The need to drive capital expenditure
“Due to our growth and upcoming major investments, our manual, Excel- and paper-based processes to track and approve capital expenditures did not suffice anymore. This method proved to be too prone to inaccuracies, delays, and creates a lack of visibility and tracking for our decision-makers. Especially when to take into account that some expenditures for a new production plant requires the input of different expert teams.”
Arjen Pauzenga, CFO at Burg Group
Burg Group now uses a Performance Management solution based on Jedox technology for insight and management of investments. Via a web application, various employees and disciplines contribute to ongoing and future investment projects for the CAPEX planning.
“We were looking for a solution that could speed up the authorization for multicurrency expenditures through automated workfl ows, check-in/check-out mechanism within a team of experts, deeper insight into (aggregated) capital spend and an upload mechanism for all supporting documentation related to specifi c assets. Preferably a web solution that stores all our ongoing and future capital expenditures in an accessible and easy-to-query environment, keeping it organized and standardized in a central location.” CFO Arjen Pauzenga of Burg Group.
How does it work?
Role based security determines who can see and/or enter certain information. Think of purchase prices, lease options, and schedules. The workfl ow determines who is responsible for the input and who ultimately approves the release of a project. This can be the supervisory board, the management board, or a lower decision level. All involved employees of a project have an ‘inbox’ with an overview of all workfl ow tasks and by when they need to be completed.
All data input is registered centrally and used for numerous reports, analyses, and dashboards. The same fast, central database also contains realization fi gures that are automatically extracted from JD Edwards, the financial ERP system. Thereby, a rolling forecast can be created (latest estimate) with up-to-date realization figures at hand – in different currencies and applying ‘frozen’ versions.
The Right Choice at the Right Time
“Deviations in relation to budget can be identified immediately. Our business managers are now able to fine-tune and optimize their five to ten-year investment plans, and maintaining an overview of all planned projects. Employing Performance Management technology increases the control on all our investments and future cash flow. In the short term, we achieve control over our investments, but in the long term we see opportunities to employ Performance Management also for the overall fi nancial performance of Burg Group. Making the right choices at the right time, can further accelerate our growth plans. Family businesses pursue continuity in the long term, but they also consider a good return to be important. We can reinforce profi tability consciousness, by applying Performance Management systems. I foresee the number of Jedox applications to grow in the near future.”
CFO Arjen Pauzenga of Burg Group