Facilities Management Cost Reduction Case Study
 

Facilities Strategic Sourcing Case Study

Strategic Sourcing Case Studies


 


Facilities Cost Reduction Results

This successful Strategic Sourcing engagement is just one example of Source One’s success in the Facilities category. Over their decades in Procurement, Source One’s spend management team have supported organization’s in reducing costs across all Facilities sub-categories without sacrificing quality, service levels, or safety. Check out our average cost reduction results.

  • Cafeteria Services – 5% Cost Reduction
  • Electricity – 8% Cost Reduction
  • Facility Maintenance – 20% Cost Reduction
  • Hazardous Waste Material – 20% Cost Reduction
  • Janitorial Services – 18% Cost Reduction
  • Natural Gas – 9% Cost Reduction
  • Propane – 25% Cost Reduction
  • Relocation Services – 9% Cost Reduction
  • Security Services – 8% Cost Reduction
  • Uniforms – 28% Cost Reduction
  • Waste Removal – 14% Cost Reduction
  • Wireless – 30% Cost Reduction

Cost Reduction Case Studies 


Spend Analysis & Opportunity Assessment

Procurement teams can’t pursue their cost reduction and process improvement goals without taking a look at their historical spend. Source One’s spend management expertise and proprietary spend analytics tools empower us to take a deep dive into our clients’ supply chain. We do more than provide spend data. Our cost reduction experts leverage this data to develop actionable sourcing strategies and kick-start collaborative engagements.

Rapid, Low-Cost Spend Analysis 


Contracting and Negotiations

Derive the most value from your Facilities providers with support from Source One. Our contracting specialists align with our clients to ensure Procurement reaches sustainable, mutually beneficial agreements. We’ll even provide ongoing support to ensure your Facilities vendors serve your cost reduction goals and meet your service requirements into the future.

Procurement Contracting Support 

A Case Study in Facilities Procurement and Strategic Sourcing

Case Study in Facilities Strategic Sourcing

Source One’s successful spend management engagement with a Food & Beverage company provides a case study in the effectiveness of their approach to Strategic Sourcing in the Facilities category. 

With its numerous subcategories and broad supply bases, Facilities spend often presents Procurement with a distinct set of spend management challenges. Maintaining an effective approach to Facilities spend means deriving apples-to-apples quotes from suppliers of differing sizes and maturity levels, negotiating contracts with clear service levels, and validating product and service quality across multiple sites. Since many Facilities purchases are made to preserve employee safety, reducing costs within the category is often a risky endeavor.

With decades of Strategic Sourcing experience, Source One has developed and implemented procurement best practices for all areas of Facilities spend. Companies of every size trust the spend management experts to deliver on their cost reduction goals without sacrificing quality. To learn more about Source One’s approach to Facilities spend optimization, check out the case study below.

The Challenge: 

A National Food & Beverage service company approached Source One for support transforming their approach to indirect procurement and strategic sourcing.

  • The Food &  Beverage company operated 26 distribution centers and over 200 grocery stores across the United States and Canada. As a result, supply chain visibility was inconsistent and Procurement struggled to streamline supplier relationships and standardize processes.
  • The organization’s in-house Procurement team lacked the resources and internal clout to effectively address gaps in its supply chain and develop a more strategic approach to managing its indirect spend.

 

The Solution: 

Source One leveraged its Facilities Strategic Sourcing expertise and customized go-to-market strategy for the Food & Beverage company’s unique goals and objectives.

  • For each of the Food & Beverage companies facilities, Source One’s Procurement specialists conducted a spend analysis, contract reviews, stakeholder interviews, and benchmark assessments to uncover opportunities for savings and supplier consolidation.
  • Source One collaborated with the organization’s internal Procurement team and its stakeholders to develop customized sourcing strategies targetting the Food & Beverage company’s unique cost reduction goals, but also included tailored Scopes of Work for each site – allowing each facility to eliminate gaps in service and production.

 

The Results

Over 12 months, Source One and the client’s internal Procurement team collaborated on a series of Strategic Sourcing projects that produced savings, promoted efficiency, and strengthened supplier relationships.

  • Source One’s Procurement consultants helped the client establish a new contracting template for their indirect procurement efforts. Over the course of the engagement, they executed over 45 efficient, strategic contracts.
  • Source One’s facilities category experts team produced an average of 15% in savings across categories including Waste Management, Fire Inspection Services, Janitorial Services, Security Services, HVAC, Landscaping, Roofing Services, and Electrical Contracting.

 

Source One’s history is a case study in effective Procurement consulting. Our unique approach to Strategic Sourcing has produced costs savings for clients across every imaginable industry in every category of direct and indirect spend.

 

Contact our Facilities Strategic Sourcing Experts

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