IFM Case Study

IFM Case Study: Global Shipping and Logistics Retailer

Global shipping and logistics retailer streamlines facility maintenance operations and realizes dramatic cost savings.

Overview

A global shipping and logistics retailer turned to FacilitySource to consolidate facility maintenance operations at the corporate level and manage the complexities of transitioning from a decentralized to centralized model. By leveraging the components of our Integrated Facilities Management (IFM) Solution, the client was able to transform facility maintenance processes across their location portfolio and lower their overall expenses.

Challenge:

A global shipping and logistics retailer with over 1,700 locations approached FacilitySource for a solution to help manage facilities maintenance (FM) operations. Before FacilitySource, facilities maintenance operations were decentralized, with district managers responsible for managing services as part of their individual budgets. The process was inefficient, providing little or no visibility at the corporate level into costs, equipment conditions and repair frequency. In addition, the company had numerous service providers and contracts to manage, leaving little opportunity for process improvement or accountability.

In making the decision to centralize FM operations, the logistics retailer knew they needed a solution that would:

  •  Handle the increased work order volume created by centralizing operations
  • Address vendor issues, such as outdated contracts and low performance
  • Improve urgency and communication both internally and externally
  • Elevate the quality of service without increasing headcount
  • Address aging HVAC equipment at their stores

Solution

FacilitySource implemented an Integrated Facilities Management (IFM) solution to help address the company’s facility maintenance challenges. The components of IFM included simplified service provider management, a dedicated team of industry experts, integrated systems for reporting, and strategic, cost-saving improvements.

Service Provider Management

By transitioning to FacilitySource’s Elite Network of Service Providers for HVAC, electrical/plumbing, and janitorial services, the client gained the ability to drive process improvement and operational savings. This transition improved communication between stores, service providers, and the account team to streamline work order management.

Account Team

FacilitySource created a team of professionals with the knowledge and tools to elevate the quality of service and act as an extension of the client’s team. The account team troubleshoots complex problems, optimizes costs while improving performance, and reviews work order data. The client also has access to trade experts, who help further drive down costs using their specialized trade knowledge and experience.

Systems & Technology

By integrating the client’s accounts payable system with FacilitySource’s fmPilot software, the client now enjoys many benefits, including streamlined monthly accrual and forecasting; greater vendor responsiveness and performance; and dashboard reporting for improved budgeting and strategic planning.

Operational Improvements

In addition, the operational improvements made through IFM have provided significant cost savings for the client.

  • Bundling Program: In an effort to reduce spend and trip charges for general maintenance, FacilitySource “bundles” service requests consolidating non-emergency requests for a technician visit, or by scheduling regular visits to the stores. This bundling program has increased the amount of work with a 20% reduction in work order volume.
  • Preventative Maintenance: District managers would neglect to perform HVAC preventative maintenance. The FacilitySource team created processes to ensure all preventative maintenance is scheduled and completed on time. This has reduced the number of emergency calls for HVAC maintenance and will extend the life of the units.
  • Asset Replacement Program: As a result of the client’s decentralized FM model, over 50% of their HVAC equipment was over 15 years old. FacilitySource implemented an asset replacement program, including a strategy for requiring landlords to replace equipment during lease renewal negotiations. This program has significantly reduced costs for new equipment and maintenance of existing assets.

Summary

As a result of the FacilitySource Integrated Facilities Management solution, this logistics retailer is on track to realize over $1 million in savings, with over $350,000 in savings already guaranteed. We have seen great initial results with this client, and continue to look for ways to streamline and transform their FM operations.

To learn more about how FacilitySource’s IFM solution can help you take your facilities performance to the next level, please call us at 1-800-896-9000, email us at marketing@facilitysource.com or visit us at www.facilitysource.com.

To learn more about FacilitySource’s Integrated Facilities Management solution, please call us at 1-800-896-9000, email us at marketing@facilitysource.com or contact our sales team.