Fast Moving Consumer Goods ( FMCG ) are merchandises that are sold rapidly at comparatively low cost. Though the absolute net income made on FMCG merchandises is comparatively little, they by and large sell in big measures, so the cumulative net income on such merchandises can be big.
FMCG merchandises are by and large replaced or to the full used up over a short period of yearss, hebdomads, or months, and within one twelvemonth. This is in contrast to the lasting goods or major contraptions such as kitchen contraptions, which are by and large replaced over a period of several old ages.
FMCG industry, instead called as CPG ( Consumer packaged goods ) industry chiefly deals with the production, distribution and selling of consumer packaged goods.
The Fast Moving Consumer Goods ( FMCG ) is the consumables which are usually consumed by the clients at a regular interval. Some of the premier activities of FMCG industry are in concern, advertisement, finance, purchase, etc. The industry besides engaged in operation, supply concatenation, industry and general-purpose direction.
FINANCIAL AND ACCOUNTING INFORMATION SYSTEMS
A fiscal and accounting direction information system are the information system is used for tracking fiscal events and summarizes fiscal information.
These engineering is used in fiscal operations to back up direction and budget determinations, single duties, and the readying of fiscal studies and statements. The basic architecture integration is a common, individual, dependable platform database ( or a series of interrelated databases ) to and from which all informations expressed in fiscal footings flow. Integration is the cardinal to any successful information system. These systems should pass on with systems such as human resources, paysheet, and gross ( revenue enhancement and imposts ) .
Fiscal information is easy stored in these system related to current and past old ages, every bit good as for these old ages, inside informations related to financess, every bit good as complete stock lists related to fiscal assets like equipment, land, edifices and liabilities.
The FMCG company being analyzed for its finance & A ; Accounts is Colgate Palmolive.
COLGATE – PALMOLIVE
Colgate-Palmolive Company is an American diversified international corporation focused on the fabrication, supply and proviso of place goods, wellness attention and personal goods, such as soaps, detergents, and unwritten sanitation merchandises including toothpaste and toothbrushes.
Colgate-Palmolive Company ‘s ( Colgate ) merchandises are marketed in over 200 states and districts globally.
The Company operates its concern through merchandise sections like: Oral, Personal and Home Care, and Pet nutrient
Colgate Total and Max Fresh toothpastes, Colgate 360A° manual toothbrushes, and Colgate and Colgate Plax unwritten rinses are Colgate ‘s Oral Care merchandises.
Palmolive and Soft-soap trade name shower gels ; Palmolive, Irish Spring and Protex saloon soaps and Speed Stick and Lady Speed Stick deodourants and antiperspirants are Colgate ‘s Personal Care merchandises.
Palmolive and Ajax dishwashing liquids, Fabuloso and Ajax family cleaners, and Murphy ‘s Oil Soap are Home Care merchandises.
Colgate, through its Hill ‘s Pet nutrient section, offers forte pet nourishment goods for Canis familiariss and cats with merchandises sold in over 90 states worldwide.
Need For the Business System
Colgate-Palmolive is a international company, functioning 5.7 billion persons around the universe in more than 200 states. International concern represents more than 70 % of Colgate-Palmolive grosss. Colgate-Palmolive needed a exchequer system holding similar worldwide range.
Their exchequer operation in the United States is headquartered in New York, where they managed hard currency flow for the local subordinate and worked with planetary subordinates pull offing remittals and dividend payments. They needed the ability to make regional exchequer Centres around the universe and back up them with a individual, integrated exchequer system to pull off hard currency place, incorporate hard currency and exchequer direction, calculate hard currency flow and involvement disbursal, and associate hard currency and exchequer direction with proper fiscal accounting
Colgate-Palmolive clearly defined those exchequer demands before choosing the Systems, Applications And Products ( SAP ) solution by set uping five strategic ends for the new exchequer system.
They wanted to
1. automate hard currency place and entree fiscal markets rapidly ;
2. integrate hard currency direction and exchequer direction ;
3. prognosis hard currency flows and involvement disbursal more accurately ;
4. enable concern integrating ;
5. and supply a templet for planetary application.
The new system had to supply complete integrating of exchequer minutess with other corporate systems, including histories collectible every bit good as receivable, gross revenues and distribution, and material direction.
Systems, Applications And Products ( SAP ) Chosen as a New Solutions
Earlier they were unable to bring forth a basic day-to-day hard currency place automatically. They used to take informations manually from three different systems and set it into a spreadsheet to come up with the hard currency place each twenty-four hours ensuing in a cumbersome, time-consuming procedure which prolonged their month-end shutting procedure.
Colgate-Palmolive turned to SAP Treasury to run into its demands from planning and determination devising to the direction of fiscal minutess and places and the transportation of records to fiscal accounting. The SAP Treasury solution has accelerated the day-to-day hard currency processing, liberating up staff clip for other analysis.
Portability and integrating were the two biggest advantages and the grounds why SAP Treasury system was chosen. Portability was needed to accomplish the long-run vision of making a planetary exchequer information system. Unless everyone is runing on the same architecture, it would
ne’er have achieved that vision in a meaningful manner.
The new SAP Treasury direction system streamlined the exchequer operations in the United States and provided a good return on the initial investing.
SAP Treasury itself includes three important constituents:
1. Cash Management, to pull off electronic banking and liquidness analysis ;
2. Market Risk Management, to measure currency and involvement rate exposure ;
3. Transaction Management, to pull off fiscal minutess and portfolios in the money
market and foreign exchange locales and for derived functions, securities, and loans.
Colgate ‘s exchequer section provides the corporation with the critical information it needs. A common system with centralised development and care will let sharing information services across major eographies and extinguish cost duplicate and inefficiencies. Integration across all of our operational units and geographicss will let them to account for debt, foreign exchange trades, and day-to-day hard currency motion easy. All journal entries are automatically generated whenever a dealing is completed, whether it be implementing a foreign exchange trade, financess, or puting up a new debt contract, or publishing commercial paper.
Changes Brought through SAP Treasury in Colgate Palmolive Business Process
The full procedure for looking at hard currency at Colgate-Palmolive had to be changed, from start to complete. They had to alter their charts of histories as they related to hard currency histories. They now make the differentiation between booked and realized hard currency, which they were non able to make before the SAP Treasury execution.
Rate For Return ( ROR ) besides known as Tax return On Investment ( ROI ) ) for Colgate Palmolive is +25 % by implementing the SAP Treasury.
The altering planetary scenario and concern demands lead to the acceptance of newer engineerings to do sense of informations and automate concern processes. Management Information Systems are needed to supply a competitory advantage, operational excellence, to last and better client familiarity.
The employees are now more efficient in their functions as Finance Officers as they no more have to make the boring occupation of informations entry but instead do informed analysis and determinations.
Associating of the SAP Treasury System provides them with up to day of the month information on Commodity monetary values which can assist the Colgate Palmolive Company.
Integration of assorted sections in any Company, FMCG or otherwise is what will supply them with the competitory advantage to last and do new market inventions to drive better growing.