PRSM 2012 Best Practices - (Page 128)

SuPPLiEr iNSighTS iNTO COMPETiTivE SOurCiNg AUTHOR steve lord, Principal COMPANY the kasota group, llc introduction Today, competitive sourcing remains center stage for many companies trying to cut operating costs. One of the primary drivers for the continued focus on sourcing is the performance of the economy overall. The “on again, off again” fixes to Europe’s debt woes, questions about China’s continued expansion, the nasty ramp-up to the U.S. general election and concerns about too much government intervention all seem to be having a real negative effect on business conditions. While there is evidence U.S. manufacturing is starting to rebound, improvements in the service sector of the economy are coming at a “one step forward, one step back” snail’s pace. In September 2011, PRSM published the white paper “Understanding Retail Facilities Sourcing.” That paper, the first of a three part series, presented a strategic and tactical overview of the basic facilities services models (in-sourcing, co-sourcing and out-sourcing) and provided a checklist of things retailers need to be aware of to best position themselves for the sourcing challenges ahead. This paper, the second in the series, provides PRSM members with additional information on how the various sourcing models affect their business. It presents information collected from a cross section of exceptional PRSM suppliers in an objective depiction of the current sourcing landscape. It highlights important factors that influence suppliers and FM organizations operating amongst the various service models. The final paper in the series will review some successful and unsuccessful retail sourcing model transitions and provide lessons learned from those experiences. the sourcing trend continues In general, companies are reviewing their indirect spend at about the same pace as a year ago as part of the larger trend of how they manage their indirect operations. Banking, financial services, government, healthcare and pharmaceuticals top the list of industries that are driving the most demand for outsourcing. The need to cut operating costs is management’s primary aspiration with better financial flexibility close behind. It seems most companies and especially those with international footprints have out-sourcing plans but the actual demand for new services seen by suppliers appears to lag the stated desire. Retail senior management still views out-sourcing and co-sourcing as practical ways to help control facilities costs. Two types of companies provide these services. The first integrates a large number of trades under one management group in an attempt to present a one-stop shop to the retailer. These companies are called Integrated Service Providers (ISP). ISPs are also referred to as management companies, Operation and Management (O&M) companies and Certified Facilities Management (CFM) companies. The second type of company concentrates on a more defined market and offers one select trade or a small number of related trades. These companies are called Select Service Providers (SSP). SSPs can range in size from small “mom and pops” to large multi-regional companies. They are sometimes simply referred to as a service company, vendor or contractor. For consistency, this paper uses “ISP” and “SSP” to describe their respective service models. The terms “supplier,” “service provider,” or “facility service provider” are used when either an ISP or SSP are relevant. As the pressure to cut indirect costs continues, the facilities department is not the only area feeling the heat. Energy tops the review list of most retailers and IT remains a target even though it has gone through several sourcing iterations already. Real estate, property management, transportation, fixtures, food services, office supplies, office furniture, project management, HR and legal are also commonly cited, but no spend category is immune. 128 | 2012 Best Practices

Table of Contents for the Digital Edition of PRSM 2012 Best Practices

Conducting Multi-Site Paving Improvements to Ensure Continuity
Conducting Multi-Site Paving Improvements to Ensure Continuity
Exterior Rebranding
Exterior Rebranding
Getting the Most Value Out of Roof Management
Getting the Most Value Out of Roof Management
Pervious Concrete Pavement Solves Drainage Challenge
Pervious Concrete Pavement Solves Drainage Challenge
Pervious Pavement: Concrete Solutions to Driveway Stormwater Drainage and Sustainability Problems
Pervious Pavement: Concrete Solutions to Driveway Stormwater Drainage and Sustainability Problems
Applying Bipolar Ionization to Improve Indoor Air Quality and Save Energy
Determining Responsibility for Ceiling Leaks
HVAC Maintenance and Repairs Quote Review
Managing HVAC Energy Usage Without Installing an Energy Management System
Solving HVAC Issues on Landlord Operated Systems
Creating a Standardized Cleaning Chemical Program
Floor Replacement Planning and Execution
Improving Pest Control Monitoring to Maintain Store Cleanliness
Streamlining Store Cleaning Through Internal Benchmarking
LED Conversion Bolsters Ambiance, Bottom Line and Environment.
LED Gas Canopy Lighting Upgrade
Lighting Maintenance
Retrofitting Signage with LED Technology
Performing Basic Troubleshooting to Save Money
Implementing Repair Audits to Ensure Customer Safety
Improving Quality, Cost and Schedule Through Safety Education
Managing Extended Power Outages Through Emergency Response
Managing Risk Through Slip Resistance Testing
Creating Energy Teams to Pursue Opportunities
Formulating Green Solutions
Making Data Centers LEED Compliant
Outfitting Facilities with an Eye on ENERGY STAR Certification
Recycling Cooling Water From Air Conditioning Systems for Toilet and Landscaping Use
Sustainability-How the Facilities Team Can Contribute
Driving Down Waste Expense
Reducing Trash and Recycling Expense for Retail Locations
Transferring Compactor Maintenance to a Service Vendor
Waste Service Efficiency and Compliance
Waste Evaluation and Right Sizing to Reduce Cost
Asset and Service Warranty Tracking and Management: More Fully Realizing the Value of Budget Expenditures
Conducting an Organized Meeting
Proactive Maintenance Scheduling and Delivery
Repair Reductions by Participating in Design and Construction Table
Streamlining the Store Closing Process
Achieving Process Improvement Through Onsite Assessment of KPIs
Forecasting a Maintenance and Repair Budget
How to Calculate Return on Investment
Tracking Finances for Facilities
Centralizing Vendor Training and Management
Creating a Service Vendor Call Center to Save End Users’ Money
Answering a Call Status Challenge with an IVR Solution
Communicating Product Recalls Using a CMMS-Inspired Module
Doing More with Less and Saving Money in the Process
Ensuring the Accuracy of Web-Based Maintenance Requests
Establishing an End to End Procure-to-Pay Process
Leveraging Existing Technologies to Provide Updated Process Improvements
Quality Management of Bundled Periodic Services
Reduced Dashboard Time at Supply Houses
Parking Lot Management
Creating Best-In-Class Snow and Ice Management White Paper
Energy Savings/HVAC Air Filter Bypass
Managing a Retail Lighting Retrofit Project – Bright Ways to Improve Your Lighting and Your Bottom Line!
Managing Energy Usage with Interval Meter Calibration
Navigating the Department of Energy’s Higher Efficiency Regulations
Supplier Insights into Competitive Sourcing White Paper
Testing HVAC System Options to Reduce Costs and Labor
Understanding Retail Facilities Sourcing White Paper
Glossary of Acronyms and Terms

PRSM 2012 Best Practices