Case Study GSW
Tenders at the push of a button
Wiesbaden, April 2009
500 suppliers, 200 tenders a year: since GSW Immobilien GmbH employs myFutura
and Futura AVA, the tendering process "almost works at the push of a
button", says GSW project manager Peter Engel. Another bonus: Because
Futura´s solutions are well integrated into SAP, the request and quotation
process can be mapped automatically into the SAP system.
GSW project manager Peter Engel recalls the times when "the procurement
department tore their hair." It was the analogue era, paper and CDs served
as the main means of storage and communication for GSW and its suppliers. They received
the tenders by mail with the specification of the required works saved to a CD.
A huge effort. Between ten and twelve suppliers participated in each tender – this
summed up to a lot of discs with 200 tenders per year with large and small budgets
and worth between 20,000 and 5 million Euros. In the words of Peter Engel:
"The CD burner quickly overheated." To make things worse, many
suppliers could not work right away with the usual GAEB data format. To
overcome these difficulties, it took up to half-hour phone calls. The end of
the CD-shipment and the transition to e-mail communication brought new
problems: the GSW purchasing department first had to bypass its own firewall
and then to outwit that of the suppliers. The reason: mails with attachments of
several megabytes were not allowed to pass. Peter Engel: "There were
simply a lot of obstacles in the process of tendering."
"Futura´s solutions have finally solved our most urgent problem in a
convincing manner - the complicated and time-consuming process of
procurement." Peter Engel, procurement and engineering, GSW Immobilien GmbH, Berlin
Since the beginning of 2008, this is over. Today the eight GSW buyers do not
even need their phone: If a supplier does not respond, he is reminded by e-mail
to submit his offer - automatically. Peter Engel illustrates how much this
reduces the workload for GSW procurement with the example of the size of the
real estate company. The Berlin
housing company manages more than 70,000 apartments in the German capital,
including 53,000 of their own. GSW annually spends an amount of several million
Euros for the modernisation of buildings, for example new windows and heating,
insulated walls and roofs. Another great item is what Peter Engels describes as
"reactive maintenance": Small, unplanned repairs such as clogged
drains, jammed doors, broken lights – GSW has 90,000 of such repair orders a
year. Additionally there are the investments for the renovation of apartments
that come with a change of tenant. In this case, carpet and wallpaper need to
be renewed or the walls to be painted. In total, GSW tenders construction works
with an amount of more than EUR 60 million a year.
Why has GSW chosen the solutions of Futura Solutions GmbH of Wiesbaden? There
were twelve competitors in the race. Project manager Peter Engel says that in
the first place, it was the "supplier integration", by which the housing
company now communicates online. "Since then, the communication between us
and our suppliers is a breeze." GSW sends all tender documents directly
with Futura AVA to the parties. Online, of course.
The second important reason for him is the interconnectedness. Since the latest
update, the planning and the purchasing department work on the same Futura user
interface. Before each tender a specification needs to be generated. At GSW the
14 architects and engineers do this in the planning department - already within
Futura AVA. After that, the purchasing department can access the specification
and start with the online tenders inside the same solution.
Of special importance for GSW is the SAP integration. In 1999 the housing
company has introduced SAP. Meanwhile, SAP ERP version 6.0 is being used there with
the solution for real estate. Thanks to the integration with SAP, the purchasing
department can create a purchase requisition in SAP and process it in Futura
AVA. Conversely, all requests launched in the AVA are available in the SAP
system with relevant tender documents and the bids received. Both may be analysed
and evaluated. "This is very important for our reporting and
auditing", says Peter Engel.
Up until now, GSW uses Futura for the tendering of construction works. It is
not supposed to stay this way. The project manager´s target is to handle all
future framework agreements with Futura.
GSW Immobilien GmbH develops, manages and rents out one of the largest housing
stocks in Berlin.
They maintain 75,000 apartments in almost all districts of the capital. GSW has
about 300 employees.
GSW handles about 200 tenders a year, about 100 with large budgets of up to EUR
5 million and 100 with smaller budgets up to the amount of EUR 20,000. These
processes were full of obstacles in the past because the tender documents could
not be sent to the suppliers online. Besides, GSW was also looking for a
solution like Futura that could be seamless and well embedded into the SAP
GSW employs Futura AVA and myFutura since the beginning of 2008. Since that
time, the suppliers can access all tender documents online. The SAP integration
also speeds things up: The request and offer process is automatically mapped into
Simple communication with suppliers
A faster tendering process
Specifications can be created more easily
The solution has all the necessary features, but is not overloaded
Good usability of the Futura user interface
Modular design allows incorporation of other solutions, if needed
Deep integration with SAP: Entire document lifetime is automatically created in