Supplier collaboration in Public Transport development program
Two cities needed a common Cost Management system for the development project of Public Transport service to follow up actual costs and to divide them according to the agreement between parties. Additionally, support was needed for annual budgeting, monthly forecasting, and the supplier invoicing approval process.
Common Cost Management service
PLM-Zone provided a suitable Cost Management service for the Public Transport development project, where service providers of cities submit the actual costs either through integration or excel upload. PLM-Zone and the service providers jointly developed a new monthly forecasting feature for the Cost Management service.
Budgeting and Monthly Forecasting
The final cost estimate of the development project has been distributed into annual budgets for the entire project lifecycle. Every autumn, the budget for the following year and the corresponding forecast are refined from higher consolidation levels down to cost centers. Additionally, the annual budget corresponding forecast is distributed monthly, which facilitates the annual budgeting and cash flow management of both cities and service providers.
Cost Sharing
The cost share reporting of the Cost Management service allocates the costs attributable to the city and service providers according to the agreement between parties. The differences in the agreement and the actual costs incurred for the different parties are settled on a quarterly basis.
Supplier Collaboration
The suppliers of the development project are mainly divided into design and other consulting service companies as well as traffic control system suppliers.
Orders corresponding to the contracts of the suppliers will be created to the Cost Management service, along with their payment instalments.
The supplier requests billing approval for each payment instalment after the delivery is completed. The representative of the service provider responsible for the supplier checks the delivery and grants the billing approval. The supplier sends the actual invoice only after receiving the billing approval.