1
Sprouts Farmers Market
Automating Facility Maintenance
CASE STUDY: Five Lessons Learned to Avoid the
Pitfalls and Accele...
2
WEBINAR: Automate Facilities Maintenance
Presenter:
Jerry Stutler
VP Construction and Facility Engineering
Sprouts Farme...
3
AGENDA
• Sprouts Overview
• Challenges
• Goals
• Implementation
• Results
• Lessons Learned
• Vision
• Q&A
Automate Faci...
4
AGENDA
• Sprouts Overview
• Challenges
• Goals
• Implementation
• Results
• Lessons Learned
• Vision
• Q&A
Automate Faci...
5
• Full-service natural food stores
• Commitment to “fresh and natural “
fruit stand heritage
• One of fastest growing re...
6
Facilities Maintenance Support
• Central purchasing
• Internal F&M call center
• External service providers
• 2012: 3 FT...
7
Sprouts Overview – Rapid Growth Drive Change
Rapid expansion exposed
need for growth in F&M
systems and processes
“We kn...
8
AGENDA
• Sprouts Overview
• Challenges
• Goals
• Implementation
• Results
• Lessons Learned
• Vision
• Q&A
Automate Faci...
9
Manual & Inefficient Processes
• Duplicate data entry
• Manual approvals
• Everyone worked overtime
• Temps for data ent...
10
• Rapid expansion required tighter financial controls
• Needed improved systems to document
maintenance and energy expe...
11Confidential. Copyright Verisae 2013. All rights reserved.
Need to improve refrigerant tracking
• Manual and inefficient...
12Confidential. Copyright Verisae 2013. All rights reserved.
Sprouts Challenges – Need to Control Maintenance Costs
• Incr...
13Confidential. Copyright Verisae 2013. All rights reserved.
Sprouts Challenges – Change Management
Resistance to Change
A...
14Confidential. Copyright Verisae 2013. All rights reserved.
AGENDA
• Sprouts Overview
• Challenges
• Goals
• Implementati...
15Confidential. Copyright Verisae 2013. All rights reserved.
Sprouts Goals
• Reduce costs
for current stores
• Add stores ...
16Confidential. Copyright Verisae 2013. All rights reserved.
AGENDA
• Sprouts Overview
• Challenges
• Goals
• Implementati...
17Confidential. Copyright Verisae 2013. All rights reserved.
Implementation
• Started at category level – (not asset Level...
18Confidential. Copyright Verisae 2013. All rights reserved.
AGENDA
• Sprouts Overview
• Challenges
• Goals
• Implementati...
19Confidential. Copyright Verisae 2013. All rights reserved.
Results
• Hard Savings
 Additional personnel costs avoided
...
20Confidential. Copyright Verisae 2013. All rights reserved.
Operations
Personnel are
Efficient and
Effective
ROI - Headqu...
21Confidential. Copyright Verisae 2013. All rights reserved.
Stores are
happier and
more focused
on customers
ROI – Store ...
22Confidential. Copyright Verisae 2013. All rights reserved.
AGENDA
• Sprouts Overview
• Challenges
• Goals
• Implementati...
23Confidential. Copyright Verisae 2013. All rights reserved.
Lessons Learned
LESSONS LEARNED - #1
Don’t under-estimate the...
24Confidential. Copyright Verisae 2013. All rights reserved.
Lessons Learned
LESSONS LEARNED - #2
The sooner you get start...
25Confidential. Copyright Verisae 2013. All rights reserved.
Lessons Learned
LESSONS LEARNED - #3
Leverage industry best p...
26Confidential. Copyright Verisae 2013. All rights reserved.
Lessons Learned
LESSONS LEARNED - #4
Involve all stakeholders...
27Confidential. Copyright Verisae 2013. All rights reserved.
Lessons Learned
LESSONS LEARNED - #5
Be open to a bigger visi...
28Confidential. Copyright Verisae 2013. All rights reserved.
AGENDA
• Sprouts Overview
• Challenges
• Goals
• Implementati...
29Confidential. Copyright Verisae 2013. All rights reserved.
Sprout’s future with technology
• Reporting – next level with...
30Confidential. Copyright Verisae 2013. All rights reserved.
View the recorded webinar on YouTube
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Automate Facility Maintenance Webinar

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Learn how Jerry Stutler, VP Construction and Facility Engineering for Sprouts Farmers Market, one of the fastest growing grocery retailers in the United States, tackled the difficult challenge of defining, selecting and implementing a new technology platform for automating facility maintenance.

Published in: Technology, Business
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Automate Facility Maintenance Webinar

  1. 1. 1 Sprouts Farmers Market Automating Facility Maintenance CASE STUDY: Five Lessons Learned to Avoid the Pitfalls and Accelerate ROI
  2. 2. 2 WEBINAR: Automate Facilities Maintenance Presenter: Jerry Stutler VP Construction and Facility Engineering Sprouts Farmers Market Moderator: Mike Stadelman VP Marketing, Verisae Moderator: Edward Parker Regional Sales Manager
  3. 3. 3 AGENDA • Sprouts Overview • Challenges • Goals • Implementation • Results • Lessons Learned • Vision • Q&A Automate Facilities Maintenance
  4. 4. 4 AGENDA • Sprouts Overview • Challenges • Goals • Implementation • Results • Lessons Learned • Vision • Q&A Automate Facilities Maintenance
  5. 5. 5 • Full-service natural food stores • Commitment to “fresh and natural “ fruit stand heritage • One of fastest growing retailers in US 2002 2004 2006 2008 2010 2012 2014 150+ Stores Sprouts Overview – Full Service Grocery Retail 10 Stores
  6. 6. 6 Facilities Maintenance Support • Central purchasing • Internal F&M call center • External service providers • 2012: 3 FTE Staff • Today: 1.5 FTEs Sprouts Overview – Internal FM Support
  7. 7. 7 Sprouts Overview – Rapid Growth Drive Change Rapid expansion exposed need for growth in F&M systems and processes “We knew we had to change our systems and processes.”
  8. 8. 8 AGENDA • Sprouts Overview • Challenges • Goals • Implementation • Results • Lessons Learned • Vision • Q&A Automate Facilities Maintenance
  9. 9. 9 Manual & Inefficient Processes • Duplicate data entry • Manual approvals • Everyone worked overtime • Temps for data entry • Copy machine overwhelmed 3 FTEs + potentially 2 more FTEs needed = !@?!* Sprouts Challenges – Manual Processes
  10. 10. 10 • Rapid expansion required tighter financial controls • Needed improved systems to document maintenance and energy expenses • No capacity for accruals • Needed to maintain (or cut) costs amidst store expansion Challenges – Outdated Financial Controls
  11. 11. 11Confidential. Copyright Verisae 2013. All rights reserved. Need to improve refrigerant tracking • Manual and inefficient processes • Hard to identify troublesome sites • Needed visibility and accountability • New reporting for CARB in 2014 Challenges – Environmental Compliance at Risk 0% 2% 4% 6% 8% 10% 12% Pre Post New Goal Refrigerant Leak Rate
  12. 12. 12Confidential. Copyright Verisae 2013. All rights reserved. Sprouts Challenges – Need to Control Maintenance Costs • Increased complexity and scope of service provider network • Unclear equipment inventory at store level • No data-driven means for vendor rating and contract compliance • More service contractors to manage
  13. 13. 13Confidential. Copyright Verisae 2013. All rights reserved. Sprouts Challenges – Change Management Resistance to Change Amidst Rapid Growth • Current vendor had delayed upgrade to SaaS • Change is hard – even harder during major store expansion • Skeptical of ROI from new system
  14. 14. 14Confidential. Copyright Verisae 2013. All rights reserved. AGENDA • Sprouts Overview • Challenges • Goals • Implementation • Results • Lessons Learned • Vision • Q&A Automate Facilities Maintenance
  15. 15. 15Confidential. Copyright Verisae 2013. All rights reserved. Sprouts Goals • Reduce costs for current stores • Add stores without increasing facilities staff • Improve execution of Facility Maintenance • Improve equipment buying process • Improve reporting, transparency and accountability • Involve all stakeholders in vendor selection process • Technology platform for sustained growth Goals:
  16. 16. 16Confidential. Copyright Verisae 2013. All rights reserved. AGENDA • Sprouts Overview • Challenges • Goals • Implementation • Results • Lessons Learned • Vision • Q&A Automate Facilities Maintenance
  17. 17. 17Confidential. Copyright Verisae 2013. All rights reserved. Implementation • Started at category level – (not asset Level) • Despite urgency, focused on quality of implementation… did not rush it • More of a process change than anticipated • Went to asset tagging after 1 year; Finance Department pushed justification to do it • Work Order Processing – Implemented best practices “We asset-tagged 150 stores in 30 days. The process was much simpler and faster than we ever expected.”
  18. 18. 18Confidential. Copyright Verisae 2013. All rights reserved. AGENDA • Sprouts Overview • Challenges • Goals • Implementation • Results • Lessons Learned • Vision • Q&A Automate Facilities Maintenance
  19. 19. 19Confidential. Copyright Verisae 2013. All rights reserved. Results • Hard Savings  Additional personnel costs avoided  Improvements in vendor management  Improved invoice management and processing to reduce billing errors • Soft Savings  Process efficiencies – moving from manual to automated processes  Equipment project costs containment (new stores and remodels)  Better reporting, transparency and accountability • ROI  Estimated Payback in 1 Year
  20. 20. 20Confidential. Copyright Verisae 2013. All rights reserved. Operations Personnel are Efficient and Effective ROI - Headquarters Better Oversight of Vendors Accurate and Faster Reporting Manual Processes Now Automated Improved Financial Controls
  21. 21. 21Confidential. Copyright Verisae 2013. All rights reserved. Stores are happier and more focused on customers ROI – Store Level Fewer instances of food loss Reduced maintenance costs Allows store Manager to focus on sales Equipment 2%-3%
  22. 22. 22Confidential. Copyright Verisae 2013. All rights reserved. AGENDA • Sprouts Overview • Challenges • Goals • Implementation • Results • Lessons Learned • Vision • Q&A Automate Facilities Maintenance
  23. 23. 23Confidential. Copyright Verisae 2013. All rights reserved. Lessons Learned LESSONS LEARNED - #1 Don’t under-estimate the need for process change and advance planning: • Changing behavior and processes takes time • Be prepared to enforce accountability and adoption
  24. 24. 24Confidential. Copyright Verisae 2013. All rights reserved. Lessons Learned LESSONS LEARNED - #2 The sooner you get started the better: • Easier to implement with fewer stores • Gain compelling benefits sooner
  25. 25. 25Confidential. Copyright Verisae 2013. All rights reserved. Lessons Learned LESSONS LEARNED - #3 Leverage industry best practices: • Asset tagging • Automated workflows • Reporting / environmental compliance
  26. 26. 26Confidential. Copyright Verisae 2013. All rights reserved. Lessons Learned LESSONS LEARNED - #4 Involve all stakeholders to: • Help define your needs • Develop a custom-tailored solution • Gain buy-in from internal and external stakeholders
  27. 27. 27Confidential. Copyright Verisae 2013. All rights reserved. Lessons Learned LESSONS LEARNED - #5 Be open to a bigger vision: • Become educated through the selection process • Plan for the future, not just immediate needs
  28. 28. 28Confidential. Copyright Verisae 2013. All rights reserved. AGENDA • Sprouts Overview • Challenges • Goals • Implementation • Results • Lessons Learned • Vision • Q&A Automate Facilities Maintenance
  29. 29. 29Confidential. Copyright Verisae 2013. All rights reserved. Sprout’s future with technology • Reporting – next level with advanced analytics (Query Studio) • Mobile technology (eliminates kiosk) • Energy Analytics • Alarm Monitoring Vision - Next Steps
  30. 30. 30Confidential. Copyright Verisae 2013. All rights reserved. View the recorded webinar on YouTube
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