BLANCO changed from manufacturer to system provider. The new business model brought far more drivers and dependencies than the existing Excel-based planning could carry. With driver-based multi-year planning, controlling now calculates scenarios in fractions of a second - live in the meeting, at the push of a button.
The Challenge: A New Business Model With More Drivers and Dependencies
BLANCO was in transition - from manufacturer to system provider. The question for controlling: How should the new business model with many more drivers and interdependencies be managed? The controlling structure was also put to the test, because the data structure had become too complex. A few examples:
- Material costs are central drivers, with quite a few components.
- The business can and must be structured according to regions, products and product groups, prestige class and sales channels.
- Added to this are fluctuating freight costs and times, currency rates and material supply chains.
- Another challenge: to hang sustainability centrally in corporate performance management.
Thus, numerous dimensions came together, resulting in a multi-dimensional data cube. Too much for the “old Excel world”. Plus: IT should have as little stress as possible with implementation and compliance issues. The new planning solution therefore had to be able to be implemented and used in self-service.
The Solution: Finely Cubed Data and Driver-Based Planning
With Valsight, BLANCO achieved the transformation into an agile and responsive controlling organization. Valsight’s partner, CTcon Management Consultants, provided support in redesigning the planning processes and implementing new methods. To enable the required flexibility, including data handling, the multi-year planning was transitioned from the Excel world to a driver-based approach. This resulted in significantly increased flexibility for model calculations.
“We were able to calculate scenarios in fractions of a second, which previously would have taken an entire day’s effort. This was one of our most significant achievements and greatly increased acceptance for the driver-based approach. The ability to generate scenarios quickly and efficiently has proven to be a major advantage for our organization.”
Matthias von Daacke, Managing Director & Head of Global Controlling at BLANCO
Instead of spending several hours or days calculating scenarios as before, it can now be done “live in the meeting, at the push of a button.” In the words of Matthias von Daacke: “Valsight provides us with different perspectives on our data cube, allowing us to individually switch on and off specific measures during a live meeting in the planning phase. We can instantly see and evaluate the effects for the multi-year planning with just a push of a button.”
The Result: Increased Planning Efficiency and Exceeded Goals
Thanks to the proof-of-concept approach, the use case was initially tested and then rolled out. The planning method itself has also undergone a transformation: where there used to be a highly complex planning process, now planning is done in clusters. This reduces the level of detail and makes the planning process streamlined and agile, while still being precise enough to achieve the desired outcomes.
Perhaps the most intriguing success is the increased transparency achieved through the combination of the methodology and the tool. This has fostered a shared understanding of the driver model, leading to unprecedented acceptance. Instead of silently incorporating “area buffers” into the planning, as is often customary, realistic and ambitious goals were set by all parties involved. And in the end, these goals were not only met but even surpassed.
About BLANCO
Founded more than 95 years ago, BLANCO is today an internationally established premium brand for the kitchen water space. The company is present in around 100 countries with subsidiaries in Europe, North America and APAC, as well as trading partners, and offers a portfolio perfectly tailored to the needs of consumers. The company’s headquarters and important production sites are located in southwestern Germany.