Selecta AG

Select Toys - Select Controlling

When Selecta AG was set up in 1969 it strove to live up to its name. Derived from Latin, it is all about "select" toys. The company has remained true to its founding principle, as the many awards show. In 2001, another selection was to be made: new controlling software was required. The chosen system was CORPORATE PLANNER, which since then has not only been used in the conventional areas such as cost centre accounting, liquidity planning and various distribution statistics, but also for dealing with specific tasks like drawing up the statement required by the "Green Dot" waste recycling system.

A closer look at the company structure

When Florian Kellner took charge of the whole area of controlling at Selecta AG, his first act was to choose and implement controlling software, and, after an intensive information gathering phase, just two products made it onto the shortlist. "After some tests, we decided very quickly in favour of CORPORATE PLANNER as its straightforward operation convinced us right from the word go," Florian Kellner, now business manager at Selecta, recalls. "The tree structure is not only extremely transparent, but allows us to take a good look at our company structure".

From the cost accounts via the P&L to liquidity planning

Due to the system's simplicity of operation, after attending introductory training Florian Kellner was able to implement the software in the company himself. Emphasis was first given to the display of the cost centre accounting. A business management analysis was constructed on the basis of the 25 individual cost centres, one cost centre typically being a single department, or organisational unit, of Selecta. Though such a view is also possible in the integrated materials management system in use, because of the fact that this works on the level of individual account entries instead of monthly balances, finding information in this way is awkward and space-consuming. The resulting cost accounting view is transferred to the "P&L tree". Furthermore, the balance sheet items are listed, providing a basis for integrated financial planning. The Integrated Financial Planning system, a complete module offered by CP, has been used by Selecta since 2002.

From customer turnover statistics to detailed article turnover statistic in various views

Besides cost and financial controlling, another all-important area is the customer turnover statistics. Selecta markets about 450 articles from three product ranges: toddlers' toys, world of children and games; trading on the open market as well as via associations, through department store chains, and abroad, primarily through wholesalers. Of all the products, 40 % are exported. Customer turnover figures are recorded in the customer turnover structure each month, where the information is presented according to country, customer group and sales representative. Meaningful statistics emerge in this way, which form the basis of comprehensive reports. These are forwarded by PDF-mailer to the internal points of distribution and to the sales representatives. This information policy creates a high level of transparency in the sales department which is the basis for effective sales control measures.

The next necessary step was to generate detailed article turnover statistics from the customer turnover statistics. "The new XML Converter was developed just at the right time", Florian Kellner reports. This new converter enables the article data at item level to be integrated from Excel more conveniently. The Excel files amount to between 20,000 and 50,000 rows each month. Conversion to CORPORATE PLANNER structures takes place very rapidly at the touch of a button, and accurate analyses of the articles can be carried out from any perspective. At Selecta, the data are analysed at present according to:

• sales representatives
• countries
• customer groups

"We are now able to tell very quickly which customer has purchased which article through which sales representative in which country. Besides, the different views allow weak points to be identified fast. For instance, it becomes immediately obvious if a particular sales representative is unable to place certain articles", concludes Florian Kellner.

The XML Converter is much more than just a standardised dialogue for importing data from Excel, text and CSV formats. It also enables multidimensional views to be created using drag & drop, with outstanding performance.

"Green Dot" Statement

As a manufacturer of packaged articles, Selecta has an obligation to pay waste disposal charges to the German Dual System (DSD, The Green Dot). Florian Kellner describes the situation as it used to be: "Before we had CORPORATE PLANNER, we used an inflexible program which was part of our old materials management system for preparing this statement. When we introduced Microsoft Business Solutions Navision (Version 3.70) in September 2004, that program was not reconfigured, since the flexibility of CORPORATE PLANNER allows us to make this calculation directly". This involves establishing "packaging fractions" for each article. These are components such as the volume of the packaging, its surface area and weight. These packaging fractions are then multiplied by their respective quantity and price, and the result is used in the calculation of the waste disposal charges. The statements are released as a report each quarter and forwarded to the German Dual System.

Internal and external reports – for the board of directors and the banks

Selecta AG has a very comprehensive and open reporting system in place. "We attach great importance to regular and transparent reporting, especially as regards banks and the board of directors", Florian Kellner explains. "We produce reports at frequent intervals which contain a great deal of information from controlling, where the reporting tool in CORPORATE PLANNER gives valuable support. Consequently, we are also well prepared for legal requirements such as new guidelines for loan allocation."

Budgeting, likewise, is carried out directly with the system's planning tools. "At Selecta we work with a network version and a rolling five-year planning period. Planning is done for one year in advance on cost centre and impersonal account level, the flexibility of the system allowing for the fact that our financial year begins in April" is Florian Kellner's description of the planning process.

Progressive consolidation and future plans

In retrospect it can be seen that Selecta has gradually implemented some important areas of controlling in CORPORATE PLANNER. This successive approach has the advantage that individual target stages may be set, each of which can be achieved separately. Taking such a route is often advisable since those who want "everything right away" are likely to get bogged down in the process. Selecta AG has plans for more statistics to be prepared, and the existing areas are to be enhanced further, taking the new pre-system into account. In doing this, some new techniques like the XML Converter mentioned above but also the practical "Master-Client concept" will find their way into the structures.

The verdict after several years' use?

"I am more than satisfied with our present controlling facilities. The choice we made five years ago has proved extremely worthwhile. I have a great many plans to extend the current system further, so the company will become even more transparent. I also value the contact with other users which occurs at the annual Users' Meeting, for instance, as this often gives rise to new ideas and suggestions."

The Author
Florian Kellner has a management diploma and has been at Selecta since he left the University of Regensburg. As business manager, his field of responsibility includes the whole IT area and the personnel department as well as accounts. He is also in charge of consignment and shipping. The complete process of implementing CORPORATE PLANNER at Selecta Spielzeug AG was carried out under Mr. Kellner's supervision.