Facility Management Review Yields $1 Million in Savings
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Overview:
A leading global provider of life sciences and analytical instrument systems saved more than $1 million annually by restructuring and outsourcing all real estate-related services, including facilities management, project management and relocation services. This allowed the workplace services group to play a more strategic role on behalf of its internal customers.
Client:
As a leading provider of life sciences and analytical instrument systems worldwide, this client delivers product and technology innovations that benefit millions of people around the world.
Challenge:
Under intense pressure to reduce expenses across all corporate support services departments, this company hired Expense Management Solutions to assess its current operation and determine whether outsourcing its facilities management functions to a third-party provider would be in its best interests. Concerned with the welfare of the current facilities staff and unsure how to structure a “stay-back” team to manage the outsourced relationship, the client relied on EMS’ industry expertise, best practices and benchmark data to establish a strategy that would enable it to outsource effectively .
Solution:
- Conduct a comprehensive assessment of the workplace services department, evaluating current staffing levels, occupancy costs, technology, processes and alignment of services with the needs of the business units.
- Develop detailed baseline cost models to demonstrate the client’s true total occupancy costs relative to the market.
- Use industry expertise and benchmark data from comparable companies to develop extensive recommendations for restructuring and outsourcing all real estate related services, including facilities management, project management and relocation services.
Results:
- The company achieved savings of more than $1 million annually.
- The company increased service levels to customers and refocused the workplace services department, enabling it to provide more strategic direction to the company relative to management of corporate occupancy.
- The company received a meaningful benchmark comparison for evaluation of external proposals during the outsourcing bid process.
