The Turkish tugboat builder and operator improves financial planning and forecasting with multiyear vessel planning cycles on Oracle Cloud EPM.
“Our vision was complemented by the implementation capabilities of Oracle Partner Constellation Consulting. They helped us configure Oracle Cloud EPM to generate accurate financial statement impacts of vessel-based revenue projections and cost planning, based on vessel lifecycles. This allowed us to meet the complex planning needs of our business with a unique solution.”
As a major shipbuilding enterprise, Sanmar Denizcilik must synchronize its finance and accounting operations with its shipbuilding activities. This demands vessel-centric planning over a given calendar year, from design and planning of a ship to delivery. The process includes factoring in the vessel lifecycle—involving construction costs and revenue recognition—along with in-depth analysis to enable accurate resource allocation and planning.
Sanmar Denizcilik’s finance, planning, and analysis team relied on individual spreadsheets to perform these calculations. When the models and projects were done, the team manually consolidated them for sharing with stakeholders.
The finance team members wanted to expand their budgeting and forecasting horizon beyond the current limit of one year to as many as three years. The team also wanted to work concurrently on plan inputs and calculations, instead of individually in silos. These demands far outstripped the existing spreadsheet-based capabilities.
The Sanmar Denizcilik team also needed a platform that could pull in and consolidate data from across the company while automatically factoring in vessel and location-based modeling for accurate revenue, cost, and expanse planning. To achieve these goals, the organization decided to roll out a cloud-based EPM application.
As a leading enterprise performance management platform, Oracle Cloud EPM is on a higher pedestal than competing solutions. It provides the full spectrum of EPM solutions, including financial consolidation and close.
Why Sanmar Denizcilik Chose Oracle
The Sanmar Denizcilik finance team realized that it needed a robust, cloud-based EPM platform that could manage vessel planning and accounting processes. After evaluating several systems, the company selected Oracle Cloud Enterprise Performance Management (EPM).
As a leading EPM solution, Oracle stood out with its wide variety of capabilities to support Sanmar Denizcilik’s needs, including financial consolidation and close, planning and budgeting, narrative and tax reporting, and more.
With Oracle, Sanmar Denizcilik could take advantage of a complete EPM suite that aligns finance with operational business groups. Oracle Cloud EPM would also accelerate and improve decision-making and enable management to make more informed decisions for the company through market fluctuations.
Migration to Oracle Cloud EPM enabled Sanmar Denizcilik to perform accurate multiyear financial planning—with fewer manual errors and at a substantially faster pace than before.
After completing the six-month implementation on time and under budget, Sanmar Denizcilik saw immediate improvements in financial and accounting processes. The rollout of Oracle Cloud EPM connected the company’s financial processes and reporting to vessel construction lifecycles.
With time-saving automation and robust data crunching power, Oracle enabled the shipbuilder to develop detailed three-year budgets with monthly forecasts based on location and vessel type. Oracle Cloud EPM supports the company’s financial consolidation and close, planning and budgeting, strategic finance, accounts reconciliation, and narrative and tax reporting.
Its embedded business intelligence capabilities analyze immense volumes of data to boost Sanmar Denizcilik’s production scale and help reduce related costs. Oracle Cloud EPM also assists with methodical planning based on accurate financial projections and improved decision-making for corporate strategists.
The organization’s finance team consistently and systematically factors in construction costs with appropriate multiyear revenue recognition to support resource planning. Also, the team can perform revenue recognition workflows based on vessel completion percentages.
The robust Oracle Cloud EPM enables multiple finance professionals to input data and perform calculations simultaneously—something impossible with the prior spreadsheets approach. Also, the company rapidly performs what-if scenario modeling with versioning control and accurately envisions future outcomes.
Constellation Consulting Group served as a functional process advisor and system implementer in Sanmar Denizcilik’s six-month implementation of Oracle Cloud EPM.
About the customer
For 40 years, Turkey-based construction and engineering firm Sanmar Denizcilik has been a leading builder of tugboats and a service provider for clients from across the world. Currently, more than 200 Sanmar tugboats, including remote-control vessels, are at sea at any given time.