Facilities Coordinator, Retailer Y
“We wanted a partner that had the industry expertise and a wide range of HVAC contractors that could review our current processes and scope of work and let us know if anything was missing or could be done even more efficiently.”
Background
Retailer Y offers the best in children’s clothing and merchandise for ages 0-14. As of April 2009, the Company owned and operated 918 retail locations in North America along with its booming online business.
Opportunity/Challenge
During today’s economy, the key to cost savings for many companies is through optimizing the activities surrounding the sourcing of services and supplies. As a leader in the industry, Retailer Y understood this opportunity and engaged FacilitySource to manage their strategic sourcing and vendor management processes in order to reduce cost.
“We wanted to weed out the vendors that were extremely expensive and gain access to FacilitySource’s qualified vendor database. Our ultimate goal however was to save on cost.”
– Facilities Coordinator, Retailer Y
Through strategic collaboration, Retailer Y and FacilitySource concluded that the HVAC and Filter expense categories had the greatest potential for cost savings.
Solutions
Retailer Y selected FacilitySource because of their comprehensive e-sourcing solution called fmSourcing. fmSourcing includes the complete management of the Request for Proposal process that ultimately enables more informed decisions and increased cost savings. This strategic solution provides value add through a qualified and vetted vendor base, aggregation of vendor spend, leverage of vendor relationships, as well as trade and industry expertise.
Retailer Y, along with many customers, embrace fmSourcing because of the complete management and analytics tools that help them not only move toward industry benchmarks but, in fact, become industry benchmarks.
Results
“Because this bid was run completely online, FacilitySource was able to send it out to over 200 qualified HVAC and Filter contractors. The reports we received made it easy for us to review and compare the multiple bids. In the end, we saved over $300,000 off of our budgeted spend for the year.”
– Facilities Coordinator, Retailer Y
The savings for Retailer Y were substantial:
- 36.64% savings from budgeted spend
- Equals over $300,000 dollars saved
- Complete tracking of bid result execution through FacilitySource’s fmPilot system
FacilitySource recommends strategic sourcing for anyone who wants to shorten the procurement cycle, obtain direct cost savings, ensure policy compliance, drive quality improvements, increase productivity, streamline vendor management processes, improve visibility and control spend, increase volume discount and reduce processing time.
