transaction
Case Study

Transaction Management

Overview

The client is a Fortune 100 company with over a thousand leases, representing more than $200 million in annual rent expense. The client was using a run-rate approach to establishing annual budgets and lacked the ability to objectively establish and measure targets for opportunities in cost reductions when negotiating lease renewals. The client sought a partner that could help provide a technology that would enable a robust process to identify, quantify, and measure actual cost savings. The client partnered with Geospatial Analytics® because of the team’s extensive background providing solutions that enable transparency to complex business processes and associated costs.


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Challenges

  • Varying market conditions presented difficulty in accurately accessing specific financial opportunities.
  • A large portfolio presented logistical challenges in establishing specific goals for each lease renewal.
  • Forecast guidance was based on run rates and macro market conditions, rather than specific evaluations for each location.
  • Lack of strategic approach led to ad hoc results that were not consistently measured.

Solution for Data Capture

Mobile Inspection Form

To address the extreme variability of market conditions from location to location, Geospatial Analytics® assisted in implementing a mobile inspection form that created a consistent method of evaluating specific market conditions for each location. Information such as vacancy rates, tenant mix, and sub-market trends could now be cost-effectively captured.

The inspection form was also used to capture information regarding the specific terms of the lease, landlord profiles, and other vital information for effective renegotiations of leases.

The inspection template was configured to specific items the customer required. The tool was easily and quickly deployed without the need for significant support or training.

Benefits

  • A custom inspection form embedded business intelligence and guided the user through a specific set of questions that the client required.
  • The team replaced subjective opinions of market conditions with objective-based criteria and standards, allowing fact-based assessments of potential savings.
  • The inspections resulted in assembled information that had not previously been available to formulate a strategic approach to all lease renegotiations.
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Solution for Transaction Management

The ability to measure results pursuant to defined targets that were objectively established was deemed critical to the success of the effort.

The customer needed a way to allow management to easily determine obtainable lease savings and establish targets for the execution phase of the negotiations.

Transaction managers performing the actual negotiations now have a complete working knowledge of all elements influencing the outcome, such as sub-market trends, as well as a clear understanding of the savings target essential for success.

Benefits

  • A custom inspection form embedded business intelligence and guided the user through a specific set of questions that the client required.
  • The team replaced subjective opinions of market conditions with objective-based criteria and standards, allowing fact-based assessments of potential savings.
  • The inspections resulted in assembled information that had not previously been available to formulate a strategic approach to all lease renegotiations.

Solution for Portfolio Management Program

Geospatial Analytics® supplied a robust set of dashboards regarding all aspects of the customer’s transaction management program.

The customer was able to distribute the solution to all stakeholders and participants involved in the process. This enabled them to implement a comprehensive, program-level approach.

Powerful analytics allowed to visualize results. The client was able to filter the data to display results by geographical areas, landlord, negotiation team, and other variables to identify best practices and key deficiencies.

Benefits

  • Least-cost dashboards tracked lease renewal activities, while providing individual and aggregated views of cost savings by market, property type, and defined categories.
  • The dashboards were shared with transaction managers to regularly create and review expectations, performance against targets, and action plans for improvement. Comparative analysis of similar situations of vendor performance allowed for identification of effective negotiation strategies and allowed shared best practices.
  • By implementing a strategic approach to transactions management and creating an objective-based approach based on specific granular information, the customer experienced more than a 3% savings against prior run rate budgets.
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Enabling Analytics for Value Creation

Typical System Configuration

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Optimized System Configuration

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Solutions

Geospatial Analytics® Case Study:
Transaction Management

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The end goal in portfolio and process management is optimization. Capital-intensive assets are distributed to best meet demand, and the organizations responsible for long-range planning and utilization are fully in control.

Outdated business processes are strangling organizational goals of increased productivity and flexibility. Employees struggle to achieve basic awareness of assets, working through disconnected database and functional silos.

A strong process and information foundation creates a platform from which higher value goals can be pursued. Increased operational awareness, better decision-making and shared information lead to a sense of gaining control.