Compass Group(pdf)

Compass Group is a catering market leader with global presence. It provides food to canteen, franchise fast-food and restaurant outlets in office buildings, schools and hospitals. Additionally, Compass Group provides a range of supporting services like office cleaning and security. Since 1941, many businesses have joined the group and contributed to its rich heritage. Today, Compass Group generates annual revenues of over €12,75 billion, is listed on the London Stock Exchange and is a member of FTSE100. The group operates in around 55 countries with more than 388.000 employees. Compass Group is present in the Netherlands with 4.000 employees, making it one of the bigger players in the Dutch catering market.

 

Business case


The operating companies of the Compass Group located in the Netherlands jointly represent around 8.000 cost centers. The budgeting process for these cost centers includes income planning and activity costing with a variety of methods. Cost center budgets need to be consolidated, since budgets are approved of at the profit center level. Calculation methods differ per profit center (four profit centers representing four different business lines) and per income and cost type. The final goal of the budgeting process is the corporate budget for the overall Dutch operation. To achieve this goal, the budgeting process is IT supported with multiple Microsoft Excel and Access applications. As a result, the budgeting process is time-consuming, requiring a huge, manual effort for preparing and controlling all kinds of budgeting forms and formulas, for filling in, calculating, controlling, storing and aggregating the budgets and for coordinating the budgeting process itself. In addition, the performance of the corporate reporting and analytics function is severely limited due to the created complexity in MS Excel and Access and its dependence upon operational SAP R/3 reports.

 

 

Solution features


Compass Group opted for a solution developed in SAP BI with Integrated Planning (IP) functionality. This choice was made in order to benefit from the solution’s tight integration with SAP ERP, its OLAP features and its robust planning engine. After the analysis of the current applications and the workshops about the need for a homogeneous budgeting across multiple businesses, the requirements for two new web-enabled IP applications with a common look and feel were set. These applications were to be developed in such a way, that they would encompass 80% of the required program components and would be capable of storing the business data centrally.

 

With the new IP applications in place, parts of the budgets are now automatically prefilled with figures from the customized SAP HR and SD modules and from files. After a number of additional figures are manually entered into the application by the managers, the system automatically calculates the budgets and enables online reporting on different organizational levels.

The budgeting process is coordinated with the help of a specific application developed for business controllers. This application serves to un/lock budgets from changes, to give an overview of the status of the budgets, and to enable the mass indexation of different parts of the budgets throughout the organization (i.e. inflation review).

Despite the numerous budget calculations and data checks when the average number of 20 to 30 users are logged in (the total number of users, ranging from business controllers to regional managers to account managers, adds up to around 90), the response time of the budgeting applications resides within 3 to 5 seconds. The response time of the controlling application is just a couple of minutes, even in cases when dozens of budgets are processed in a row. The budgeting application supports the annual budgeting and quarterly operational changes to the budgets keeping track of versions. Plan figures are combined with actual figures in the online web reports, which are available at multiple levels of aggregation, either by budget component or by organizational component. The overall BI environment is administered by one single employee and the training of users takes one single day.

 

Delivery approach

The project has been executed in close collaboration with Just-BI. The consultants of Just-BI were responsible for data warehousing of actual data in the SAP BI environment. The consultants of Ozone were responsible for developing the budgeting applications in SAP IP. For the purpose of smooth communication and direct feedback, which is the critical driver for successful delivery, one of the Ozone consultants was continuously present in the Netherlands at the office of the Compass Group. Our consultant acted as a linking-pin at the same time, since parts of the development, implementation and testing were executed remotely in Ozone’s competence center in Minsk, Belarus. This mode of nearshore execution contributed to the cost-effective delivery of this project.

 

 

Tools & technologies

SAP NetWeaver BI 7.0 (including Integrated Planning), SAP ERP (HR, FI), ABAP/4, BADi, User exits, Functional Modules, Analysis Processes, JavaScripts, XHTML.

 

 

Customer references


Kamla Thani, business controller at Compass Group Nederland.
Barbara Kiendl, partner at Just-BI and project leader at Compass.
Contact details available upon request.

 

 

Contact Andrei

For more information about the Compass project reference, please get in touch and ask for Andrei.