This is a business case of the project B&M did for Colruyt.

1. Business Case
Food & Retail B&M partners with Colruyt to improve cost
awareness of their Shared Services.
These shared services (called relationship of trust, based on a
Colruyt Group Services) include cost allocation system which is:
departments like finance,
■ Transparent (the business
human resources, legal,
units know where the
information technology…
figures come from)
In order to increase the ■ Fair (the business units
transparency and predictability pay for what they use)
of cost allocations, Colruyt
■ Predictable (business
needed to be able to control
units know what their
and manage the cost of their
contribution to the
shared services more effectively
shared services will be)
and more efficiently.
Creating cost awareness and ■ Actionable (supporting
obtaining insights on the cost of the strategic decision-
those shared services was making process)
necessary for the organization
to be able to continue their
healthy growth and to take The Results
strategic decisions based on
facts. This new way of working
increased the transparency and
The Approach predictability of their cost
allocation system.
The Challenge Colruyt came to B&M with a
With this new model, Colruyt is
clear issue that needed an
now able to:
Colruyt Group is a leading expert view to unravel this
organization in the Belgian retail advanced financial structure. ■ Set up an initiative for
market with a staff of over driver-based planning &
22.000 employees and a In order to have accurate budgeting
revenue of € 6,7 billion. information, B&M introduced a
■ Increase cost
new concept that is based on
management accuracy
The Colruyt Group includes the actual consumption of
several supermarket chains such resources by the business units. ■ Stimulate cost
as Colruyt, OKay, Dreamland, responsibility
BioPlanet, Spar Retail… and is B&M introduced this approach While ensuring compliance with:
also active in France with B2B and made it possible for Colruyt
foodservices and in India with to get a better view on their ■ All mandatory IFRS
their own offshore IT company. cost structure. By offering tools regulations
that manage and control their ■ Transfer Pricing
In this very challenging and costs of shared services and guidelines
complex environment, Colruyt generate a win-win in the
was confronted with a common partnership between the shared With this project, B&M has done
issue when allocating costs from service suppliers and the what it promised: We increased
the supporting services (shared business units, we created a the business performance of
services) to the business units. Colruyt.
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