Overview

In 2024, TEVA, a global pharmaceutical company, implemented the CPM Matrix system to enhance its planning, budgeting, and controlling processes. The new system significantly streamlined budget development, improved forecasting accuracy, and provided comprehensive insights into business performance, all within a single, integrated platform.

Objectives

The key objectives of the project were:

• Reduce time required to develop budgets and forecasts across various timeframes.

• Evaluate business plans and assumptions smoothly and effectively.

• Develop product sales and cost forecasts using a unified setup accessible to all relevant stakeholders.

• Automate and standardise reporting processes to improve efficiency.

• Provide immediate insights into up-to-date forecasts to enable quick responses to market changes.

• Enable the modelling of budgets and forecasts based on market outlooks and compare multiple scenarios.

• Ensure that all data is consolidated in one system, accessible 24/7 from anywhere in the world, for greater control and accuracy.

• Maintain high forecasting accuracy by accounting for seasonality and market dynamics.

• Support a system that has been operational for nearly 20 years, ensuring long-term reliability and performance.

The Challenge

TEVA faced several challenges before implementing the CPM Matrix system:

• Transition from Excel-based budgeting and planning, which involved managing numerous file versions and lacked integration.

• The need for a tailor-made system that could be customised to fit TEVA’s specific requirements and processes.

• Developing a comprehensive solution that could handle complex planning and forecasting needs while providing high accuracy and easy accessibility.

The Solution

The CPM Matrix system was developed and implemented to address these challenges effectively:

1. First Implementation of the Matrix System (2006):
   The proprietary Matrix system, initially implemented in 2006, was customised and enhanced for TEVA’s current needs, incorporating lessons learned from previous implementations.

2. Customised System Design:
   The system was built to meet TEVA’s specific requirements, including four core modules:

   • Administration Module for system management.

   • Sales Planning Module for accurate sales forecasts.

   • Costs Module for detailed cost forecasting.

   • Matrix Analysis Module for generating comprehensive reports.

3. Forecasting Templates:
   The system included mechanisms to facilitate and speed up the creation of forecasting templates, allowing for quick adjustments and updates in response to market conditions.

4. Consolidated Data and Reporting:
   All relevant data was integrated into a single platform, providing 24/7 access from any location. The system automated report generation and standardised processes to improve efficiency and accuracy.

Results and Benefits

The implementation of the CPM Matrix system delivered several notable benefits for TEVA:

• Significantly reduced time to develop budgets and forecasts, enhancing overall efficiency.

• Smooth evaluation of business plans and assumptions, leading to better strategic decision-making.

• Ability to develop and compare product sales and cost forecasts in a unified setup, providing a comprehensive view of financial projections.

• Automation and standardisation of reports, streamlining reporting processes and reducing manual effort.

• Immediate insight into up-to-date forecasts, allowing for rapid adaptation to market dynamics.

• Enhanced modelling capabilities for budgets and forecasts, enabling comparison of multiple scenarios.

• Centralised data access, available globally, ensuring greater control and accuracy of financial information.

• High accuracy in forecasts, with consideration of seasonality and market trends.

• Ongoing support for a system with a proven track record of nearly 20 years, demonstrating its long-term reliability and effectiveness.

By adopting the CPM Matrix system, TEVA significantly improved its budgeting, planning, and controlling processes, achieving greater efficiency, accuracy, and strategic insight.