Dril-Quip evaluated both OneStream XF and Oracle HFM as solutions to address the challenges faced. Both vendors presented demos to Financial Reporting, International Accounting, and Senior Management to ensure the application would address SEC filings, statutory requirements, and growth initiatives. As such, a 5-year total cost of ownership inclusive of consolidations, forecasting, account reconciliations, additional users, hardware, and upgrades for both applications was reviewed.
OneStream XF was ultimately selected as management wanted one solution to address all challenges versus multiple solutions that would need to be integrated with each other through additional software. OneStream was initially deployed as an on-premise solution that could run on existing servers, whereas Oracle required specific hardware that would need to be purchased.
Further, those with prior experience in HFM stated, “OneStream has made everything that was difficult or disconnected in HFM a smooth and seamless process.” Finally, management placed over 10 reference calls and noted that upgrades took hours rather than months. Overall, OneStream was chosen because it was determined to be a lower cost provider with a better product and better customer service.
Dril-Quip initially implemented OneStream XF to deliver multiple solutions to meet all their financial reporting and planning requirements in one application.
- Corporate Financial Consolidation and Reporting
- Global Rolling 18-month Forecast
- Sales Planning - leveraging data from Oracle CRM and an internal backlog report
- People Planning to manage headcount and salary planning
- Capital Planning to manage fixed assets and depreciation planning
Replacing Excel and Streamlining Financial Reporting
Dril-Quip replaced several spreadsheets and homegrown solutions with a singularly unified OneStream XF solution. OneStream provided confidence in the data that was being reported, not only internally, but externally to the market.
OneStream XF delivered a simplified process by providing global regions the ability to load their own trial balance directly from the general ledger; providing timely and accurate reporting. Dril-Quip was able to capture Inventory turnover in OneStream with the use of custom dimensions. This provided an accurate picture of their balance sheet metrics for days inventory outstanding (DIO).
With the pre-built functionality for automatic intercompany eliminations, OneStream makes it easier for business units to identify and quickly resolve any out of balance conditions with their intercompany accounts. OneStream has made it easier for Dril-Quip to generate their financials for SEC reporting by leveraging the custom dimension to help organize costs based on the requirements for the 10-K and 10-Q.
Consolidations and intercompany eliminations historically took 2 days to complete. The Financial Reporting team would load consolidated trial balances by region into Epicor (ERP System) to convert data into USD. Eliminations also required manual journals posted to an elimination entity in the ERP system. OneStream XF streamlined this process to minutes versus days through out-of-the-box functionality. Further, internal reporting for departmental spending used to take approximately 1 day to prepare and distribute. In OneStream report books were created and distributed in in minutes. Overall, Dril-Quip was able to reduce its monthly close cycle by 3 days.
Budgeting and Forecasting
Dril-Quip was looking to roll out a company-wide, 18-month rolling driver-based forecast, where every quarter each departmental manager could enter their various global drivers to help pre-populate revenue, salary, depreciation and expenses. OneStream was able to provide a unified platform to help implement financial, sales, capital and people planning. Pre-populating the forecast for users provides more time for departments to analyze their data, make any necessary adjustments, and provide variance comments.
Revenue recognition is a large part of Dril-Quip’s business. With OneStream Sales Planning, global regions are now able to analyze CRM and backlog data down to the customer level and address the new revenue recognition guidelines.
People Planning provided Dril-Quip an easy to use tool to manage headcount by entity and department. Having this solution in place provides regional managers a better solution for planning workforce costs in the future.
Dril-Quip’s fixed asset management tool was inconsistent globally. By implementing capital planning in OneStream, it provided a more consistent way for global regions to manage their fixed assets rather than in Excel. Corporate realized global regions were using different useful life calculations to populate their depreciation. With OneStream Capital Planning, corporate is now able to set global useful life drivers to ensure depreciation is calculated correctly.
The application leveraged Dril-Quip’s detailed security matrix by creating workflow profiles specifically for forecast data based on responsibility down to the cost center level, providing confidence to the users that their information was confidential and secured, especially for salary planning.
With the ability to combine actuals through the rolling forecast, reporting out of OneStream was seamless. Transparency and ownership of the data was key to Dril-Quip’s success.
On aggregation of the monthly forecasts alone, Dril-Quip saved 60 days annually through the implementation of OneStream planning solutions. Sales Planning utilized tools already in use by senior management and required users to annotate any deviations from CRM and backlog data thereby reducing follow up questions. Finally, the use of an 18-month rolling forecast enabled the company to move its annual budget process and Board of Directors approval into the 4th Quarter.