This crafts retailer with over 800 stores in the United States was experiencing a lot of challenges with the providers who were servicing their stores. With the number of providers required, it was difficult to manage. The hourly rate model including trip charges, overtime, and emergency fees was driving up program costs significantly.
The technology they were using was very rigid and would not allow for customizations tailored to their program requirements. In addition, it did not offer insightful analytics to monitor program success.
They brought in a procurement and sourcing partner who was tasked with helping them find a new FM Partner. The sourcing team was taking a legacy approach including hourly rates, trip charges, and overtime. NEST recommended they would be better suited leveraging the total cost of ownership model and we were granted the opportunity to provide an alternate solution. The NEST Team conducted the preliminary data analysis with them and presented how the IFM approach – including customizable technology – could drive program savings.
The NEST Solution
With the NEST Integrated Facilities Management program and a dedicated operations team handling the stores’ needs, this organization’s FM program made significate changes. Prior to NEST, they experienced a lost of issues on their floor care program with providers not showing up when scheduled. The NEST Floor Care Subject Matter Experts organized a recurring program with regional providers that transformed the look of the stores.
Upon integration of their corporate system with NEST Facilitate, they were able to customize the solution to their program requirements at no additional cost. Together with the integration and the NEST reporting and analytics they can now track FM as a cost savings, rather than a budget buster. And with the NEST business analysts providing program guidance, they were able to re-structure their budget with proper quarterly projections and forecasts.
Very quickly, the IFM model paid off for this organization. Within the first year, they experienced a ~10% true cost savings within their R&M expenses and additional cost reductions built into the program. The dedicated NEST operations and technology support teams helped them restructure their internal teams, thereby moving the tactical workload to NEST.