Facilities Management

A global services client requested a review of their multi-million dollar US Facilities Management  operation. Services in-scope included Cleaning, Fire Alarms, Elevators, Mailroom, Pest Control, Planned Maintenance, Reactive Maintenance, Sprinklers and Waste.

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(PDF)
31%
Annual
SAVING

The Challenge

Fragmented supplier and spend base including:

  • 37 contracts across 29 suppliers for planned and reactive maintenance
  • Different suppliers across all other services
  • Services split across 8 sites
  • Unclear service specification
  • No clear management information or reporting programme

The Approach

The process began with a review of the current in-scope services to build the project base case and map out the service specifications.

An RFP was then developed, including a pricing schedule clearly splitting out costs across all services and sites.

In addition, the suppliers were asked to price the services ‘as is’ and ‘recommended’ with the opportunity to include efficiencies and improved ways of working.

Following the RFP submissions, suppliers were short-listed and invited to present to a panel to select the preferred supplier.

The Solution

  • Consolidate supply base from 35 suppliers to one supplier.
  • Outsource a number of roles and functions.
  • Introduction of 24 hour helpdesk.

The Benefits

  • Initial saving of 31% per annum, with one supplier contract across all services and a single point of contact for the client
  • Further efficiencies to be made through the new ability to benchmark spend against other companies in key areas, and buying power through leveraging supplier’s global spend base in additional categories such as stationery
  • Service levels were enhanced through introduction of helpdesk function and implantation of service levels and key performance indicators linked to service credits for non-performance

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