Strategic Sourcing

Client: NYSE major Commercial and Retail Money center
Category: Facilities Management
Scope: 22 million square feet across the U.S.
Savings: 34% ($25 Million)


Recent merger and acquisitions had resulted in decentralized organization with significant inefficiencies in the overall operations of the Facilities and Corporate Services with over 22 Million square feet of office space (high-rise, retail, data centers, ATM sites) across the U.S under management.


Reduce operating expense by 15%, improve service levels, streamline vendor base, update asset management and contract management systems, and institute global contracts with standardized SLAs and KPIs.


Realized (OPEX) savings of 34% ($25 Million) with improved service levels. Streamlined and updated the Property and Asset management databases (inclusion of missing clusters 500+/-retails locations across the U.S.). Developed and implemented facilities management reorganization (by regions), fully aligned with newly formed vendors/partners, based on their service offerings.


We achieved results by:

  • Reviewing and analyzing spend, pricing, volume, frequency, service levels and sample invoices reviews; bench mark analysis; budget and contract review
  • Designing and implementing change management programs, including: communication, stakeholder management, and momentum buildup
  • Utilizing levers such as standardization, re-specification, and grouping of similar products and services, and categorization of high-profile properties across the enterprise
  • Leading RFP process (with detailed service specifications, definitions, frequency, $/sq. ft., $/hour, labor, union guidelines, overhead, mark-ups, volume discounts, etc.) and multi-round negotiation using optimization models for scenario analysis, with incentive and vendor management programs
  • Evaluating payments, invoicing process and controls (including: elimination of multiple billings, confirmation and tracking of credits and discounts)