Supplier/Service Consolidation - Case Study

Background:

The client, a Fortune 500 company, provides financial banking services at over 6500 branches in every state across the nation.  They have been managing janitorial and other facility maintenance services using local providers at each of their many locations and wish to consolidate services and number of service providers.  The client believes they can achieve this by cutting down from thousands of localized providers to only four national providers.

Challenges:

  • The client struggled to manage thousands of service providers, and therefore wished to consolidate the provider base. They desired a limited number of diversified service providers which would collectively manage all facility service needs.  The client believed that using a handful of dedicated provider teams would result in better communication and achieve superior service results.
  • The client aimed to reduce administrative costs by consolidating service payables. They wished to receive a small amount of larger invoices from a few select providers, as opposed to thousands of small invoices from the many different local vendors.  
  • In order to move from reactive facilities management to proactive facilities management, the client needed to have the ability to track services in real time.  The client understood that both better technology and a greater degree of accuracy in reporting would be prerequisites to achieving this goal.
  • The client prioritized reducing costs across all segments of their facility services budget. 

The Solution

After a thorough and detailed RFP process, Allied National Services was chosen as one of the four national providers, establishing integrated services in client locations throughout the United States.  Allied supplies a dedicated account management team, the central point of contact for all client communications.  Allied also submits only one monthly invoice for all services completed at each client location contracted, achieving the client’s goal in consolidating payables.


Using Allied’s proprietary technologies, the client is able to access real-time visibility via frequently generated reports containing weekly, monthly, quarterly, and yearly data analysis breakdowns. With this improved financial reporting, the client can better gauge KPI’s and SLA’s in real-time.  Through Allied, the client consolidates all janitorial, landscaping, snow removal, pest control, recycling, and solid waste management facility maintenance services.

Benefits Realized 

The client has consolidated thousands of localized service providers down to just four national providers, streamlining communication between the client and their facility services assets. Significant improvement in effective communication was achieved, resulting in superior service at every location throughout the country.



As a result of the streamlined invoicing process and allocating facility maintenance staffing to their national vendors, the client achieved a significant reduction in payroll hours.  Additionally, facility services technological expenses were eliminated, as Allied equips all customers with their proprietary technology free of charge.


With the help of Allied’s centralized communication and enhanced technologies, the client has achieved a 19% reduction in facility services and maintenance spending over the course of just one year.  Spending reductions are expected to be augmented as technology and communication continue to improve.