Contact us
Contact us

 

 

Branca Group Elevates Controlling Model Achieving Operational Excellence

logo-branca-international

Branca International, a distinguished Italian holding company with over 170 years of heritage in the alcoholic beverage industry, has been a cornerstone in the sector since its founding in 1845. Rooted in Milan, the company oversees three spirit entities across Italy, Argentina, and the USA, while also engaging in real estate, cultural initiatives, and financial ventures. Its core mission is to share Italian excellence worldwide while respecting both people and the environment.

The Challenge

Before engaging with Avvale, the Branca Group grappled with significant hurdles within its existing industrial controlling model. The system fell short of providing a precise analysis of both production and purchasing inefficiencies, leading to inaccuracies in the management income statement. This discrepancy affected the reflection of production and purchase prices, impacting the company's financial visibility.

Moreover, the tools supporting operations and controlling failed to provide a comprehensive analysis of the period marginality, posing a challenge for Branca in understanding the broader operational context and making informed decisions.

Recognizing these challenges, Branca sought to review and integrate its current model to align with the evolving organizational structure, aiming for a more detailed and economically competent analysis of inefficiencies.

cs-24-branca-img-01

The Approach

To address the client’s requirements, we activated SAP Material Ledger and Material Ledger Actual Costing, enabling Branca to accurately calculate the actual costs of materials and improve the accuracy of the cost of goods sold and inventory value. This process included updating the effective period price in the material master data, providing a precise foundation for cost analysis.

Conducting a thorough review of the value fields inherited on Tagetik reports revealed the limitations of the existing costing-based configuration. Recognizing these constraints, we focused on seamlessly integrating value fields to facilitate a more detailed analysis of the cost of sales and production variances. Additionally, Tagetik received instructions on implementing new P&L reporting using the recently created value fields.

As a final step, a COPA report was generated to support the analysis of production variances,  according to the model shared in the assessment phase.

cs-24-branca-img-02

The Impact

The activation of the modules brought about a transformative impact for Branca. The refined Industrial Controlling Model ensures a complete analysis of production and purchasing inefficiencies, enabling precise identification and allocation of resources for responsible financial management.

Improved reporting tools enhance operational efficiency, promoting data-driven resource optimization. Accurate economic accrual of purchase inefficiencies contributes to a more precise management income statement. The integration of value fields and targeted reports elevates Branca's ability to analyze the cost of sales and production variances, providing enhanced visibility into period marginality.

cs-24-branca-img-03