Zalando comes up with Smart Real Estate Management Solutions with SAP

It is really difficult to rent an office space in Berlin due to the scarce office area and high rental prices. The rent, as well as the maintenance fee, is an expensive affair and commercial spaces are in short supply. An organization’s major portion of monthly expenditure goes in real estate. Hence, an online store Zalando is pivoting a smart real estate management solution.

Zalando is extremely interested in exploring new ways in real estate management with SAP. “Our company is constantly taking on employees, which is what started us thinking in the first place,” says Phillip Raum, planning and architecture manager at Zalando.The company developed a new working environment in collaboration with SAP to facilitate the employees with better workspace.

SAP and Zalando have come up with a smart management tool that links employees, buildings, and operations. As per the explanation of Martin Naraschewski, General Manager and Head of the Finance Line of Business at SAP, the project is a part of a holistic real estate management process that includes costs, building information, and contract durations. “Unused or under-used offices equal unnecessary costs, which usually pile up without anyone noticing or they are perceived as a fixed cost. Eliminating them can have a significant effect on operating profit,” adds Naraschewski.

Such data helps the facility manager to make informed decisions when it comes to renting, expanding or vacating the space. The solution uses sensors that deliver the data in real-time and displays virtual floor plans and overlays on how space is being used.