STOCKHOLM, June 23, 2021 / PRNewswire / – IFS, the global enterprise cloud applications company, announces that the Aston Martin Cognizant Formula One 
team will use its enterprise resource planning (ERP) software to track costs, make investment and development decisions Evidence spending during the contest to make accounting periods. The IFS solution will play an important role in ensuring compliance with the stringent new Formula 1 cost cap testing requirements introduced by the Federation Internationale d’Automobilie (FIA) this season.
The 2021 season will bring a radical change in the way Formula 1 racing teams can spend money to compete. New rules on the upper cost limit of the FIA sports association limit how much a Formula 1 team can spend on improving the performance of the racing car during a calendar year.
This year, F1 teams start with a cap of $ 145 million, gradually reduced to $ 135 million by 2023. The implications are far-reaching, especially for each team’s financial operations.
Robert Yeowart, Aston Martin F1’s Chief Financial Officer, is responsible for ensuring that the company operates as efficiently and effectively as possible and that the cost cap is getting more value out of every pound spent. “The FIA can come and have us checked at any time. You can check our accounts – and check everything we spent where and when. The new reporting requirements are demanding. In addition to the technical and antitrust compliance we are used to, the panel is on the lookout for anomalies and trends to uncover any team operating beyond the defined cost caps. We have to be ready to provide evidence and audit trails to support any inspection. “
Aston Martin F1 implemented IFS to support its operations, financial reporting and manufacturing areas.
“IFS gave us the perfect platform to build on,” says Yeowart. “With detailed cost analyzes, we can really understand what we’re spending our money on, which we couldn’t before. We can track our inventory and answer questions like ‘What parts are available to us?’ What condition are they in? How many parts are there in the building and how much does each cost? “
The IFS solution enables Aston Martin F1 to perform “pound-for-run-time” ratio analysis in its development projects. This means that for the first time, the company gets an objective view of how much one upgrade might cost compared to another, and the resulting performance improvement in lap time for each.
The FIA also requires teams to track inventory to ensure that the cost of parts is not being allocated to the wrong fiscal year, including evidence of when parts are first used with a barcode tracking system. All required data is fed via IFS. “We know exactly where our inventory is, when we first used a part, how many miles it has run, how long it will last and when to think about a replacement part,” says Yeowart. “Towards the end of the season this is all absolutely critical, as we may have had an accident damage and are up against the upper limit.”
As F1 racing evolves, Yeowart understands the importance of the system. “IFS can help my team meet the cost cap regulations by improving our planning, data, and analytics. It helps us understand where we’ve spent our money so far, what we are still spending on the cap, and how we’re planning . ” It allows us to analyze where we can improve the car’s performance and whether this is the best use of our limited resources. And it ensures that when reporting to the FIA, we’re 100 percent sure that the information we’re providing is accurate and exactly what is required. “
At the end of 2022, Aston Martin F1 will also be the first team in 20 years to move into a new, purpose-built factory. “Given a cost-cap environment, in addition to our IFS system, we have the perfect opportunity to really focus on efficiency, optimization and ultimately our purpose: helping 1,000+ people get the highest possible performance for our F1 to achieve competition cars, “concludes Yeowart.
As a strategic technology partner, IFS will support the Aston Martin Cognizant Formula One team with its state-of-the-art tools to ensure operational excellence. The platform gives the team flexibility in this exciting new era with fresh investment from shareholders and the construction of a new factory.
Oliver Pilgerstorfer, Chief Marketing Officer, IFS added: “Effective collection and processing of data is critical for high performing companies like Aston Martin F1. Formula 1 racing is all about precision that is relevant to the entire value chain is where hundreds if not thousands of separate processes have to be perfectly coordinated to be successful on race day – this is the moment of service when it all comes together. IFS prides itself on enabling many of the world’s most respected brands to perform at their best often in highly regulated industries where compliance, traceability and quality assurance are really important. “
Find out more about how IFS supports the Aston Martin Cognizant F1 team at www.ifs.com/f1.
CONTACT:
Adam Gillbe, IFS Corporate Communications, IFS. Phone: +44 (0) 1784 278222, [email protected]
This information was provided to you by Cision http://news.cision.com
https://news.cision.com/ifs/r/aston-martin-cognizant-formula-one–team-embraces-new-cost-cap-compliance-with-ifs,c3371361
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SOURCE Accedian
