Case Study
Nord LB invest in Sage X3 with a trusted partner
Company Name:
Location:
Industry:
Sage Solution
Type of Business
NORD/LB, short for Norddeutsche Landesbank Girozentrale, is a German Landesbank (a state-owned bank) and one of the largest commercial banks in Germany, serving as a central bank for savings banks in certain regions. The business is an international financial services company with its head office in Hanover, Germany, and branches in London, New York, and Singapore. The London branch has been operating for 40 years and focuses on renewable energy and infrastructure project and asset financing, as well as real estate financing. Globally the company specialises in investment banking, agricultural and real estate banking, corporate finance and private banking. It has around 115 employees in London, with a separate finance department managing its London operations.
Challenge
The business has been using Sage X3 since 2017 but faced several challenges, especially during the initial implementation. These issues included limited support after Sage stopped offering direct assistance in late 2021, and the system’s manual processes for spreadsheets and accounting, which created extra challenges. The company primarily used only a few modules—financials, accounts payable, accounts receivable, and banking—without fully utilising the system’s capabilities. The key challenge was the lack of education on how to maximise the system’s potential, leading to inefficient and narrow usage. In 2021, they re-implemented Sage X3 to remove a lot of the unnecessary customisation, however due to lack of support, the confidence in the system and its functionality was very low, until the company began their relationship with X3 Consulting, who helped educate the team and customise the system to enable automated reporting, saving time and reducing errors.
The company hopes to unlock more potential for data analysis using SEI, particularly by building a sophisticated reporting package to tackle the company’s multi-currency, multi-department profitability monitoring requirements including following up against budgets and cost targets. Before SEI limited amount of information was being extracted from Sage to Excel using hardcoded reports and providing only the basic details of business activities. Other External data would have to be stitched together with Sage extracts using Data Models and PowerPivots to create the necessary reporting packages.
Nord LB has also identified a need for analysing invoices and examining suppliers’ payment patterns using SEI. They aim to explore the possibility of shifting billing cycles to monthly or quarterly. Previously, gathering and analysing this data would have required significant manual effort, but with SEI, the data is now easily accessible. In summary, SEI has been a major improvement for the business.
ROLE OF SAGE AND X3 CONSULTING
X3 Consulting and Sage X3 played pivotal roles in addressing the company’s needs in improving its operational efficiency and filling the education and confidence gaps in Sage X3. Initially, the company had overlooked some key features of Sage X3, such as the Fixed Asset Ledger module. This oversight was corrected by X3 Consulting, who successfully implemented the module during the course of the project, adding significant value to the system.
At one point, the company considered moving away from Sage X3, as the system had not been fully customised to their specific requirements. They explored the option of switching to Sage Intacct, believing it might be a better fit. However, before making any decisions, the company decided to involve X3 Consulting, seeking their expertise to thoroughly assess both options. X3 Consulting carefully reviewed their needs and provided a balanced, honest evaluation of the pros and cons of staying with Sage X3 versus switching to Sage Intacct.
Through this process, X3 Consulting made it clear that moving to Sage Intacct would come with a high cost and would not allow the company to do everything they were currently doing in Sage X3. Moreover, some future modifications and functionalities that the company anticipated might not be available in Sage Intacct. This honest and transparent assessment surprised the company but also highlighted the value of X3 Consulting’s guidance.
Ultimately, after considering the costs and limitations of switching to Sage Intacct, the company concluded that the most commercially sensible decision was to stay with Sage X3 and proceed with customising the system to better meet their needs. X3 Consulting’s expertise, transparency, and tailored recommendations made this decision easier, reinforcing their role as a trusted partner in the company’s journey to optimise their use of Sage X3.
“Working with X3 Consulting has transformed our ability to scale and manage our operations efficiently. Their expertise in customising Sage X3 has allowed us to streamline processes, automate key functions, and gain valuable insights into our financial data, all without increasing the size of our finance team. X3 Consulting’s transparency and support have been invaluable in helping us unlock the full potential of the system.”
Result
By customising Sage X3 with X3 Consulting, Nord LB achieved significant operational efficiencies that supported business growth without the need to increase the size of the finance team. The implementation of automation streamlined previously time-consuming processes, especially in invoicing and expense management. This enabled the finance team to handle a larger volume of work while maintaining the same team size, demonstrating how the customised system could scale effectively without adding extra costs.
A major benefit of the system’s customisation was the increased reliance on automation, which streamlined accounting and reporting processes. The partnership with X3 Consulting also led to better utilisation of the system’s full potential. Key features like SEI (Sage Enterprise Intelligence) enabled advanced reporting and data analysis, allowing Nord LB to aggregate financial data from across the system and gain valuable insights over several years. These capabilities enhanced decision-making and provided a more comprehensive view of financial performance.
One of the most impactful aspects of the customisation process was the gradual learning curve. Initially, the company was unsure about fully trusting the system and its capabilities. However, with the support of X3 Consulting, they gained confidence in the system’s functionality. For example, they learned about features such as the ability to upload invoices with a single click, which was a game-changer in terms of efficiency. X3 Consulting not only provided technical support but also educated the team on the full capabilities of Sage X3, enabling Nord LB to make the most of the system’s potential.
Additionally, the partnership with X3 Consulting brought transparency and trust to the process. X3 Consulting was honest and transparent about the potential of Sage X3 and helped Nord LB understand the benefits of sticking with the system, especially when compared to alternatives like Sage Intacct. The decision to stay with Sage X3 was solidified through this open dialogue, which highlighted the system’s ability to meet the company’s needs both now and in the future, particularly in terms of customisation, scalability, and reporting.
The implementation of SEI, often referred to as the “Rolls Royce” version of the tool, provided Nord LB with advanced reporting capabilities. With SEI, the company could extract data from anywhere within Sage X3, create aggregated reports, and pivot around the data to generate meaningful insights. This functionality allowed Nord LB to gain a deeper understanding of their financials and make data-driven decisions. The ability to look back at several years’ worth of data and perform detailed analysis was a significant improvement, helping the finance team to better support the growing business.
Overall, the collaboration with X3 Consulting helped Nord LB to not only customise their Sage X3 system but also unlock its full potential, allowing them to achieve greater efficiency, improve reporting, and handle an increased workload without expanding their finance team. The ongoing trust and transparency in working with X3 Consulting have been essential in helping the company continue to enhance its systems and ensure the software evolves to meet their changing needs.
About Sage x3
A scalable, global business management system, Sage X3 has been designed to support industry specific processes across finance, purchasing, inventory, manufacturing and customer relationship management. Sage X3 manages all areas of your business in one solution.Modules within the system are parameterised and can be enabled as the demands of the business grow; a solution for the future.
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