Expanding on their recommendation, Newcomp proposed developing two new solutions to replace Mannington’s legacy system. The first was a financial consolidation and reporting system, which included legal and management consolidation. The consolidation system needed to be able to produce U.S. GAAP financial statements, including balance sheets, income statements, shareholder’s equity, and cash flow statements for Mannington’s multiple legal and management entities across the U.S. and in the U.K. and Europe. 

The second solution was designed to replace Mannington’s legacy planning system and enable planning at the business unit, profit center and channel levels. In order to help Mannington achieve their planning goals, the new system needed to provide business performance and profitability details at the business unit, product group, product line and channel level. 

By designing and developing using a “no touch data integration approach” from Mannington’s SAP environment into TM1, Newcomp was able to deliver a financial con- solidation and reporting system that reduces consolidation cycle times and provides easy access to up-to-date financial reporting. Joe says, “We report our Business Unit profitability daily and report consolidated financial results on day six of our close, across all entities in U.S. dollars and different functional currencies. It’s helped us drive effectiveness and efficiency in our financial consolidation and reporting. It used to take up to six minutes to open the legacy excel based financial consolidation, and now, reporting is essentially on demand, and analysis occurs in real time.”

With jobs now running overnight, information is refreshed each morning, providing Mannington with current financial and reporting data throughout the day. Having quick access to updated financial information has allowed Mannington to focus on common KPIs across the businesses and automate their cash flow planning to drive consistency along all product lines and business units. Joe adds, “Business Unit partners receive accurate and timely financial performance reporting to optimize business decisions and improve our financial performance.”

The newly implemented planning system has enabled Mannington to improve their planning for future growth opportunities by giving them the ability to truly understand product and channel profitability as well as cash flow and return on capital. Joe says, “It has really helped us deeply understand the profitability by product line, channel and in some cases by customer. That has helped us understand where we want to invest resources and where we might pull back.”

The consolidation and planning solutions delivered by Newcomp have also helped to increase the visibility of important metrics for key Mannington stakeholders. “We are able to leverage the solution to easily deliver common and consistent reporting for our senior leadership team, board members, and lenders. We can produce a common book that highlights the same P&L, cash flow, and return on invested capital across all the businesses every month.”