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Professional Beauty Retailer


November 01, 2019     2 minute read

The Situation

This US-Based retailer with a large footprint of 4,000+ locations hit a point where their ongoing cost control initiatives were no longer proving to be successful as per their annual report. In addition, the technology provider they currently had was increasing their subscription fees for both the client and the providers. They required a partner who could help reorganize their facilities structure while also ensure 100% compliance – their budget could not withstand the potential risks from litigation costs.

In addition to savings, they were not structured with the right amount of staff to incur additional locations.  In order to grow and make acquisitions, they needed a supplier that could allow the team to focus on growth and while the partner handles the tactical execution.

They evaluated 7 industry partners including a couple of CREs (Commercial Real Estate Companies) and ultimately selected NEST for our Integrated Facilities Management (IFM) program.

The NEST Solution

The NEST IFM program offered this retailer a US-Based 24/7/365 command center that was incorporated into the NEST Facilitate work order platform.  Store managers could access the system round-the-clock and save time from having to call in their requests. The client-dedicated NEST operations team is fully equipped to triage the situation and dispatch to the fully compliant NEST Independent Service Providers that are trained to adhere to the client’s brand standards.

The corporate team restructured based on their new program requirements. With NEST handling program execution, their team was redeployed to focus on strategic growth.  They have on-demand access to real-time analytics and reporting so they can ensure the program standards and budget are being met, while they focus on growing the organization. Together with the NEST Business Analyst team and the NEST financial consulting program, the client has fully documented program forecasts and projections ~ all which helps them drive their new strategic initiatives.

The Results

Running on a fully integrated model has proved to be very successful for them. Prior to NEST, they were running at 39% strategic control of their operations and after converting to the IFM Program they’ve been on the trajectory up. The initial net savings in the first year of R&M Spend was over $1M.

And, they saved close to $600K on platform fees and another $380K in supplier charges – this is a 10% cost savings, with additional cost reductions with the NEST work order cost methodology and zero-based technology subscription fees.

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