Articles by "Facility Management"
Showing posts with label Facility Management. Show all posts

on Friday, September 17, 2021 0



As offices across the country begin reopening, many organizations have begun the process of reengaging former facility service providers to reactivate programs that were disrupted as a result of temporary facility shutdowns.  Some examples of categories impacted by facility closures includes services such as water & coffee, food & beverage, security, and janitorial services.  While there is a lot to gain by establishing a go-to-market sourcing strategy for each of these categories, this blog will specifically focus on how to successfully source best-in-class janitorial and cleaning services. 


Identify current state vs desired future state

Before going to market it’s important to understand what’s working and not working with your current janitorial services provider.  Take the time to run an internal review and score the supplier based on factors that are important to your company, some examples may include: Is facility cleanliness acceptable, are staffing levels adequate, are response times for emergencies acceptable?  Understanding the pain-points with your current supplier will help naturally pivot the next crucial step which is updating and/or creating a Scope of Work to align with your desired future state.  The Scope of Work (SOW) should be created and included in your janitorial services contract to ensure supplier expectations are clearly established.  Any concerns regarding the requirements established in the SOW should be aligned on between both parties prior to contract execution to ensure your desired future state is fully understood.   


Request for Proposal (RFP) development

Prior to building your RFP to receive supplier pricing, it’s important to ensure you have the correct janitorial service providers invited to this sourcing event.  I highly suggest starting this process off with a Request for Information (RFI) with detailed questions submitted to a wide range of potential suitors to help identify suppliers that fit the needs and requirements within your newly updated SOW.  Once this list of potential janitorial services providers has been properly vetted, the RFP construction process can begin

When building your RFP, it’s important to arm bidders with the proper metrics to ensure an accurate bid can be delivered to help meet the requirements established within your SOW.  Some examples of metrics that will lead to a successful RFP may include: total locations in scope, cleanable sq/ft per location, supplier’s forecasted full-time employee (FTE) bid count per location, and FTE hourly rate per location.  While there are many other metrics that could also be included, these selected inputs shared by bidders will enable you to accurately understand costs by location as well as the total cost to service your janitorial services portfolio.


Holding awarded supplier accountable

Congratulations, you’ve successfully gone to market and identified your suitable janitorial services provider through a successful sourcing initiative.  While you’ve confirmed that the supplier’s price is acceptable, now is not the time to let up!  It’s important to establish processes during the contracting phase to help manage expectations of the supplier, and to ensure they are held accountable.  For instance, if you wish to establish a required cleanliness score minimum across your entire portfolio, apply language within the agreement that applies penalties associated with facility scores below a certain threshold.  Quarterly check-ins should also be a goal to ensure continuity is in place, this can be achieved by including language in the contract requiring Quarterly Business Reviews (QBRs) to be conducted.  While these suggestions may not seem like much, they can often mean the difference between a good program and a great program.  


Going out to market can be a daunting task at times, I hope this blog helps guide you and your organization along the way to successfully source best-in class janitorial and cleaning services.  


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on Wednesday, June 09, 2021 0

How a digital supply chain can help transform the future of logistics

The world is moving from physical to digital, from wasteful to sustainable, from delayed to instantaneous, and from manual to automated. This faster pace of commerce and the disruptions force us to re-think how we do business. As a result, this
innovation provides an opportunity in disruption. It creates fertile ground for innovation and partnerships that deliver new products, services, and business models to an industry that is in dire need of re-inventing itself to keep pace.

The future of logistics benefits from the data provided by multiple systems, advanced analytics, and the automation of intelligence. As information is provided through the many different sources, the digital supply chain connects technologies, assets, systems, and locations to enable real-time analysis, smarter decision making, and informed actions inside the supply chain.

The data provides predictive analytics that helps shape new strategies for transportation and logistics. It takes into account all variables inside the supply chain, as well as traffic, weather, and social trends, to create an accurate plan. It also allows for flexibility. For example, instead of creating monthly plans, strategies are set weekly or daily to meet inventory volatility and customer demand.

While this breaks the traditional steps between fixed processes, it opens the door for continuous improvement. It allows for better placement of inventory in warehouses that drives quicker order fulfillment. The data, connectivity, and analytics provides the foundation for automation and smart warehouses.

Robotics such as autonomous forklifts, transporters, and assembly line vehicles provide a safe, efficient, and reliable solution for the movement of goods in a warehouse, while improving productivity, visibility, and customer service levels.

Wearable technology gives managers and employees the capability to exchange data between devices and the network. Wearables support core processes such as shipping, receiving, routing, inventory management, picking, and replenishment.

Outside of the walls of warehouses and distribution centers, advanced vehicle technology that includes everything from in-cab systems to engine and trailer diagnostics, and from electric and hydrogen fuel systems to autonomy is transforming the supply chain. Connected trucks have the ability to provide a plethora of data that translates into business intelligence and key predictive analytics with the right people utilizing it.

Having all these pieces in place – technology, data, analytics, warehouse automation, advanced vehicles, and infrastructure – a connected digital supply chain can be adaptive and responsive to the demands of consumers. It gets products to assembly lines quicker and when needed. It strategically maps warehouses and distribution centers for inventory placement, and eliminates waste inside the supply chain. It drives accurate, efficient, and accelerated e-commerce fulfillment and last mile delivery.

The digital supply chain connects everyone involved from suppliers to the consumer. Products can be seen moving through the supply chain, fleets can maximize uptime, and consumers can better predict the delivery of their products they purchased. Companies can meet sustainability regulations, digitize records, and forecast better.

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on Monday, November 30, 2020 0

Many organizations in the manufacturing and industrial field often find themselves working tirelessly to ensure employee safety is practiced through the utilization and procurement of a wide variety of PPE equipment.  The immediate threat of COVID-19 to the workforce has also created greater visibility within the safety category to ensure employees are properly protected.  The purpose of this blog is to help establish a roadmap related to the processes and procedures that will help your organization improve its safety program while also establishing significant cost savings. 

Well before the process of aligning on safety SKUs should be made, the first critical step is understanding and agreeing on the key decision makers within your organization regarding anything safety related.  If an Environmental Health & Safety (EH&S) department is not established within your organization, now is the time to do so.  A reporting hierarchy within your EH&S department should also be clearly established.  For instance, an EH&S Director should be the final decision maker for safety compliance and SKU standardization at all facilities across the organization, while an EH&S Coordinator should be responsible for compliance and enforcement at the local level.  This reporting structure is a critical piece of your overall safety strategy not only to ensure compliance across the organization but to also guarantee significant cost savings.  

Once your EH&S team hierarchy is built and properly aligned, the next step is to understand the “need to have” vs “nice to have” safety SKUs for your organization.  Any “need to have” SKUs should be rather clear – these would include OSHA (Occupational Safety and Health Administration) required equipment related to your specific field or any gear that is paramount for employee safety that should be identified and clearly defined (hardhats, fire retardant coveralls, COVID facemasks, etc.).  Working to solve for the “nice to have” category is often times a very difficult to define gray area between comfort and cost.  For instance, if your team works outdoors often, consider investing in the “nice to have” option of weatherproofing materials to ensure rapid moisture evaporation and rain proofing to help drive efficiency.  When addressing the “nice to have” category, there are usually significant cost ramifications that need to be properly evaluated before making any significant decisions.

Once the need vs nice to have discussion has been aligned on, the next step is to begin understanding and developing a SKU consolidation strategy.  This critical step is what often separates a good safety program from a great safety program.  The goal here is to fully understand what PPE categories need to be utilized by your employees, and to establish EH&S approved only SKUs within each specific category.  This process will lead to a custom internal catalog between your employees and awarded safety supplier to ensure ease of purchasing and compliance.  In addition, this custom catalog will protect your organization from “off-catalog” non-compliant PPE gear that would create additional costs while also putting your employees at risk for potential injury.

When identifying the SKUs that will qualify for purchase in your custom safety purchasing catalog, it is important to do your due diligence and full evaluation of each SKU in the running.  For instance, when aligning on an item such as safety gloves, performing on-site testing and a comparison of cut-sheets for each product under consideration will help provide tangible data to help influence your decision.  The EH&S team can oversee this process by distributing the PPE gear under evaluation with accompanying surveys to select employees in the field, while also internally reviewing the safety standards and specs identified in each cut-sheet.  This process will establish both a qualitative and quantitative analysis of each pending SKU, which will prove to be tremendously helpful in guiding the EH&S team towards a final decision in establishing cost savings within an improved safety program. 


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on Thursday, September 10, 2020 0

Each week, we will go into details on how to address project and change management now to create a resilient and robust organization for tomorrow.

If you missed last week’s blog on Employee Training, you can check it out here.

This week, we will look at the 6th and final way a company can use downtime to impact the greater good of the organization and position themselves to be a better, stronger company when the work picks back up.

Optimize, Organize, and Design

When companies expand over time, it’s easy to just add on piecemeal to handle that growth. Those adjustments may work in the moment but as growth continues and operations begin to change or shift, how many times are those added processes and procedures revisited? An organization may not want to look at ways to become more efficient or effective because what they have in place still works. Those companies are in jeopardy of quickly falling behind the competition. However, if a growing company is willing to peel back the layers of the onion periodically and look at ways to optimize, organize, and design their entire operation as growth occurs, it becomes much easier to make adjustments along the way.

Specific Example: Reorganize the Warehouse

Deciding how to design a warehouse layout is a step of vital importance—it can make or break the productivity, safety, and overall success of a warehouse. The layout of your warehouse needs to maximize available space, allow for limited travel time, provide easy access to product, and create a safe work environment. While it can be challenging to design a layout that fits all needs, proper analysis of business objectives and practices, as well as a dedication to safety and a cultivation of productive procedures, can help you come up with a design that is optimal for success.

From receiving to storing to shipping, the layout and flow of your warehouse will determine in large part how well your business operates.

Following are 5 warehouse organization tips to get your warehouse in order and improve the speed and efficiency of your employees:

1. Re-evaluate your warehouse layout design

  • Keep the following design elements in mind when planning (or updating) your warehouse layout:
  • Flow – meaning the uninterrupted movement of materials, people, and traffic within your building
  • Accessibility – meaning every product and all products on pallets should be accessible by everyone, usually without the need to move one product to get to another
  • Space – meaning the maximum warehouse space you can afford, taking into consideration storage, stock, offices, working areas, empty pallet storage, battery charging, etc.

2. Use warehouse racking organization

Warehouse racking organization is a method of storing your inventory vertically instead of horizontally, such as on pallet racks. This is a cost-effective way to maximize your warehouse space if you carry a lot of inventory or if you have a small warehouse and can’t afford to buy more space.

3. Use ABC Analysis to set up warehouse inventory

ABC Analysis of inventory is a method of sorting your inventory into three categories according to how well they sell and how much they cost to hold:

  • A-Items – best-selling items that don’t take up all your warehouse space or cost
  • B-Items – mid-range items that sell regularly but may cost more than A-items to hold
  • C-Items – the rest of your inventory that makes up the bulk of your inventory costs while contributing the least to your bottom line

4. Label warehouse inventory

Your employees shouldn’t have to rely on memory when searching for items in your warehouse. Every SKU in your inventory should be clearly labeled for easy identification.

Keep your labeling consistent for every item (i.e., always label the bottom right corner of boxes) and include all the necessary information on every label, such as:

  • Product name
  • SKU
  • Color
  • Size
  • Date

5. Make receiving inventory easy

Receiving inventory effectively is one of the key warehouse management tips because it sets the tone for the rest of your warehouse and inventory processes.

Here are a few ways you can improve inventory receiving:

  • Optimize your receiving space by providing the proper tools and enough space to allow your employees to sort and store incoming inventory.
  • Keep your receiving space clean and organized by removing clutter and putting every tool away after using it.
  • Track inventory in real-time by implementing a perpetual inventory system, in order to reduce miscounts, missing inventory, and incorrect shipments.
  • Monitor quality control by hiring a quality control manager to watch for mistakes, point out problematic procedures, and reduce the instances of inventory damage.
  • Unload received inventory quickly and safely by using the appropriate machines (i.e., forklifts and conveyor belts) and following clear safety procedures.
  • Avoid shipping the wrong items to your customers by verifying the goods received using metrics, such as the description of goods, product code, batch tracking number, etc.

A well-run and well-organized warehouse is a critical function within a company’s sourcing and procurement management efforts. While there is a direct relationship between procurement and supply chain management, the two functions are not interchangeable.

Procurement is the process of getting the goods and materials your company needs, while supply chain management is the process of transforming those goods into products and distributing them to customers as efficiently as possible. Warehouse operations are often where these two practices cross paths, so this pivotal business operation requires the most efficient and well-run systems.

Series Conclusion

It’s easy to become complacent in the way your company does business. If the company is turning a profit, employees are perceived to be happy, and suppliers and clients are limited in their complaints, then why spend the time to self-evaluate and make potentially disruptive changes? Times will change. Industry will change. The world will change. Preparing your company to have the structure in place to withstand economic downturns or extreme cases like global pandemics will allow for a quicker rebound when those crises are over. More importantly, a company’s ability to find ways to improve and evolve, no matter what the global economy indicates, will be a critical measure for your company’s future.

If you would like to download a free white paper from the Corcentric website where all 6 parts of this series of blogs are organized into one single document, please visit our library here.

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on Friday, August 14, 2020 0

Each week, we will go into details on how to address project and change management now to create a resilient and robust organization for tomorrow.

If you missed last week’s blog on Cultivating Supplier Relationships, you can check it out here.

This week, we will look at the 2nd of 6 ways a company can use downtime to impact the greater good of the organization and position themselves to be a better, stronger company when the work picks back up.

Assess Inventory Management

Manufacturing companies often look for the best time of year to perform in-depth inventory counting and reconciliation. For most, the holidays are the best time to do so. For others, whatever slow season makes the most sense will often get utilized. Performing a full inventory check is time-consuming, but necessary. Ensuring the accuracy of the inventory management system is critical when planning production for the future. When a count is off, the risk of not meeting a customer’s needs increases. It’s critical to identify the best time to review minimum stock levels, simplify the reordering process, and look at ways to automate processes. In the future, this downtime filler could be a thing of the past. Businesses utilizing automatic identification and data capture (AIDC) asset tracking processes are able to reduce the frequency of manual inventory counts and save substantial labor hours. That will help free up time to tackle some of the other projects suggested here. Essentially, the next time inventory is conducted, use it as a benchmark and then utilize process improvements in order to track enhanced efficiencies.

Specific Example: ABC Analysis or the “The Pareto Principle” (The 80/20 Rule)

When it comes to stock or inventory management, ABC analysis typically segregates inventory into three categories, based on its revenue and control measures required:

·       A is 20% of items with 80% of total revenue and requires tight control

·       B is 30% items with 15% revenue

·       C is 50% of the things with least 5% revenue and indicates more most liberal treatment

The numbers of any particular company may be different but have a similar distinguishable pattern. An ABC analysis aims to draw managers’ attention to the critical few (A-items) and not on the trivial many (C-items) and focus inventory control efforts on those particular items where management will have the most significant effect.

Once an ABC Analysis is complete, companies can use this data in supplier negotiations. When it’s all about getting the category A products sourced, it is understood that 70 percent to 80 percent of the money is about to be invested in those suppliers. Negotiation is a must. There are chances when a supplier might make a nod to your offer, but do not back off. You can still make offers like reducing the down payment, providing free shipping, etc. Your goal should be a win-win for both yourself and the supplier.

Please check back next week for a look at part 3 of this series where we will discuss ‘Supply Chain Reconfiguration’.

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on Thursday, April 09, 2020 0


When undertaking a holistic spend review in order to identify opportunities for cost reduction it is important to deploy all the tools in your toolbox in the right way. If you don’t deploy the correct tools or strategies you may be selling yourself short or investing too much time and effort into an area that is not warranted. Everything should always be looked at from a time to value perspective. Today I’d like to discuss when it makes sense to conduct Request for Proposals (RFPs), Request for Quotes (RFQs), Direct Negotiations and Group Purchasing Organization (GPO) implementation. Or in a nutshell building a strategic roadmap.

Generally speaking, RFPs should be utilized for categories that are more strategic to the organization and are more than just price focused. You want to identify additional elements and value adds that may be available in the market plus validate that the supplier meets your minimum criteria. There needs to be a wide enough supply base to ensure an element of competition and perceived threat.

But when do you decide that the category should be strategically sourced vs. working to implement a GPO solution? Do you have enough spend to leverage within the category? Often times, you may feel like you have a lot of spend in a given category, but how much does it actually mean to the supplier? The advantage of a GPO is that they are leveraging all of their members spend to drive lower pricing. Also how much time are you going to invest in the sourcing process and how much additional value do you think you may achieve if you are to conduct a full scale sourcing process? These are things that should be considered prior to blindly just applying a strategic sourcing strategy since strategic sourcing requires the highest level of engagement and utilizes the highest level of resource time.

RFQs are a modified version of a RFP where you are still soliciting responses from the market. However, RFQs are 100% price focused and are generally applied to more tactical categories where the suppliers are providing very similar to exact same products or services across the market. There isn’t much to it as far as service levels and value adds go and you are purely interested in reducing cost. But again you need to consider that although not as labor intensive as a RFP, RFQs still have very similar touchpoints. You also need to ask yourself, are you confident that you have enough spend to leverage to beat what you could have gotten going through a GPO program?

Unlike traditional RFP and RFQ categories, direct negotiation type strategies are typically applied in the following situations; there is an extremely limited supply base, the business has no incentive to move from the incumbent supplier and they highly value the relationship, you have a high level of market intelligence and do not need to solicit the market. Negotiating is a skill but having market intelligence is extremely helpful although not necessary.

So when should you assess a GPO and what are the benefits? The most obvious benefit is that the GPO program leverages all the spend across the entirety of their member base to ensure they are providing continuous cost savings and value for all their members. The GPO also manages the supplier relationship and overarching contract for you. But what does that really mean? It means that on an ongoing basis they are ensuring the supplier is meeting performance objectives, hitting KPIs, maintaining SLAs and of course modifying their pricing according the changing environment of purchases made by their member base. That being said if it is very important to you that you are managing the contract and maintaining the entirety of the end to end supply relationship management, utilizing a GPO is most likely not for you for the given category. However, if it’s a category that in the grand scheme of things is a lower to mid-level spend category and you are looking for low touch, immediate savings, it 100% make sense to look towards a GPO solution.

Corcentric applies a multifaceted approach, making the appropriate recommendations for the given category situation. We recognize there is no one size fits all approach. Thing should be looked at strategically and holistically in order to ensure that the right approach is being applied to a given category. In today’s environment not only is finding cost savings paramount but the speed to realizing savings is just as important.

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on Thursday, February 20, 2020 0

For many organizations, Indirect spend is a challenge to understand, as much as manage. The spend is often substantial and easier left alone. On top of that, you may not have the resources to dive in and get the many categories under control. If you are beginning to dig into into your Indirect categories, or you have been with dismal results, here a 5 issues that may be beneficial to correct first.

1. Your Procurement Managers do not KNOW the categories they manage.


It is important to at least have a working knowledge of the categories you are working within. If you do not know the ins and outs, that is fine, but being able to speak the language is necessary. Not understanding a category opens you up to tougher negotiations, worse contract terms, unnecessary spending, and a negative view of Procurement from stakeholders. It is important for Procurement to be involved in any negotiation early, however, coworkers and suppliers will not demand your involvement if you slow them down.

If you are thrown into a category, be upfront and honest with stakeholders who can show you the ropes internally. This way you are taught with the bias of your company in mind. If the supplier is your source of information, you may be taught dishonestly in some, but rare, cases. For example, if once monthly HVAC maintenance is acceptable, a supplier could instruct you that twice monthly service is necessary to get double the business. With stronger category knowledge, you could avoid doubling the required maintenance expense. The same situation could apply to contract negotiations. If a supplier is aware of your lack of knowledge, you could end up with terms that do not benefit your company’s goals. Most importantly, the respect from suppliers and stakeholders to require you be present in negotiations is paramount. As the Procurement representative, you may not be a category expert, but you more than likely are a negotiating and contracting process expert. This is where you will shine, so garnering the respect to be present is extremely important.

Source One Corcentric Gears and Belts MRO Indirect Spend2. Your data tells the wrong story.


How much trust can you put in your internal reporting? How well do you know what this data represents?

Procurement Managers often believe the exact story that their reports are telling them. They choose a category, run a report, and take the total of the spend column as the exact amount of spend in that category for a time frame. However, this is often not the case. Understanding the data allows you to understand the category much better. If your company has a large amount of spend without corresponding purchase orders, be sure to understand whether you are seeing this data or not. Know whether you are looking at spend that has been received against a purchase order or matched and paid against a purchase order. If you do not know exactly what the data you are seeing is telling you, your ability to find cost saving opportunities is greatly diminished. You also risk working within a category that has little addressable spend.

3. You have too many old contracts with too many suppliers.


Contracts are one of the most relevant pieces of information for the Procurement department’s success. Many companies rely on contracts to lock in pricing, payment terms, and other legally binding agreements between the company and supplier. However, contract management is often forgot about as business goes on as usual. The clear line of communication between the supplier and company is lost as the contract renews over and over for years. The benefits the company was getting when the contract was signed are now outdated. Procurement could potentially negotiate a much stronger contract, but no longer knows the contract exists.

This is common among conglomerates and large companies with decentralized purchasing, especially when standards for contract management are not a documented company procedure. Once Procurement begins to analyze the category, it is extremely difficult to get a hold of all the contracts with all the suppliers. The easiest way to avoid this is to consolidate contracts and suppliers. This can be a great opportunity for cost savings, as well! The consolidated spend will make your contract negotiation much stronger as you drive spend to less suppliers. Finally, be careful about evergreen clauses that automatically renew contracts. Once communication breaks down between Procurement and the suppliers, the contracts become a nuisance that will not go away. If necessary, use short term evergreen clauses that renew for a year or two at the most.

4. You are concentrating on the wrong categories that are too difficult, or have too little addressable spend.


For multiple reasons, Procurement managers can have their focus on the completely wrong categories to drive cost savings. If you solely consider spend, it can mean focusing on a category with a small amount of addressable spend. Be sure the large numbers are in fact addressable. For example, freight is a high spend category for certain companies. However, the cost is often high no matter what carrier you use. A better situation could potentially be negotiated, but there is a ceiling to the savings.

Procurement should also be considering when the last time the category was taken to market. If your resources are limited, addressing a category that has not been analyzed for years may be the better decision. Finally, reflecting on whether you are addressing a category because it is one you know well may be another opportunity for improvement. I have seen this multiple times. A Procurement manager is comfortable with stakeholders in one category of spend and continues to look for savings to work with the same department. This often leads to unproductive analysis from the manager that is continued down the chain to the analyst level.

5. You are overdoing due-diligence and not “getting in and getting out”.


Perhaps the most unproductive way to handle Procurement is to overdo due diligence without making any decisions. What I mean by this is looking into spend, analyzing, meeting with suppliers, running RFP’s (Request For Proposal) or RFQ’s (Request For Quote), negotiating contracts, and then doing it over and over without making any changes. At some point, a change will need to be made to actually render savings. If you are not making any decisions, you are not affecting the organization in a positive way. Be careful not to sit in the supplier sourcing function of Procurement for too long. This can cause Procurement managers to be viewed as wasting stakeholders’ and suppliers’ time. Not everything needs multiple meetings, and everyone on the organizations’ and suppliers’ end does not have to be present to have a quick conversation.

Finally, remember what the function of Procurement is. We are here for sourcing, contract management and negotiation, and supplier management. Good Procurement is simply getting as much of your organization’s spend under control. We are not Finance, we are not Accounts Payable, and we are not IT. This is what I mean by get in and get out. Too many times, Procurement gets stuck with processes that handcuff the department from doing what it is there to do. To be effective, take on as few non-Procurement functions as possible. Since we are so hands-on in the beginning stages of a supplier relationship, we often are the ones used as a fall back for tasks other departments do not want to handle. So, when possible, get in and get out, and find the next category to get under control!
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on Monday, January 13, 2020 0
I made a prediction earlier in the month that more organizations will look to become greener this year. There are plenty of things organizations can do to improve their sustainability, but Procurement pros are in an excellent position to help lead their organizations to meeting these goals. Why? Because we move beyond the confines of our facilities and can have an impact with all the suppliers our organizations choose to buy from.

So, what can Procurement do to help make our organizations more sustainable and environmentally focused, while still working to reduce costs and promote efficient purchasing?

“Sell” Green 

There’s cost savings in these initiatives, but also a level of change required to make them work – and it isn’t always easy to get stakeholders onboard with these changes. Here’s a tale of two organizations’ janitorial service providers to show what I mean.

Both organizations wanted to cut costs and considered moving to linerless trach receptacles to do it. Plastic trash bags take a notoriously long time to decompose (anywhere from 10 to 1,000 years). Cutting liners out can have a huge environmental impact for a large office – but requires personal change. One organization ended up cutting 80% of their liners to get greener and cut 2.5% of their monthly janitorial costs as a bonus. But this required employees to throw away gunky garbage (think lunch waste) in the still-lined receptacles in break rooms. The other organization’s management team felt this was too much of a burden to place on employees. Liners stayed in place.

Before we can start building a green Procurement strategy, we need to get our organizations and suppliers excited about the opportunities they bring. Is 2.5% monthly savings on janitorial services “worth it?” It certainly helps to position a change on cost benefits, but ultimately there’s an attitude change that needs to take place as well.

Establish Green Go-To-Market Events

Reducing or eliminating trash liners is just one green example. Green packaging options can cut waste while still offering exceptional protection for goods. Organizations can also push paperless initiatives. They can purchase green office and cleaning supplies, and eliminate disposable breakroom supplies in favor of reusable dishes and utensils. For organizations in deregulated areas, they can switch energy suppliers to those that offer green energy.

Procurement, naturally, has a hand in all of these decisions. As such, we should brainstorm such opportunities and propose go-to-market initiatives to bring such products in.

Even if a market event isn’t specifically focused on a green initiative, Procurement can promote sustainable purchases by including green elements in RFP documents. Ask suppliers to highlight green products in their quotes. Ask suppliers to outline their own green initiatives, and define what percent of their own suppliers offer green products and services. Make your commitment clear from the beginning.

Be a Green Advocate

Gut check question: Did you make any New Year’s resolutions this year? Follow-up: Have you already given up on any? If you have, you aren’t alone – less than 25% of people stick with resolutions after January ends.

Sticking with green initiatives will be much the same – it isn’t enough to sell green strategies once, or launch a few isolated green market events.

  • Work with management to set annual sustainability goals. Help the cause by tracking green purchases monthly as one of the overarching KPIs of this goal.
  • Work with suppliers as well. This will be particularly important for smaller suppliers that may not have much experience with sustainability initiatives, and don’t have the resources to devote to full-time team members to focus on being green. 

It Ain’t Easy Being Green

Beyond reducing environmental impact, there are certainly opportunities for cost savings from going green. But reducing an organizational environmental footprint and achieving those savings isn’t always easy.

Dedication is needed to identify green opportunities, see them through, and ensure that sustainability initiatives are a consistent focus as time goes by.

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on Monday, December 09, 2019 0

Automation is a scary word. For individuals, it sounds like "displacement." It conjures up images of lost wages and a long, arduous job search to come. For organizations, it sounds like the end of business as usual.

In warehouse management, however, it should bring to mind pleasant images and bring about positive results: more effective processes, more satisfied customers, etc. For many organization and individuals, the first step in overcoming these fears is recognizing that warehouse automation almost never happens all at once. It's not an all or nothing endeavor, but a gradual process of optimization and resource allocation.

Equipment Depot's Definitive Guide to Warehouse Automation identifies four different levels of automation. "A warehouse," they note, "doesn't go from zero automation to fully automated overnight

Which level of automation have your warehouses reached?

1. Systems Automation 

With systems automation in place, warehouses still rely mostly on human labor for picking, shelving, and other tasks. Typically, however, these processes are made more productive with the addition of a solution like a Warehouse Management System. Equipment Depot suggests investments in these helpful solutions will increase throughout the next year. More than half of the organizations they surveyed (55%) expect to investment in one during 2020. They'll reap benefits including more streamlined repeatable tasks and better visibility into inventory levels.

2. Mechanized Automation 

Warehouses with mechanized automation take advantage of labor-reducing tools that provide for speedy horizontal motion. These include conveyor belts, stretch wrap applicators, and other picking equipment. In addition to expediting repetitive processes, these solutions can reduce (or even eliminate) product damage. In time, this will boost customer satisfaction.

3. Semi-Automation

 Semi-automated warehouses rely on automated storage and retrieval systems (AR/RS) which can include racking systems, load-handling devices, and conveyor systems for moving goods to and from dock areas. Such warehouses also boost the efficacy of their WMS with the addition of Warehouse Control Software like RFID classification and automated vehicles.

4. Full and Sophisticated Automation 

 These are the world-class warehouses that include a complex, sophisticated network systems and solutions. In some instances, these even operate as true "lights out warehouses." These are warehouses that operate without a single human worker. Most, however, still leverage a combination of traditional labor and automation. 

Are you ready to automate some or all of your warehouse management processes? If your processes are too labor-intensive or your resources are utilized ineffectively, the answer is probably yes. Reach out today to learn more about taking the right approach to automation in the warehouse. Our experts will ensure you address obstacles and optimize processes without disrupting everything you're already doing well.
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on Friday, November 22, 2019 0





Amazon is turning heads yet again. This time, it is due to their $40 million dollar investment in their robotics hub. Amazon is looking into the future of automation and is working towards expanding their robotic technology.

Their new robotics hub will be located in Westborough, Massachusetts. This new facility is about 350,000 square feet and is set to open in 2021. Their goal of furthering their robotic automation is to increase efficiency, safety, and speed of delivery times, all while decreasing costs. It was stated that Amazon's packaging robots can pack 4-5 times faster than the average human packer. Although these robots have a hefty price tag of about $1 million each, Amazon believes these machines will pay for itself in less than 2 years. Amazon is currently concentrating a lot of their robotic efforts into packaging. This is a pilot, as Amazon looks to grow their use of robots.

Although Amazon primarily uses their robots for packaging, they are also used in other functions of the fulfillment process such as carrying inventory and transferring pallets. In addition to opening a robot friendly warehouse in Westborough, MA, Amazon is in the process of opening a new facility in Garner, NC. This facility is 2 million square feet and has dedicated about 700,000 square feet to its fulfillment center. Although it was not explicitly stated what roles the robots will have, it was mentioned they will retrieve inventory that is on the floor. This will decrease the time and energy spent by workers walking around this massive space, thus increasing efficiency.

Amazon has more than 100,000 robots spread across over 175 fulfillment centers and packaging and sorting facilities worldwide. The number of robots used are set to increase in the near future. Amazon is looking to develop new technologies which expand the tasks the robots are able to do. In addition to retrieving inventory from the floor and packing the products, robots are able to sort, stock, and scan packages.

In the near future, when Amazon significantly increases their robot usage, it will be interesting to see the results of this project. It will also be intriguing to see what capabilities and technologies are installed into these robots.
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on Friday, September 27, 2019 0

The following blog comes to us from Megan Ray Nichols of Schooled By Science.

Running a warehouse is never easy. Keeping everything moving is a major logistical task that requires good planning, foresight and skill managing people. Some warehouses run more efficiently than others. It may be how the floor is planned or how the operation is managed, but there is always room for improvement when it comes to efficiency.

Here are nine tips you need to know to make your warehouse as efficient as possible.

1. Schedule Regular Upkeep and Counts

If you're not already, you should be scheduling regular counts of the goods you have and inspect for damage.

Partial-count techniques like cycle counting can also be used if it's not possible or practical to count your entire inventory at regular intervals. You should also perform additional tallies of high-value and high-risk stock.

2. Optimize Your Layout

Maximize the square footage you have. Consider how products will flow through the warehouse floor. Go vertical if there is enough ceiling clearance. If possible, you can also bring in professionals to help you make your use of space more efficient. Another set of eyes on the floor will always be helpful. Their experience may pick out some unoptimized section of the warehouse where traffic isn't flowing as well as it could.

3. Regulate Floor Traffic

Even if your warehouse's floor layout is already optimized for the flow of goods, traffic can still be interrupted if you don't plan correctly.

Try to keep people who don't need to be on the floor off it. When organizing the traffic flow and layout of the warehouse, make sure you're not sending anyone out that doesn't need to be there. From receiving to shipping, keep business transactions and staff away from the flow of goods through the warehouse.

4. Use a Warehouse Management System (WMS)

You don't need to be the only one figuring out how to make your warehouse as efficient as it can be. Use technology like a warehouse management system (or WMS) to help you manage internal logistics. A WMS can help you with floor layout, analyze current stocks, and demand and assist with inter-facility communication.

If you're not currently using a WMS, integrating one may take some time. The benefits, however, are almost certain to outweigh the short-term adjustments.

5. Go Digital

Paper counts work well enough, but require reproduction and bulky physical storage. A lot of time you're just going to be scanning them in anyway. Switch from paper to digital. Making this process paperless will save on record space and make the analysis easier. Without paper records to digitize, a lot less data entry and scanning will be required.

6. Label Everything

One of the easiest ways to streamline the picking process is through meticulous labeling. Proper labels will help workers find and stock or deliver the correct items without having to ask supervisors or other workers for directions or help. A good labeling system will also make counting easier — no mystery items to account for. To get the most out of your labels with the least increase in labor, include tag checks in regular counts. This will help weed out any mislabeled or unlabeled items.

7. Stock Based on Demand

Avoid overstocking certain items by stocking based on current demands, rather than hoarding inventory or guessing what you'll need in the future. Back up any intuition about how much to stock a given item with hard numbers. You can also implement demand planning so you can adjust your stocks based on patterns in demand.

8. Implement Better Safety Standards

Mistakes and injuries are costly, require work stoppages and make employees feel less safe. According to OSHA, injuries are more common in warehouses than other facilities. Relaxing safety standards may seem more efficient in the moment, but it won't benefit you in the long run. It can even be a violation of OSHA guidelines. Better safety standards and training comes with short-term costs, but preventing mistakes is much cheaper than paying for them.

9. Add Quality Control Measures

A good way to avoid having to double back and fix your errors is to catch them in the process. Adding additional quality control steps to your warehouse workflow will prevent costly mistakes and do-overs. You don't want to be in a situation where you're on the hook for a damaged or incorrectly picked item. Quality control can prevent that.

Warehouse Management for Better Efficiency

Running a warehouse is always going to be a major logistical task. Good management requires making things organized for both you and your workers. You can also optimize things further by adding technology like digital counting or a WMS. Even simple fixes to layout, or the addition of steps like quality control, can save huge amounts of time and resources at any warehouse.

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on Saturday, August 31, 2019 0
Three Data Points for Sourcing Fire Inspection and Testing Vendors

 Crucial real estate investment could easily be destroyed or lost in a fire. Fortunately, proper inspection and testing work to mitigate or prevent those losses. Procuring fire inspection service providers is an important part of any industrial or manufacturing operation. Considering the risk factor for a fire to occur in a medium- to large-sized plant, companies have an incentive to find the right fire inspection and testing service providers that align to their businesses. Nonetheless, there are factors that must be considered by fire inspection service providers to propose their best quotes going forth. Companies, in considering their facility maintenance program, that have visibility into their fire systems could leverage better rates and maintain a consistent, accurate scope of work.

Fire Protection Systems Inventory

An important consideration will be understanding how much different equipment plays a role in the fire protection systems of each site. Many service providers are able to base their fire inspection services on an itemized pricing structure. By extracting the quantity by each product, buyers can present sound opportunities for fire inspection vendors such as the number of risers in a fire sprinkler system. Additional information that could be provided includes last inspection date, location of equipment, and manufacturer information. It is important to note that manufacturer information is critical in the compatibility for servicing fire alarm systems as there may be specialized technicians who can service a few manufacturer-specific systems. Moreover, it would also be important to discern the attributes between one product from another. Buyers must be knowledgeable about the differences between similar equipment in the same service line.

 For example, companies must differentiate between a wet sprinkler system and a dry sprinkler system. This is an important distinction because this difference affects both the inspection scope of work and cost. Wet sprinkler systems are filled with water and connected to a water supply; water is then discharged instantaneously as the sprinkler system detect fire or heat. On the other hand, sprinkler heads in a dry sprinkler system have pipes that are filled with pressurized nitrogen gas or air which suppress water until a fire is detected. In most cases, dry sprinkler systems have higher installation and maintenance costs with the increased complexity of the sprinkler system, leading to higher inspection costs. Understanding these precise and cost-dependent aspects of one’s fire systems equipment will provide more accurate price quotes from Fire Inspection vendors.

 Fire Inspection companies will assess the total amount of assets per site, and from the various assortment of systems, these companies can formulate their pricing models. Either through an a la carte price sheet or a site-specific cost model, these offerings can then be evaluated against the inventory in place.

Location

Portfolio information must be considered in the discussions with fire inspection service providers. Buyers who need to ensure fire inspection across all of their company’s real estate must be forthright in providing vendors information such as mailing address, square footage, and types of facility. For example, National Accounts fire service providers oftentimes use numerous subcontractors to fulfill their account needs. Likewise, regional or local service providers are geographically-constrained. Therefore, hourly rates of services may be tended by site, so a labor rate in New York City may be different than one in San Francisco.

 A favorable outcome of providing square footage of in-scope facilities is that Fire Inspection service providers could also provide estimates on certain service lines. For example, sprinkler systems are installed proportional to facility size, and therefore, service providers could quote out their pricing based on this information. Service providers can extrapolate that one sprinkler head must be placed by a certain number of square footages. This may be useful in cases where no further information could be provided such as in the absence of inspection reports or fire sprinkler system equipment data.

Regulatory Compliance

Local ordinances and state statutes are fundamental considerations in ensuring proper fire protection regulations. So, ensuring fire inspections are done properly is important in keeping with the law and observing statutory requirements. This could mean higher costs depending on the regulations in place by the local and state laws. Therefore, it would be important to consider regulations specific to the sites in scope. The National Fire Protection Association (NFPA) set standards that are followed across the vast majority of fire protection service providers, and these standards are meant to work alongside government regulations. The NFPA codes and standards can help set a basic standard scope of work before amending to specific local ordinances and state statutes.

 Moreover, some companies must comply with their insurance requirements which may involve a higher frequency in inspections than usual. All NFPA codes and standards have a specified frequency (e.g. quarterly, annually) for each test and inspection. However, insurances may require more frequent testing or inspections to comply with their risk assessment. These, in turn, would result in higher costs that should be evident from the bids brought forth. 

 Ideally, companies should provide transparency and opportunity into their fire inspection needs. Procurement plays a hand in demonstrating their company’s needs and wants in the fire inspection space. Coupled with the considerations for properly maintained service levels, this space requires extensive category management and disclosure.

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on Thursday, August 15, 2019 0

Conversations around artificial intelligence and automation tend toward the apocalyptic. In January, the Brookings Institution reported that more than 35 million Americans hold jobs with "high exposure" to automation. These vulnerable professionals - occupying roles in production, food service, and transportation - could already see at least 70% of their day-to-day tasks replicated by a machine. It's clear that these machines will soon graduate from replicating tasks to replicating entire jobs, even mechanizing entire industries. The report anticipates this massive shift and concludes with a call to action. To "mitigate coming stresses," it reads, organizations will need to pursue a number of strategic initiatives. This should include "promoting a constant learning mindset."

A new study from the Technical University of Munich and Rotterdam University echoes this advice. In addition to teaching new skills, the researchers encourage business leaders to consider the psychological impact of replacement and unemployment. This impact, they suggest, is even greater when an employee is replaced by another human. Their study arrives at the intriguing conclusion that employees in automatable positions feel more threatened by other people than by machines. Intelligent machines might dominate the headlines, but they're not necessarily an immediate concern for the professionals who are preparing to confront them.

The study's findings appear almost paradoxical. A summary reads, "In principle, most people view it more favorable when workers are replaced by other people than by robots or intelligent software. This preference reverses, however, when it refers to people's own jobs. When that is the case, the majority of workers find it less upsetting to see their own jobs go to robots than to other employees." These same professionals do, however, consider automation that greatest long-term threat to employment.

People don't compare themselves to machines the way they compare themselves to peers. This, the study's authors suggests, is why robots pose less of a threat to self-worth. They go on to suggest that the social impacts of replacement and unemployment have gone largely un-addressed. Reskilling should help professionals experiencing technological replacement, but more psychological support might prove necessary for other displaced workers.

These workers, for their part, have largely expressed interest in reskilling. According to Randstad US, 67% of U.S. employees believe they'll need new skills to survive in a changing economy. Employers, however, have been slow to embrace the opportunity. While 80% of workers believe their company should provide for reskilling, nearly 40% have seen no progress.

Employees aren't just hungry for new skills. They're also beginning to insist that employers promote their mental well-being. Far from just a Gen-Z talking point, the demand for more empathetic workplaces touches every generation. As automation moves from theory to reality, businesses will need to devise plans for addressing its full economic, social, and psychological impact.
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on Monday, July 29, 2019 0

In pursuing more optimized business operations, companies are leveraging their in-house facility management teams to focus on developing strategic initiatives and processes. With limited resources, organizations are turning to Integrated Facilities Management (IFM) service providers, along with their resources and industry knowledge, to manage their facilities. Companies are tying project management, facility management, and real estate management onto a singular service provider. This centralized management system ensures greater visibility into the company portfolio and higher levels of service quality consistency.

However, companies must evaluate the market of the facility management industry. There is a multitude of niches and competitive advantages that arise in this professional service. Therefore, sourcing the right IFM service provider will connect effective professionals in facility management with the facility management needs of companies. The following questions will provide a sound basis for evaluating a potential service provider against the leading trends and topics within the IFM industry.

Does your company have specialization in any particular subcategories?

Some IFM service providers position themselves in the market as subject matter experts in one or more subcategories. Either through their resources or experience, specialization could be a crucial function if there is alignment with a buyer’s needs. For example, an industrial organization may be more engaged with a potential service provider who specializes in fire inspection services over others. Because of the stringent level of regulations and standards for fire safety in both testing & inspection and capital improvement, this may be a mutually beneficial partnership. Meanwhile, a service provider with a strong market presence in foodservice may appeal to companies in the hospitality industry. Being able to align within the operations of a business could result in efficient use of the facility space and real estate.

On the other hand, specialization may narrow the possible scope of work for that IFM service provider. Their resources may be limited to the areas that they specialize in, or they may not provide a sufficient level of service and quality to other subcategories. These downsides could mean that the in-house facility team taking on additional roles besides their strategic initiatives. Specialization can have both favorable and unfavorable consequences, so companies should follow up to ensure that their entire scope of work for facility management can be handled by their potential IFM service provider.

What percentage of your company’s services is self-performed versus subcontracted?

Building upon the previous question, it would be crucial to understand the ratio of services being rendered by that IFM service provider against its subcontractor network. By performing those support services in-house, an IFM service provider can produce cost reduction opportunities and streamline facility management services. Self-performance allows IFM service providers to provide the requested services without managing their own suppliers or leveraging mark-up rates to compensate for the services rendered by their third-party service providers.

Not only does self-performing work orders lead to reductions in costs, but it also compels service providers to be directly responsible for the completion of those work orders. To maintain sufficient service level agreements, this could also lead to a commitment to safety and higher standards of quality. By holding IFM service providers accountable to the self-performed work, a higher proportionate level of self-performance can result in the overall better service experience.

What is your company’s approach to providing facilities services?

The strategy and direction a company can take facilities management are vital to developing the right project plan and facility management initiatives. Companies that take into account the available data in a client’s portfolio can leverage the potential to improve building performance. Furthermore, another direction facilities management service companies can take is being technology-forward. For example, many companies adopt a Computerized Maintenance Management System (CMMS) to help identify the best time to order inventory and how much to keep in stock. Overall, executive strategies by IFM service providers have incorporated outcomes-driven model as essential to the real estate industry.

What is the provided maintenance program?

Maintenance programs have many processes, but how they are organized can affect the operations of a company. Proactive and/or preventative maintenance programs are best practices to ensure continuous operations. Meanwhile, a reactive maintenance program could result in stoppage or future service issues. IFM service providers generally fall under the first type of program to ensure quality and consistent maintenance.

Moreover, companies should also evaluate the schedule of their maintenance program. Some companies operate their maintenance program off a metered schedule while others off a calendar schedule. Depending on the needs of the maintenance, it may be important to take run time into account or ensure consistent performance of tasks. As a result, the usage of both resources and funds differ proportionately.

How would you describe your company’s work order capabilities?

A functional and efficient work order structure is designed to streamline facility maintenance management. Companies should generally be able to provide a solution to allow for automated work orders and maintenance activities. By keeping track of work order completion, assignment, performance, and results, companies can expand their facilities and maintenance management capabilities. Asset management is another component that will ensure and maintain the quality of assets.

Facilities management is an integrated, organizational function that can determine the effectiveness and efficiency of the delivery of goods and services for companies. Ultimately, companies will need to assess their facility management needs and how these needs best align with their potential service provider. These questions provide one holistic and comprehensive structure for qualitative evaluation, but companies must build on this foundation with their own unique and specific scopes of work. If facility managers are to be expected to take on more strategic roles, quality IFM vendors can provide the support services to that development.

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on Thursday, July 25, 2019 0

Amazon’s role in the American economy continues to increase. Nearly half of all American households own an Amazon Prime membership and Amazon receives one in every two dollars that Americans spend online (ILSR). It is also predicted that in the next five years, a fifth of America’s retail market will shift to e-commerce; Amazon will capture about two thirds of that portion. Through the acquisition of several companies, such as Whole Foods and Zappos, Amazon increases its market power and diversifies the sectors it competes in.

Amazon’s present-day supply chain process is divided into four main steps: warehousing, delivery, technology and manufacturing. The warehouse and delivery process begins with a customer’s order. Once the order is processed, the warehouse is notified and the product is placed on a conveyor which is sent through the distribution center. Then, the product is matched with its order and automatically sorted. The item is later boxed and shipped. Throughout the process, various methods of technology are used to ease Amazon’s pick, pack and ship method.

However, with increased growth comes a need for Amazon to adapt its supply chain. Amazon continues to design ways to decrease delivery time and may even introduce Prime Air, a drone-based delivery system that provides 30 minute delivery. Amazon must expand its fulfilment network to accommodate for the storage and sales of products. Therefore, Amazon will hire over 6,000 employees to pack and ship orders. Amazon will also build new warehouses and fulfillment centers throughout America and integrate robots to increase the speed of shipments.

Back in March of 2012, Amazon purchased Kiva Systems for $775 million. Kiva Systems manufactured robots utilized in shipping centers. The acquisition of Kiva allowed Amazon to reduce its “click to ship” cycle from around 70 minutes to 15 minutes and saved Amazon 20% in operating costs. Similarly, Amazon recently acquired Canvas Technology, a robotics startup specializing in developing autonomous delivery of goods. Amazon also integrated Pegasus and Xanthus, two new robots which quicken operations at fulfillment centers and warehouses. These robots sort and move packages, while reducing delivery times and decreasing damages. Robots are becoming increasingly crucial in Amazon’s effort to boost the strength of its business.

Amazon’s efforts to mature their supply chain allows them to be one of the largest growing companies in America. Analysts estimate a 32.8% average yearly growth rate for Amazon over the next five years (NASDAQ). With the use of new technologies and expanding the caliber of its distribution methods, Amazon is improving its supply chain to conquer the American e-commerce market.
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on Monday, December 10, 2018 0
A lot of the articles I write are about optimizing the tools in our Procurement toolbox and then using them effectively. These are certainly important practices, but what happens when we rely too heavily on this procurement toolbox? I’m going to use a phrase that I’m pretty hesitant about bringing up: “Think outside the box.” 

Wait – don’t stop reading. Seriously.

Don’t get me wrong, I realize why you’d want to. This bit of business speak has been overused to the point of becoming meaningless. It’s a challenge every management team has placed on every team performing every function in an organization for years. And, you know what? That’s a shame – because there are opportunities to think outside the box to achieve amazing results.

Think outside the cylinder
Let's talk about a relatively common category of spend – air & gases. If we worked for a brewery, for example, we’d be spending a good bit of money to buy the gases needed to carbonate our beer. These gases aren’t cheap – anything a brewery can do to reduce this cost will help the bottom line. So let's go to work.

Projects in this space follow a pretty typical process. In other words, we’re going to break out a pretty reliable and pretty heavily used set of tools from our toolbox. We may seek to go to market with an RFQ or RFP, intending to use supplier consolidation to drive cost savings through a common enough carrot/stick combination (“Win more of our business with a competitive bid… or do poorly and lose it all”). If we do well, we might save, say, 10% of our annual spend on gasses using these strategies. Not bad.

But let’s think outside the box. What if we could reduce the need to purchase these gases in the first place? Cutting the need for half of our yearly volume or more could dramatically reduce our production costs.

Carbon reclamation technologies aren’t necessarily new, but they may not be utilized by breweries. They may have a home in larger operations, but smaller breweries may not have any such systems in place. However, there are firms that are helping smaller breweries implement these systems - So, what if our hypothetical brewery bucked the inside-the-box sourcing strategy and elected to research a reclamation system? Not only are you eliminating a large portion of purchase needs, you’re also able to capture and reuse a high-quality, contaminant-free CO2 product.

What Makes this “Outside-The-Box” Thinking?
A lot of companies that purchase industrial gases view the transaction as a highly commoditized one. When going to market for commoditized products, we’re all conditions to view the event as one focused heavily on price.  The more mission critical the product is (such as gases used in beer production), the higher the degree of product specification. However, checking those boxes off puts us back in the realm of pricing.

Because of this, it can be easy to fall into the same old routine – get a few bids, make a buy. This is what makes thinking outside the box challenging – we have to force ourselves to reconsider that tried and true path. What other trails could we take instead?

It isn’t always easy to blaze a new trail. Attempting to do so won’t always be a success. Yet bringing about real, impactful change will often require this type of thinking. After all, you can’t get somewhere new by following the same old path.

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on Friday, July 27, 2018 0
Made up of countless sub-categories and featuring an inherently diverse supply base, Facilities spend is typically one of the most challenging categories for Procurement. Like MRO, the category is often addressed on a site-by-site basis. This approach can lead organizations down a dangerous road where poor communication, disorganization, and a lack of transparency become the norm.

Since 1992, Source One's spend management specialists have empowered their clients to take a more informed, strategic approach to their purchases in every category. Even the complicated Facilities space is no match for Source One's customized strategies and expert Procurement consultation. Check out some of our tips for reducing Facilities costs and driving greater value from Procurement's activities within the category. 









Want to learn more about approaching Facilities spend. Reach out to Source One's Category Management and Procurement Transformation experts today. Together, we'll develop sourcing strategies customized to your organization's unique cost reduction goals and objectives.
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