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How Leading Companies are Saving on Facilities Management Operations


September 10, 2021     5 minute read

Whether customers are tapping on their smartphones or browsing through in-store aisles, leading organizations are focused on delivering superior customer experiences. For the brick and mortar part of the equation, this means C-suite attention has shifted to improving retail locations, enhancing on-the-ground services, and ensuring brand standards are consistently met throughout the physical fleet一areas where facilities management (FM) is pivotal.

Furthermore, technological advancement, smart data, and analytics have enabled facilities managers to better control growing program complexity and leverage savings from across their operations一all in support of customer-centric strategies.

Here’s a look at some of the ways leading companies are saving on facilities management operations today.

Optimizing Facilities Management During Rapid Growth

During periods of rapid scaling, maintaining in-store brand standards across a growing fleet can be a challenge, especially with a decentralized approach to FM. Cost and service inconsistencies can pile up quickly. This was the situation for a national mattress store chain while expanding from 500 locations to 4,000 in a short period.

NEST’s Integrated Facilities Management (IFM) solution enabled the mattress retailer to turn over all its facilities maintenance needs to a trusted and experienced FM partner. NEST brought resources online quickly, and maintained consistency of service even as the mattress retailer expanded its footprint. 

Specific improvements included:

Results included a:

  • 30% increase in program adoption and call volume.
  • 12% savings in the largest spend categories.
  • 0% increase in internal headcount.

Leveraging Real-Time Reporting to Inform Strategic Decision-Making

When a national party retailer launched their next-generation store, they wanted an IFM partner as customer-focused as they were. Their retail store design was fully reimagined to improve in-store efficiencies and enhance the overall customer experience. It was critical for the retailer to have their IFM program perform at the level this new initiative demanded. 

The retailer partnered with NEST to establish a new, data-driven IFM framework that provided the structure and data required to support the new store design, while identifying savings opportunities. 

Specifics of NEST’s solution included:

  • Improved access to, and pricing of, top vendors through NEST’s extensive ISP.
  • Improved operational efficiencies, fleetwide.
  • Real-time data reporting on the status of stores and work orders, including reports covering the completion of work orders by priority status, repair and maintenance KPI summaries, and more.
  • Comprehensive reviews of vendor performance. 

Results included:

  • Enhanced visibility into FM program specifics and performance.
  • Access to key reporting to inform ongoing store rollouts and make real-time adjustments, as needed.
  • Tech savings of $225K per year.

Improving Service Delivery With a Small In-House Team

Even with an IFM partner in place, service delivery can be inconsistent and expensive without the structure and data available to measure it. A regional financial institution found this out the hard way. Undefined service levels, pricing variability, ad hoc agreements with service providers, and costly preventable repairs were the norm until they brought NEST on to replace their existing IFM partner.

NEST supported the financial institution’s small in-house FM team with a robust IFM program across their branch network. 

Specifics of NEST’s solution included:

  • Creating a unique program cost framework that standardized service levels and pricing, regardless of location. 
  • Providing support in cost-cutting, and leveraging predictive billing.
  • Taking over the vetting and management of service providers一including the overwhelming task of verifying provider insurance and background checks.

Results included:

  • Significantly enhanced visibility into FM operations.
  • 14% annual cost savings across the total IFM program.

Maintaining Mission-Critical Brand Standards & Minimizing Equipment Downtime

A brand can be an organization’s most valuable asset, and when an in-store experience falls short of a brand’s promises, consumers notice. This happened to a large toy retailer that specialized in unique interactive product offerings. During its initial growth stages, the company struggled to keep its stores’ equipment up and running一the key to providing its signature, hands-on customer experience and brand promise.

NEST was hired to design an innovative approach that addressed these critical challenges一even as the retailer grew. 

Specifics of NEST’s solution included:

  • Training members of NEST’s ISP network in the retailer’s unique brand and equipment. 
  • Developing new inventory processes to ensure that key equipment parts were always available.
  • Improving program transparency to better track equipment warranty and repair history by location.
  • Regaining control over FM expenses with real-time access to program KPIs. 

Results included a:

  • 4% reduction in equipment downtime.
  • 0% increase in internal headcount.

Controlling Cleanliness & Maintenance Across Large & Disparate Fleets

A quality FM partner can help support cleanliness and maintenance across a large number of retail outlets, even when the stores are in busy city locations requiring compliance with local ordinances. 

This was the situation a national drugstore chain found itself in. Unable to manage its cleaning and seasonal maintenance programs across its city locations, the drugstore retailer was losing business to local competitors and getting hit with expensive fines for code violations. 

NEST established a comprehensive sanitation framework across the retailer’s fleet, with service levels that consistently met local standards. 

Specific improvements included:

  • Adoption of new cleaning protocols for power washing, window and canopy washing, and floor maintenance.
  • Streamlining the work order process for better visibility of performance metrics such as days-to-completion, floor care KPI summaries, and more.
  • Development of a winterization program to address seasonal maintenance issues.

Results included a:

  • 15% decrease in annual spend.
  • 15% increase in sales.
  • 20% reduction in city violations.

The Power of a Comprehensive IFM Solution

Of course, these are only a few examples of the many ways companies can achieve facilities management cost savings. 

NEST’s IFM solution provides the comprehensive program visibility needed to identify savings opportunities such as these, as well as the expertise, experience, and operational scale to leverage them. With a full suite of program analytics and financial consulting, NEST offers a unique partnership that empowers brands to think proactively about their FM program, act with purpose, and achieve their business goals.

Contact NEST today to see how you can achieve meaningful cost savings in your facilities management program, too. Your blog post content here…

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