The Group adopts multi-organization automated financial accounting
Featuring a multi-organization, multi-accounting, and multi-book system, Kingdee Cloud helped Northeast Pharm set up a management model characterized by the “flat management + multi-level profit center” paradigm to make possible basic accounting operations for 72 independent accounting organizations and 45 legal entities of the enterprise group, which has a five-tier structure. With the multi-accounting system also supporting its corporate accounting and business division accounting, Northeast Pharm has achieved automated financial accounting in various dimensions, including the management responsibility center accounting system, corporate accounting system, and budget management accounting system. Kingdee Cloud has helped Northeast Pharm achieve sophisticated management of its organizational units, earning plaudits from the company’s senior leadership.Leveraging Kingdee Cloud’s intelligent accounting platform, Northeast Pharm has set up more than 1,200 voucher templates, which fully meet its needs for automated accounting. At present, 97% of Northeast Pharm’s vouchers are automatically generated by Kingdee Cloud’s intelligent accounting platform, which helps substantially reduce accounting workload and improves the accuracy and compliance of financial accounting.
Helping the Group set up a sophisticated cost management model for the chemical industry
In terms of cost management, the cost recovery function offered by Kingdee Cloud provides reliable data for making unit cost forecasts, and can serve as guidance for Northeast Pharm’s production activities. It has been rated by Northeast Pharm as the leading sophisticated cost management solution for the chemical industry.
Improved group capital operation efficiency via cash pooling
Leveraging Kingdee Cloud’s financial cloud capital management capabilities, Northeast Pharm requires its subsidiaries to transfer capital in their bank accounts to the Group. The management headquarters serves an internal bank, and each subsidiary opens an account with it and automatically transfers its deposits to the Group, thus achieving centralized, pooled management of capital and billing. The Group’s annual marketing capital employment has fallen by CNY460 million, down 40%.
Amoeba management featuring small units
Northeast Pharm has upgraded its original corporate accounting to true business accounting, and its six major divisions have achieved independent management and accounting of their internal transactions. Kingdee Cloud can automatically identify and handle internal transactions on the basis of accountability. It also supports Northeast Pharm’s “Amoeba” management innovation. Each Amoeba is an accounting unit with specific aims and goals, and is an independent, continually-growing organization.
Financial-sharing centers help the Group achieve financial transformation
The sharing services cover six major segments, namely raw drug materials, drug formulation, retail, trading, engineering and manufacturing, and technology, with 45 legal entities and several business divisions. Kingdee Cloud helps Northeast Pharm make the decentralized and repetitive financial accounting and accounting processing work of its various organizations more standardized and process-based, thus providing a data, management and organizational foundation for the Group’s financial transformation. It supports the iteration, evolution, improvement, and innovation of Northeast Pharm’s management models and business models.
Comprehensive budget management system
A comprehensive budget system is based on corporate development strategies and serves as an effective assurance mechanism for the implementation of such strategies. By leveraging Kingdee Cloud’s comprehensive budget management functions, Northeast Pharm has successfully set up a comprehensive budget management system covering all aspects of its businesses, including sales, production, procurement, inventories, costs, expenses and capital.
The business analysis platform helps the Group with strategic analysis and decisions
The business analysis platform makes full use of data accumulated from business systems and uses the most sound data sources to help Northeast Pharm comprehensively utilize internal data collected at various levels, thus realizing information value from the management to the decision-making level. It has also helped the Group strengthen the management of all its businesses and operations, increase the transparency of information across its divisions at all levels and improve its decision-making efficiency.
Value of Customer
By adopting the business budget calculation model (MRP (Material Requirements Planning) model), capital planning model and budget cost calculation model for comprehensive budget management, Northeast Pharm has integrated its various business budgets to form an intelligent closed-loop budget preparation system.
The Group and its member units at all levels prepare and review multi-level business budgets, and conduct real-time budget control and post-budget analysis of all businesses of the Group via the budget control platform.
It has also helped the Group strengthen the management of all its businesses and operations, increase the transparency of information across its divisions at all levels and improve its decision-making efficiency.