Seeking to improve the controls around CapEx projects, Millennium and Copthorne (M&C) Hotels Plc implement cloud-hosted CapEx approval software to manage their annual CapEx budget.
From new carpets in guest rooms to a major renovation worth millions of pounds, M&C 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 often then authorised by the Group centrally.
M&C initiated a competitive tender procedure to procure CapEx approval software that would overcome several challenges. These problems included routing CapEx request forms – containing dozens of pages outlining amounts, justifications, ROI projections and different quotes from suppliers – around the world.
ePC worked closely with M&C to implement the CapEx approval software. It links 118 hotels across the world and three central business units, into a real-time system where users can log in and initiate a capital expenditure request form for hotel capital expenses.
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 capital expenditure request, the hotel-based user will open the electronic form and enter the relevant information. Once completed and all the rules are met, the user submits the eform for approval, they have complete visibility over the approval process.
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
During a CapEx workflow, at any stage, an approver can send the CapEx request to any other approver for comments or back to the initiator for clarification. At this point, the initiator can either simply respond, returning it to the point in the approval chain it had reached or if necessary they can modify any aspect of the request and resubmit it from the beginning of the workflow.
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
Once a CapEx request form has received final approval, each participant in the CapEx 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.
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
To optimise efficiencies, the CapEx approval software 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 within each hotel to access the information.
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
The time taken to process CapEx requests from submission to approval has been significantly reduced.
M&C can 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 CapEx management software offers greater visibility of CapEx requests and provides an improved audit trail.
Following this successful implementation, management investigated the potential for the underlying Process Director technology to help the Group manage other paper-based processes such as new supplier enrolment and contract approval, and these have now been successfully implemented.
Great working with you and would definitely recommend ePC going forward, which is a credit to your technical knowledge, customer service and patienceStruan Robertson, Group Accountant, Millennium & Copthorne Hotels Plc
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