Excellence Delivered

Conglomerates

ERP for Conglomerates

Conglomerates operate across diverse industries, managing multiple business units with distinct market dynamics, customer bases, and regulatory requirements. These complexities demand seamless integrations between subsidiaries, centralized data management, and standardized processes to ensure efficiency and profitability. SAP solutions offer comprehensive group consolidation tools for conglomerates with centralized data, streamlined operations, and enhanced regulatory compliance. With SAP’s integrated solutions, conglomerates can achieve operational synergy, improve decision-making, and drive digital transformation across their entire portfolio of subsidiaries, positioning them for sustainable growth in a competitive market.

Excellence Delivered (ExD) offers industry-leading solutions to support business needs and streamlined processes for global and regional conglomerates. As the only SAP Platinum Partner in Pakistan, we specialize in digital transformation, database migrations, and industry-specific ERP solutions. ExD delivers cutting-edge solutions that drive business growth across Pakistan, the EU, and the MENA region.

Clients

Challenges for Conglomerates

Diverse and complex business structures present significant integration and synergy challenges for conglomerates. To achieve efficient and profitable operations, conglomerates must ensure seamless coordination and unified processes across subsidiaries. Data and operations can become siloed without standardized processes, leading to inefficiencies and reduced effectiveness. To consolidate disparate functions—such as supply chain management, manufacturing, sales, and customer service—conglomerates require advanced, integrated IT solutions.

Conglomerates frequently manage diverse business units across various industries, each with unique market dynamics, customer bases, operational processes, and regulatory requirements. To maintain alignment and profitability, enterprises require tailored strategies and sophisticated performance measurement tools. Given the varied operational and financial complexities, conglomerates must prioritize consolidated management strategies to drive enterprise-wide digital transformation initiatives.

Conglomerates often experience a lower market valuation compared to the combined value of their individual entities, a phenomenon known as the conglomerate discount. The conglomerate discount typically arises from perceived inefficiencies, a lack of industry focus, and the complexities of managing a diverse portfolio of businesses. As a result, conglomerates may appear less attractive to investors, impacting their overall financial health. A conglomerate discount can also signal to stakeholders that the organization is not fully maximizing its potential, leading to lower market confidence and valuation.

Conglomerates face significant regulatory scrutiny due to their diverse business operations spanning multiple industries and jurisdictions. Ensuring compliance with varying regulations requires robust governance frameworks and sophisticated monitoring tools. Without standardized processes and integrated IT solutions, conglomerates risk non-compliance, which can lead to legal penalties and reputational damage. Advanced digital solutions are essential for managing regulatory requirements efficiently and maintaining operational integrity across all business units.

How SAP Benefits Conglomerates

Financial Management

SAP offers comprehensive financial management tools for conglomerates that enable consolidated finances across various divisions. SAP solutions enable accurate and timely reporting across business divisions for enhanced transparency and agility in decision-making. Conglomerates can leverage budget forecasting, cost analysis, and real-time financial updates for improved financial management. ExD provided comprehensive RISE with SAP services for  Middle East Specialized Cables (MESC) leading to improved financial management..

Standardized Operations

SAP Industry Solutions for conglomerates enable standardized processes across subsidiaries. With an SAP ERP at the helm, companies can implement best practices with reduced variability to ensure harmonized and consistent operations across all domains. Integrated modules for finance, supply chain, procurement, sales and HR ensure seamless information flows for standardized workflow management. Engro Corporation partnered with ExD to streamline and standardize operations across its units through an SAP S/4HANA implementation.

Compliance Adaptation

SAP’s integrated compliance and governance tools enable adherence to global and local regulations across departments and subsidiaries. SAP tools provide frameworks for compliance auditing and risk management to ensure regulatory guidelines and internal policies are consistently being followed. Companies can ensure compliance adherence while mitigating compliance risks for efficient enterprise-wide governance. ExD helped Army Welfare Trust (AWT) streamline compliance with SAP S/4HANA implementation and consultation services.

Streamlined Global Operations

For global conglomerates, SAP ERP integrates diverse business functions such as HR, supply chain, finance, procurement and sales into a single platform for improved collaboration and coordination. Business units within conglomerates get access to real-time operational information for streamlined operations and reduced redundancies. Scalable SAP solutions can also accommodate new entities and operations to support growth without requiring a complete system overhaul.

Streamlined Supply Chain

SAP enables real-time visibility into the supply chain for enhanced performance monitoring and adaptive strategies across business units. For conglomerates with extensive supply chains, SAP solutions facilitate optimized supply chains with inventory control, demand forecasting, procurement optimization, and automated supplier management for lower stockouts and costs leading to resilient supply chains. ExD helped streamline and optimize supply chain operations for East Gate Industries with an end-to-end SAP implementation.

Centralized Data Access

SAP enables a centralized database that allows data consolidation across businesses and subsidiaries to facilitate real-time analytics and insights. Data consolidation for conglomerates ensures standardized reporting for improved data accuracy and operational efficiency. Real-time data visualization and AI-enhanced analysis into key performance and operational metrics empower decision-making, enhanced transparency and collaboration. ExD enabled Banu Mukhtar to centralize enterprise-wide data for improved operational efficiency.

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