Facilities managementAn international bank

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2 © 2012 Xchanging © 2012 Xchanging 3

The business challengeThis customer operated a property management

system that had numerous problems:

• it was large, hierarchical, and fragmented;

leading to inconsistency, replication of work,

and waste

• there was no clear and single point of overall

accountability across all operations

• the supply chain was not set up to deliver

optimum efficiencies

• no continuous improvement process had been

implemented due to the short-term nature of

supplier contracts

• the customer had limited leverage and market

scope as all service and supply contracts were

procured independently.

These issues led to service inconsistencies across the

company as well as high costs.

The objectivesThe customer wanted to streamline its operating

structures, reporting processes and management

information techniques. In addition, it was looking

for an organization to provide improved service

levels, add value and create cost reductions in its

property portfolio.

The customer had 487 network sites and 41

non-network sites and operated an average annual

property spend of approximately $144M.

Xchanging case study

An international bank

The customer looked for strategic advice and

procurement services in the following areas:

• aggregation of all services

• full, on the ground, facilities

• management services

• a management information system (MIS)

• leveraging of aggregated spend

• purchasing and whole market propositions

• market analysis

• facilities and estates management

• security, vending, catering, waste, mailroom,

• reception, guarding and courier services.

The solutionXchanging’s original remit was to procure

the facilities management and office service

requirements. However, after working closely with

the customer’s team and existing suppliers,

it became evident that all property services could be

brought under one program that would encompass

facilities management, office services, capital works

and estates management.

Xchanging defined the customer’s new property

strategy through extensive market research by

collating market supplier information, identifying

emerging trends, and market dynamics.

A full PEST analysis (Political, Economic, Social and

Technological influences) was completed.

Comparison and scenario-preferencing exercises

at various supplier workshops were carried out to

review the strategic options from various angles and

carefully deselect suppliers reviewed in the light of

key decision making criteria. The criteria identified

for supplier appropriateness was to be used in

the future ensuring consistency of measurement.

Profiles were created for the identified short-list

of suppliers and Xchanging then embarked on

implementing the proposed solutions.

Xchanging selected a property management service

provider to work as the customer’s supplier partner.

In revolutionizing the existing relationship between

the two companies, the customer:

• maximized its purchasing power aggregated all

of its property functions without exception

• leveraged a whole market solution.

The benefitsThe benefits were multifaceted:

• saving more than $8.2M per year at maturity

• continuous improvement processes

• contracts based on true market value

• whole market value solutions through a

large procurement strategy and rationallized

supply chain

• renewed efficiencies

• reduced costs

• improved service

• compliance creating greater transparency

of costs and liabilities, achieved through

management information of property costs,

leases and dilapidations

• profit linked to savings.

Xchanging, with the customer and the nominated

service provider, developed a final and lean end-

to-end service delivery model. The model covered

all estates, capital and facilities management

requirements as part of a truly independently

managed service.

XchangingWhat we are: Xchanging provides business

processing, technology and procurement services

internationally for customers across multiple industries.

What we do: Xchanging brings innovation,

thought leadership and passion to its customers’

businesses so as to enhance performance and value.

Our values are embedded into everything we do.

What we want to be: Xchanging wants to be

regarded as the best provider in its chosen markets

by delivering services that are recognised for

outstanding quality, reliability and innovation.

Contact usFor further information or to discuss how

Xchanging can help, please contact our

Group Sales team.

Telephone 312.236.1800

Facsimile 312.386.5965

Email procurement-us@xchanging.com

Website www.us.xchanging.com/procurement

Xchanging selected a property

management service provider to work

as the customer’s supplier partner. In

revolutionizing the existing relationship

between the two companies, the

customer maximized its purchasing

power and aggregated all of its

property functions without exception

and leveraged a whole market solution.

The solution

The customer wanted to streamline its operating structures, reporting processes and management

information techniques. It was looking for an organization to provide improved service levels, add value and create

cost reductions in its property portfolio.

Xchanging, with the customer and the nominated service provider, developed a final lean end-to-end service delivery model. The model covered all estates, capital and facilities management requirements as part of a truly independently managed service.

200 W. Adams • Suite 1175

Chicago • IL 60606 • USA

Telephone +1 (312) 236-1800

Facsimile +1 (312) 386-5965

Email procurement-us@xchanging.com

Website www.us.xchanging.com/procurement

© 2012 Xchanging

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