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Industry Transportation and logistics lodging and hospitality Employees 1,500 Headquarters Englewood, Colorado Web Site SAP Solutions and Services SAP ERP application Key Challenges Provide timely and reliable information to property owners and investors Streamline access to vendor information and reduce fees for late payments Replace multiple databases with single platform Eliminate manual, paper-based data processing and use of external payroll support Speed up financial closings and other data-intensive tasks Implementation Best Practices Minimized software customization Leveraged industry best practices across functional processes Sought executive commitment and oversight Involved business users wherever possible to drive operational efficiencies Financial and Strategic Benets Improved transparency Created better picture of cash management Empowered hotel managers to handle many processes themselves Used state-of-the-art technology to attract potential partners and investors Improved decision making Minimized litigation due to errors in loading payroll data Why SAP Was Selected Unified platform for information management Strong tools for financial, payroll, and human resources processing Ability to process vendor invoices and collaborate with other external partners Future-proof support for regulatory compliance Scalability and well-established ecosystem to support company growth plans

Colorado-based Stonebridge Companies implemented the SAP ERP application to automate paper-based manual processes for payroll, human resources, and financial reporting. The software has made information more available, timely, accurate, and consistent. It has also reduced costs related to system maintenance, external payroll processing, overnight delivery, and vendor late fees. Financial closings have been reduced by five days.

Low Total Cost of Ownership Automated many business processes and improved their efficiency Reduced costs for maintaining multiple solutions and databases Eliminated costs for external payroll service Included safety and control processes to expand user base Operational Benets Reduced accounting-related costs by 20% Cut time for payroll processing from 1 week to several hours Eliminated most payroll mistakes Reduced financial closings from 15 days to 10 Reduced costs for express delivery and other mailing charges Decreased costs in late fees and assessments for past-due invoices

SAP Business Transformation Study Transportation and Logistics Lodging and Hospitality

We can now get accurate information in a timely manner and manage our properties much more efficiently, resulting in cost savings and efficiencies throughout the company. We also have a solid platform for future growth.
Kevin Mahoney, Chief Operating Officer, Stonebridge Companies /contactsap

Based in Englewood, Colorado, Stonebridge Companies has developed more than 60 hotels across the United States since its inception in 1991. The firm has tripled in size since 2005 and currently operates more than 40 properties nationwide. As the company grew, providing meaningful information to corporate managers, property owners, and investors became increasingly difficult, says Nasim Mansurov, vice president of information technology at Stonebridge. Legacy software for enterprise resource planning treated each property as a separate database making it cumbersome to get a timely, accurate, and consistent overview of the business or manage data-intensive financial and human resources processes.

Use of an external payroll service added processing complexity and cost. Interfaces were our biggest issue, says Mansurov. The system was costly and a nightmare to maintain. System security and licensing were also challenging. With help from the SAP ERP application, Stonebridge has automated and streamlined the processes it needs to maximize new business opportunities.

parent. Hotel-specific reports with embedded statistics that Stonebridge developed in-house provide key performance indicators to help the company manage its business more effectively. Individual hotels are fully connected to the corporate office, and new safety and control mechanisms let hotel staff enter and retrieve data themselves, says Stonebridge CFO David Womack. He adds that hotel managers now handle all hire to retire processing for employees at their own property. By automating its payroll, Stonebridge has cut processing time from one full day to several hours, eliminated two weeks of time spent on post-payroll issues, and reduced the potential for litigation due to improper payroll payments. By taking its payroll in-house, the company has also cut costs for external payroll processing. It has realized other savings through lower costs for document delivery and reduced late fees. Weve cut five days off our financial closings and are managing our cash flow more effectively, Womack says. Our new state-of-the art platform should also make it easier to add new properties and will be an important competitive edge in attracting new clients, partners, and investors.

A Single Platform for Process Integration

Stonebridge considered hotel-specific solutions for automating its information management processes, but decided that a single platform supporting many different areas made more sense. SAP ERP Managing and Maintaining Multiple gave Stonebridge strong tools for human Interfaces resources and financial processing as well as for developing its own hospitalityIndividual hotels would fax hard copies of specific reporting. It was also important to property financials to the corporate office, Stonebridge that the software enabled where the accounting team would spend vendor-invoice processing and collaboration with other external partners and that it several weeks manually compiling and analyzing the data. Having dozens of data- provided strong support for regulatory bases also made it difficult to incorporate compliance. In addition, SAP representatives provided close, personal attention new vendors into the system and pay them on time. during this major technology decision. The hotels would send vendor invoices via express delivery. Invoice processing involved a long approval chain. Poor tracking resulted in late fees for missed payment deadlines. Responding to guests inquiries about their bills was also slow.

Greater Connectivity, Efficiency, and Transparency

With the new software in place, most data is captured electronically, and information is much more timely, consistent, and trans-

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