Embraer: Achieving maturity and efficiency by driving better tax and budgetary control and improving fiscal planning processes
Explore Embraer’s journey with SAP Analytics Cloud
Embraer is a Brazilian aircraft producer and aeronautical services provider, ranking third-largest in worldwide commercial jet manufacturing. It wanted to enable better budgetary control and fiscal indicator visibility to improve efficiency and performance. SAP Analytics Cloud for planning and the SAP Tax Declaration Framework application for Brazil are helping Embraer meet this aim.
| Industry | Region | Company Size |
| Aerospace and defense | São Paulo, Brazil | >18,000 employees |
reduction in time to generate accounting results.
improvements to the budgeting process.
real-time visibility into tax indicators.
Business Partner Finance, Embraer S.A.
Finding the right gear to enable efficient budgeting and tax calculations
Embraer S.A. is a Brazilian aerospace multinational company that produces commercial, military, executive, and agricultural aircraft and provides aeronautical services. It’s the world’s third-largest commercial jet manufacturer and leading producer of executive jets with up to 150 seats, delivering over 1,700 jets in more than 70 countries in 2022.
The aerospace company had difficulty gaining visibility into its financial indicators and had a highly complex process for analyzing tax calculations and benefits. With more than 75 Microsoft Excel spreadsheets and two legacy systems, the budgeting process was complicated and led to a high manual workload for the finance team in consolidations and analytics. Plus, preparing presentations for Embraer’s leadership group required significant effort.
The global aviation industry has faced considerable challenges in recent decades, and 2020 was no different for Embraer. The company launched its “fit for growth” strategic planning approach, dedicated to adopting more impactful, sustainable, and profitable performance in the coming years. One of the pillars of this program was increasing efficiency, so it sought a more-effective budgeting process and management of tax expenditures and incentives.
Providing advanced analytics and compliance reporting capabilities
The aerospace company held more than 10 benchmarking meetings to review potential solutions before choosing SAP Analytics Cloud for planning as the most complete and robust offering. It uses the planning capabilities in its financial planning and analysis processes, specifically for tax and budgetary control. There are now more than 600 staff using the solution.
Embraer deployed the SAP Tax Declaration Framework application for Brazil in conjunction with the planning capabilities in SAP Analytics Cloud to enable automated reporting and fiscal indicator visibility. Part of SAP solutions for advanced compliance reporting, the application centralizes data and helps the company’s tax preparers follow Brazil’s system for tax reporting.
Integrating the software provides AI capabilities with predictive analytics and simulations, allowing insights into possible deviations between planned and realized financial figures. Embraer now has a combined solution that supports its requirements in both the tax and budgeting areas. The two solutions were deployed in parallel within nine months.
Embraer is also using the Open Connectors capability within SAP Integration Suite as a data source in one of its models. And the company’s evolution road map includes software that addresses future procurement, HR, and expansion-to-cash needs.
Business Partner Finance, Embraer S.A.
Gaining real-time visibility and driving data-driven decisions
By replacing its manual processes and legacy systems with SAP Analytics Cloud for planning and SAP Tax Declaration Framework for Brazil, Embraer has streamlined its budgetary control and tax management processes. The company has introduced more than 40 process improvements, eliminated redundant and replicated data, and significantly reduced the time to generate accounting results information. This has helped Embraer boost performance. And gaining real-time visibility into tax indicators enables it to compile relevant information to maximize the application of tax benefits.
Some of the main benefits of implementing the solutions for business planning and advanced compliance reporting are the optimized user experience, fueled by the mobile functionality, and increased user adoption. Whereas it used to take three days to prepare material for leadership meetings, data is now readily available and these meetings can be held online. This encourages proactive management by the executive team, as it can act quickly on key business indicators and make data-driven decisions.