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Gary Noy, Director of Integrated FM at Pfizer - Facilities management services outsourcing

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Gary Noy, Director of Integrated FM at Pfizer spoke at the FM & Property Event April 2013

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Gary Noy, Director of Integrated FM at Pfizer - Facilities management services outsourcing

  1. 1. Pfizer EMEA FM OutsourcingGary NoyDirector, Vendor Management EMEA and APACFacilities Management and Property Event, HiltonHotel, London 18th April 2013
  2. 2. Click to edit Master title stylePurpose and Content2Purpose• Describe FM outsourcing in EMEA• Share some lessons learnedContent• Background• Pfizer• Global Operations• EMEA footprint• Outsourcing in 2008/9• Process• Lessons learned• Outsourcing 2014• Current approach
  3. 3. Pfizer Today3manufacturingsites worldwiderevenuein 2012$59BILLION150countriesin which Pfizersells productsproducts with salesgreater than$1 billion in 2012R&D partnerinstitutions acrossthe globecash and productsdonated from U.S.and Puerto Ricoin 2011 globally$3.1BILLIONPrimary Care andSpecialty Carebusinessesworldwide90,000colleagues aroundthe worldOVERPfizer pipeline as of February 28, 2013DiscoveryprojectsPHASE 1 PHASE 2 PHASE 3 Registration TOTAL29 25 17 787Aricept(Prevnar 13)
  4. 4. Always changing!4Major impacts on staff, businessand real estate2000 ’01 ’02 ’042003 ’05 ’06 ’07 ’08 2009 ’10 ’11Company (acquisition) Company (acquisition) Company (merger)Company (divestiture)2012Approx. $90 billion Approx. $60 billion Approx. $68 billion24M sq ft, reduced 15M in 3 yrsApprox. 2M sq ftCompany (divestiture)Pfizer Nutrition BusinessApprox. $11.8 billionLess than 2M sq ft
  5. 5. Pfizer OrganisationCEOPfizer Finance & BusinessOperationsExec VPFinance and GlobalOperationsGlobalOperationsAmericas EMEA & APACPortfolioMgmt5Regional Delivery Central SupportReal EstateCapital
  6. 6. GO EMEA Team6EMEA & APAC LeadFacility Solutions(Capital Projects &workplacestrategies)EHSOccupationalHealthReal Estate(Transactionmanagement)APAC Operations Mature MarketsCommercialOffices3 Ops ManagersVendor Partner16 West EuropeanCountriesEmerging MarketsCommercialOffices2 Ops ManagersVendor Partner38 EastEuropean, AfMECountriesWRDTechnical Facilities30 FTEVendor Partner2 UK Centres andBelgiumBusinessPerformance2 Analysts5 Augmented staffProcurementCategory MgrVendorManagement
  7. 7. EMEA Locations7 Office 55 countries WRD 2 countries   
  8. 8. EMEA Real Estate Footprint82.9 Million Square Feet55 Countries126 FacilitiesRegion Property Type Leased vs Owned
  9. 9. EMEA Real Estate Footprint92.9 Million Square Feet55 Countries126 FacilitiesSq Ft by Size of Facility (scale) # of Facilities by Size (breadth)
  10. 10. Scope for Outsourcing• Food services• Cleaning and janitorial• Mail and logistics• Non-regulatedmaintenance• Grounds• Pestcontrol, reprographics• Major FM ServicesPrincipal10• Security• Couriers• Stationery• UtilitiesAgent• Demand Management• Landlord liaison• Small projectsOther
  11. 11. Success CriteriaSuccessScalabilityFlexibilityCapabilityGeographicscopeCostreductionSimplicityCulturalalignment11
  12. 12. High level Project Timeline12• July 2008WPO leadership endorsement• 20th October, 2008RFI launched• 17th November, 2008RFP I launch (6 companies)• 18th December, 2008Down select to 2 potential vendors• 27th March, 2009Down select to 1 preferred vendor• 1st May, 2009Effective date of Appointment• from 1st August 2009Site transitions effective• April 2010Additional sites awarded Note: – Wyeth acquisition was occurring during this timeframeo Additional staff, additional facilities (24M sq ft WW)10months
  13. 13. RFP DetailStage 1• Focus on geographicscope, performancecapability, cultural fit, trackrecord, changemanagement and high levelcosts• High level data from 11 sitesin 11 countries offered inRFP stage 1 in ARIBA• 6 companies invited to bid• 1 declined, 2 partneredtogether• Presentations made by allsuppliers in December 2008• Select 2 for Stage 2Stage 2• Detailed data from 11 sitesand access to site FMs withsite visits• Business case evaluated andnegotiated with bothvendors (heavily weightedon quantitative data)• Select partner• CBRE selected13
  14. 14. Lessons Learned•Change takes longer than you think!Time•HR practices different in each country, even in EU•Experience of vendor essentialComplexity•Local paternal nature of managersStakeholder management•Actively required from vendor and client•Implementation and ongoing initiativesChange management•Clear goals•Accountabilities and responsibilities•Initiative tracking•Payment processesEstablish good contract governance and administration14
  15. 15. Current OutsourcingConsiderations•Costs vendors money to make big bids•Vendors evaluate whether to bid or not•Need to be attractive to the market•2nd generation• Need a bespoke (not standard) solution•Need all suppliers to have good data• Level the field with the incumbent•Recognise need for collaborative approach•Need time• To share data, understand challenges, designsolutions, evaluate bids, plan for implementation15
  16. 16. Current Outsourcing PlanLargely Desk Top• Started August 2012• Implementation date Jan 2014• Market assessment (Dec 2012)• How suppliers see Pfizer (customer segmentation)• How Pfizer sees the market (supplier segmentation)• Extended RFI (Feb - April 2013)• Share scope and financial data• Develop best model• RFP• Detailed pricing• Select preferred vendor July 2013• Mobilisation/contracting (July – Dec 2013)• Start Jan 20141616months
  17. 17. Questions17

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