Target Hospitality improves working capital with analytics
North America’s largest provider of modular accommodations leverages Oracle Fusion ERP Analytics to get a single view into financial data.
“For the first time ever, we are benefiting from an analytics solution that can provide an easy-to-use and engaging experience for C-level executives.”
Business challenges
Target Hospitality owns and operates housing communities across the oil, gas, energy, infrastructure, and government markets. The company’s initial need was to automate working capital analysis, simplify management reporting, and optimize operating expenses. The goal was to bring in more efficiencies and expand the depth of financial analysis with Oracle Cloud ERP and provide the chief accounting officer and management team with hands-on access into accounting data, with the ability to drill into details quickly.
Oracle Fusion ERP Analytics provides our cost center owners with better visibility into spending, enabling them to create a bigger impact with available funding.
Why Target Hospitality chose Oracle
When Target Hospitality looked to deliver a management reporting solution that would scale beyond transactional reporting, it evaluated various business intelligence (BI) solutions before selecting Oracle Fusion ERP Analytics. With more than 100 financial metrics in accounts payable and receivables and 160 in procurement and spend, Target had a head start at delivering insights to senior management. Fusion ERP Analytics would simplify and consolidate analytics processes and replace a manual system using a desktop BI tool. Based on feedback from Fahad Qazi, Target Hospitality’s vice president of business applications, management may potentially simplify and consolidate all their analytical reporting into a single view with Oracle Fusion ERP Analytics.
The scope of financial analysis was broader than data from Oracle Cloud ERP, and the extensibility framework in Fusion ERP Analytics provided Target Hospitality with the flexibility to connect and combine data from other Oracle and third-party applications.
Results
Target Hospitality’s chief accounting officer is one of the primary advocates of Fusion ERP Analytics and leads by example to make data-driven decisions. Fusion Analytics is quickly becoming his go-to tool, because Target’s accountants have better control and confidence in the financial close process, ensuring that the right data entries are being processed faster while eliminating and correcting erroneous transactions. This enables them to create time for more strategic analysis.
The out-of-the-box dashboards and metrics in Oracle Fusion ERP Analytics have allowed the management team to improve procurement processes with a complete view of spend as well as critical insights into cost savings and opportunities to reduce off-contract spending.
Management has a simple and easy tool for improving working capital by analyzing days sales outstanding and days payable outstanding. By having a complete picture of spend across every vendor, management can focus on major vendors and collaborate on how best to improve contract terms.