shared service centre - deloitte uk · pdf filebenefits cut costs economiesof scale ......
TRANSCRIPT
Sonae Sierra
Reasons for SSC
Challenges faced
Services scope
IT systems
Centralization process
Trends
SHARED SERVICE CENTRE
MORE THAN 140 AWARDS
International SC expertise and experience developed over 25 years
SONAE SIERRA
20 ICSC Awards for best centres31 ICSC Marketing Awards3 MIPIM Awards for best centres1 Procos for best developer6 AECC21 Media Awards for best developer2 European Property Awards1 Green Thinker Award3 European Risk Management Award1 Sustainable Energy Europe Award
VisonTo be the leading international shopping centre specialist.
MissionSonae Sierra is the international shopping centre specialist that provides ultimate shopping experiences to customers and creates outstanding value to shareholders, investors, tenants, communities and staff, while contributing to sustainable development.
ValuesTrust and IntegrityFrugality and EfficiencyAmbitionPeople at the centre of our success Cooperation and Independence
WHO WE AREWe develop and invest in sustainable retail assets and provideinvestment, development and property management servicesfor clients in geographies as diverse as Europe, South America,North Africa and Asia, while creating shared value for ourbusiness and society
2
80
SHOPPING CENTRES MANAGED AND/OR LEASED45 OWNED35 FOR THIRD PARTIESGLA MANAGED > 2,2 million m2
11PROJECTS UNDER DEVELOPMENT /ON PIPELINE7 OWNED4 FOR THIRD PARTIES
SONAE SIERRA*
24
34
67
67
92
440
443
Romania
Italy
Germany
Others *
Spain
Portugal
Brazil
* Algeria, China, MoroccoNetherlands, Russia, Turkey, Greece
Employees
1.167
25
328
623
779
1.138
3.066
Romania
Italy
Spain
Germany
Brazil
Portugal
OMV owned assets(millions €)
€5.958m
* December 2015 3
BUSINESSVALUE
Potentialprofitcenter
Salary differencesShare:• “Best practices” • Management and structure costs• Specialized resources
Faster and higher quality response to the change due to cumulative know how
ECONOMIC BENEFITS
Cut Costs
Economies ofscale
Efficiency
REASONS for SSC
Servicequality
PROCESSESINTEGRITY
Flexibility
Company'score
competencies
4
� PROCESSES MIGRATION – WORK SHADOWING (3 months)
� CULTURE
� RESISTANCE TO CHANGE
� TEAM REORGANIZATION SSC (Shared Services Center)/LBO (Local Back Office)
� PROCESS STANDARDISATION, application of best practices limited by technology (several SAP clients)
� HUMAN RESOURCES• Native resources with technical know how• Linguistic competences• Costs and quality
MIGRATION
CHALLENGES
� EFFICIENCY • Cost• Quality
� HUMAN RESOURCE MANAGEMENT• Retention (10% -14% rotation)• Offer from other SSC (1)• Enrichment functions• Participation in projects• Rotation within the company• Company culture• Variable salary
(1) According to AICEP there are about 450 companies in the SSC sector in Portugal, eg THE PHONE HOUSE, ADIDAS, CISCO, 3C, SOLVAY, IBM BTO, NOKIA, SIEMENS, MICROSOFT, SANTANDER, FUJITSU SERVICES, REDITUS, HP, NetJets, SAP , PT PRO, ALTRAN, BNP PARIBAS
OPERATION
5
GERMANSPANISHFRENCHGREEKENGLISHITALIANPORTUGUESEROMANIANRUSSIANTURKISHUKRAINIAN
LANGUAGES
11LANGUAGES SPOKENFLUENTLY
13%EMPLOYEE HAS AFOREIGN MOTHERLANGUAGE
37%EMPLOYEE DOMAIN OF ASECOND LANGUAGE(Other than English / Portuguese)
CHALLENGES
6
� Start in 2008� Finance scope� Focus in Europe� Multifunction� Different geographical
areas, with a common management, reporting to CFO
� Organization by function / country / business
� Limited use of SLA / Prices for Internal benefits
ACCOUNTINGProduce IFRS and LGAAP accountsSupport IFRS accounts audit
CONTRACT MANAG. & INVOICINGManagement contracts and issuance of customers invoices
LISBON
SCOPE
FINANCE & TREASURYManagement of accounts payable and suppliers payment
COLLECTIONS REPORTINGCollections reports
MAIA
7
Spain
1.278 Contracts21 Companies
Portugal
3.721Contracts28 Companies
Germany
1.307 Contracts15 Companies
Romania
85 Contracts7 Companies
Greece
11 Contracts3 Companies
Algeria
84 Contracts
Italy
430 Contracts9 Companies
6.916 Contracts
83 Companies
€4.820m OMV owned
assets (millions €)
SCOPE*
72 Employees
1
2
16
23
30
Direction
Support IT Projects
Cont.Manag.&Invoicing
Finance & Treasury
Accounting
* December 2015 8
LOCAL BACK OFFICE
� Suppliers invoices scan(digitalize and send invoices for central Processing)
� Physical Archive of invoices
� Prepare statutory accounts according to LGAAP and manage external LGAAP accounts auditors works (for Portugal these functions are done by the SSC)
ACCOUNTING
SCOPE
SHARED SERVICE CENTRE
� Book-keeping of suppliers invoices, petty
cash and employees expenses notes,
according to the local fiscal rules
� Manage Suppliers and Chart of Accounts
master data
� Manage the fixed asset master data
(Acquisition, Depreciation, Sales)
� Perform the monthly close of accounts on
IFRS and LGAAP
� Ensure relationship with Auditors for IFRS
accounts
� Report IFRS accounts to the consolidation
� Process Owner for several SAP accounting
modules
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LOCAL BACK OFFICE
� Interfacing with Shopping Centres partners
� Download, print and send invoices to tenants
SHARED SERVICE CENTRE
� Create contracts and the relevant
amendments in system;
� Update the financial conditions of contracts
• Rents - CPI/increase established by
contract
• Common charges - CPI / Budget
� Invoicing tenants according with the
contracts/amendments (Rents, Common
Charges, ToR, Discounts, Utilities…);
� Update tenants master data
� Create SEPA mandates
� Crossing information – Information send by
the SCs vs. the information in the system
SCOPE
CONTRACT MANAG. & INVOICING
SSC - Information Reported• Accruals Reports - Based in SAP and in the
occupancy report• Invoicing Report - (Legal department and
Shopping Center) • Active contracts• Warranties in system• Tenancy Schedules (Rent Roll)• Files to be upload in Third Parties shopping
centers report systems
10
LOCAL BACK OFFICE
� Suppliers attendance
SHARED SERVICE CENTRE
� Manage payments and supplier accounts
� Bank movements and reconciliations
� Manage bank related matters
� Tenant retentions control
� Gift Card control
� Collection reports and post tenant
receivables
� Manage financial indebteness (including
intercompany)
SCOPE
SSC - Manage 342 Bank Accounts in 11Countries
• Netherlands 44• Luxembourg 23• Portugal 93• Spain 49• Germany 48• Italy 18
FINANCE & TREASURY
• Greece 16• Romania 42• Croatia 1• Hong Kong 4• Morocco 4
11
LOCAL BACK OFFICE
� Collections (contact tenants overdue payments and negotiate payments with tenants, last check point of invoices)
� Report to Partners/ Investors/ Tenants and 3rd parties
� Dunning Letters
SCOPE
COLLECTIONS
SHARED SERVICE CENTRE
� Process and management of receivables
� Reporting concerning receivables
� Process Owner and Key User of C2C
12
SAPFI, CO, AP, AR, RH, MMReal EstateWorkflow
Saphety
Purchase to PayExpenses Notes - EmployeesE-invoicing - costumers and suppliers EDI (Electronic data interchange) – costumers and suppliers
OCR (Optical CharacterRecognition) – suppliersTMS and Signature (Finance&Treasury)
Other
IT Systems
13
COSTUMERS
UINIFICATIONOF THE
MASTER DATA
SUPPLIERSDOCUMENT
TYPESPECIAL GL
CODES
PAYMEMT TERMS
WITHOLDING TAX CODES
VAT CODESCHART OF ACCOUNT(1)
ANALITIC STRUCTURE(2)
ACCESS MANAGEMENT PROJECT (3)
(1) Each country has its own chart of accounts to report
to fiscal (Alternative Chart of Accounts), all SAP
reports can be obtain on both chart of accounts.;
(2) Profit Centre, Cost Centre, Orders, Division;
(3) SAP access profile definition
SAP upgrade to version ECC6(2014-2015)Convert 6 SAP clients to a SINGLE SAP CLIENT
IT Systems
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Review processes and adopted the "best practices” in all countries;
Easy to maintain and update SAP master data;
Easy to implement IT projects on the several countries ;
Easy to access and compare information cross countries;
Flexibility in HR management and risk reduction.
SAP CLIENT UNIFICATION
IT Systems
15
6th stage
• Creation of SSC
• Team organization
• Companies
Migration
• Treasury full centralization
• Project P2P (PT)
• Project C2C
• Companies migration (cont)
• Companies liquidation &
merger
• Payroll transfer to HR
• Fiscal invoice validation
• External Service Providers
reduction
2007/08/09 2010/11/12 2013/14
• Sierra single chart
of accounts
• SAP Phenix
• Collection
Reporting bookings
• Tax and Corporate
Compliance
Control
• Suppliers
attendance (GER)
1st stage
2nd stage3rd stage
• Expenses Notes
processing (All)
• Project P2P (SP)
• Direct debit
campaign (GER
and IT)
• Credit Card
Reporting (All)
2015
4th stage• Preparation local GAAP
Statutory Accounts
(GER)
• CIT quarterly
calculation (GER & SP)
• Electronic-invoicing
(GER & IT)
• Project P2P (GER & IT)
• Suppliers attendance
(SP)
• VAT statements
preparation (SP & GER)
5th stage
2016
• Preparation local
LGAAP Statutory
Accounts (SP & IT)
• CIT quarterly
calculation (IT)
• Relation with local
External Auditors (SP,
GER & IT)
• Suppliers attendance
(IT)
• VAT statements
preparation (IT)
2017
Centralization
16
Employees SSC & LBO
2010-2015
Employees• Decreases 5%;• Decreases % LBO
Costs• Decreases 9%;• Average savings per
year higher than€500K
Contracts/FTE• Higher than the 2007
"best performance"
Ratio on 2007Portugal 58Spain 42Italy 36Germany 36Grécia 32
Contracts
Costs SSC & LBO (K€)Centralization
Centralization
17
GREATER COMPLEXITY / GREATER RISK
MULTIFUNCION
Higher value added processes, eg:• LGAAP Statutory Accounts
reports;• Tax - VAT, CIT and deferred
taxes calculation
NEW GEOGRAPHIES
• Morocco - reason: quality information for management
• Global Shared Services Survey Results, Deloitte 2013: 36% SSC only provided services to a country / 70% to a continent
OUTSOURCING
Hybrid models, eg: • Morocco with new model,
accounting produced in SSC / Tax Compliance assured by an external entity reporting directly to the SSC.
LOCAL
By 2017, it will only remain on the LBO• Management of local taxes• Operational Collections, Logistic,
Treasury and Payroll tasks• Relationship with local stakeholders
(eg, tax authorities)
THIRD PARTIES
Have additional requirements to service provide: Aachener, UnionInvestment, Commerz Real, DeutschBank, Claren Immobiliare, Immobiliare Italo Romena, CGD
CHALLENGES
• Quality• Efficiency• Human resources management• FLEXIBILITY
TREND
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