CASE STUDY

How Financial Planning and Analysis Helped a Leading HVAC Manufacturer’s Achieve Operational Savings?

Aug 29, 2022

Highlights of the Case Study: 

Particulars Description 
Client A market-leading manufacturer of HVAC equipment in North America collaborated with Quantzig to design financial planning analytics to drive business growth. 
Business Challenge The client also intended to leverage Quantzig’s solution to equip CFOs with the BI insights needed to understand the full potential of business-critical data. 
Impact Quantzig’s software solutions helped track financial performance alongside sales and purchasing data, enabling the client to access and leverage the complete financial truth.    

Game-Changing Solutions for HVAC Manufacturers 

As more data becomes accessible and companies attempt to maximize its value through analysis, financial planning and analysis (FP&A) is gathering importance. However, due to antiquated planning technology and practices, financial planning and analysis processes are frequently fragmented and lack sufficient input from operational sectors. More importantly, spreadsheets continue to be the most widely utilized tool, particularly for planning outside of finance. Despite numerous technical developments, the use of spreadsheets has not changed significantly. Adapting to shifting strategic and financial objectives brought on by digital transitions is possible with Quantzig’s advanced analytics solutions.  

The Challenges of the Manufacturing Client 

A market-leading manufacturer of HVAC equipment in North America collaborated with Quantzig to design financial planning analytics, ensuring effective budget planning, forecasting, and reporting while driving business performance through actionable insights. Moreover, our client wanted to upgrade its planning technology and processes to gather insight from all operational areas.   

Our client wanted our help to analyze the sectoral supply chain and issues pertaining to research and development in the company. Moreover, our client also focused on improving the product’s overall quality and performance, including introducing new machinery, testing labs, and quality enhancement tools. Our client also intended to leverage the Quantzig solution to equip CFOs with the BI insights needed to understand the full potential of business-critical data. Some of the issues that our client sought to address are as follows:   

  • Disconnected processes and systems  
  • Lack of business insights  
  • Excessive time consumed by manual tasks 
  • Inaccurate forecasting and budgeting  
  • Lack of collaboration   
  • Lack of real-time information  

Advanced Analytics Solutions for Manufacturing Operations  

Quantzig aimed to maximize material and monetary results by utilizing cutting-edge advanced analytics solutions. Our advanced analytics for financial planning and analysis, analyzed a large volume of data sets across revenue, costs, margins, and others. Our HVAC analytics software also analyzed the data in three different product categories such as accessories (cooling accessories, boiler coils, and others), equipment (Aire Flo, dry charge, and others), and parts & supplies (bearings, AC covers, and others) to get actionable insights.  

Quantzig’s advanced analytics tools for financial planning and analysis covered budgeting, forecasting, financial modeling, and data visualization. The financial planning and analysis model expanded beyond the conventional accounting, budgeting, controlling, and reporting functions by integrating analytical and BI insights. By supplying knowledge and forecast-based data required for decision-making, financial planning analytics attempts to optimize the potential of business models, enabling better decision-making throughout the organization. Our analytics system delivered the following solution to the FP&A team:  

  • PVM (Price Volume Mix) Analyzer – Calculated variances based on flexible time period  
  • Data Analyzer – Gathered revenue, quantity, and margin variances  
  • Performance to Plan – Compared monthly variance forecast to actuals by product categories  
  • Forecast Creator – Generated new forecast from previous/actuals forecast    

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Impact Analysis of Quantzig’s Advanced Analytics Solutions for Financial Planning and Analysis: 

As a result of our joint efforts, the client’s new software solution was launched for the manufacturing sector in North America. The data analytics focused on evaluating the company’s historical data to understand current and future financial health better. By tracking financial performance alongside sales and purchasing data, the client could visualize the big picture and gain insights into the complete financial truth.   Our advanced analytics solution helped the client achieve the following benefits:  

  • Analyzed different scenarios to understand the impact of technology on FP&A processes  
  • Focused on mitigating business risks and economic uncertainties  
  • Achieved operational savings  
  • Automated notifications and report generation to aid quick turnaround time  
  • Enabled ease of analysis by comparing actuals/plan/forecast  
financial planning and analysis 

Key Outcomes 

Quantzig’s advanced analytics solutions enabled the client to identify a more insightful interaction between finance and operations to derive insights that will benefit the business. It helped increase collaboration among different business processes, which would help to optimize processes to deliver a better product to the market. 

A Broad Perspective on the role of Advanced Analytics Solutions in the Manufacturing Sector: 

Industries have adopted cutting-edge information technologies to gain a competitive advantage due to the escalating competition in data-driven marketplaces. The way that the future FP&A team works will change because of the next generation of AI/ML-powered FP&A analytics technologies. Robotic process automation (RPA) and financial analytics are two significant FP&A trends.  

By supplying the knowledge and forecast-based data required for decision-making, financial planning analytics attempts to optimize the potential of business models, enabling better decision-making throughout the organization. Budgeting teams across sectors may negotiate economic uncertainties, examine potential outcomes, and actively manage change to ensure success by investing in best practices and financial analytics. 

Key Takeaways- Financial Planning and Analysis 

  • Implemented financial planning and analysis systems 
  • Increased visibility and collaboration across business processes 
  • Achieved operational savings 
  • Ensured the development of better products 
  • Ensured better planning and implementation   

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