Intercompany Chargeback Model

The Situation

The construction of a multi-million-euro central laboratory is driving the need for a transparent intercompany chargeback model.

A leading global automotive and industrial component manufacturer is actively merging its real estate assets into a single entity. The client reached out to Lionpoint to support the development of a transparent intercompany chargeback model for their multi-million-euro central laboratory which is currently under construction. By providing transparency on the intercompany rent process the model aims to support the budgeting phase.

The Approach

Leveraging cutting-edge technology, Lionpoint has developed an advanced intercompany chargeback model.

The solution consists of two models to balance space allocation and costs. The first model divides space based on cost centres for efficient resource distribution. The second model combines space allocation with a weighting system considering expenses and equipment, providing a more accurate representation of space value and costs.

Despite the clients’ low expectations, anticipating only an Excel model, Lionpoint delivered a comprehensive and reusable solution adopting a modern data stack. The solution allows seamless data uploads through an application with predefined templates into the Snowflake data warehouse. Subsequently, the models are executed in DBT (Data Build Tool), ensuring a streamlined and efficient data processing pipeline. DBT allows for automating time-consuming data management tasks, ensuring data accuracy through built-in testing mechanisms, and fostering collaboration among the project team, through easy documentation and version control. It’s highly adaptable and flexible, offering the possibility to integrate with third-party systems, making it a versatile tool for any client. Canvas, a front-end solution, for user-friendly data democratization, visualization and analysis, is used for consolidating various data sources for real-time insights and aiding in strategic decision-making and detailed analysis.

The Client Benefit

Two intercompany chargeback models were created in just three weeks, a process that would have taken four to six months with traditional solutions.

Through its collaboration with Lionpoint, the client is on the verge of establishing an advanced intercompany chargeback model, unlocking the full potential of its real estate portfolio.

The mechanism for allocating space introduces a cost-efficient strategy by recovering incurred expenses from the owner’s perspective, while also offering incentives to occupants to free up space. This approach facilitates superior management of vacancies, reducing dependence on external rentals and property conversions. Additionally, it promotes cost transparency by enabling accurate budgeting, precise expense tracking, and internal cost allocation. This together with the project’s significant time savings.