Operating Cost Reduction and Strategic Sourcing Services For Real Estate Agencies and Property Management Companies
Real Estate agencies, property brokerage and property management firms face difficulties in managing their spend due to their decentralized structure. Multiple office locations, mergers, acquisitions, and challenging housing and commercial building markets have spend managers at real estate companies and property brokering firms facing incredible challenges when looking to reduce operating costs and gain tighter control of the procurement process. Source One can help!
A slowdown in the housing and commercial markets, more aggressive real estate competition, and an increase in lending regulations are forcing real estate agencies and property managers to concentrate on their internal cost savings. Real estate companies have already cut costs where they could, lowering overhead and shuttering offices, and are now looking for additional non-compensatory measures to cut costs. Source One has the market intelligence and real estate industry experience to help drive the best pricing and best procurement strategies across dozens of spend categories.
REAL ESTATE BROKERAGES AND PROPERTY MANAGEMENT FIRMS USING SOURCE ONE’S SUBJECT-MATTER EXPERTISE ARE IMPROVING THEIR EFFICIENCY AND DRIVING HARD DOLLAR SAVINGS TO THEIR BOTTOM LINE.
With a wealth of subject-matter expertise and using proven strategic sourcing strategies, Source One helps real estate companies and property management firms of all types as they reduce their non-compensation expenses while frequently improving their infrastructure and supply chain. Source One can help real estate companies on a per category basis, or can conduct a top-down spend analysis identifying and taking action on the cost savings opportunities across dozens of spend categories. Moving away from tactical buying practices to long-term strategic cost initiatives provides real estate companies with a better ability to improve current and future performance metrics.
Source One has found significant savings for real estate agencies and brokerages across a number of indirect spend categories, including:
- Advertising and Media Buys
- Employment Screenings
- IT Hardware and Software
- Facilities Maintenance
- Printing and Fulfillment
- Staffing and Temp Staffing
- Office Supplies, Toner, and Equipment
- Professional Services
- Utilities and Energy
Real estate agencies and brokerages have found that traditional cost savings methods no longer produce the results needed for the current business environment. Source One can help agencies and brokerages not only make cost cutting decisions, but make the right cost cutting decisions that improve supplier relationships. Our cadre of procurement transformation services enhances strategic sourcing practices, from data collection to implementation and ongoing monitoring, and includes solutions ranging from vendor consolidation, to electronic enablement, to change management.
Toner and Printing Supplies
A Case Study
Source One was recently engaged by one of the world’s largest real estate holding companies and franchise brokerages. Specifically, Source One was tasked with identifying ways to cut down on the $9 million-worth of laser printer toner cartgidges that is purchased every year across its 300 locations.Source One was able to negotiate and implement a three-pronged strategy. The first part was a significant reduction in the pricing of OEM black and color laser toners that was negotiated at multiple levels with the office supplies vendor and the OEM manufacturer itself. The second strategy consisted of implementing a remanufactured and non-OEM testing and deployment strategy, which included end-user feedback and real-world beta testing. Ultimately, 30% of the toner volume was able to be migrated to the lower cost non-oem solutions. Finally, the third component of the strategy consisted of volume rebates from the office supplies vendor. By consolidating the spending across suppliers, the new vendor was more aggressive in rebates.Ultimately, the real estate company received in excess of $3 million in annual savings!