Utilities Management Agreement – Ambrosia

Services Provided

Utilities management agreement from developing strategy to appointment of provider, followed by 10 years of contract management/advice.

How JRP Solutions helped Ambrosia

JRP were appointed by Premier Foods to analyse its utilities arrangements and to identify the most efficient, and effective way to manage the organisation’s 6 service lines. The boiler house management was already contracted out, with the other 5 services being managed in-house.

JRP worked with Ambrosia to identify its objectives and followed a very robust 20 step plan from data gathering to final appointment of outsourcing partner.  The plan identified outsourcing of all 6 service lines as the most efficient and effective utilities management strategy. From 12 organisations that expressed an interest in providing the services, following analysis across a range of factors including culture, four were selected to tender.  JRP put these four through a rigorous Provider Audit to determine quality of service to compliment the cost appraisal, so determining value.

The agreement negotiations were planned using an MDO/LAA (Most Desirable Outcome/Least acceptable Agreement) matrix, and JRP managed the appointment process as one of the three negotiators including Ambrosia Legal Counsel and the site Engineering Manager. 

Subsequent monitoring and on-going management of the contract by JRP included an annual Provider Audit and a continuous improvement programme was also put in place to incentivise the provider to generate and implement ideas.  To incentivise continual improvements further a robust but simple two step approach was put into place for the raising and approval of business cases.

Results

In addition to the £250,000 annual savings achieved through the new utilities management agreement, Ambrosia experienced a number of other significant benefits including:

• An effective FM Partner risk/reward scheme against specific KPI’s ensure on-going improvements
• Improved energy efficiency
• Clearly defined areas of responsibility
• Reduced emissions
• Reallocation of engineering resource to production
• < >info@jrpsolutions.com

For more information please download this case study as a pdf.