Case Study of Sanofi OPEX
OPEX (Operational Expenses) are some of the complex and dynamic processes of the organization. Because unlike CAPEX, operational expenses capture the day to day operational expenses of various assets, services etc. to keep the business running which is dynamic in nature, the complexity increases especially in the manufacturing industry where there are multiple cost centers of different nature, headed by various department heads who download their respective data from various sources and do their math on spreadsheets and attach the same over email to collaborate which is a complex process and requires dedicated team to collaborate and sort these complex spreadsheet data.
Present Scenario of Manual OPEX
Usually, in a typical OPEX data capturing there are multiple intricacies with various individuals with roles, responsibilities, approvals, rejections, version changes, departments are involved. Multiple Operating expenses under various cost centers, with the maintenance of master data, with complex calculations becomes a tough job. When all these processes are maintained over excel it becomes even tougher.
Especially when the company size is big with various third-party IT applications and has a global ERP implementation etc., still, at an organizational level, finance users were still dependent on manual spreadsheets for the operational expenses (OPEX).
When Master data sits elsewhere, planning inputs come from different sources, actuals and historical data come from ERP. It creates a lot of challenges for the MIS team and finance heads eating into some core performance issues in the finance departments.
Critical Challenges and OPEX Solution
Master Data is a critical part of any department which acts as a base for further data capturing at various stages. we gave separate master admin module where parameters like cost center master, product master, budget head, GL code master, material master, rate master, power and FO oil master data is maintained and are populated at required pages.
The budget head page captures parameters like Power & Fuel, Repairs Plant and Machinery costs, salaries, etc monthly with historical data.
Power & Furnace Oil: are some of the closely guarded parameters in the manufacturing, as they are regulated with local laws, environment protections standards so the budgeting and actuals of the same are closely monitored in the organizations based on the Load Factors, number of the days in operation, number of days of shutdown and the consumption rates are calculated for final Power in KWH
Bill of Materials: in OPEX the bill of all the raw materials, components, sub-components, parts and quantities of all the raw materials and the other ingredients which need to be added to produce the end product comes under BOM, else they fall under the NON-BOM category.
These are given the separate page for the data collection under which each page for variable and non-variable BOM capturing are also captured in a single interface for the bulk data for all months, keeping the same spreadsheet experience intact.
Features of Amplelogic’s Operational Expenses (OPEX) Automation:
Benefits of AmpleLogic OPEX Solution
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