Comprehensive Budgeting in a Logistics Company – from HR to Transport Planning
Area of collaboration
Budgeting and Financial Planning
Industry
Logistics / Transportation
Tools
Implementation benefits
Integrated OPEX and CAPEX Budgeting
Integration of Financial and Operational Data
Detailed HR Cost Control
Full Control Over the Budgeting Process
Budget Control Across 363 Cost Centers
About the client
An international group operating in the logistics industry, specializing primarily in rail freight transport. For more than 30 years, the company has provided domestic and international transport services using its own rolling stock and infrastructure.
The Group’s activities also include intermodal transport, freight forwarding, and railway infrastructure services. The organization operates across multiple European markets, serving customers from a wide range of industries.
CHALLENGES
The Complexity of Budgeting for Costs and Operations
The budgeting process covered several areas of the business, from operating and capital expenditures to HR and transportation. The challenge was to bring both financial data and detailed operational parameters specific to the logistics industry into a single solution.
Large Number of Cost Centers
The budgeting process covered 363 active cost centers, requiring the team to manage a significant volume of budgeting data.
Detailed HR Cost Budgeting
Personnel costs required planning at the individual employee and vacancy level, taking into account bonuses, allowances, training, and overtime.
Transport-Specific Requirements
The budget had to account for operational parameters of individual transport orders, such as distance traveled, tonnage, rates, train composition, and wagon load.
Budget Progress Tracking
With multiple cost centers and budgeting areas, the controlling team needed up-to-date visibility into the progress of the budgeting process, from items not yet started to those in progress or completed.
PROJECT DELIVERY PROCESS
From Business Needs to a Comprehensive Budgeting Model
Incube proposed a solution based on IBM Planning Analytics that covered OPEX, CAPEX, and HR budgeting while addressing the specific requirements of logistics operations. The environment was designed for the controlling team, enabling budgeting at different levels of detail, from employee costs to the operational parameters of individual transport orders.
Step 1
In the first stage, we implemented a solution covering OPEX, CAPEX, and HR budgeting, tailoring the way data was managed to the specific requirements of each business area.
Step 2
We integrated the solution with the Impuls system and tailored it to the detailed data requirements of the controlling team, from employee- and vacancy-level costs to the parameters of individual transport orders, such as distance traveled, tonnage, rates, and train composition.
Step 3
After years of use, the solution was upgraded to the latest technology version. As part of the upgrade, Incube rebuilt the workflow mechanism in the new environment, enabling the controlling team to track the status of the budgeting process.
RESULTS
Budgeting Tailored to the Realities of Logistics Operations
The implemented solution brought different areas of budgeting into a single environment while reflecting their specific financial and operational requirements. The system has been used by the controlling team for over a decade, and the upgrade has enabled the organization to retain its established budgeting model within an up-to-date technology environment.
Comprehensive OPEX, CAPEX, and HR Budgeting
The controlling team can manage budgets covering key cost categories within a single solution, without having to reduce different business areas to one simplified model.
Detailed Employee Cost Control
The HR model enables planning at the individual employee level, including planned vacancies, bonuses, allowances, training, and overtime.
Linking the Budget to Operations
Transport costs can be planned at the individual order level, taking into account factors such as distance traveled, tonnage, rates, train composition, and wagon load.
Greater Visibility into the Budgeting Process
A dedicated workflow provides clear visibility into the status of budgeting activities, distinguishing between areas that have not yet been started, are in progress, or have been completed.
Process Continuity Despite Technological Changes
The solution upgrade enabled the transition to the latest technology version and replaced a component that was no longer supported by the vendor. The dedicated workflow mechanism was rebuilt while preserving the way of working familiar to users.
A Solution Proven Over Years of Use
The system has been used in the annual budgeting process for over a decade, demonstrating the long-term viability of the model and its alignment with the needs of the controlling team.
Why it’s worth it
Comprehensive Approach
A single environment covers multiple budgeting areas, from OPEX and CAPEX to HR costs and transport operations.
Tailored to the Business
The model incorporates operational parameters specific to the logistics industry, ensuring it reflects the organization’s actual business operations.
Flexible Level of Detail
The data can be budgeted at different levels of detail, from individual employees to specific transport orders and their operational parameters.
Long-Term Stability
The solution has supported the budgeting process for over a decade and can adapt to technological changes without disrupting the established way of working.
Budgeting Tailored to the Organization’s Needs
Our long-term collaboration has resulted in a budgeting model tailored to both the needs of the controlling team and the specific requirements of logistics operations. By bringing financial, workforce, and operational data together in a single environment, the solution gives the client greater control over the entire process and enables budgeting at a level of detail that reflects actual business needs.
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CONTACT
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