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Adding facility maintenance helps retailers, grocers slash costs

Adding facility maintenance helps retailers, grocers slash costs
Adding facility maintenance helps retailers, grocers slash costs

A new study has found that companies that invest in facility services and maintenance management programs can potentially create huge savings across the board.

The study, conducted by Intesource, found that in the past two years, companies in the retail and grocery industries that have used e-sourcing to implement facilities maintenance services can save up to 22 percent. Some of the areas that showed the most cost improvement were in floor care, store cleaning and snow removal, which each saved businesses and average of 24.15 percent, 27.15 percent and 15.92 percent, respectively.

The study also found that groups that implemented maintenance services into lawn care showed the highest average percent savings at 36.23 percent. Other industries with notable savings included the trash hauling services and parking lot maintenance.

"Profit margins in the retail and grocery industries tend to be very small, forcing procurement teams to check under every stone for opportunities to reduce costs," said Len Kaplan, vice president of sales at Intesource. "Yet our data shows that facilities maintenance suppliers are often left unchallenged – and it costs buyers hundreds of thousands of dollars each year."

This is the second study the company has performed, which comes shortly after many procurement executives said they have overestimated their confidence in how much value their company saw in its suppliers. The report found 75 percent of buyers had not implemented a facilities maintenance program through e-sourcing.

"Over the past two years, e-sourcing maintenance suppliers [have] delivered cost savings almost every single time – making it one of the largest areas of potential savings for organizations with spend in these areas," said Kaplan. "To maximize value, businesses should evaluate and source seasonal maintenance needs – like lawn care and snow removal – about six months in advance."

However, even when manufacturers and warehouses run an operation with facilities maintenance programs in place, not having the proper documentation of these activities can greatly slow down inspections made by the Occupational Safety and Health Administration (OSHA). These workplace inspections are conducted to ensure compliance with the many standards the agency has developed. 

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