Federal-Mogul Holdings Corporation is a leading global supplier of products and services to the world’s manufacturers and servicers of vehicles and equipment in the automotive, light, medium and heavy-duty commercial, marine, rail, aerospace, power generation and industrial markets. The company’s products and services enable improved fuel economy, reduced emissions and enhanced vehicle safety. In 2018 Federal Mogul was acquired by Tenneco and became part of the DRiV division. To learn more, visit Driv.com.
“OneStream opened the door to standardizing our reporting needs. Reporting is dynamic with the ability to drill down into data, link to other cube views and add dimensionalities. We’ve received major benefits around intercompany eliminations, multiple currency nominalization comparisons and cash flow reporting.”
— Brian Bayne, Director of Financial Systems, FEDERAL-MOGUL
Federal-Mogul was using Hyperion Enterprise for financial consolidation and reporting, but the legacy system needed immediate replacing. Hyperion did not provide an efficient data quality management solution and required substantial manual intervention for the collection of both financial and operational data. As a growing auto parts distributor, Federal-Mogul needed a scalable solution that could be deployed globally for financial consolidation and reporting, budgeting and analysis. They needed a system that delivered faster consolidations, easier maintenance and more powerful management reporting.
Federal-Mogul wanted to give relevant management reporting to the OEM and aftermarket businesses, including operational HR data. “Our main challenge with Hyperion was having limited dimensionality,” said Brian Bayne, Director of Financial Systems at Federal-Mogul. “We needed more operational details and better reporting and analysis.”
Upgrading Hyperion would be a lengthy and expensive undertaking, so Federal-Mogul decided to look elsewhere, and was immediately interested in OneStreamTM Software. “We have a lot of different legal entities in our organization. Being able to utilize a unified CPM system was very appealing for us,” said Bayne. “Federal-Mogul has many intercompany eliminations taking place, so we liked the idea of streamlining the process for our management and legal structures.”
OneStream Delivers a Unified CPM Solution
OneStream delivered Federal-Mogul a modern CPM solution that is completely owned by the office of Finance. Federal-Mogul expanded their financial reporting model from four dimensions in Hyperion to 17 dimensions in OneStream for more powerful ad-hoc reporting and analytics. With several reporting locations, Federal-Mogul now has complete visibility of the load processes. “With 800 users, the Guided Workflows allow our team to quickly and easily load and consolidate their data,” said Bayne. “They can then do exchange adjusted categories, look at actuals at budget rates versus prior years, and effectively forecast within one platform.”
Improved Control and Audit Trail Functionality
An automated email process using Guided Workflow allows journal entries to be sent immediately to supervisors for review and approval. After approval, another email is sent back to the user, allowing them to post the journal. “This gives our team timely and accurate data to perform the full consolidation, while providing business units immediate visibility of their results,” said Bayne.
OneStream has also enabled Federal-Mogul to put a standard process in place for audit reports with improved controls. “The ability to track changes made is very helpful for the year-end audits from a metadata standpoint,” Bayne continued. “To see when changes were last made by certain users is a great benefit and great tool. The auditors love it.”
Detailed Variance Analysis
After the close, OneStream delivers detailed Variance Analysis reporting Federal-Mogul uses workflows to explain the differences in actual and budget EBITDA, while OneStream consolidates this information to include the key variance explanations. As Bayne said, “Our variance analysis is where we have different types of industry variances such as volumes and mix, currency translations and transactional exchange differences. We no longer have to collect Excel spreadsheet details and re-key figures and comments into a master file. Instead, controllers can complete the analysis in a template, submit it into OneStream, and the system automatically does the work.”
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