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Global IFM Sourcing Initiative Results in $45 Million Operating Cost Reduction
·  Facilities Management
·  Reduce Costs and Save Money

Overview:

EMS helped our client develop and implement a comprehensive global sourcing strategy that will generate a 21% savings or a $45M cost reduction over five years.  With EMS’ recommendations, our client  increased operational efficiencies and improved service delivery of IFM services across a 5 million SF portfolio with a single provider.

Client:

This well-respected global technology firm is one of the world's largest IT management software providers. Their software and expertise unify and simplify complex IT environments in a secure way across the enterprise for greater business results.

Challenge:

The client needed to reduce costs, improve service delivery and increase efficiencies in their FM services across their global portfolio.  They also wanted to consolidate to a single service provider.  EMS developed a competitive bid strategy, defined a comprehensive scope of work, established measurable service levels and created a comprehensive Request for Proposal (RFP) for a full range of IFM services. Three regional facilities executives responsible for managing the delivery of IFM services across the North America, EMEA and APJ global regions provided significant input into the process. Viable proposals were considered from three major IFM Suppliers, all with varying service delivery strategies.

Solution:

  • Develop a Client specific RFP strategy and process, limit participants to viable suppliers and administrator a thorough and fair bid assessment and evaluation process. 
  • Clearly define the portfolio attributes and prepare comprehensive scope of work documents that define the range of IFM services, service levels, technology requirements and performance measurement criteria. 
  • Develop an integrated pricing model to ensure all proposals use the exact same format and reflect the exact same Client expectations and requirements creating standardized price comparisons as part of the decision criteria.
  • Heighten supplier accountability by structuring the management fee so a percentage of the fee is “at risk” and paid based on the supplier’s ability to deliver services to the Client’s satisfaction.  
  • Customize a master service agreement to reflect the Client’s requirements and the IFM business.  

Results:

  • Client will realize a significant savings of 21% or $9 million a year in cost savings over the life of the 5 year contract.
  • A single supplier was retained to deliver a full range of IFM services across the entire global portfolio, reducing management costs and increasing efficiencies in the management of the relationship.
  • Consistent asset management programs, standards and sourcing practices are now in place. 
  • A single technology platform is now in place across the entire portfolio.



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