Business Case for Change

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Business Case for Change

Global Pharmaceutical Seeks to Optimize its CRE/FM Service Levels

Challenge:
A $20 billion pharmaceutical client sought to optimize its sourcing approach at about 40 plants and facilities throughout North America (including Puerto Rico) and for the full range of administrative and operational services. The broad and complex scope incorporated 20 operating entities across three sectors (pharma, consumer packaged goods and professional services) and a diverse portfolio of facility types.

Solution:
The company engaged Trascent to lead the strategic sourcing initiative in North America. Our team developed a segmented current performance profile for all types of locations – offices, laboratories, manufacturing plants, hybrid facilities, distribution centers and child care centers. Customer satisfaction levels were captured via a comprehensive survey for 15,000 building occupants developed and implemented by UMS Advisory. New and enhanced metrics were identified and applied for:

  • Administrative services: cafeteria, mail and security services,
  • Operational services:  cleaning, building maintenance and operations, project services and utilities.

The Trascent team also developed and the led implementation a full sourcing strategy and plan for outsourcing maintenance and operations.

Results:
Collectively, the insights into current performance, the new metrics and the 25% return rate on the survey were critical for developing new service-level targets and a comprehensive approach. The company led the strategic outsourcing for building maintenance and operations activities. Our tailored “life cycle” approach was embedded in an enterprise wide Request for Quote (RFQ) developed specifically for this enterprise. The RFQ solicited “performance-based” proposals from the supplier base and involved a two-step process:

  • Supplier screening (Request for Information) workshops: a total of 30 suppliers were filtered to a core of five qualified suppliers
  • Supplier selection: a proprietary analytical model makes it easier to find and engage “world-class” suppliers for the full range of services.

The bottom line, this pharmaceutical has established the right supplier base to meet the needs of its diverse North American operations.

Assessing Current State of CRE/FM & Identifying Performance Opportunities

The Result: Overall satisfaction with current services and performance. identified significant performance improvement and cost reduction opportunities in specific key areas Company could chart a forward-looking course to optimize its CRE/FM operation and improve its service to both executive staff and building occupants.