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    <item>
      <title>CapEx Underspending: Why Delayed Capital Deployment Weakens ROI</title>
      <link>https://www.capex360.com/capex-underspending-why-delayed-capital-deployment-weakens-roi</link>
      <description>CapEx underspending may indicate stalled execution. See how improving visibility and workflow timing helps protect ROI across the capital lifecycle.</description>
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         CapEx underspending often appears as control 
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          in financial reporting.
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           Budgeted capital closes below plan. Spend remains contained. Variance looks favorable.
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           That interpretation rarely reflects how capital actually performs.
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           Capital does not create value when it is approved. It creates value when it is deployed and begins generating return.
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           Why CapEx underspending impacts ROI
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           When approved initiatives remain strategically sound, underspending often reflects delayed execution rather than disciplined decision-making.
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           Projects expected to generate return may not start on time. Others move forward too late to deliver the intended impact. Across a portfolio, those delays shift cash flow, extend payback periods, and reduce forecast reliability.
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           Return is shaped not only by where capital is allocated, but by when it moves into execution.
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           The gap between approval and execution
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           Most organizations do not plan to underspend.
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           Capital plans are built, priorities are aligned, and approvals are secured. Execution slows down within the process.
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           Approval workflows may stall across finance, operations, and leadership. Teams may lack visibility into which initiatives are progressing and which remain idle. Disconnected systems often require manual reconciliation before decisions can move forward.
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           In this environment, capital is rarely declined. It is delayed until the original intent weakens.
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           How delayed execution compounds across portfolios
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           A single delay may appear manageable. Across a capital portfolio, the effect compounds.
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            Strategic initiatives miss optimal timing
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            Operational improvements arrive later than planned
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            Revenue-generating projects lose their window of impact
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           The result is not only deferred return, but diminished return.
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           Visibility across the capital lifecycle
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           In many organizations, capital data is fragmented.
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           Requests, approvals, forecasts, and actuals exist in separate systems. Teams spend time reconciling information rather than acting on it.
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           By the time a clear picture emerges, the opportunity to intervene may have passed.
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           Limited visibility makes it difficult to identify stalled initiatives, reallocate capital, or protect expected return.
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           What stronger capital discipline looks like
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           Stronger capital discipline focuses on movement, not just control.
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           It shows up through:
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            Real-time visibility across the full capital portfolio
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            Structured workflows that reduce approval bottlenecks
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            Rolling forecasts that adjust to changing conditions
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            Clear linkage between capital deployed and outcomes achieved
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           These practices support timely execution and protect expected return.
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           How to assess CapEx underspending
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           A single variance line does not explain capital performance.
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           A more useful assessment focuses on movement:
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            Time from approval to project start
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            Time from start to measurable outcome
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            Points where decisions stall
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            Gaps between forecasted and actual deployment timing
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           These indicators reveal where capital slows down and where return may begin to erode.
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           Closing perspective
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           CapEx underspending may reflect discipline in some cases. More often, it reflects friction in how capital moves through the organization.
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           High-performing teams do not measure success only by staying within budget. They evaluate how effectively capital moves from approval to execution to realized return.
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           That is where capital performance is determined.
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           If gaps exist between approved capital and actual deployment, the underlying issue often sits within visibility, workflow, and timing across the lifecycle.
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           CapEx360 supports organizations in improving capital visibility, reducing approval delays, and strengthening decision-making across the full capital lifecycle.
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      <pubDate>Tue, 21 Apr 2026 19:55:24 GMT</pubDate>
      <guid>https://www.capex360.com/capex-underspending-why-delayed-capital-deployment-weakens-roi</guid>
      <g-custom:tags type="string">capital lilfecycle,deferred ROI,forecasting,capital discipline,capital planning,capital governance,capital execution,ROI</g-custom:tags>
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      <title>The Dos and Don'ts of CapEx KPIs</title>
      <link>https://www.capex360.com/capex-kpis</link>
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         Navigating Capital Expenditure: The Dos and Don'ts of CapEx KPIs
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         Introduction:
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          Capital expenditures (
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           CapEx
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          ) are critical investments that can significantly impact a company's long-term growth and success. To effectively manage these investments, Key Performance Indicators (KPIs) play a crucial role. Understanding the dos and don'ts of CapEx KPIs is essential for making informed decisions and optimizing the return on investment.
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          The Dos:
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          Alignment with Business Objectives:
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          Do: Ensure that CapEx KPIs are closely aligned with the overall strategic goals and objectives of the organization. This alignment ensures that capital investments contribute directly to the company's growth and profitability.
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          Clear Definition and Measurement:
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          Do: Clearly define and measure KPIs related to capital expenditures. Ambiguity in measurement can lead to misinterpretation of results and hinder the effectiveness of decision-making processes.
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          Return on Investment (ROI) Analysis:
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          Do: Implement KPIs that assess the
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           ROI of capital investments
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          . This includes metrics such as net present value (NPV), internal rate of return (IRR), and payback period, providing insights into the profitability and financial viability of projects.
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          Risk Assessment:
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          Do: Include KPIs that evaluate the risks associated with capital projects. Assessing factors such as market conditions, regulatory changes, and project execution risks helps in identifying potential challenges and mitigating them proactively.
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          Benchmarking:
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          Do: Benchmark CapEx KPIs against industry standards and competitors. Comparative analysis provides valuable insights into the company's performance relative to others in the market, facilitating continuous improvement and innovation.
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          The Don'ts:
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          Isolation from Operational Metrics:
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          Don't: Isolate CapEx KPIs from other operational metrics. A holistic approach that integrates financial, operational, and strategic KPIs provides a comprehensive view of the impact of capital expenditures on the entire organization.
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          Ignoring Post-Implementation Analysis:
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          Don't: Neglect post-implementation analysis. KPIs should not stop at the project completion; rather, they should continue to assess the actual performance against the projected outcomes, enabling continuous learning and improvement.
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          Overlooking Flexibility:
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          Don't: Implement rigid KPIs that cannot adapt to changing business environments. The economic landscape, market conditions, and technology evolve, and CapEx KPIs should be flexible enough to accommodate these changes.
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          Neglecting Stakeholder Communication:
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          Don't: Fail to communicate CapEx KPIs and their implications to key stakeholders. Transparent and open communication fosters trust and ensures that decision-makers are well-informed, reducing the likelihood of misunderstandings or resistance.
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          Relying Solely on Financial Metrics:
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          Don't: Rely solely on financial metrics. While financial indicators are crucial, incorporating non-financial KPIs related to sustainability, environmental impact, and social responsibility provides a more holistic evaluation of a project's success.
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          Conclusion:
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          Effectively
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           managing CapEx
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          KPIs requires a strategic and balanced approach that aligns with the organization's objectives. By implementing the dos and avoiding the don'ts outlined above, companies can enhance their decision-making processes, optimize their capital investments, and pave the way for sustainable growth and success.
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      <pubDate>Mon, 08 Jan 2024 16:45:28 GMT</pubDate>
      <guid>https://www.capex360.com/capex-kpis</guid>
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      <title>CapEx Business Case</title>
      <link>https://www.capex360.com/capex-business-case</link>
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           Business Case for Purchasing CapEx360 Software 
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           Executive Summary:
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           Objective: This business case outlines the rationale for investing in CapEx360, a Capital Expenditure (CapEx) management software, to streamline and optimize our CapEx processes, enhance financial control, and improve decision-making.
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           Background:
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           Capital expenditures are critical investments for our organization, enabling growth, innovation, and infrastructure improvements. However, managing CapEx can be complex and time-consuming, involving multiple stakeholders, diverse projects, and significant financial resources. Manual CapEx management can lead to errors, delays, and suboptimal resource allocation.
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           Current Situation:
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           Our organization currently manages CapEx through disparate spreadsheets and emails, which results in several challenges:
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            Lack of real-time visibility into CapEx budgets and approvals.
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            Inefficient workflows, leading to delays in project initiation.
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            Increased risk of errors and compliance issues.
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            Limited data for strategic analysis and decision-making.
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            Difficulty in tracking the ROI of CapEx investments.
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           Proposed Solution:
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           Investing in CapEx360 software is the solution to these challenges. CapEx360 is a comprehensive CapEx management software designed to automate and streamline the entire CapEx lifecycle, from initiation and approval to tracking and reporting. Key features and benefits include:
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            Centralized Repository: All CapEx requests, documents, and communications are stored in a centralized platform, providing real-time access and visibility for all stakeholders.
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            Automated Workflow: CapEx360 automates approval workflows, ensuring that requests follow the correct process, reducing approval cycle times, and minimizing bottlenecks.
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            Data Analytics: The software offers robust reporting and analytics capabilities, allowing for better decision-making and resource allocation. It enables us to assess the ROI of CapEx investments more accurately.
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            Compliance and Audit Trail: CapEx360 ensures compliance with regulatory requirements and provides a comprehensive audit trail, reducing the risk of non-compliance issues.
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           Cost-Benefit Analysis:
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           Costs:
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            License and implementation costs for CapEx360.
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            Training expenses for staff.
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            Ongoing support and maintenance fees.
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           Benefits:
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            Time Savings: Reduced approval cycle times and manual data entry.
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            Cost Reduction: Fewer errors and compliance-related penalties.
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            Improved Decision-Making: Better data and analytics lead to optimized resource allocation.
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            Enhanced Visibility: Real-time access to CapEx data.
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            Compliance: Reduced risk of regulatory non-compliance.
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            ROI Tracking: Improved ability to track the ROI of CapEx investments.
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           Return on Investment (ROI):
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           The ROI for implementing CapEx360 is expected to be realized within the first year of implementation. The specific ROI will depend on factors such as the volume of CapEx requests and the historical rate of compliance issues and errors.
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           Recommendation:
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           Based on the identified challenges, the proposed solution's features and benefits, and the potential ROI, I recommend that our organization invest in CapEx360 software to streamline and optimize our CapEx management processes.
          &#xD;
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           Implementation Plan:
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    &lt;li&gt;&#xD;
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            Vendor Selection: Identify and select a reputable vendor for CapEx360 software.
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            Implementation: Work with the chosen vendor to configure and implement the software.
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            Training: Train staff on how to use the software effectively.
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            Rollout: Gradually transition to using CapEx360 for all CapEx management processes.
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            Monitoring and Optimization: Continuously monitor and optimize CapEx360 usage to ensure maximum benefits.
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           Conclusion:
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           Investing in CapEx360 is a strategic move to enhance our CapEx management processes, improve financial control, and facilitate data-driven decision-making. The benefits of reduced costs, improved efficiency, and better compliance will yield a positive ROI and position our organization for continued growth and success.
          &#xD;
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           Attachments:
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            Vendor quotes for CapEx360 software.
           &#xD;
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      &lt;span&gt;&#xD;
        
            Detailed budget estimates for implementation and ongoing costs.
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            ROI projections based on historical data and industry benchmarks.
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            Proposed timeline for software implementation and training.
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      &lt;span&gt;&#xD;
        
            ﻿
           &#xD;
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           Approval:
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  &lt;p&gt;&#xD;
    &lt;span&gt;&#xD;
      
           I seek approval from the relevant stakeholders to proceed with the implementation of CapEx360 software as outlined in this business case.
          &#xD;
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  &lt;/p&gt;&#xD;
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      &lt;br/&gt;&#xD;
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    &lt;/span&gt;&#xD;
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      &lt;br/&gt;&#xD;
    &lt;/span&gt;&#xD;
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    &lt;/span&gt;&#xD;
  &lt;/p&gt;&#xD;
&lt;/div&gt;</content:encoded>
      <pubDate>Wed, 20 Sep 2023 14:20:59 GMT</pubDate>
      <guid>https://www.capex360.com/capex-business-case</guid>
      <g-custom:tags type="string">#capex</g-custom:tags>
      <media:content medium="image" url="https://cdn.website-editor.net/s/f5aa776e0c4040d7bbbe679a3f8298e4/dms3rep/multi/CapEx360-+Lifecycle+Wheel+%286%29.svg">
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      </media:content>
      <media:content medium="image" url="https://cdn.website-editor.net/s/f5aa776e0c4040d7bbbe679a3f8298e4/dms3rep/multi/CapEx360-+Lifecycle+Wheel+%286%29.svg">
        <media:description>main image</media:description>
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    </item>
    <item>
      <title>Using SAP HANA S/4 for Capex Management</title>
      <link>https://www.capex360.com/using-sap-hana-s-4-for-capex-management</link>
      <description>Using SAP HANA S/4 and CapEx360</description>
      <content:encoded>&lt;div data-rss-type="text"&gt;&#xD;
  
         Most enterprises already use SAP as their main Enterprise Resource Planning system (ERP) and SAP HANA S/4 is a new release of this already impressive software boasting a large-scale database where one can retrieve data faster, perform analytics and collect data patterns among other things. 
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          SAP HANA S/4, like most reputable ERPs, does a tremendous job when it comes to managing day to day Opex and these form the bulk of the daily transactions for most companies, which makes it is an obvious choice.  However, SAP HANA S/4 also has features like Project System and Appropriation Requests management.
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           So why are so many SAP customers still looking for capex software in order to remain compliant? 
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          Firstly, lets address that
          &#xD;
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           Capex
          &#xD;
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          vs Opex is quite different.  There are many articles on the web including our blog that highlights the differences from a financial reporting perspective, but we would like to highlight the practicalities of managing Capex outside of this financial reporting world which goes beyond the Appropriation Request. 
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          Secondly, the way companies manage Opex is consistent across the industry verticals and GAAP (Generally Accepted Accounting Principles) is well adopted irrespective of verticals or even company size.  This allows ERP vendors to develop a single ERP software product that can be adopted across virtually all industries and even company sizes.    
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          When it comes to Capex, GAAP may provide financial reporting guidelines for
          &#xD;
    &lt;a href="/"&gt;&#xD;
      
           Capex
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          but it provides limited guidance when it comes to the lifecycle of a Capex project or the approval of the Appropriation Request.  The reason is that the lifecycle of Capex varies so much between industries and company size that one size does not fit all, making it very difficult to add general capex capabilities to ERP systems SAP. 
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          In some industries like Financial Services,
          &#xD;
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           Capex projects
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          are generally simple, they could involve purchasing of new office equipment or vehicle and can be approved via a simple Appropriation Request.  However, in other industries like pharmaceuticals, mining or manufacturing, Capex projects can involve building a brand-new processing plant or a brand new mine requiring multi phased construction with staged approvals.  
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          In the eyes of GAAP and most ERP systems and Appropriation Request forms, purchasing office furniture or building a new mine are both
          &#xD;
    &lt;a href="/CapExsoftware"&gt;&#xD;
      
           Capex project
          &#xD;
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          and are managed in in a similar way but one can clearly see that the latter project requires more management, information and controls.  Because of this, the capital-intensive industry has developed complex capital management policies and compliance is required.  Such policies may dictate how capex is approved via Appropriation Requests and how detailed business cases need to be drafted which go beyond the simple Appropriation Request form. 
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          Capex policies may also dictate how multiyear multi-disciplinary projects are handled though different stage gates with milestones.  Now add your typical scope changes and budget overruns and we can quickly see how complexities develop. 
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          The complexity and variability of the capex management policies differs dramatically from industry to industry and as there is no accepted standard, it even differs from company to company even in the same vertical industry.  It is for this reason that the Appropriation Request form in SAP HANA S/4 is often not an option as it would require a tremendous amount of customization and cost for it to comply with capital management policies.  
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          Fortunately, all versions of SAP including SAP HANA S/4 have integration capabilities allowing specialized
          &#xD;
    &lt;a href="/"&gt;&#xD;
      
           Capex software
          &#xD;
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          like Capex360 to extract data from SAP and provide customers with a best of breed approach.  By using SAP HANA S/4 with Capex360, customers can easily manage the complex capex lifecycles in accordance to their policies and leverage SAP to provide the actuals and commitments for each project ensuring proper controls.     
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  &lt;div&gt;&#xD;
    &lt;b&gt;&#xD;
      
           The benefits of using
           &#xD;
      &lt;a href="/"&gt;&#xD;
        
            CapEx360™
           &#xD;
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           with any SAP version including SAP HANA S/4:
          &#xD;
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    &lt;ul&gt;&#xD;
      &lt;li&gt;&#xD;
        
            Easy integration with SAP HANA to obtain Actuals and Commitments data.
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            Leverage SAP’s features for Internal Order, Investment Order or WBS codes.
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            Leverage SAP’s ability to control spending
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            Process Analytics and reports on Capex budget vs Actuals and Commitments.
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            All Capex information in one location
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            Link WBS and IO statuses to project phases and approvals.
           &#xD;
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            Secure and reliable
           &#xD;
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      &lt;li&gt;&#xD;
        
            Better CapEx decision making
           &#xD;
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      &lt;li&gt;&#xD;
        
            Reduced costs to align with your capital policies. 
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      &lt;li&gt;&#xD;
        
            Join us into the future of finance with
            &#xD;
        &lt;a href="/"&gt;&#xD;
          
             CapEx360™
            &#xD;
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            and SAP Hana S/4.
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    &lt;/ul&gt;&#xD;
  &lt;/div&gt;&#xD;
&lt;/div&gt;</content:encoded>
      <pubDate>Wed, 04 Nov 2020 15:31:02 GMT</pubDate>
      <guid>https://www.capex360.com/using-sap-hana-s-4-for-capex-management</guid>
      <g-custom:tags type="string">#capex</g-custom:tags>
      <media:content medium="image" url="https://cdn.website-editor.net/s/f5aa776e0c4040d7bbbe679a3f8298e4/dms3rep/multi/CapEx360-+Lifecycle+Wheel+%287%29.svg">
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      <media:content medium="image" url="https://cdn.website-editor.net/s/f5aa776e0c4040d7bbbe679a3f8298e4/dms3rep/multi/CapEx360-+Lifecycle+Wheel+%287%29.svg">
        <media:description>main image</media:description>
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    </item>
    <item>
      <title>Capitalizing and Expensing Software Costs</title>
      <link>https://www.capex360.com/capitalizing-and-expensing-software-costs</link>
      <description>Can you capitalize our CapEx software?</description>
      <content:encoded>&lt;h3&gt;&#xD;
  
         Capitalizing and Expensing Software CostsThis is a subtitle for your new post
        &#xD;
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&lt;div data-rss-type="text"&gt;&#xD;
  
         In companies in earlier stages of maturity, and when advanced technologies have yet to be implemented, accounting requires consideration for future software implementation. When it comes to capitalizing on
         &#xD;
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          CapEx software
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         , a question arises: should we capitalize on software development costs – or should they be expensed, altogether?
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          Determining whether to capitalize on software isn’t an easy feat when accounting standards and rules are, at times, subjective. But, a well-informed CFO knows that standards and policies surrounding capitalized software costs have to be considered.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.
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      <pubDate>Tue, 03 Mar 2020 17:00:05 GMT</pubDate>
      <guid>https://www.capex360.com/capitalizing-and-expensing-software-costs</guid>
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      <title>The Importance of Smaller CapEx Projects</title>
      <link>https://www.capex360.com/the-importance-of-smaller-capex-projects</link>
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         The Importance of Smaller CapEx Projects
        
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         Smart investment and effective management of capital are both critical components of sustaining success for capital-intensive companies. 
         
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          Companies that measure the value of their CapEx projects are implementing the kind of best practices that ensure they retrieve optimal ROI from their investments. Making every investment count can only happen when the CapEx process is optimized, and this involves focusing attention and resources on stakeholders who are involved in the review and approval process at all stages of decision-making. 
         
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      <pubDate>Fri, 07 Feb 2020 17:32:04 GMT</pubDate>
      <guid>https://www.capex360.com/the-importance-of-smaller-capex-projects</guid>
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      <title>Why CapEx Software is Necessary for Your Business Growth?</title>
      <link>https://www.capex360.com/why-capex-software-is-necessary-for-your-business-growth</link>
      <description />
      <content:encoded>&lt;h3&gt;&#xD;
  
         The job of the CapEx Manager is to make sure that requests are passed through the CapEx review process in the most optimal way.
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          read more....
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          https://www.caprivisolutions.com/2019/12/13/capex-software-for-business-growth/
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      <pubDate>Fri, 13 Dec 2019 15:40:00 GMT</pubDate>
      <guid>https://www.capex360.com/why-capex-software-is-necessary-for-your-business-growth</guid>
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      <title>Maintenance, Growth or Financed CapEx?</title>
      <link>https://www.capex360.com/maintenance-growth-or-financed-capex</link>
      <description>There are ultimately two reasons why a company spends money on capital expenditures. The first is to pull it back into the business, the second - to maintain it. If you’ve determined that you need to make a CapEx investment, you need to decide how to pay for it: is it better to use cash or debt?</description>
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         Making a Financial Decision
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         Most of the decisions we make about the direction we want to take our business in is often tied to financial resources; and, financial resources are often tied to the business lifecycle. For example, whether you are in start-up or growth mode, or your business is in decline altogether, this factor will impact your business decisions. And, ultimately, without financial resources, you won’t be able to move forward with an investment decision.
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          When we look at
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           CapEx spending
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          , we see that making such investments is always tied to cash flow. So, how do we know what decision to go with when deciding on a particular portfolio? There are several routes to take. There is something called growth CapEx and maintenance CapEx. These are two options that depend on whether or not you want to expand your business or maintain the investments you already have. 
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          There are ultimately two reasons why a company spends money on capital expenditures. The first is to pull it back into the business, the second - to maintain it. If you’ve determined that you need to make a
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           CapEx investment
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          , you need to decide how to pay for it: is it better to use cash or debt?
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          Let’s take a look at both in detail so you may understand which to go with it in any given situation. We’ll also explore the most effective way of financing your investments. 
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           Maintenance Capex
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          Maintenance CapEx is a big part of expenditures. It is the process of keeping existing operations running. Whether it is installing a new boiler or replacing old computers, its purpose isn’t to attract more business or expand it; it is to maintain the status quo. Maintenance CapEx is used to improve or replace assets to maintain operational capacity.  
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           Growth CapEx 
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          Growth CapEx is intended for business growth. It isn’t the process of maintaining CapEx, for the business to operate in its current state, it is deciding where to invest in the growth of an operation. To highlight the distinction, we can look at the parameters of these two concepts in the context of a retail store. 
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          A retail business owner wants to refurbish his existing store. He wants to lay down new flooring, paint the walls and replace an old fridge. He is engaging in maintenance growth. But, if the retailer wants to expand and acquire a new store, he is increasing his asset base and capacity - he is growing the business. 
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          To understand the difference between maintenance and growth CapEx, look at your company’s depreciation and CapEx numbers. When
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          exceeds depreciation, it is considered growth CapEx since you are expanding your asset base beyond maintaining it.
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           Financed CapEx
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          Financial CapEx refers to spending internal cash to pay for CapEx - an alternative to debt. Banks will be determining your credit status, and looking at all your sources to have an understanding of how you are using your cash. In many cases CapEx takes a toll on cash flow; the more cash you are spending on
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           CapEx
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          , specifically growth
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           CapEx
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          , the less money is available for debt payments. CapEx that is financed with debt doesn’t reduce your cash flow, but when it is financed with cash at hand, it reduces it. 
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          Internally financed CapEx is part of the fixed charge coverage ratio (FCCR) that determines a company’s ability to repay its debt. Banks often ask for an estimate of internally financed CapEx so the number won’t be included in any financial statement even though it’s necessary to calculate the company’s ability to repay debt.
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           Why these distinctions matter
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          CapEx has a direct impact on a company’s cash flow. If maintenance CapEx is high, your free cash flow will be low. As free cash flow is the cash that’s available for debt repayment after operating expenses and
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           CapEx commitments
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          have been paid, you need to ensure that you are utilizing your finances most efficiently.
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          If maintenance CapEx in the future is expected to be high free cash flow, you will be spending cash, and your financial resources will turn negative. In this case, you will need to find new sources to fund the gap; and, that would be in the form of debt if you don’t have enough free cash flow. 
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          Investments are always expensive. That is why a potential acquirer of a company will pay attention to the maintenance CapEx when looking at whether or not to acquire and increase growth. 
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          In conclusion…
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          If you have CapEx, it’s essential to track how much of it you spend to grow versus maintaining your business, and how much was financed with cash instead of debt. If you are preparing to sell your business, these distinctions matter. The decision to expand or maintain will impact your future investments.
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          The difference between these elements will help you assess the free cash flows available to make an acquisition, or whether or not to use debt to finance the maintenance of your business.
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      <pubDate>Mon, 04 Nov 2019 17:46:03 GMT</pubDate>
      <guid>https://www.capex360.com/maintenance-growth-or-financed-capex</guid>
      <g-custom:tags type="string">#capex</g-custom:tags>
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      <title>Acquiring Expert Assistance in Budgeting Plans Facility Investments</title>
      <link>https://www.capex360.com/acquiring-expert-assistance-in-budgeting-plans-facility-investments</link>
      <description>Stay attentive and meticulous about the needs of your property.</description>
      <content:encoded>&lt;h3&gt;&#xD;
  
         The Value of Budgeting for a Facility Investment
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         Creating a thorough and accurate budget is a crucial part of making wise investment decisions. Research shows that companies that abide by fundamental principles to develop them see higher returns.
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          If you are overlooking the CapEx budgeting process, rushing through it, or pushing it aside altogether, you should note that establishing a CapEx plan is worth doing right. Undoubtedly, the process can be frustrating; the capital budget isn’t owned by one department in an organization and requires cross-departmental input, and being prepared for upcoming projects is no easy task. But, investing time in creating a plan will create a positive impact on your business in the future.
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          CapEx budgeting and planning work side-by-side. It is the process of defining how to spend money to support a company’s mission. It is knowing what to spend money on - and, projecting that spend in the future. It is the process of planning a budget. 
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          Let’s discuss the value of budgeting for a facility investment and upkeep.
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          A comprehensive capital budget looks at the entire property by evaluating its capital condition and identifying its existing and future needs. It further determines its maintenance costs and finds ways to tackle the needs of the investment project within financial constraints. 
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          The process of evaluating a facility and all its system is called facility condition assessment. It can either be employed by outsourcing facility audits, or investing in internal resources to do the inspection. Deciding to do it internally has its benefits. For example - you know your organizational mission better than anyone else and will be able to make a more thorough assessment between company and physical premises needs. Conversely, without expertise, it is harder to make accurate predictions for CapEx projects. 
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          When undertaking a facility audit, there should be a property-specific inventory of what exists. This includes current conditions and projection of remaining the useful life of the facility. Condition assessment helps to create an effective preventative maintenance program to decide regarding short- and long-term needs to see what needs an operating budget, and what requires new capital.
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          Obtaining data from the process of performing an assessment on the condition of a facility, we need to gather an understanding of its objectives. What is the intention? What needs to be established with the data? Knowing what information will be used for will influence how it is collected. 
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          It is also essential to assess the effects of a decision. By creating scenarios and playing them out, it is possible to plan out how the future of the organization will look. There needs to be a real understanding of the physical circumstances of the facility over time. Is there an opportunity to make equipment more cost-effective?  
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          The assessment process
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          Experts suggest that facility investment professionals should look at capital-equipment purchases and projects in the following steps: Start with projects that assess health and safety issues. Then go on to items that will cause detrimental consequences if they are neglected. Next, look at tasks that will help to reduce future capital and operational costs. And, finally, think about the marketability of the property and investments that will increase the perceived value of your business. 
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          Deciding to purchase a specific capital project and equipment should achieve an industry-standard. Defining the financial viability for the following fiscal year should be a process that is supplemented by expert advice. 
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          It’s important to understand that capital planning and budgeting is an ongoing process - even if it’s something that only happens once per year. Some projects need to be moved forward with, some far into the future, and others should be scrapped altogether. 
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          In conclusion…
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          By enlisting professionally qualified assistance to help determine the needs and costs of all aspects of a large project like investment or maintenance of a facility, you will have a clear vision of saving soft costs up front. Construction and oversight of large projects will help save on these costs, resulting in lower overall expenses than purchasing a facility that is brand new.
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          The process listed above will help you with outlining the details of a capital budget. For example, you will see if it is worth removing an existing roof before installing one. Or, fixing a boiler before replacing it altogether. 
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          These moving parts of a budget will help you stay on track and on-point with your vision. Stay attentive and meticulous about the needs of your property. Include quality materials when undergoing facility maintenance and improvement. A CapEx plan will help you get the most out of your investment. 
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      <pubDate>Mon, 28 Oct 2019 15:47:24 GMT</pubDate>
      <guid>https://www.capex360.com/acquiring-expert-assistance-in-budgeting-plans-facility-investments</guid>
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      <title>Are you following the money?</title>
      <link>https://www.capex360.com/are-you-following-the-money</link>
      <description>Key considerations when automating your capital expenditure management process</description>
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         Key considerations when automating your CapEx process
        
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         Managing capital expenditure processes manually is time-consuming. When it comes to the complexity of the processes you rely on for your approvals along with the need for smarter analytics, the challenge becomes even greater. You want to focus on managing old and new business, but not at the expense of efficiency and productivity. 
         
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           A study by Gartner Executive Programs reveals that business process automation explicitly meets the return-to-growth objectives of top companies worldwide.  Top performers have realized that in order to improve the performance of their CapEx management process, they have to employ the kind of tactics that integrate with their activities regardless of how complex they can be.  
          
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           Let’s look at five key features you should be considering when automating your
           
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            CapEx management process
           
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           .
          
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           User-Friendly
          
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           Your success with
           
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            CapEx management
           
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           depends on how quickly and efficiently you can integrate it into your business.  Hiring programmers or in house development costs time and money, so you need a plug &amp;amp; play solution that requires little coding. A robust platform has the ability to manage not only routine tasks such as approvals by email, but also non-routine expenditure approvals such as legal settlements and write-offs, no matter how complex the approval process. 
          
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            Traceability
           
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           Manual approval chains can lead to Requests for Expenditures (RFE) getting stuck and cause an otherwise avoidable loss of business. It should be easy to see in a single view exactly where the necessary forms are in the approval process, and what decisions were made at each level of approval.  Having a full audit trail of all comments and decisions gives you visibility on which approvals were granted and when. When delegating authority, we want to be able to properly route and notify approvers of changes more effectively and more efficiently.
          
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            Mobility and Mobile Support
           
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           In a rising mobile workforce, consistent reachability is crucial to your company’s productivity. The American Community Survey found that 20-25% of employees already work from home or telecommute, with near 50% of the workforce being pro-mobility. Having mobile apps on all devices means you’re no longer tied to a stationary device to manage time-sensitive approvals. Being able to reach approvers in the right time will help make the right expenditure decisions. This means no more missed deadlines or unavailable approvers. Having mobile apps can add another valuable tool to your
           
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            CapEx management toolkit. 
           
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            Easy Reporting
           
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           Measuring your
           
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            CapEx
           
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           metrics allows you to manage them even better.  You should be able to use visual graphs and trends to compare expected versus actual spends. Being able to analyze spends by category adds depth when you review your expenditures. It should be easy to link up your existing financial ERP systems to improve multiyear forecasting and budgeting.
          
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            Access and Storage Security
           
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           Data stored in centralized locations makes the secure storage of requests and budgets the highest priority of any automated
           
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            CapEx management platform
           
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           . With global and mobile accessibility, a platform that limits approval types to certain roles will ensure that only the right people are able to make approvals. You must ensure that the platform you choose takes security and access control seriously.  
          
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           While the change to automated processes can seem scary, evaluating your CapEx management platform with these big-picture criteria can make your decision easier. Are you losing money due to holes and delays in your current approval process? Is your process not allowing you to study and forecast its health?
           
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            CapEx Management Automation
           
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           might help you get there. 
          
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      <pubDate>Fri, 25 Oct 2019 15:15:44 GMT</pubDate>
      <guid>https://www.capex360.com/are-you-following-the-money</guid>
      <g-custom:tags type="string">#capex</g-custom:tags>
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