PRSM 2012 Best Practices - (Page 138)

uNdErSTANdiNg rETAiL FACiLiTiES SOurCiNg AUTHOR steve lord, Principal COMPANY the kasota group, llc current lAndscAPe The “Great Recession” began in the United States in late 2007/early 2008 and officially ended in June of 2009. The typical theory goes that after a recession, the business cycle picks up and recovery starts. However, this time around, the world and U.S. economies are acting anything but typical. Key economic indicators are in a quagmire. Unemployment remains doggedly high. Gross Domestic Product (which measures the health of the overall economy) continues to lag. Housing starts seem non-existent as the industry grapples with a 9.3-month supply of homes available for sale (3.72 million units). European debt is staggering. With a U.S. budget deficit over 14 trillion dollars and climbing, the perceived ability of the U.S. to repay its debt obligations has been downgraded and many pundits argue that a double-dip recession may be just around the corner. All this uncertainty will continue to drag on the economy until there is confidence on Main Street and Wall Street that it will be resolved. While there are multiple theories and beliefs on how we got here and who is to blame, one notion seems to attract a lot of consensus – things are not going to improve any time soon. Given current business conditions and the economic outlook, is there any wonder why business leaders focus on controlling costs and hoarding cash? The “take in more money than you spend” principle guides all CEOs as they navigate the many challenges they face. Why invest in the future if you are uncertain what the future will bring? With growth not available as an option and uncertainty rampant, CEOs typically have only one viable alternative to increase profits – “cut costs now and plan for a better day in the future.” This is the situation U.S. retail CEOs and their facility management teams continue to face. FAcilities ProFessionAls todAy As a facilities professional, excellent visibility and control of your budget, quality of work, schedule and payroll are critical to your success. You are responsible for maintaining your stores and other real assets in the best operational condition possible with the resources available. You can surely detail what it takes to keep the HVAC running at your flagship store; but probably are not as effective explaining the return on capital employed at that facility. You likely have memorized the procedures to troubleshoot and fix a roof leak but perhaps are not as familiar with the GAAP accounting standards. An Energy Management System (EMS) issue – no problem, your companies derivative swap contract exposure --- “not so much.” For facilities professionals, a MBA may not be a core expectation, but possessing a solid understanding of the financial and operational parameters that drive your retail business is. It is critical that you know the impact that your department has on the company’s operating expenses and are able to explain if you are getting more or less efficient and more or less cost effective. You probably work with your company’s capital and operating budgets routinely. However, do you have a systematic way to establish your facility department’s budget goals? Do you have set procedures to measure how you are managing against your plan? Do you forecast your budget routinely (monthly, quarterly, semi-annually)? Companies expect today’s facility manager to do much more than keep the lights on and the store clean. They must understand the detailed impact their operations have on both the top and bottom line and be able to address how their areas of responsibility are becoming more efficient and cost effective. Like all business professionals, facility managers are under significant pressure today to lower expenses. Of all the cost-cutting alternatives available, one of the most talked about is “out-sourcing.” “Out-sourcing” is a term that is widely used when describing the concept of taking work away from internal (or organic) staff and transferring that workload to an external provider. While the term “out-sourcing” is broadly used to describe almost any external transfer of work, in practice there are three methods. Part of the purpose of this white paper is to be informative about the various ways out-sourcing is described, and to gain more uniformity around the definitions used by Retail Facility Managers (RFMs). 138 | 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