Large enterprises carry out enormous projects and investments based on huge amounts of data. SAP PaPM, i.e. Profitability and Performance Management, is a tool that makes work on complex and very detailed data from various sources much quicker. Hicron introduced SAP PaPM in one of the leading companies in the automotive industry to accelerate and optimize the processes necessary for reporting and analyses.
SAP PaPM is a solution that improves the performance of settlements, analyses, simulations, and summaries. Hicron had the opportunity to implement the system in the Polish branch of one of the leading companies in the automotive industry with its headquarters in Germany. In the case of such a large company, preparing a detailed report in Excel was extremely difficult – any conversions required the use of complex formulas in large files, with the data entered manually, which increased the risk of mistakes. For example – the preparation of a monthly detailed report for the headquarters took 7 days, and all the data had to be entered manually from external systems, updated and adjusted on an ongoing basis.
What changed after the implementation of SAP PaPM?
The main result that the company felt the most was time savings. The aforementioned seven-day monthly reporting procedure was effectively shortened to the proverbial “single click”. In fact, the time needed to prepare the summary was reduced to up to two days, without the need to additionally download data from numerous files and check the accuracy of the results – PaPM downloads all components automatically, in real time, and performs calculations without errors.
Performing complex calculations on existing values faster is not the only significant change brought by the introduction of SAP PaPM. It also allowed for the preparation of detailed financial analyses and increased automation of reporting processes, which is extremely important in the automotive industry and such large production companies. Each department has its own results at individual production stages, which in turn affect specific transfer prices. Thanks to PaPM, it was possible to calculate various categories of expenses that the company would incur in the production of one vehicle. This, in turn, made it possible to estimate the cost of sales and production. By comparing the results with the revenue, it was easy to calculate, for example, the profitability of specific activities.
Not just automotive
The automotive industry is not the only example that well illustrates the capabilities of SAP PaPM. Its wide application can also be demonstrated in public transportation – the system makes it possible to estimate not only the profitability of individual routes and sections, but also to look at them as a network and determine the most advantageous connections. It enables work on real data, so planning is based on actual values and indicates real benefits of individual applications. Aviation can benefit from the system in a similar way.
Another good example of the use of this solution is healthcare – SAP PaPM does not have to be used in the industrial and production sectors only. The system can help estimate the costs generated by hospitals, clinics, and pharmacies. Using the most detailed data, you can summarize the costs of a hospital stay of a specific patient, individual treatments, or tests performed. It is also useful when preparing the previously mentioned financial reports, which – in the case of large facilities – contain huge amounts of data. SAP PaPM can also be successfully used in banking, the chemical industry, telecommunications, the public sector, and other industries. If you want to check if this solution will work for your company, see our offer.
The wide application possibilities of the SAP PaPM system show how universal this solution is. Since it can be adapted to the needs of a given company, it is perfect for many areas of business. Do you want to find out how much your company can gain by implementing SAP PaPM? Contact Hicron, our experts will tell you in which areas the benefits of using SAP PaPM will be the greatest for your business.