How can you ensure best value from your FM or ESCO providers?

Outsourcing has evolved over many years as an important strategy by which organisations can effectively manage non-core activity and reduce costs. But outsourcing can be a difficult and complex process and aligning organisational objectives with the outsourcing programme to optimise the potential benefits can be challenging.

Posted on 25 July 2019.

Conversely, those companies that successfully implement tailored and well managed outsourcing programmes can realise real tangible and long-lasting business benefits and enjoy partnering relationships with trusted suppliers who focus on the client’s organisational goals and objectives.

An audit of services, a ‘Provider Audit’, can be a very effective way to interrogate the appropriateness or otherwise of a facilities management or ESCO provider and can identify improvements in the efficiency and effectiveness of any arrangements.  This approach:

  • Reduces negotiation time for new contracts
  • Ensures the selection of the most suitable provider.
  • Optimises self-delivery by identifying areas for improvement
  • Provides sense/health check of existing providers as a basis for reviewing KPIs and contract terms.
  • Enables decisions based on organisational priorities
  • Provides comprehensive information on which to base informed decisions

This was the approach taken by Toyota, the originator of Toyota Production System and lean manufacturing techniques, when they were seeking break-through activities in order to improve in house efficiency and cost in the area of maintenance activities at their plants.  They appointed JRP Solutions to undertake a review of the maintenance operations at their manufacturing facility at Burnaston.

“JRP provided a clear direction to us and throughout the process have been a guiding hand, listening to our concerns and providing patient answers to our many questions. The process by which we made our selection was logical and based on a sound understanding of our objectives,” Christine Cooke, Senior Manager, Purchasing & Cost Management.

JRP’S work was delivered in three phases.

Phase 1

JRP carried out an in-depth review focused on:

  • Organisational structures
  • Maintenance strategies
  • Performance metrics
  • Cost benchmarking
  • Sub-contract support

Following this review a number of recommendations were made. JRP developed a strategy to achieve the recommendations of the review and was subsequently appointed to assist TMUK with the implementation of this work.

Phase 2

This phase 2 work included;

  • Visioning workshop to determine the critical success factors
  • Facilitation of the Request for Information process (RFI)
  • Production of the Request for Proposal information pack (RFP)
  • Facilitation of the RFP process through to supplier selection including supplier interviews, site reference visits and supplier scoring.

Following the review of the TMUK maintenance operation at Burnaston (Phase 1), and the successful completion of the RFP, RFI and supplier selection process (Phase 2), JRP were also appointed to provide support during the implementation and mobilisation of the FM outsourcing project (Phase 3).

Phase 3

The implementation and mobilisation phase of this FM outsourcing project covered the conclusion of commercial negotiations with the selected supplier through to the implementation of services and embedding of the contract management process and protocols.

Results

The FM outsourcing partnership has been designed to align with Toyotas culture of Kaizen (continuous improvement) and is structured to deliver performance improvements across all FM services driven through output-based specifications and KPI’s in a risk and reward arrangement whilst streamlining and improving the efficiency of a consolidated supply chain.

If you would like further information on any of the services in this document, or you would like to find out how we can use our resource efficiency expertise to add value to your organisation, please contact us on 0800 6127 567 or email us info@jrpsolutions.com