Millennium and Copthorne Hotels Plc manage CapEx budget with cloud-hosted capital expenditure software
Millennium and Copthorne Hotels PLC manage their multi-million annual capital expenditure budget with cloud-hosted capital expenditure software
Millennium and Copthorne Hotels PLC, a global hospitality management and real estate group, currently serving customers at 118 hotels in over 70 business and leisure destinations in Asia Pacific, Europe, the Middle East and North America, was looking to improve the controls around CapEx projects by implementing cloud-hosted capital expenditure software to manage their multi-million annual budget.
From new carpets in guest rooms to a major renovation worth millions of pounds, Millennium and Copthorne Hotels PLC process nearly 2,000 CapEx requests every year. Historically, the lengthy process involved completing a paper form which was signed locally at the hotel before being posted to regional management for approval and, if necessary, authorised by the Group.
Millennium and Copthorne Hotels Plc initiated a competitive tender for a solution that overcame a number of challenges including routing CapEx requests - containing dozens of pages outlining amounts, justifications, ROI projections and different quotes from suppliers – around the world.
ePC worked closely with Millennium and Copthorne Hotels Plc to implement a bespoke, cloud-based CapEx system. It links 118 hotels across the world and three central business units, into a real-time system where users can login and initiate CapEx requests.
ePC understood what we wanted. On a number of occasions, we described roughly what we would like in terms of capability but not in any great detail. They captured the simplicity of what was required without compromising on functionalityNick Taylor, Finance Director, Millennium and Copthorne Hotels Plc
To initiate a CapEx request, the hotel-based user will open the CapEx form and enter the relevant information.
We love the simplicity of the system. The actual form has not changed much. You now complete it online. It still captures all the same information. Crucially, the quality of submitted requests has improved as certain fields are auto-filled, calculated automatically or contain rules such as a mandatory field or display a warning if certain conditions are not met. We’ve made the process tighter and more consistentNick Taylor, Finance Director, Millennium and Copthorne Hotels Plc
Once a user initiates a CapEx and submits the electronic form for approval, they have complete visibility over the approval process.
It’s in your inbox, anyone can see how long it has been there. We can run reports and automated eMails are generated after a week to remind users. It naturally speeds up the process. It’s very transparentNick Taylor, Finance Director, Millennium and Copthorne Hotels Plc
During a workflow, at any stage, a user can “Return” a request back to the initiator with a note. At this point, the initiator can modify any aspect of the request and resubmit it from the beginning of the workflow. Alternatively, they can choose to delete the request with each participant in the workflow notified. Users can also pass the request to any other user within the workflow to request “Clarification”.
When a senior executive further up the chain authorises the request, they can see all the questions that have been asked; and the answers to those questions. It keeps everything in one place, and makes the approval much easierNick Taylor, Finance Director, Millennium and Copthorne Hotels Plc
Once a CapEx request has received final approval, each participant in the workflow is notified and a purchase order is created. By default, a CSV file containing the basic header information relating to the request will be supplied to the users, for importing into their local procurement system.
One of the features we really like is ‘approve by eMail’. Users might receive an eMail with an approval request when they are out of the office, visiting hotels or in a meeting. The ability to send a one-word approve/reject reply on a tablet or mobile has expedited the approval process significantly. We were not particularly looking at implementing this feature but it was suggested to us by ePC and it has worked very wellNick Taylor, Finance Director, Millennium and Copthorne Hotels Plc
To optimise efficiencies, the system automatically archives processed CapEx requests and is underpinned by a central repository. This allows users to refer easily to time-stamped approval decisions, documents and comments and run reports identifying how much capital expenditure has been allocated, which hotels are spending their budget and highlight trends and patterns. Previously the business had to interrogate internal finance systems to access the information.
- Authorisation based on hierarchy / job role
- Bespoke web desktops tailored to role (Initiators, Approvers, Managers, System Administrator) allow users to initiate forms, view tasks lists, search and/or review submitted forms and view live dashboard information
- User/Business Unit membership with hierarchy granting permissions to lower levels
- End user management of back-end database through Excel data import
- Powerful web CapEx request form offering:
- All figures automatically shown in local currency and GBP
- Dynamic fields, only displayed or mandatory in certain circumstances
- Hotel current position information including:
- Period budgets
- CapEx already approved in current period
- Remaining budget available
- Attachments of any format (XLS, JPG, DOC etc.)
- Current and archived attachment view to support evolving documentation
- Photographic attachments are displayed as thumbnails on the form
- Comment log, for any participant to add time stamped notes to request
- Full audit trail including usernames and dates of all events
- Integrated sanity checks and rules for entered data
- Printable PDF generation of complete form, including attachments
- Automated routing of completed forms through bespoke authorisation paths
- Rejection and Clarification workflow processes
- eMail prompts and timed reminders
- Automatic processing of eMail responses based on keyword extraction
- Dynamic portal based reporting on live and historic requests
- Excel based reporting via dynamic data merges
The time taken to process CapEx requests from submission to approval has been significantly reduced.
Millennium and Copthorne Hotels Plc is able to quantify savings effectively and make decisions quickly with fact-based data as the system can highlight patterns around savings, competitive tenders and different quotes. The system offers greater visibility of CapEx requests and provides an improved audit trail.
Following this successful implementation, management is investigating the potential for additional applications in helping the Group to manage other paper-based processes such as supplier contracts.
Specific results have included:
- Significant reduction in CapEx submission to approval time.
- In the first six months, the system has processed nearly 1,000 requests.
- The system has over 200 users in 120 locations across the world.
If you want to find out more about capital expenditure software, or wish to book a demonstration, please contact us.