Latécoère choose VISEO as partner for asset management
Latécoère has decided to work with our teams in Paris and Toulouse to activate the group subsidiaries’ capital management, thanks to the SAP FI-AA module.
Latécoère’s objective : standardize and simplify asset management systems
As a key player in aerostructures and interconnected schemes, Latécoère works with the world’s biggest aircraft manufacturers and airlines to design and build their products. The group needed to rationalize procedures and standardize rules for asset management among its different subsidiaries: “We needed to acquire a robust tool that would integrate into purchasing and capitalized production flows, and able to meet the accounting and fiscal standards for each country involved in a given project, but also meet the IFRS standards and constraints linked to the group’s consolidated accounts”, explains Agnès Cung, Head of Finance Methods & Tools for the Latécoère Group.
An objective of strategic importance
As an industrial group, Latécoère has a presence in many countries where it uses different production technics, such as the MAZAK-VARIAXIS robotics in its new 4.0 factory in Montredon: “Given the high cost and number of fixed assets, it is of real strategic importance for us to ensure the precision of accountability of assets over time”, says Karim Hajjaji, SAP SC Manager for the Latécoère Group.
The group already used SAP but had not yet activated the FI-AA asset management module that it wanted for France and subsidiaries in other territories such as Bulgaria, the Czech Republic, Brazil, Tunisia and Morocco.
SAP FI-AA, a leading tool in assets management
The Latécoère Group’s decision to use the SAP FI-AA module focused on three critical features:
- Easy integration with the SAP system that was already in use;
- It responded to legal constraints and corporate standards in place;
- Guaranteed evolutive sustainability
“The main advantage for choosing this tool is its easy integration with our current SAP system, explains Karim Hajjaji. It allows for better organization by replacing local tools with one that is already part of our application backbone.”
In addition to that, one of SAP’s major strengths is its compliance with most national legal standards.
Teams working on the transition
A certain number of employees inside Latécoère Group already working on the project:
- The group’s finance department: all of the group’s finance directors were acting as local sponsors, so did the group’s financial director as did every country’s key users. The heads of financial methods and tools acted as their sector’s project managers.
- The DSI contributed as well. More specifically, they acted as SAP technical experts and system administrators, accompanied by an IT project coordinator.
Latécoère and VISEO : a lasting partnership
Latécoère and VISEO began their parntership in 2015.
“We work with VISEO to rollout our SAP ‘Core Model’ on a regular basis” explained Karim Hajjaji. “In that context and as occasional technical backup, we have seen just how competent their workers are, so it came quite naturally to partner with VISEO” he added.
The teams’ dedication, their strong expertise and taking responsibility for the end result are key differentiators for VISEO.
“Their quick response time allowed us to finish the project on time and with the designated level of quality, confided Agnès Cung. “Strong dedication is a value that we share with VISEO.”
The results of the first rounds of collaboration
Within 5 months, Latécoère was able to install the new SAP module in 6 countries for 7 companies and about 40,000 assets. The company reaps several benefits from its new internal processes:
- Calculating value depreciation happened 30 times faster: “Processing time went from around 30 minutes to less than one minute, thanks to SAP” specified Agnès Cung.
- Subsidiaries and related services (financial control, consolidation) gained in autonomy. “With direct access to FI-AA reporting key branch users (aerostructure, interconnection) cut closure time went from three days to two (-30%), as there was no longer a need to format and transfer data on assets software to services with no access”, stated Agnès Cung;
- It is now possible to complete the solution with new and future IFRS standards;
- Users also noted that it was easier to consolidate via automated deviation calculations from set standards and shared SAP reporting;
- Subsidiaries are now 100% autonomous
“Our next steps will be to improve and document processes, most notably by making the French and English versions available” said Karim Hajjaji. “We will also be sure to improve investment cost and depreciation tracking.”
These contents may interest you