Global Real Estate Strategy Saves Company $1.5 Million Annually
A billion dollar global electronics manufacturer was having difficulty making proactive, informative decisions regarding their real estate assets. Without a global strategy and standardized process the corporation found itself in a reactive position that negatively impacted both their cash flow as well as their ability to negotiate international office and manufacturing space.
After meeting with leadership and performing a comprehensive study of their current position and future potential, MLC recommended a global strategy and platform for managing real estate assets. This included standard systems, processes, partners and tools developed to streamline decision making, enhance budgeting, and manage costs.
Through comprehensive questionnaires and interviews with leadership, project managers and on site studies MLC developed a summary of their current real estate portfolio and manufacturing processes. A global software solution was selected (translated into Spanish, Mandarin and Malay) to build a common platform for consistently managing assets for the expanding corporate footprint. Partners were interviewed to build a team of international experts to quickly identify country, region, city and specific real estate data for new plants and office facilities. In addition standard processes and procedures were developed to manage real estate decisions such as lease vs. own, lease management, new asset strategy and identification.
A VSE Leadership Dashboard was developed to manage implementation. A software team was selected from across all plant and office locations to work with developer to customize, populate, and train staff on use of the platform. The finance team was brought in and trained on getting the data they needed and communication programs between leadership, finance, operations, facilities divisions, and their real estate partners to streamline projecting, budgeting and managing costs around the assets were implemented. Standard processes with global partner and leadership regarding real estate acquisitions, new construction, greenfield sites, leasing strategies and management, as well as geographic selections including demographic studies and related information needs were put in place. The plan and software platform installation were completed within four months of the project start. Operating savings were projected at $1.5 million annually.