2. Quick Reference
Buildings Strategy & Marketplace 3-5 Stage 1: Data Collection & Benchmarking 11
The Buildings Team 6 Stage 2: Negotiation & Recommendation 12
Buildings Specialists 7 Stage 3: Implementation & Supplier
Working together 8-9 Relationships 13
4 Stage Continuous Stage 4: Supplier Management &
Improvement Process 10 Monitoring Performance 14
Contingency and consultancy 15
2 Expense Reduction Analysts Quick Reference
3. Buildings Strategy
& Marketplace
Whether you are acquiring and brand new facility,
refurbishing your existing premises or carry out
routine maintenance, there are savings to be made.
At Buildings, Plant & Facilities Most aspects of building maintenance cost and
Management (BPFM) we believe that, purchase management are undertaken by our
more importantly for you, it is about experts delivering significant savings. To ensure
providing an efficient, safe and pleasant you get best value, we can review your current
environment which supports your situation across a number of areas such as;
business aims at an acceptable cost.
• 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 3
4. Buildings Strategy
& Marketplace
The supply chain is one of the most important elements
of any business.
Relationships with supply chain partners Having multiple materials suppliers can add
are becoming more complex as they group complexity to your buying process. Due to our
services together to provide a fully extensive knowledge of the marketplace, we will
integrated or ‘one stop shop’ solution. The always able to identify the most appropriate
supplier often acts as a ‘managing agent’ suppliers who are able to fulfil your
bringing together a number of contractors requirements.
who actually provide the various services.
We will always assess the most appropriate
solution that meets your needs to ensure you
receive value for money without compromising
service levels.
4 Expense Reduction Analysts Buildings Strategy & Marketplace
6. The Buildings Team
Whether you have your own in-house team or outsource
your building maintenance, the scope of building
occupation 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’.
Whether acquiring a state-of-the-art city With recent changes in the law, managing
centre Head Quarters, refurbishing a compliance has become a key demand for
commercial unit or maintaining a multi- businesses. Building management
unit estate, the cost of your business professionals are now spending up to 30% of
premises will be a significant overhead. their day on dealing with regulations. Despite
this, it is unlikely that budgets will increase,
therefore saving time and money in all areas
is crucial.
Expense Reduction Analysts BPFM has been
set up to specifically address the needs of
clients from new build to maintenance. We
will work with you to review your proposals
or current activities and implement solutions
that drive cost reductions.
6 Expense Reduction Analysts The Buildings Team
7. Buildings Specialists
Our team has worked in and with the buildings
marketplace for many years and have significant
influence over suppliers due, in part, to our combined
purchasing spend.
Due to our extensive market knowledge My team and I will work on your behalf to
and contacts, we are able to keep up to achieve cost reductions and improved supply
date with the latest pricing and service chain processes where possible. We do the
levels. Our combined purchasing portfolio work – you get the savings!”
allows us to negotiate considerably greater
savings than would normally be available Ian Morrison
to businesses choosing to negotiate their
own contracts.
“As a former MD of a number of global blue
chip companies, dealing with manufacturing,
distribution and contracting in construction
and engineering, I understand the importance
of creating and implementing bespoke supply
chain solutions that deliver savings without
compromising service.
Buildings Specialists Expense Reduction Analysts 7
8. Working together
Today’s scope of Buildings Management is broad with
significant budgets, which are being reduced whilst the
function is not always given the importance it deserves.
By benchmarking your current situation, Our team of experts are on hand to help
carrying out an independent comprehensive you reduce expenditure on your buildings
tendering process and drawing up a such as;
recommendations report, you can be assured
that whichever option you choose, it will Refurbishment & Dilapidations
meet the requirements of your business • Technical property surveys
both now and into the future. • Corporate interiors & office furnishing
• Move management & relocation services
We work with suppliers to ensure the • Mechanical & electrical installations
mobilisation and transition phases run smoothly • Space planning
and without loss of service quality. • Dilapidation survey and cost management
Maintenance & Repair
• Building materials
• Electrical materials
• Plumbing & heating materials
• Equipment & tools
• Planned & Reactive maintenance
8 Expense Reduction Analysts Working together
9. We will work on your behalf to find the most cost
effective and manageable solutions, helping you achieve
your budgetary targets and service requirements.
We do not interfere with your daily Whilst we reduce expenditure, we maintain or
business. This means minimal disruption improve standards and processes.
and we conduct approximately 90% of our
work off site. We work alongside you, Time Requirements
allowing you to utilise our expertise in the We perform the majority of the work from our
buildings marketplace, freeing you up to own premises, although we will require some
focus on ‘the day job’. meeting time with stakeholders. This is the
single biggest time commitment we will ask
We do not reduce your staff levels, the service for in the process. Typically this will be a few
you provide to your customers or your budget. hours, depending on the complexities of
All we reduce is the amount you pay for what your arrangements. This time is critical to
you already get. the success of the work we do on behalf of
your company.
Working together Expense Reduction Analysts 9
10. 4 Stage Continuous
Improvement Process
Today’s scope of Buildings Management is broad with
significant budgets, which are being reduced whilst the
function is not always given the importance it deserves.
Building services maintenance is about Expense Reduction Analysts’ approach is to
covering the performance of the facility in ensure that their clients adopt ‘best in class’
order to support core business functions. methodologies for their building maintenance
Loss of business as a consequence of programmes, this is demonstrated in the
non-performance can be much more than diagram below.
the costs of the item itself or the cost of
maintenance.
ier St
Faults arising from poor maintenance ppl
Su formance Data age
g r Col 1
may take many years to emerge rin Pe lec – C
ito ring tio u
n
ito
Mo on
What is
rre en
and can lead to very costly Dashboard
nt – M
&
n
nt chm
current
B
repairs or replacement. management
Po
eme 4
position?
&
siti rking
ge
Check
on
Sta
a
planned Record
Manag
results are what we
achieved know
Continuous
Improvement
Monitor Identify
s
supplier competent
Ac t i o
al tiation
activity suppliers
Sta lans
nP
Expense Reduction Analysts
e ego
ge & S
Implement Negotiation
Process Map
th r N
3 up
de
proposed with
–I
lie
p actions suppliers p
m
Continuous Improvement Process pl le m up
ie
r R e nt a - S ein g
e 2 re
Stag Ag
for Buildings & Building Maintenance e la t i o n
tio
nsh
ip s
10 Expense Reduction Analysts 4 Stage Continuous Improvement Process
11. Stage 1
Data Collection &
Benchmarking
We collect and profile your annual spending data to form
a benchmark of current prices and service levels.
This is a crucial stage in the process, unless Any areas of concern should be raised and
carefully defined any future solution may recorded at this stage, so they can be taken
not meet your needs. To ensure this does into consideration and included into the
not happen there are 8 key information solutions recommended where appropriate.
streams that must be gathered; In the interest of the company, this stage
needs thorough consideration, commitment
1. Definition of current/future scope and full co-operation from all stakeholders as it
2. Current and future service levels is not always possible to incorporate into the
3. Schedule of rates and charges tender any operational requirements which
4. Current costs (planned & reactive) were not raised at this stage.
5. Examination of contracts & conditions
6. List of all assets (equipment)
7. Budget expectations
8. Review of Operation & Maintenance
Manuals
Stage 1 Data Collection & Benchmarking Expense Reduction Analysts 11
12. Stage 2
Negotiation &
Recommendation
We take your specified requirements to open market to
find the most suitable supplier(s) who can support your
service requirement whilst providing competitive prices.
Expense Reduction Analysts is the Handling the supplier spend on behalf of
world’s largest cost and purchase clients in all sectors, we use our significant
management consultancy and focuses purchasing influence to achieve optimum
on reducing non-core operating costs for value from suppliers, often successfully
private, not-for-profit and public sector retaining incumbents and using expert analysis
organisations. and market intelligence to combat ‘contract
fatigue’.
Gained over a number of projects undertaken
with public bodies we have developed robust
processes that meet the stringent
requirements of the Official Journal of the
European Union (OJEU). Our proven tender
and evaluation process has allowed BPFM to
recommend innovative solutions whilst at the
same time delivering considerable savings.
We recommend suppliers for your approval
from our experience gained over many
projects. We operate with 100% integrity and
have no ties with any supplier organisation.
12 Expense Reduction Analysts Stage 2 Negotiation & Recommendation
13. Stage 3
Implementation &
Supplier Relationships
Working closely with you and your suppliers will
ensure the predictions and solutions set out in the
recommendation report are delivered.
We have delivered savings across a wide to your day-to-day activities whilst delivering
range of areas, from materials to complex savings as quickly as possible and over a
services contracts and from single items sustained period.
such as electrical maintenance to intricate
single source multiple services We respect your relationship with existing
arrangements. suppliers and most of the time we can use our
knowledge to help an existing supplier find
With experience gained from many projects, ways to reduce their costs. In many instances,
we have defined a unique and robust incumbent suppliers remain, but you pay
mobilisation plan that will minimise disruption lower prices.
Stage 3 Implementation & Supplier Relationships Expense Reduction Analysts 13
14. Stage 4
Supplier Management &
Monitoring Performance
Measuring performance is key to contract compliance and
controlling costs. Frequently maintenance professionals
are forced to do this without clear information about the
performance of their suppliers.
Our unique dashboard system can be We can assist you with our effective
customised to meet your specific performance management system which
requirements giving you the ability provides visibility, allowing both measurement
to measure and monitor those key of service capability and value for money. This
performance indicators that matter to frees up your time to focus on other important
your business. issues. Developing the right matrices allows
managers to understand what is happening
The lack of a comprehensive and uniform within their organisation and how suppliers
system for measuring supply chain are performing.
effectiveness makes the management of value
for money very difficult. In our experience,
only 30% (or less) of supply chain contracts
are renewed annually. This probably reflects
the expense and resource requirements of
re-bidding contracts, as well as the difficulty
of measuring contract performance.
Most companies implement only a minimal
amount of analysis of supply chain
effectiveness and often depend solely on
occasional verbal evidence.
14 Expense Reduction Analysts Stage 4 Supplier Management & Monitoring Performance
15. Contingency and
consultancy
The Buildings Market is highly competitive and by
following the Expense Reduction Analysts’ tried and
tested contingency model, the BPFM team can normally
deliver savings whilst you still have the security of the
‘no savings, no fee’ guarantee.
Using the contingency model, savings are Following agreement to proceed, we would
usually calculated on each individual item typically take the following steps:
made by comparing existing rates with the
new rates. Some projects may require a • Meet with stakeholders to determine the
consultancy approach or possibly a mixture business wants and needs
of contingency and consultancy. • Analyse existing service requirements
• Review existing contracts, asset register
Consultancy projects can include advice and manuals
and assistance in looking at alternative • Produce a specification based on the above
methodologies, procurement practices, for client sign-off
determining more appropriate service levels • Take the specification to market
or developing robust asset register or • Produce a report based on the market
operation and maintenance manuals. responses
• Assist with implementation
Our services and charges are bespoke to your
needs, consistent with our entire approach to Consultancy can be charged at a day rate with
applying our skills to your benefit. the number of days or a fixed fee agreed in
advance, depending upon the requirements
and complexity of the project.
Contingency and consultancy Expense Reduction Analysts 15
16. find extra profit
Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Cyprus
Denmark Ecuador Finland France Germany Greece Hungary Ireland Italy Jordan Korea
Luxembourg Mexico Morocco Netherlands New Zealand Panama Philippines Poland
Portugal Spain Sweden Switzerland Taiwan United Kingdom United States Uruguay
Expense Reduction
Analysts
www.expense-reduction.co.uk
