Buildings Stakeholder Booklet

Quick Reference

Expense Reduction Analysts Quick Reference2

Buildings Strategy & Marketplace 3-5The Buildings Team 6Buildings Specialists 7Working together 8-94 Stage ContinuousImprovement Process 10

Stage 1: Data Collection & Benchmarking 11Stage 2: Negotiation & Recommendation 12Stage 3: Implementation & Supplier

Relationships 13Stage 4: Supplier Management &

Monitoring Performance 14Contingency and consultancy 15

Buildings Strategy & Marketplace Expense Reduction Analysts 3

At Buildings, Plant & FacilitiesManagement (BPFM) we believe that,more importantly for you, it is aboutproviding an efficient, safe and pleasantenvironment which supports yourbusiness aims at an acceptable cost.

Whether you are acquiring and brand new facility,refurbishing your existing premises or carry outroutine maintenance, there are savings to be made.

Buildings Strategy & Marketplace

Most aspects of building maintenance cost andpurchase management are undertaken by ourexperts delivering significant savings. To ensureyou get best value, we can review your currentsituation across a number of areas such as;

• Building maintenance materials• Supply chain management & optimisation• Tools & equipment hire• Practical advice and guidance for

refurbishment projects• Guidance with dilapidation management

and costs• Project management support• Space optimisation• Outsourcing

Buildings Strategy & Marketplace

Expense Reduction Analysts Buildings Strategy & Marketplace4

Relationships with supply chain partners are becoming more complex as they groupservices together to provide a fullyintegrated or ‘one stop shop’ solution. Thesupplier often acts as a ‘managing agent’bringing together a number of contractorswho actually provide the various services.

The supply chain is one of the most important elementsof any business.

Having multiple materials suppliers can addcomplexity to your buying process. Due to ourextensive knowledge of the marketplace, we willalways able to identify the most appropriatesuppliers who are able to fulfil yourrequirements.

We will always assess the most appropriatesolution that meets your needs to ensure youreceive value for money without compromisingservice levels.

Buildings Strategy & Marketplace Expense Reduction Analysts 5

The Buildings Team

Expense Reduction Analysts The Buildings Team6

Whether acquiring a state-of-the-art citycentre Head Quarters, refurbishing acommercial unit or maintaining a multi-unit estate, the cost of your businesspremises will be a significant overhead.

With recent changes in the law, managingcompliance has become a key demand forbusinesses. Building managementprofessionals are now spending up to 30% oftheir day on dealing with regulations. Despitethis, it is unlikely that budgets will increase,therefore saving time and money in all areasis crucial.

Expense Reduction Analysts BPFM has beenset up to specifically address the needs ofclients from new build to maintenance. Wewill work with you to review your proposalsor current activities and implement solutionsthat drive cost reductions.

Whether you have your own in-house team or outsourceyour building maintenance, the scope of buildingoccupation is ever increasing due to regulatory demands.As budgets decrease as a result of the economic downturn,many business leaders have to ‘do more with less’.

Buildings Specialists

Buildings Specialists Expense Reduction Analysts 7

My team and I will work on your behalf toachieve cost reductions and improved supplychain processes where possible. We do thework – you get the savings!”

Ian Morrison

Our team has worked in and with the buildingsmarketplace for many years and have significantinfluence over suppliers due, in part, to our combinedpurchasing spend.

Due to our extensive market knowledgeand contacts, we are able to keep up todate with the latest pricing and servicelevels. Our combined purchasing portfolioallows us to negotiate considerably greatersavings than would normally be available to businesses choosing to negotiate theirown contracts.

“As a former MD of a number of global bluechip companies, dealing with manufacturing,distribution and contracting in constructionand engineering, I understand the importanceof creating and implementing bespoke supplychain solutions that deliver savings withoutcompromising service.

Working together

Expense Reduction Analysts Working together8

Today’s scope of Buildings Management is broad withsignificant budgets, which are being reduced whilst thefunction is not always given the importance it deserves.

By benchmarking your current situation,carrying out an independent comprehensivetendering process and drawing up arecommendations report, you can be assuredthat whichever option you choose, it willmeet the requirements of your business both now and into the future.

We work with suppliers to ensure themobilisation and transition phases run smoothlyand without loss of service quality.

Our team of experts are on hand to help you reduce expenditure on your buildings such as;

Refurbishment & Dilapidations• Technical property surveys• Corporate interiors & office furnishing• Move management & relocation services• Mechanical & electrical installations• Space planning• Dilapidation survey and cost management

Maintenance & Repair• Building materials• Electrical materials• Plumbing & heating materials• Equipment & tools• Planned & Reactive maintenance

Working together Expense Reduction Analysts 9

We will work on your behalf to find the most costeffective and manageable solutions, helping you achieveyour budgetary targets and service requirements.

We do not interfere with your dailybusiness. This means minimal disruptionand we conduct approximately 90% of ourwork off site. We work alongside you,allowing you to utilise our expertise in thebuildings marketplace, freeing you up tofocus on ‘the day job’.

We do not reduce your staff levels, the serviceyou provide to your customers or your budget.All we reduce is the amount you pay for whatyou already get.

Whilst we reduce expenditure, we maintain orimprove standards and processes.

Time RequirementsWe perform the majority of the work from ourown premises, although we will require somemeeting time with stakeholders. This is thesingle biggest time commitment we will ask for in the process. Typically this will be a fewhours, depending on the complexities of your arrangements. This time is critical to the success of the work we do on behalf ofyour company.

4 Stage ContinuousImprovement Process

Expense Reduction Analysts 4 Stage Continuous Improvement Process10

Today’s scope of Buildings Management is broad withsignificant budgets, which are being reduced whilst thefunction is not always given the importance it deserves.

Building services maintenance is aboutcovering the performance of the facility inorder to support core business functions.Loss of business as a consequence of non-performance can be much more thanthe costs of the item itself or the cost ofmaintenance.

Faults arising from poor maintenance may take many years to emerge and can lead to very costly repairs or replacement.

Expense Reduction AnalystsProcess Map

Continuous Improvement Process for Buildings & Building Maintenance

Expense Reduction Analysts’ approach is toensure that their clients adopt ‘best in class’methodologies for their building maintenanceprogrammes, this is demonstrated in thediagram below.

ContinuousImprovement

What is current

position?

Record what we

know

Identifycompetentsuppliers

Monitorsupplieractivity

Checkplanned

results are achieved

Negotiationwith

suppliers

Implementproposedactions

Dashboardmanagement

Man

agem

ent &

Mon

itorin

g Performance

Stag

e 4

– Mon

itorin

g Supplier

Action Plans & Supplier Relationships

Stage 3 – Implementation Agreeing th

e de

al

Stage 2 - Supplie

r Neg

otia

tion

s

Data Collection & Benchmarking

Stage 1 – Current Position

Stage 1 Data Collection & Benchmarking Expense Reduction Analysts 11

We collect and profile your annual spending data to forma benchmark of current prices and service levels.

This is a crucial stage in the process, unlesscarefully defined any future solution maynot meet your needs. To ensure this doesnot happen there are 8 key informationstreams that must be gathered;

1. Definition of current/future scope2. Current and future service levels3. Schedule of rates and charges4. Current costs (planned & reactive)5. Examination of contracts & conditions6. List of all assets (equipment)7. Budget expectations8. Review of Operation & Maintenance

Manuals

Any areas of concern should be raised andrecorded at this stage, so they can be takeninto consideration and included into thesolutions recommended where appropriate. In the interest of the company, this stageneeds thorough consideration, commitmentand full co-operation from all stakeholders as itis not always possible to incorporate into thetender any operational requirements whichwere not raised at this stage.

Stage 1Data Collection &

Benchmarking

Stage 2Negotiation & Recommendation

Expense Reduction Analysts Stage 2 Negotiation & Recommendation12

We take your specified requirements to open market tofind the most suitable supplier(s) who can support yourservice requirement whilst providing competitive prices.

Expense Reduction Analysts is theworld’s largest cost and purchasemanagement consultancy and focuseson reducing non-core operating costs forprivate, not-for-profit and public sectororganisations.

Handling the supplier spend on behalf ofclients in all sectors, we use our significantpurchasing influence to achieve optimumvalue from suppliers, often successfullyretaining incumbents and using expert analysisand market intelligence to combat ‘contractfatigue’.

Gained over a number of projects undertakenwith public bodies we have developed robustprocesses that meet the stringentrequirements of the Official Journal of theEuropean Union (OJEU). Our proven tenderand evaluation process has allowed BPFM torecommend innovative solutions whilst at thesame time delivering considerable savings.

We recommend suppliers for your approvalfrom our experience gained over manyprojects. We operate with 100% integrity andhave no ties with any supplier organisation.

Stage 3 Implementation & Supplier Relationships Expense Reduction Analysts 13

Working closely with you and your suppliers willensure the predictions and solutions set out in therecommendation report are delivered.

We have delivered savings across a widerange of areas, from materials to complexservices contracts and from single itemssuch as electrical maintenance to intricatesingle source multiple servicesarrangements.

With experience gained from many projects,we have defined a unique and robustmobilisation plan that will minimise disruption

to your day-to-day activities whilst deliveringsavings as quickly as possible and over asustained period.

We respect your relationship with existingsuppliers and most of the time we can use ourknowledge to help an existing supplier findways to reduce their costs. In many instances,incumbent suppliers remain, but you pay lower prices.

Stage 3Implementation &

Supplier Relationships

Stage 4Supplier Management & Monitoring Performance

Expense Reduction Analysts Stage 4 Supplier Management & Monitoring Performance 14

Measuring performance is key to contract compliance andcontrolling costs. Frequently maintenance professionalsare forced to do this without clear information about theperformance of their suppliers.

Our unique dashboard system can becustomised to meet your specificrequirements giving you the ability to measure and monitor those keyperformance indicators that matter to your business.

The lack of a comprehensive and uniformsystem for measuring supply chaineffectiveness makes the management of valuefor money very difficult. In our experience,only 30% (or less) of supply chain contracts are renewed annually. This probably reflectsthe expense and resource requirements of re-bidding contracts, as well as the difficulty of measuring contract performance.

Most companies implement only a minimalamount of analysis of supply chaineffectiveness and often depend solely onoccasional verbal evidence.

We can assist you with our effectiveperformance management system whichprovides visibility, allowing both measurementof service capability and value for money. Thisfrees up your time to focus on other importantissues. Developing the right matrices allowsmanagers to understand what is happeningwithin their organisation and how suppliers are performing.

Contingency and consultancy Expense Reduction Analysts 15

The Buildings Market is highly competitive and byfollowing the Expense Reduction Analysts’ tried andtested contingency model, the BPFM team can normallydeliver savings whilst you still have the security of the‘no savings, no fee’ guarantee.

Using the contingency model, savings areusually calculated on each individual itemmade by comparing existing rates with thenew rates. Some projects may require aconsultancy approach or possibly a mixture of contingency and consultancy.

Consultancy projects can include advice and assistance in looking at alternativemethodologies, procurement practices,determining more appropriate service levels or developing robust asset register oroperation and maintenance manuals.

Our services and charges are bespoke to yourneeds, consistent with our entire approach toapplying our skills to your benefit.

Following agreement to proceed, we wouldtypically take the following steps:

• Meet with stakeholders to determine thebusiness wants and needs

• Analyse existing service requirements• Review existing contracts, asset register

and manuals• Produce a specification based on the above

for client sign-off• Take the specification to market• Produce a report based on the market

responses• Assist with implementation

Consultancy can be charged at a day rate withthe number of days or a fixed fee agreed inadvance, depending upon the requirementsand complexity of the project.

Contingency and consultancy

Expense ReductionAnalysts

find extra profit

www.expense-reduction.co.uk

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