manufacturing company

From ring binders and scattered spreadsheets to SEK 100 million in savings for a global manufacturing company

  • Customer: Global, manufacturing company
  • Portfolio: A global property portfolio of several million square metres, across around thirty countries
  • Uses Pythagoras for: property registry, digital twin, lease management, planned maintenance, asset registry and cleaning management
  • Customer since: 8 years

No central overview of lease contracts or facilities management

Before the customer used Pythagoras, property information was close to chaos. Lease agreements sat in ring binders. Knowledge about servicing and maintenance was scattered among individual employees, and risked disappearing entirely if one of them left. There was no combined overview of the business.

Lease contracts renewed automatically without anyone keeping control, which meant the organisation stayed on and kept paying for premises and agreements it no longer actually wanted.

Maintenance projects were poorly coordinated: different contractors (electricians, ventilation engineers, construction workers) came in at different points during the year and tore up the same roof several times, because the work was not planned together. That drove up costs.

One concrete example: an area invoiced as 8,000 square metres turned out, once correctly measured, to be only 6,000 square metres – a 25 per cent billing error.

Implemented one module at the time

The customer started with a basic module for areas in Pythagoras, then built on it with a lease module to bring order to all lease agreements, which previously only matched about half the time when imported from the old system. Most recently, a planned maintenance module was added, giving budgeting and follow-up a whole new basis.

Today, every site where the organisation owns or leases property around the world, is registered in Pythagoras. The data is not only used internally, it also flows on to the customer’s work-order system, to HR systems to know where new employees should be seated, and to other departments’ reporting.

Zero deviation of leases and savings in reporting

The customer puts the accumulated saving since the system was introduced at around SEK 100 million (ca. € 10 M), broken down roughly as follows:

  • Around SEK 50 million in avoided lease contract penalties and late fees.
  • Around SEK 30 million through better reporting and the ability to hunt down costs.
  • Around SEK 10 million in cleaning, thanks to correctly measured areas.
  • Around SEK 7 million through better coordination of maintenance projects.

The figures are accumulated since each module was introduced, not on an annual basis. One of the customer’s key KPIs: not missing notice periods on lease agreements has stood at zero deviations for the past two and a half years.

You can’t eat the whole elephant at once.

Facility manager at the customer, on running several digitalisation initiatives in parallel

The road ahead

The customer is now automating several more services, for example by connecting sensors, to cut costs while maintaining or improving quality. On the sustainability side, the goal is to raise the level of automation in EU reporting from around 50 per cent today to 70–75 per cent, to spend more time on actual improvement work and less on manual data collection.

Pythagoras’s property system is not just a supplier relationship – it builds competitiveness for both parties.

Facility manager at the customer

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