Practus enabled Commodityco to create a concept of tracking performance against set targets/budgets was communicated, and a tracking mechanism (budgets vs. actuals) has been instituted every month, providing visibility not just to the promoters but also to the JV partner.
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About The Company
CommodityCo is a market leader in pulse trading and has lately expanded into processing. It was founded three years ago by an overseas joint venture (JV) partner. Over the last three to four years, the company has doubled its size. It now sells commodities worth $3 billion.
- Practus’ task here was to operate as a permanent CFO for CommodityCo. CommodityCo and Practus saw a need to build an ERP system to help with data integrity and the integration of essential tasks across the firm, such as processing locations, branches, and so on.
- The Practus team faced a number of hurdles, including:
- Developing a thorough understanding of the business (dynamic business with high volume exposure, currency and commodity price exposure, and a lack of written contracts).
- A scarcity of historical data (mostly in the memories of key individuals).
- The ERP (Microsoft Navision) was implemented in 7 months, after which the budgeting exercise was started. It took another 45 days for Practus and the corporation to acquire a “first draught” of the suggested budget.
- For the first time in its history, the corporation conducted a budget exercise. The budgeting exercise was linked with the company’s KPI exercise.
- The concept of tracking performance against specified targets and budgets was presented, and a monthly tracking method (budgets versus actuals) was implemented, giving insight to both the promoters and the JV partner.