Having completed multiple projects with this fashion retailer we were asked to advise on their Facilities Management contracts and spend. We undertook an in depth analysis of their current FM operation and contracts focussed on reducing supplier risk, driving efficiencies and improving services across their global estate.
Client Overview
A global fashion brand, founded and headquartered in the UK. With a global mixture of owned and franchised stores & distribution centres in 50+ countries, facilities management was a complex and challenging area.
Our client wanted to review their current operation, suppliers and partnerships to identify opportunities to reduce annual costs and time spent managing these relationships.
Our Approach
We worked with the key stakeholders to form an “as is” picture.Our client has an ageing store and head office estate. With costs did not include any ‘nice to haves’ focusing solely on issues which affect H&S or could prevent them from being able to trade.
By working with a “Managing Agent” model, our client had a single contractor manage their existing supplier base for planned maintenance, reactive repairs and other FM services. This meant our client still received 18,000+ supplier invoices per annum as well as managing the 700+contracts and relationships with these suppliers.
As a Managing Agent, the supplier had been to demonstrate value by driving some service and compliance improvements. They found they were limited by the quality of our clients contractual arrangements.
Results
By working with the existing Managing Agent we were able to identify a global solution. Transitioning the relationship and contract to a “Principal Contractor” (PC) relationship would deliver several benefits. These included;
- Guaranteed savings of at least £728k per annum
- 700+ suppliers reduced to 1
- Potential for additional savings of £241k per annum