Global Value Chain Management

EXA Global Value Chain Management Software (EXA GVC)

Name: EXA Global Value Chain Management Software (EXA GVC)
Brand: EXA AG

EXA Global Value Chain Software (GVC) delivers comprehensive capabilities to ensure end-to-end transparency across the global value chains to support data-driven decision-making.
With EXA GVC you gain visibility of true legal and consolidated global value chains.

What is Global Value Chain Management for Multinational Enterprises?

Global value chain management refers to the processes involved in the production and distribution of goods and services on a global scale. The global value chain represents the interconnected network of activities – from sourcing materials to production to delivering final products to consumers – that span many different countries and involve multiple companies and systems. It enables the CFO organization to have a true legal & consolidated view of intercompany transactions. Only EXA Global Value Chain software as SAP add-on can harmonize structured and unstructured data across multiple ERP systems with a 97% intercompany matching accuracy.

Challenges in Global Value Chain Management

Global Value Chain Management is constrained by fragmented systems, operational complexity, and rising compliance pressure.

Technology and Data Issues

Multiple ERP systems across different geographies
Ongoing IT transformations (e.g. SAP S/4HANA migrations)
Master data inconsistencies and data quality problems
Lack of integrated reporting capabilities

Operational Complexity

Limited process harmonitation across business entities
Supply chain changes due to product mix variations
Sourcing and production process modifications
Merger and aquisitions (M&A) integration challenges

Compliance and Reporting

Stringent local and global regulatory requirements
Auditor demands for detailed value chain documentation
Transfer pricing compliance across jurisdictions

10 Benefits of EXA Global Value Chain

EXA Global Value Chain delivers end-to-end visibility of true legal and consolidated Global Value Chains:

Achieve complete transparency at any stage of the E2E value chain at the most granular level and benefit from a 360° product view.
Perform group profitability analysis for every product to understand what contributes to profits and losses, identify each product’s individual impact, and thus optimize your overall portfolio performance.
Gain valuable insights into the cost drivers and performance of each end product enriching your portfolio’s performance.
Calculate consolidated cost component split at planned and actual levels as a basis for IC profit elimination.
Obtain detailed reporting on inventory levels with a breakdown into special stock types such as stock in transit, work in progress, accompanied by local stock value split into consolidated cost and IC profit.

Conduct what-if scenarios that simulate potential cost and profitability impacts resulting from any restructuring, enabling proactive decision-making.
Automatically derive your E2E value chains from your ERP data and improve data quality as well as release overall resource capacities by streamlining processes.
Effectively manage E2E value chains even in non-harmonized system landscapes by automatically establishing IC relations, identified directly from your ERP data.
Calculate the “true” consolidated costs along the E2E value chains including transactions from non-SAP systems by uploading them into compatible GVC interface tables.
Integrate all your SAP systems seamlessly, regardless of the size, location, or release versions of your system landscape thanks to standard connectors provided by our customizable GVC solution.

Intercompany Management Use Cases

Deep dive into Intercompany Management Use Cases

Features of of EXA Global Value Chain (EXA GVC)

Compelling highlights of EXA Global Value Chain software for multinational organizations:

Tight SAP ERP Integration

EXA GVC automatically retrieves data from all connected SAP ERP systems while ensuring that no context information is lost – even in complex processes, such as cross-company sales, drop shipment, tolling, stock in transit, and many more.

Calculation of Consolidated Standard Costs

For better transparency, the costs are mapped to a global cost component structure according to their origin and rolled up E2E for each material (material-plant combination), from raw materials and production to sales.

Calculation of Consolidated Actual Costs

The global value network is created based on the transactions posted in your ERP system, so the costs are derived from actual documents. Actual cost and the related variances are rolled up across IC and system boundaries, enabling you to perform a profitability analysis for all products sold – reflecting the true cost.

Unrealized Profit in Inventory (UPI)

Use EXA Global Value Chain to calculate unrealized profit in inventory (UPI) at any point in a value chain. Drill down on UPI from the organization level to company codes, plants, and ultimately the product level. GVC not only allows you to consider the impact of historical FX rates, but also considers the historical cost of materials and activities and displays changes in the UPI between two periods.

360-Degree Product View

Leverage the E2E view and global BOM (bill of materials) of all materials, containing details on the consumed raw materials, activities and freight – including drill-down options and where-used reports. With EXA GVC, you can analyze and simulate the impact of materials, prices, or exchange rates on the planning and potential sales of new or existing products. With EXA GVC, you can analyze and simulate the impact of materials, prices, or exchange rates on the planning and potential sales of new or existing products

Uncompromised Security

EXA GVC is an SAP add-on with the same security as your other SAP applications. The same goes for other features, such as single-sign-on and SAP roles

Implementation Approach

Download the implementation approach for EXA Global Value Chain

Technical Details

Download the technical details of EXA Global Value Chain

FAQs

What is global value chain management in multinational enterprises?

A global value chain management refers to the processes involved in the production and distribution of goods and services on a global scale. The global value chain represents the interconnected network of activities – from sourcing materials to production to delivering final products to consumers – that span many different countries and involve multiple companies and systems. It enables the CFO organization to have a true legal & consolidated view of intercompany transactions. Only EXA Global Value Chain software as SAP add-on can harmonize structured and unstructured data across multiple ERP systems with a 97% intercompany matching accuracy.

How can you calculate product-level manufacturing costs across multiple ERP systems?

With EXA GVC you are able to connect the different production steps, incl. all semi-finished materials along the complete value chain. At the same time, GVC is retrieving the the individual cost contributions for every production step and rolls the cost up along the same. At the finished product level the total cost of manufacturing are made transparent, reflecting also the true cost component split.

Which cost calculation method does EXA Global Value Chain use for product-level transfer pricing?

With EXA GVC it is possible to consider 3 different calculation methods:
– based on actual cost, the true consolidated cost are rolled up along the acual value chain, this also includes any variances accuring at the different levels
– based on standard cost, the consolidated cost are calculated based on the standard cost and the standard BOM’s along the value chain
– based on future cost estimates, the consolidated cost of the next yera(s) are calculated along the values chain

How can you determine value contributions across your global value chain?

Along the value chain, GVC is collecting and transparently showing the different cost contributions at the different levels of the chain. By this, the user can immediately identify in which entities the highest cost contribution occurs.

Which special processes does EXA GVC manage within its global value chain?

Beside the standard SAP processes for purchase, production and sales, GVC also enables the user to define BuyBack, drop shipments and IC tolling scenarios, allowing for a real end-to-end view of consolidated cost.

How can you get harmonized master data across systems to manage your global value chain?

With the integrated process to identify IC relations based on the daily transactions in SAP ERP, GVC is able to connect sales and purchase processes with an accuracy of ~97%. The mapping logic is based on references and is also designed to identify material number breaks and UoM breaks and provide an apropriate conversion factor between the same. The information of material number or UoM breaks are made transparent and can be used to maintain material master data. Additionally, non harmonized organisational master data can be mapped to a unique organisational structure within GVC to make the different data sources comparable.

How can I make the impact of rising procurement or production cost visible for group profitability?

With the E2E view of value chains, the user can transparently identify the global BOM and the individual cost contribution of every step. Therefore it is easy to calculate the impact of rising procurement cost or local value add in production on the overall profitability on the finished product.

How long does it take for a more expensive raw material to impact your external profitability? Why is simulation important to anticipate margin erosion?

This type of analysis is important to understand the timely delay between the sourcing and selling of materials. It is crucial for companies to understand by when the new procurement cost will be impacting the profitability so that adjustment to sales strategies can be foreseen and planned to avoid any margin loss or a loss of market shares.

What AI capabilities does EXA GVC have?

EXA has recently launched the Intercompany Management AI Assistant – called exa nexus. exa nexus transforms how your teams handle intercompany processes – from routine inquiries to complex compliance assessments and system configurations.
Key capabilities:
– Instant connectivity – links transfer pricing products, services, and entities with cross-reference capabilities
– Smart recommendations – delivers contextual guidance based on inquiry patterns and compliance scenarios
– Comprehensive knowledge access – provides complete answers spanning all transfer pricing domains

What are the EXA GVC deployment options?

EXA GVC as a standard softwared based on SAP is available as on-prem and private cloud version. A SAP BTP compatible version is planned for Q4/2027.

How can I connect business transactions across different ERP systems at the material level?

Do I need to manually model the value chain in Global Value Chain?

No, the value chain is derived directly from existing bookings in your ERP system. It reflects the actual transactions and structure as they are recorded—historically and currently—making it the “real” value chain.

Can Global Value Chain map non-harmonized master data and entire organizational structures?

We don’t map individual supply chains manually. Instead, we are able to automatically map non-harmonized master data and entire organizational structures across systems.

How can I visualize intercompany relationships within my value chains?

Using the IC Map, Global Value Chain enables you to display intercompany connections across entities and systems—based on actual transactions such as purchase orders and sales orders.

Can I represent intercompany tolling processes in EXA GVC without triggering an intercompany transfer?

Yes, EXA GVC supports tolling processes within a group—such as subcontracting—without treating them as intercompany sales. This allows you to reflect internal service flows without triggering tax or transfer pricing events.

Can EXA GVC process data from non-SAP systems?

Yes, while EXA GVC is a SAP add-on, it can process data from non-SAP systems. Although direct system integration is not possible, the solution can ingest and consider external data for analysis and reporting.

How are consolidated product costs displayed in EXA GVC?

EXA GVC displays consolidated costs based on a cost schema defined by the customer. This allows for a detailed breakdown of cost components across the value chain—fully aligned with how costs are booked in the ERP system.

What is specific to the IC tolling process in SAP?

In SAP ERP the provision of subcontracting materials is reflected by a regular IC transfer, in which the subcontractor orders the goods via purchase order. Without knowing the business process background, this can be treated as a regular IC transfer, which is wrong in this context as there is no transfer of ownership happening in this case. The material is only handed over for the manufactoring step. The ownership is still with the company that orders the subcontracting. To not consider this process step as an IC transfer step, there are basic rules defined that are considering this step as a third party procurement preventing the system to roll up consolidated cost.

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