Established in 1984, Ryman Healthcare, is a publicly listed company operating 30 retirement villages in Australia and New Zealand. They provide homes for over 10,000 residents and employ over 4,000 staff and have consistently grown over the course of this century.
Missing the foundations for financial management
Ryman handles the building of its villages itself, making it New Zealand’s third largest builder of residential houses, currently building about 550 new units or rest home beds per annum in New Zealand. The company is vertically integrated with almost no outsourced work, and it’s this integration that create complexities. Ryman is made up of 30 companies employing numerous construction sub-contractors and suppliers.
“We didn’t have a very good financial system, let alone anything else around it,” says Simon Challies, CEO. “We were running the ledgers in spreadsheets, there was no supply ledger, and the cashbook system was linked to our billing system and was relatively basic.” Ryman was effectively running 10 different supply ledgers, which it then had to consolidate manually.
"Our financial system was administratively difficult and unnecessarily complex"
Job Cost Management a pillar for profitability
MYOB Greentree was chosen above other shortlisted software because of its integration, especially in the Job Costing suite. The multitude of supply ledgers was quickly replaced with a single supply ledger and a job cost ledger that are now linked across the companies.
“Job Costing is probably the most unique area of what we do,” Challies says. “Because we’re building for ourselves, we’re essentially accumulating costs and monitoring costs on jobs, as you would any construction company, but at the end of it we’re actually producing an asset which we put on the balance sheet.”
"Job Costing is probably the most unique area of what we do"
MYOB Greentree ERP is still on the money
Even after a decade and half using MYOB Greentree, Ryman Healthcare’s needs are still being met as the ERP software has adapted with the company, throughout its growth. It handles all the financial reports on the villages, as well as management reports, construction reporting on every current job, along with all the supply payments, purchasing and subcontractor reporting.
“MYOB Greentree F.R.E.E. (Financial Reporting Engine in Excel) delivers solid reporting because everything is integrated, which means major savings in administration,” says Challies. “If we didn’t have some of those features tightly integrated, we’d need another five full-time people.”
"Our progress has been fantastic, and Greentree has been a major part of that success"
- Many separate ledgers via spreadsheets
- Financial management was complex and time-consuming
- Difficulty managing the many different company / entities
- Single ledger for supply and job cost
- Streamlined financial management system, reducing staffing needs
- Centralised system taking care complex of structure