Closed Loop Forecasting & Budgeting for Services Management

Industry: Real Estate

Revenue: £800million

Location: UK

Advanced Planning & Forecasting | Real Estate | SAP Analytics Cloud | Prediction Accuracy & Compliance

Business Challenge:

A prominent industry player overseeing a vast portfolio of thousands of properties across diverse geographical locations, property types, and housing categories, had to anticipate and budget for future costs associated with a wide range of services provided. However, their cost projections consistently lagged behind the actual expenses, resulting in a detrimental six-month delay that led to inaccuracies and hindered effective decision-making processes.

KPIs Measured:

  • Disaggregation split accuracy
  • Actual vs Budget variance
  • Budget vs Restatements accuracy
  • Revenue classification
  • Contract & Property Type charge plans

Toolstack:

  • SAP ERP including REFX
  • SAP BW
  • SAP Analytics Cloud

The proposed solution:

Build a robust planning solution based on SAP SAC Planning platform that provides a single source to perform in-depth analysis and undertake accurate budgeting actions

The foundation of this solution is a custom data model specific to the industry and operational constraints. All data engineering activities were built on the foundation to created conformed approach to lingua franca of operational business entities.

A collection of models and custom planning functions were deployed to enable top-down planning with capability for adjustments, restatement and variance analysis at lowermost granularity. A quasi-linear and non-hierarchical approach is employed for data collection, reporting and planning.

Key Features/Functionalities

  1. All data integrated into a single platform to facilitate ease of planning and forecasting.
  2. Consolidated diverse modules Real Estate, Contracts Management, Finance into standard model
  3. Collaborative approach with service charges team and property managers performing budgeting together
  4. Facilitate conditions update in ERP in order to close loop of planning
  5. Conformed data model ensured reporting and planning activities had a common baseline
  6. Apportioned planning at all entities i.e .Property, Object, Lease & Ownership types, Cost Categories, Periods, Contracts, Participation, Contract Exclusion & Inclusion, Safety Corpus

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