support business decisions

Solutions

Oracle Product and Services

  • Implemented Oracle Hyperion Financial Management and Oracle Hyperion Financial Planning to provide meaningful, real-time revenue and profitability data—down to the part level—for improved cash management, planning, and budgeting
  • Decommissioned 10 systems and eliminated 15 interfaces by replacing a homegrown tool and multiple spreadsheets with a centralized, integrated Oracle Hyperion system for 1,500 users—ensuring data transparency and consistency for more accurate planning
  • Enabled 60 plants to input and report from the tool, providing 24x7 usage
  • Provided visibility into cash flow trends and enabled report generation by region, plant, product, customer, vehicle, and part number—for more than 5,000 parts—on a daily basis
  • Merged the new planning model with the company’s current planning model, enabling Visteon to flow actuals through the system on a monthly basis and provide a foundation for a rolling forecast
  • Enabled the company to process 250,000 invoices each month
  • Enabled Visteon to provide comprehensive ,new business, win/loss reports to its executive management team
  • Integrated supply chain information into the company’s financial systems to dramatically improve cash flow and financial accountability
  • Reduced system complexity by moving from regional tools to global applications, minimizing customization, and eliminating offline tools
  • Provided an accurate audit trail
  • Reduced system cost and complexity

Why Oracle

“With a project as large as this one, I advocate building it one component at a time,” said Robert Omillian, senior manager, Global Financial Systems, Visteon “Before I came onto the project, we tried the ‘big box’ approach. It didn’t work—it was too large and cumbersome. But, with Oracle, we have modularity. It gives us the flexibility to put in one piece at a time, integrate it, and then move on to the next piece when we are ready. Now we have a much more valuable tool to support our business.”

Implementation Process

Visteon first upgraded to a new version of Oracle Hyperion Financial Management four years ago. Once this was completed, it started implementing Oracle Hyperion Planning, going live two-and-a-half years ago. The company worked with CheckPoint Consulting on the design and implementation. In addition, Visteon worked with Emerging Solutions to bring its staff up to speed on the new tools.

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