Aston Martin Cognizant Formula One Team remains IFS compliant –
The Aston Martin Cognizant Formula 1 team leverages IFS applications to increase operational efficiency and meet the new cost cap requirements of the Fédération Internationale d’Automobilie (FIA). The team will use the IFS ERP solution to track costs, guide investment decisions and development choices. He can also now provide the FIA with proof that he has not exceeded the 2021 cost cap of $ 145 million. The cap has been reduced by $ 175 following the impact of the pandemic. By 2023, the cap will be further reduced to $ 135 million.
This partnership dates back to 2019, when IFS announced a multi-year partnership with SportPesa Racing Point F1 Team. Racing Point was renamed Racing Point Force India F1 Team in 2019 and was renamed Aston Martin for the 2021 season, bringing an iconic name back to the sport.
It was in 2019 that Aston Martin began implementing the IFS. Then, the financial reporting was produced by IFS, replacing a solution that did not meet its needs. She also deployed the ERP to support the operations of the production team. At the time, Robert Yeowart, CFO of Aston Martin F1, said: “The fit was good, he felt good and subsequently we proved that this fit was good for this business”
IFS mobilizes for the new regulations
It is important to note that the IFS will allow the team to show the FIA in real time both the amount they have spent to date and a forecast. Thus, the team is unlikely to break the plug. Yeowart commented: “The FIA can come and audit us at any time. They can scrutinize our accounts looking at how much we’ve spent, when, and where. The new reporting requirements are demanding.
“In addition to the technical and competitive compliance we’re used to, the organization looks for anomalies and trends to expose any team operating beyond defined cost cap parameters. We must be prepared to provide the evidence and audit trails to support any inspection. “
In the past, F1 teams have strived to improve their performance with few cost issues. Today, with an imposed ceiling, innovation, although it is undoubtedly limited, is done for the sake of profitability. Will cost limits hold back innovation? Or, will it help drive it in a way that will help the auto industry and other industries at large?
Leverage IFS from factory to track
Aston Marton F1 is due to open its specially designed factory at the end of 2022. It is under construction at the old factory site, but construction has been delayed due to Covid. IFS enables Aston Martin to accurately track every component used by the team from the moment it is ordered, stored and used.
As Yeowart added, “IFS has given us the ideal platform to build on. This allows us to really understand where we are spending our money through detailed cost analysis, which we could not do before. We can track our inventory and answer questions like “what parts do we have at our disposal?” »What state are they in? How many rooms are there in the building and how much does each cost? “
Aston Martin will use IFS to provide a “pound-to-lap time” ratio analysis. This will help him analyze which components are delivering the fastest lap times in the most cost effective way. It is important to note that this can also help it reduce costs in its supply chain. Its suppliers will also have to consider profitability when creating these components. It must help promote innovation, but in a broader context. Aston Martin will now have the ability to analyze the improvements of each development project against its total cost.
In the new era of F1, Yeowart believes IFS and its other partners can help him succeed. Yeowart added: “In a cost-cap environment, we have the perfect opportunity, alongside our IFS system, to really focus on efficiency, optimization and ultimately our goal: to help over 1,000 people create , within the framework of the constraints and the regulated expenses, the highest possible performances for our F1. competition cars.
Critical inventory management
Aston Martin will also take advantage of IFS Supply Chain Management, which includes its inventory management solution to track where and when parts are used. The latter is particularly important. Parts used in subsequent years must be allocated to the correct accounting year by the FIA. Barcode components will allow Aston Martin to know when it was purchased and, more importantly, used.
Yeowart added: “We know exactly where our inventory is, when we first used a part, how many miles it has driven, how much life it has left and when we need to consider a spare or replacement. Towards the end of the season this is all absolutely critical as we may have suffered some accidental damage and are facing the ceiling. “
Having benefited from IFS for several years, IFS continues to help Aston Martin. Yeowart added, “IFS can help my team meet cost cap regulations by improving our planning, data and analytics. This helps us understand where we have spent our money so far, what we have left over against the cap, and how we plan to spend it.
“This allows us to analyze where we are adding performance to the car, and if that’s the best use of our capped resources. And this ensures that when we report to the FIA, we are 100% sure that the information we are providing is accurate and exactly what is required. “
Enterprise Times: what does it mean
Innovations first introduced in F1 are now more prevalent in road cars. They include active suspension, traction control, carbon fiber construction, advanced aerodynamics, and semi-automatic paddle shifters. Additionally, safety and tire research has had a significant impact on the automotive industry.
IFS is no stranger to innovation either, with its IFS Labs constantly working on the latest technological developments. In combination with an F1 team it will be interesting to see what comes out. Not only for the benefit of Aston Martin, but also for the IFS community at large.
While this isn’t a new relationship, it is entering a new chapter. It shows how the flexibility and cost control features of IFS can help what has suddenly become a highly regulated industry from a financial perspective. In IFS, Aston Martin has a partner who can help it meet and excel in the new challenges it faces.
Oliver Pilgerstorfer, Marketing Director, IFS, commented: “Efficient data capture and management is crucial for high performing companies like Aston Martin F1. The sport of Formula 1 is all about precision, which is relevant across the entire value chain, where hundreds, if not thousands of separate processes must be perfectly orchestrated to ensure success on race day – c tis the moment of service when everything comes together. IFS is proud to enable many of the world’s most respected brands to operate at peak performance, often in highly regulated industries where compliance, traceability and quality assurance are really important.