Today’s organizations need the ability to seamlessly adapt to changing business conditions, requirements, and structures. This is specifically true when considering potential merger and acquisition (M&A) activity. M&A transactions are complicated and meticulous, and it can be challenging to devote the time and resources necessary to perform due diligence on critical software decisions when integrating companies. But when both parties involved are using outdated legacy software to perform critical financial and operational tasks, the solution is simple: start fresh by replacing all existing products with a new, modern approach.
A key benefit of modern corporate performance management (CPM) software is the agility these solutions provide organizations to plan and report through changing business conditions. With the right CPM software platform in place, organizations can gain a more holistic view of business data across entities and countries. This was the case for Signode Industrial Group, who after being acquired by Crown Holdings, faced a decision to upgrade their outdated Oracle Hyperion suite or explore the market for a proven Hyperion replacement. Read on to hear their story.
A leading manufacturer of transit packaging consumables, tools, and equipment that optimize end-of-line packaging operations, Signode is recognized around the world for improving load integrity and protection, while maximizing cost-efficiency and streamlining operations. From a singular protective packaging product to full turnkey packaging solutions, Signode offers a comprehensive portfolio of end-of-line packaging products and systems designed to protect, secure, simplify and streamline the bulk transportation of goods, continually adapting our product line to address evolving supply chain demands.
Headquartered in Tampa, FL, Signode Industrial Group is the Transit Packaging Division of Crown Holdings, Inc. employing over 8,000 people and operating at a revenue of $2.5B annually.
With 80+ manufacturing facilities across 6 continents, Signode has over 50 ERP systems and was using Oracle HFM, FDM, and Essbase to tackle complex financial operations. These legacy solutions were very complicated and required significant centralized support. There was a manual process to extract data from HFM and load and calculate it in Essbase. This also meant that there was frequently a data latency issue between HFM and Essbase.
In addition, the core Finance team had to centralize all mapping changes for trial balance submissions in HFM, rather than allowing the local teams to manage their mappings. With so many ERPs, it became an inefficient use of time and effort for both the employees and the support staff. Signode’s growing requirements meant that the company would need a Hyperion replacement that offered flexibility, scalability, and unification.
While in the initial stages of their finance transformation journey, Signode was acquired by Crown Holdings, who was still on Hyperion Enterprise. While the Signode Finance team originally looked at upgrading their existing solutions with Oracle, upgrading from HFM to Oracle FCCS was going to be a very costly and time-consuming project. So, the company moved on to evaluate Host Analytics and Tagetik. However, they ultimately selected OneStream for the all-in-one license approach, flexibility, and strong customer references presented.
Crown had been using Hyperion Enterprise for many years and after the acquisition of Signode, had intended to jump on the company’s instance of HFM, only to find out Signode’s interest in OneStream. The Signode team went to work with OneStream to convince Crown that Signode’s plan was the best direction for this newly integrated company. So, the combined Crown and Signode teams implemented OneStream to replace both company’s legacy applications.
Signode went live on OneStream for financial consolidation in April of 2020 and completed Phase 2 in Q1 of 2021 which focused on allocating costs to 40+ product lines to evaluate the profitability of each. Today Signode has approximately 180 users on OneStream from various departments including Accounting, Tax, Internal Audit, Treasury, and Corporate Development.
With 100+ business units, local users now have the freedom to submit financial data monthly, including trial balances and supplemental data such as volumes, headcounts, and AR aging. From there, the local controllers can easily make updates during the close, without requiring core Finance or Support teams to step in. In fact, Signode has eliminated one FTE related to system administration with OneStream and reduced the time spend on data submission each month by 30%.
In addition, OneStream’s automatic elimination for intercompany AR/AP, sales, interest, and dividends saves time and manual effort when processing intercompany activity using 25 different currencies. Plus the Excel Add-In feature enables users to create highly customized reports that drive performance by delivering key insights for financial, statutory, and management reporting.
Signode’s Excel Add-In now utilize OneStream as well, with unique scenarios set up in OneStream that represent all combinations of actual months to forecast months. Doing so has allowed Signode to reduce the forecasting cycle by approximately 2 days per month.
With OneStream Signode has seen improved automation, specifically across Price/Cost and Product P&L calculations. Local users have improved visibility into the data by using the drill back to trial balance function and mapped trial balance reports. And most importantly, there is now a single CPM platform for all of Crown/Signode which has improved data integrity, security, and controls. Signode looks forward to extending their investment in OneStream by building off their existing foundation with additional enhancements from the OneStream™ MarketPlace at lower incremental costs.
To learn more about Signode’s journey from Hyperion to OneStream, check out the case study article and discover how OneStream unified the global organization with powerful business insights. If your organization is ready for a finance transformation, contact OneStream today.