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The basic flows of an SBE

Do you recognise this?

Your company has evolved over time, via organic growth or M&A’s.  Nowadays it consists of numerous legal entities in different countries. Business processes, organisations and cultures are the mixed result of countries, jurisdictions and Business Units. And quite likely multiple IT systems are in use.

You need to be a regional or global player, but manage your customers and products as if you were a straightforward single company. However the internal spaghetti you face makes this hard to achieve. Voorne Partners can help you to unravel the spaghetti, create transparency and lower your cost.

Characteristics of complexity

The situation outlined in the introduction usually shows some typical characteristics of complexity. If the list feels like a business “selfie” please read on.

  • Multiple IT (ERP) systems
  • Multiple sets of business processes
  • Numerous intercompany transactions
  • No real-time consolidated data
  • Tendency towards local “legal entity” optimisation
  • Customer and suppliers contracts handled through multiple legal entities

The price of complexity

The price of complexity is high!

  • Less time left to excel at your customer!
  • Unnecessary high internal cost  

Voorne Partners experiences show that managing complexity will cost your company 1-2% of net sales. To cope with it, many companies decided to adapt their operational business model. One of our services,  a Single Business Entity (SBE) model can be the solution.


The basic flows of an SBE

Simplification accelerated by an SBE

Within the Single Business Entity (SBE) model only one entity (the SBE) owns all raw materials and products, regardless of the location of physical storage. All transactions to sell products an to purchase raw materials are performed by title of the SBE. In this way the administrative flow of goods and money stays within the SBE, without any physical changes in your Supply Chain.

The SBE has its legal and fiscal consequences, and needs to respect the legal and fiscal legislation in each country.  There are several solutions available to tailor these consequences and make the SBE the optimal structure, both operationally as well as fiscally. 






The effects of an SBE

  • ONE set of centralised business processes
  • Local entities become service providers  
  • ONE platform for growth
  • Suppliers will be paid by SBE, customers will pay to SBE
  • ONE simplified IT Structure
  • ONE entity owns all working capital = SBE
  • Transparency of business results

Our references

Already more than 50 of our customers enjoyed the benefits of simplification!

Customer who enjoy the benefits of simplification

By applying our experience of end-to-end business knowledge and our proven process and change management methodologies we ensure that the change actually happens.

Voorne Partners would like to help you in your transformation journey!