Global Integrated Facility Management Outsourcing

Client:

GEA Group AG

Project Type:

Completion:

Mid 2019

Project Scope

Assess current facility management provision and evaluate business case for outsource of services, contracted and in-house, to a single external provider, globally;
Engage with best-in-class global service providers through a procurement exercise to determine (first five/ six suitable, then two best value capable partners and then) the best partner to deliver the services;
Engager with executive board in regions and business units to ensure optimum alignment between requirement and service delivery model;
Provide client-side governance to mobilise and launch adoption of services and transformation to new service globally.

GEA Global Corporate Real Estate progressed an initiative to replace contracts with c4000 suppliers across 400 sites globally from major office and production sites through to service centres and distribution locations and all management resources involved with managing those contracts with a single integrates services supplier.

Savings. The procurement exercise originally expected a long-term cost reduction in excess of 15% pa over 5 years. Including savings in the first operational year.
Customer service. Avoiding disruption to the client sites was seen as paramount. The service levels needed to increase speed of response, prioritise urgent issues better, deal with operational maintenance issues faster, resulting in improved operational uptime;
Sustainability. The global provider brought expertise to help the client align services (cleaning, reception, security) closer to customer needs; eliminating duplication and reducing waste. This supported the client’s sustainability objectives;
Response management. The supplier provided the client with an integrated, multi-lingual contact centre for each time zone that allowed them to address issues with increased response speed and certainty at all sites (not just where facility managers were based).

Project Outcome

Provider selection; the competition was actively managed to ensure that the two final suppliers were competing strongly to give their absolute best value and well managed offer to the client.
Cost saving target achievement: prior to Cortex involvement the client struggled to make any savings due to the limited and short-term nature of the tender. Coretex revised strategy achieved savings in the first year and over 20% savings by year 5.
Engagement/ consultation; the communication strategy involved engagement with the regional and business executive leads plus the leaders of all the major production sites globally. HR, Health, Safety and Environment, Finance, Procurement and IT were involved in active consultation and solution development. Each of the major sites had bespoke presentations to ensure they could see the benefits to them and to the client globally;
Process governance; the procurement, business case approval and mobilisation activities were managed by Coretex using risk management, time sensitive objective achievement monitoring and active relationship development between the multiple client contacts and the supplier organisation.

Coretex Process

Coretex proposed increased ambition and better strategies for the procurement of the service, which was initially only for a third of the sites, contracted services only (no staff transfer) and for three years. The final contract was for c€600m over 10 years with a review at 5 years. This made the contract more valuable to the supplier, who could build value and savings over time.

Using governance tools, regular interaction with the supplier and a structured change workstream process involving a broad base of stakeholders across the organisation, we rolled out the due diligence and implementation process in country specific tranches.

Other similar clients: University of the West of England, Nokia Siemens Networks, Nokia, 3M, Financial Times, Pearson, Dell, Oclaro, Pearson.

Global Integrated Facility Management Outsourcing