Pic & Pay

Client Profile

Pick and Pay is a major multi-branch retailer on the African continent.  With more than 1200 branches the company faces major challenges in managing it’s owned and leased real estate portfolio. The company owns land, leases store locations and often develops entire shopping centres to secure top locations. In these cases the management and leasing out to tenants plays an important role in the viablity model of the organisations property model.

Business Challenge

  • Increase client property margins through maximisation of rental income and reduction of property related expense items
  • Better ocupancy as underutilised properties lead to a loss of income or an increase in rental charges.
  • Improve the lack of cost and space visibility across multiple departments.
  • Ensure better visibility of critical dates such as contract expiry dates and monitoring thereof.
  • Bridging the gap of understand SAP RE-FX as a system. While there was clear understanding of the requirements discussed with Modual consultants, understanding how these requirements would affect the setup of the was not always clear due to the fact that none of the staff members had previous experience use SAP RE-FX.

Project Scope and Solution overview

The client required an integrated end-to-end property solution covering the full property lifecycle as well as maintenance, facilities management functionality, CAD graphical and smart meter integration.

The project scope can be broken down into the following areas:

Property Master Data

The business required a comprehensive data model for financial postings and comprehensive reporting at object level. Master data objects also carry data for dates, measurements, fixtures and fittings, store type, etc.

Lease Management

Pick n Pay wishes to standardize and automate recurring lease administration activities – such as rent escalation, renewals, and periodic postings – to save time and effort and free up capacity for more strategic tasks. Accelerate leasing processes and managing tenure as well as other monitor important dates.

Integration to SAP and related components

The solution was designed to integrate to the following SA components :


Sales Based Rent

The client required the derivation of sales based rental figures from GL accounts and use these as the basis to calculate turnover rental. Monthly accruals were required to allow for annual recons and calculations based on audited sales figures.

Benefits Achieved

The benefits gained from the project were numerous. Primarily, the client was able to rationalise it’s property functions into a single system and reduce reliance on legacy systems and external suppliers. This reduced the organisational risk, cost and provides new opportunities to leverage the organisation’s portfolio of real estate assets.

Below are a few highlights of benefits achieved on this project:

  • Single version of the truth which provides a single view of all company operations.
  • Increased ocupancy and better utlisation of assets
  • Integration of SAP RE-FX to multiple SAP components including BPC (business planning consolidation), records management, accounting etc.
  • Improved efficiency through automated processes and mass posting of financial objects.
  • Improved control of contract and invoiced costs to ensure accuracy of billing and payments
  • Streamlined operations achieved through standardised business processes.
  • Accurate data and real-time reporting which assists business users with accurate reports.
  • Automation of contract and lease management increases the efficiency of employees and the accuracy of financial transactions.