Gary Noy, Director of Integrated FM at Pfizer - Facilities management services outsourcing
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This document summarizes Pfizer's facilities management outsourcing in Europe, the Middle East, and Africa (EMEA). It provides background on Pfizer's global operations and EMEA real estate footprint. In 2008-2009, Pfizer outsourced many FM services across EMEA to a single vendor, CBRE, through a competitive bidding process. Lessons learned from that initial outsourcing included allowing more time for change management and establishing clear contract governance. The current approach involves another desk-top outsourcing review starting in 2012 to select a new vendor for EMEA FM services beginning in 2014.
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Gary Noy, Director of Integrated FM at Pfizer - Facilities management services outsourcing
- 1. Pfizer EMEA FM Outsourcing Gary Noy Director, Vendor Management EMEA and APAC Facilities Management and Property Event, Hilton Hotel, London 18th April 2013
- 2. Click to edit Master title style Purpose and Content 2 Purpose • Describe FM outsourcing in EMEA • Share some lessons learned Content • Background • Pfizer • Global Operations • EMEA footprint • Outsourcing in 2008/9 • Process • Lessons learned • Outsourcing 2014 • Current approach
- 3. Pfizer Today 3 manufacturing sites worldwide revenue in 2012 $59BILLION 150countries in which Pfizer sells products products with sales greater than $1 billion in 2012 R&D partner institutions across the globe cash and products donated from U.S. and Puerto Rico in 2011 globally $3.1BILLION Primary Care and Specialty Care businesses worldwide 90,000 colleagues around the world OVER Pfizer pipeline as of February 28, 2013 Discovery projects PHASE 1 PHASE 2 PHASE 3 Registration TOTAL 29 25 17 787 Aricept (Prevnar 13)
- 4. Always changing! 4 Major impacts on staff, business and real estate 2000 ’01 ’02 ’042003 ’05 ’06 ’07 ’08 2009 ’10 ’11 Company (acquisition) Company (acquisition) Company (merger) Company (divestiture) 2012 Approx. $90 billion Approx. $60 billion Approx. $68 billion 24M sq ft, reduced 15M in 3 yrs Approx. 2M sq ft Company (divestiture) Pfizer Nutrition Business Approx. $11.8 billion Less than 2M sq ft
- 5. Pfizer Organisation CEO Pfizer Finance & Business Operations Exec VP Finance and Global Operations Global Operations Americas EMEA & APAC Portfolio Mgmt 5 Regional Delivery Central Support Real Estate Capital
- 6. GO EMEA Team 6 EMEA & APAC Lead Facility Solutions (Capital Projects & workplace strategies) EHS Occupational Health Real Estate (Transaction management) APAC Operations Mature Markets Commercial Offices 3 Ops Managers Vendor Partner 16 West European Countries Emerging Markets Commercial Offices 2 Ops Managers Vendor Partner 38 East European, AfME Countries WRD Technical Facilities 30 FTE Vendor Partner 2 UK Centres and Belgium Business Performance 2 Analysts 5 Augmented staff Procurement Category Mgr Vendor Management
- 7. EMEA Locations 7 Office 55 countries WRD 2 countries
- 8. EMEA Real Estate Footprint 8 2.9 Million Square Feet 55 Countries 126 Facilities Region Property Type Leased vs Owned
- 9. EMEA Real Estate Footprint 9 2.9 Million Square Feet 55 Countries 126 Facilities Sq Ft by Size of Facility (scale) # of Facilities by Size (breadth)
- 10. Scope for Outsourcing • Food services • Cleaning and janitorial • Mail and logistics • Non-regulated maintenance • Grounds • Pest control, reprographics • Major FM Services Principal 10 • Security • Couriers • Stationery • Utilities Agent • Demand Management • Landlord liaison • Small projects Other
- 12. High level Project Timeline 12 • 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 timeframe o Additional staff, additional facilities (24M sq ft WW) 10months
- 13. RFP Detail Stage 1 • Focus on geographic scope, performance capability, cultural fit, track record, change management and high level costs • High level data from 11 sites in 11 countries offered in RFP stage 1 in ARIBA • 6 companies invited to bid • 1 declined, 2 partnered together • Presentations made by all suppliers in December 2008 • Select 2 for Stage 2 Stage 2 • Detailed data from 11 sites and access to site FMs with site visits • Business case evaluated and negotiated with both vendors (heavily weighted on quantitative data) • Select partner • CBRE selected 13
- 14. Lessons Learned •Change takes longer than you think! Time •HR practices different in each country, even in EU •Experience of vendor essential Complexity •Local paternal nature of managers Stakeholder management •Actively required from vendor and client •Implementation and ongoing initiatives Change management •Clear goals •Accountabilities and responsibilities •Initiative tracking •Payment processes Establish good contract governance and administration 14
- 15. Current Outsourcing Considerations •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, design solutions, evaluate bids, plan for implementation 15
- 16. Current Outsourcing Plan Largely 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 2014 16 16months
- 17. Questions 17
Editor's Notes
- Background to Pfizer from Colleague Resource Centre via PfizerWorldCircles to highlight the challenge of GO – people, facilities and geographic reach
- Highlight that Real Estate and facilities are always changing and here are some major transactions that have impacted this.
- General position of GO in organisation. People are often interested where the RE function resides within the organisation.
- EMEA team – indicating how lean the retained organisation is
- Geographic scope of EMEA team
- Summary of RE – 50-50 leased/owned and spread across geography
- Owned facilities are mostly large and in western Europe – challenge of many small facilities in many countries
- Requirements we are looking for our vendors to have
- 2008 Project timeline
- Summary of the sourcing/selection process
- Some of our lessons learned in this process
- Challenges with a 2nd generation outsourcing
- Current process – longer time frame, more collaborative with vendors, longer RFI phase, design high level solution at table top before detailed bidding. Reduced cost to vendors, higher likelihood of success for Pfizer