Exactus Advisors

Case Study

CF Industries

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ERP Implementation and Legal Entity Reorganization

Business Problem: 

CF Industries, a $3B fertilizer manufacturer, acquired its competitor, Terra Nitrogen, for $3B. As part of the integration planning, it was determined a new enterprise platform was needed to successfully integrate the two companies and support future growth. Our team was engaged as an independent advisor to the CEO for this $40M, 18-month implementation.  Accenture was selected as the integrator for the SAP solution. Shortly after our team's arrival, we identified synergy opportunities related to the simplification of the legal entity structure. We were engaged to build the business case and manage the realization of this effort in parallel with the SAP implementation.
 

Solution:

Our team, acting in an objective, advisory capacity, provided strategic guidance and a hands-on approach to ensure the appropriate program governance and controls were in place for a successful go-live implementation. We successfully identified and corrected plan deviations, as well as program risks before being identified by the integrator.  This resulted in significant savings without compromising quality.

As program manager of the legal entity effort, our team brought extensive integration and implementation experience to the project and provided CF with insights into planning and strategic opportunities relative to the new system platform. The result was the identification and realization of an additional $25M of annualized savings relative to the original benefit case for the system implementation.
 

Benefits:

Our team identified and intervened on three separate occasions where the integrator was not meeting the client expectations and/or introducing unnecessary program risk. These areas included program governance and financial controls, managing scope and customization, and ensuring testing and readiness activities were aligned with best practices. 

We identified and managed the implementation of a new legal entity design resulting in an estimated $25M in annualized benefits. Our team worked with Legal, Accounting and CF business partners to ensure alignment business readiness.