Shared Services Implementation and Financial Reserves

Optimize Performance

Shared services implementation and financial reserves

The Client
A $600M private equity owned distributor of construction materials, accessories and tools for both the commercial and retail markets. The company managed five operations in the U.S., with 1,100 employees. 

The Challenge
Not long after a private equity purchase, the management team looked to strengthen the accounting and finance functions, assess financial statement reserves and quickly consolidate the back-office operations for five stand-alone locations. Supporting sales, procurement, inventory, time and expense, revenue cycle (cash receipts and payments), credit and treasury, the client required a full shared services integration with a scalable solution to accommodate an aggressive acquisition strategy.    

The Approach
Aligning to an in-process ERP consolidation, Dietrich developed an implementation roadmap to support the successful transition with the following actions:   

Shared Service Implementation 

  • Assessed the locations to determine if an existing location would provide the natural “right” backbone to support the center. 
  • Documented “as is” accounting and finance process flows for all locations and created a “future state” given requirements of the management team and best practices. 
  • Identified gaps and organized recommendations for immediate, interim, and long-term workflow and ERP enhancements.   
  • Created a communication and change management plan to support the six-month movement of functions out of dispersed geographies and into the service center.   
  • Performed the interim Shared Service Director role while looking to hire in the selected market. 
  • Drafted job descriptions for all positions and assisted in the interviewing and placement of existing and new team members – ultimately elevating the level of talent. 
  • Developed, published and trained on policies and procedures.  
  • Implemented a dashboard with meaningful financial and operational metrics. 

Financial Reserves 

  • Completed reviews of the trial balances, general ledger, book and tax reporting of assets, reserves and liability accruals for consistency, completeness and compliance with accounting standards. 
  • Created and/or revised accounting policies and procedures to reflect updated methodologies with sample calculations. 
  • Identified ERP links and functionality to automate some of the calculations contributing to shorter month-end close cycles.   

The Result
Dietrich provided the integrated solution to replace eight legacy applications and a significantly more efficient interface for users in the manufacturing facility. This reduced IT resources required to support the manufacturing operation. The single database shared by the ERP and MES systems simplified financial reporting and increased the accuracy of variance analysis.