Spend Analytics and Category Strategy - Facilities Management in Netherlands

Spend Analytics and Category Strategy - Facilities Management in
Netherlands
March 2017
© Copyright 2016 Beroe Inc. All rights reserved 1

Statement of Work
Brief Business
Background Needs
The buyer currently spends an average of EUR XYZ million • Supply Base Consolidation Strategy by matching the
annually on FM services in Netherlands and engages with spend details provided
multiple suppliers. The buyer wants to consolidate its supply
• Suggesting cost savings by category
base in order to manage their spend in a more efficient
manner and also understand the supply landscape to explore • Best-fit Engagement Model
alternate FM service providers • Supplier Analysis

Table of Contents
01 02 03 04
Executive Summary Category Dashboard Market Overview Spend Analysis
Slides 5 – 7 Slide 9 Slides 11-12 Slides 14-18
• Project Scope
• Market Outlook • Alignment of Category
• Porter’s Five Forces Analysis Structure
• Pain Points
05 06 07 08
Category Strategy Consolidation Strategy Procurement Best Practices Supplier Analysis
Slides 20-27 Slides 29-33 Slides 36-38 Slides 40-47
• Key FM Global/Regional
• Consolidation Strategy • Sourcing Models
• Category Level Consolidation Suppliers
• Engagement Strategy • Sourcing Models – IFM
Strategy • Key Suppliers Profiling
• Case Study – Consolidation • Pricing models: Definition
• Key FM Local Suppliers

Research Methodology – The 3C Approach
• Category specific licensed subscriptions • Industry websites/ association specific to • Engagement with Industry Experts
Inclusion Criteria: the category • Experts’ Profile: Personnel various stages of
• Supplier websites + Supplier surveys the value chain (buyers, suppliers,
• Data relevant to 2016
intermediaries) with extensive experience
• Beroe IP and triangulated analysis • Beroe knowledge center which has been
working/worked in large organizations
build over decade of being in Procurement
• Data Collection: Statistically significant
advisory and market research space.
sample considered via Surveys and
Telephone interviews.
Market Analysis Section Procurement Best Practices Supplier Analysis Section

Data gathered from Section + Cost & Pricing Data gathered from case
Licensed Subscriptions + Analysis studies relevant to
Industry Associations + Data gathered through Category from relevant
Supplier Assessment and surveys/interviews from subscriptions + Supplier
Expert Surveys • Experts: 10+ years of relevant experience websites and surveys
• Supplier Interviews: 10

Glossary
Acronym Expansion
CCTV Closed-Circuit Television
EMEA Europe, Middle East and Africa
FM Facilities Management
GMP Guaranteed Maximum Pricing
HVAC Heating, Ventilation and Air-Conditioning
IFM Integrated Facilities Management
OEM Original Equipment Manufacturer
SHE Safety Health and Environmental Management
TFM Total Facilities Management

Executive Summary (1/3)
Spend Analysis
Cleaning
Average Spend per 34% 15% 12% 11% 9% 7% 3%
year for Facilities
Management is EUR
XYZ Million Hard FM Security Property Uniforms Office Waste
Key Pain Points from Spend Analysis Explanation Impact on the buyer
• Many services under certain sub-categories share very little
Alignment of Sub-Category Structure
synergies among themselves and share more Medium
commonalities with services under other sub-categories
High usage of local suppliers • XYZ out of top ten suppliers are local suppliers High
Larger usage of specialized service • Majority of the supplier’s service capability is focused only
High
providers on providing single service
Long tail of low-spend suppliers • XYZ% of the suppliers cater to only XYZ% of the total spend Medium to High
What are the potential cost saving opportunities* available for the buyer by consolidating at category level?
Office Waste
Cost Saving parameters from supplier consolidation Hard FM Security Property Uniforms Cleaning
Supplies Management
Implementation of result based management system, coordination Mature Mature
between multiple sites, adjust site to contracted/centralized labor 5-10% 5-10% Category with Category with 3-7% 1-3%
ratios XYZ supplier XYZ supplier
XYZ-XYZ%
XYZ 1-4% 1-5% managing managing 1-2% 1-3%
on
XYZ% of the XYZ% of the
XYZ XYZ-XYZ% XYZ-XYZ% recurring XYZ-XYZ% XYZ-XYZ%
total spend. total spend.
spends
Can continue Can continue
XYZ XYZ-XYZ% XYZ-XYZ% XYZ-XYZ% XYZ-XYZ%
with current with current
XYZ XYZ-XYZ% XYZ-XYZ% state state XYZ-XYZ% XYZ-XYZ%
*The percentage savings is just a reference point. Actual savings can vary based on current technologies used, level of fragmentation, etc.
Short Term Medium Term Long Term © Copyright 2016 Beroe Inc. All rights reserved 6
( 3- 6 months) ( 6 - 12 months) ( 3 - 5 Year )
Business Model
Major Locations Netherlands Market Maturity High Medium Low
Type of facility Manufacturing plant
Sourcing Strategy Sourcing Option - I Sourcing Option - II
Engagement Models Bundled Service Sourcing Single Sourcing Local Integrated Sourcing (IFM)
Soft Bundle Hard Bundle • Property • Cleaning • HVAC

• Uniforms • Catering • Electrical
• Cleaning • HVAC • Office Supplies • Waste Management • Mechanical
• Catering • Electrical • Internal Transportation • Security Services • BMS
Service Portfolio • Waste Management • Mechanical • SHE • Landscaping • Lighting
• Security Services • BMS • Support Services • Pest Control • Plumbing
• Landscaping • Lighting • Janitorial Services
• Pest Control • Plumbing
• Janitorial Services
• XYZ uses a global bundled strategy for outsourcing its hard and soft • XYZ has implemented a pan-European IFM deal which comprises
services, each to Johnson controls and Sodexo respectively. XYZ has of both hard and soft services with Sodexo in 15 countries of
Case Study also outsourced its Security services to G4S, as a single service varying maturity in Europe
contract • XYZ has an ongoing global food service contract with Sodexo
Hard Bundle: Kropman, SPIE, Engie, Yask ISS, Sodexo, Compass, CBRE, JLL, Vinci, Apleona Bilfinger, Facilicom,
Best-fit Suppliers
Soft Bundle: Sodexo, ISS, Hectas, Facilicom SS Facility
• Guaranteed Maximum Pricing Model (GMP) is widely used and recommended for any high volume contract with an open book pricing
Pricing Model mechanism with clear definition of pass through costs and other one time costs
• A portion of the pricing should include performance based incentive/fine
• The buyer can choose “Sourcing Option – I” as a first step towards consolidation, if the buyer maturity in handling large contracts is low
Key Takeaway • The “Sourcing Option – II” can be engaged for the single site in scope, as the implementation risk is low for a single site IFM. This engagement
can be monitored and then can be scaled up regionally or globally

Supplier Analysis
Who are the best-fit suppliers available in Netherlands?
Option 1/2: Most Suitable Global and Suppliers Capability Matrix

Option 3: Local Suppliers
Regional Suppliers Company Name Hard FM Soft FM
CBRE Yes Yes
Sodexo Yes Yes
ISS Yes Yes
JLL Yes Yes
SPIE Yes Yes
Apleona Bilfinger Yes Yes
Self-delivery capability Majorly Sub-contracted
Option 1: Engaging with Global Service Provider

Consolidation Potential High
• Engaging with the global supplier obviously has its advantages
• The major suppliers have solid presence in Netherlands and other countries in Europe as well as globally Risk Involved High
• Better expertise in terms of service delivery due to the implementation of best practices learnt around the world Service Expertise* High
• Coverage across all the locations either through self performing (ISS, Sodexo) or sub contracting (CBRE, JLL)
Option 2: Engaging with Regional Service Provider
Consolidation Potential High–Medium
• There are only handful of regional suppliers available who can provide IFM service
• However, service provider like Apleona Bilfinger been considered as a strong regional player in Europe has solid presence Risk Involved Medium–Low
Netherlands
Service Expertise* Medium - High
• Local market expertise and control over labors are high
Option 3: Engaging with Local Service Provider

Consolidation Potential High–Medium
• Though there are not much IFM service providers locally, there are some notable multinational IFM player who have
strong presence in the Netherlands Risk Involved Low
• Localized intelligence of the market and better control over the labors
Service Expertise* Low - Medium
• Consolidation potential will be low, but since they are local players, the cost of providing services will be relatively lower
* Service expertise is the capability to serve a high quality and industry customized service based on knowledge and © Copyright 2016 Beroe Inc. All rights reserved 8
technology
Category Dashboard

Category Dashboard – FM services
• Services that are performed through scheduled visits or

• Services that demand a day-to-day presence in the
when breakdowns are to be attended on an urgent basis
building
in the building/ Plant.
• Services that focus on people and the environment
• Requires technical competency
• Boiler House/Steam Generation Plant • Reception & Switchboard

• Vacuum Generation/Distribution Systems • Logistics/Mail Services
Maintenance
Core business
• Compressed Air Generation •
Technical
Reprographics
Support
• Piped Services/Distribution Network (Gas, Water • Records Management
and Steam) • Office Services
• On-site Electricity Generation Plant and IFM: IFM covers a bundle of
Distribution (HV Substations) services which are combined
• Prevention & Control and delivered as per specific
buyer requirements at a local,
regional or global level. The
umbrella of services varies
• Electric Maintenance - Fixed Wire, according to type of Industry
• Appliance Testing, Hazardous Area Inspection/Repair • Catering
and the buyer’s operating • Cleaning
• Datacomm Maintenance model.
Hard Services/ Maintenance
• Mechanical Maintenance - Piping, Plumbing, Valves • Laundry and Uniforms

• HVAC Maintenance • Security (Manned Guarding)
• Building Infrastructure Maintenance • Light Maintenance
Soft Services
• Refrigeration Systems Maintenance • Building Management
• Fire Prevention Maintenance • Landscaping and Snow Removal
• Elevator Maintenance and Repair • Personal Protective Equipment
• Security Systems Maintenance
• Grounds Maintenance (road, Pavement, etc.)
• Lifting Equipment Maintenance
• HV Electrical Maintenance
• Lab Equipment Maintenance
Sources: Supplier Interaction © Copyright 2016 Beroe Inc. All rights reserved 10
Market Overview
• Market Outlook
• Porter’s Five Forces Analysis

Market Outlook – Netherlands
Market Information Growth Potential within

Current Trends 2020 Comments
Estimated market size (2016) Locations with high maturity
Netherlands
EUR 32.4 Billion All regions in Netherlands
Consolidation levels are high in Europe.
Global IFM/TFM
High Around 15-20 percent of buyers adopt
Growth Rate (2017-2020) Locations with medium maturity strategy
IFM/TFM strategies.
0.5 to 2% Annually NA Outsourcing levels are vey high in
Increased outsourcing
Moderate Europe due to lack of availability of
levels
Major End User Industries Locations with low maturity cheap unskilled labor.
Pharmaceutical, Electronic and Equipment NA Value based approach is prevalent in

manufacturing, BFSI, Oil and Gas Value based approach High Europe, there are lot of supplier-
partnerships seen in the market.
Market Maturity Big data analytics workplace sensors,
internet of things, robotics, 3D printing
Maturity of Service Providers Maturity of the Buyers Innovating with
High and artificial intelligence will play an
Technology
increasingly important role in the
facility management field.
Low High Low High
Performance based KPIs aimed at core competencies are
The maturity of buyers are also KPIs to KPIs linked to High expected to grow in Europe at a high
Supplier’s capability to provide very high in Netherlands and core competencies pace.
IFM services is high adoption of IFM is quickly
increasing Availability of skilled Labor availability is a high concern in
Moderate
labor developed European countries
Key Takeaway
• Netherlands is one of pioneer markets in Facilities Management (FM) with
high outsourcing levels and high market maturity Global/ Regional JLL, Sodexo, Compass, ISS, CBRE, Apleona Bilfinger, Vinci,
• The FM market size in Netherlands has grown for the first time since 2009, Service Providers Engie, SPIE
with a growth of 0.9% in 2016
• The use of technology and innovation to improve efficiency will be the top Local Service Providers SS Facility Services, Hectas, Facilicom, KIEN, AAFM, Yask
trend over the next three years
Source: Secondary Sources, PE2 and Beroe Analysis © Copyright 2016 Beroe Inc. All rights reserved 12
Porter’s Five Forces Analysis: Netherlands
• Large buyers have strong power because of the large consolidated business volumes
Key Takeaway • Suppliers are trying to improve their supply capabilities to offer a holistic service portfolio and thereby gain some negotiation
power
• Owing to the emergence of a global Supplier Power Buyer Power • With the advent of complex, integrated
integrated business model, service outsourcing categories, buyers’ power
providers are likely to enjoy significant will increase because of the volume of
leverage. However, supplier power will business outsourced
be constrained with the advent of open- • Open-book pricing will also increase
book pricing buyers’ power, as they can decide on
• Buyers can strictly monitor pass- the subcontractors involved and make
Barriers to Intensity of Threat of
through costs to ensure no mark-ups profit payments conditional on the
New Entrants Rivalry Substitutes
and deny payment of profits to service compliance of KPIs
providers in the case of the non-
compliance of KPIs
• On adopting a global integrated • Owing to the complexity of the • Threat of substitution will be very low, as in-
business model, service providers outsourcing category and the volume of house services or partial outsourcing will not
should have significant capabilities in business involved, there will be prove to be cost-efficient for buyers
terms of service offerings and considerable competition between
geographical spread major service providers
Source: Beroe Analysis Low Medium High © Copyright 2016 Beroe Inc. All rights reserved 13
Spend Analysis
• Project Scope
• Alignment of Sub-Category Structure
• Pain Points – Tail Spend
• Pain Points – Category Maturity

Spend Analysis – Project Scope
Spend Analysis Worksheet
XYZ
Apart from Main Category “Facilities Management” in the spend sheet shared, the below sub-categories were also
considered in the scope of the project as they fall under FM Category
Main Category Name Sub-Category Name
Maintenance & Repair Electrical
Maintenance & Repair Infrastructure & Building Support Services
Utilities Waste
Source: Beroe Analysis © Copyright 2016 Beroe Inc. All rights reserved 15
Spend Analysis – Alignment of Sub-Category Structure
1 Identifying areas of improvement 2 Re-defining the category at the service level
Challenges in the current state: 2a 2b

• Lack of clarity in the defined sub-category Using existing
Moving sub-categories/e-classes
Scenario - I
• Many services under certain sub-categories share nomenclatures, 2c
to their appropriate spend heads regroup the different
very little synergies among themselves and share
Beroe’s Solution
spend categories, so Examining and
Future Additions
more commonalities with services under other Make appropriate changes in the that they share adding new sub-
sub-categories Level II sourcing categories and maximum synergies categories to the
• Lesser spend visibility move them to those categories
2b current facilities
• Lower bundling options, due to lack of supplier as where they share better management
well as manpower synergies synergies Regrouping and
Scenario - II
category
redefining the category
based on Beroe’s
analysis and common
industry practice
Security Office Waste

Sub-category Hard FM Property Uniforms Cleaning
Services Supplies Management
XYZ XYZ XYZ XYZ XYZ XYZ XYZ

Average Internal Support
spend in the Catering Pest Control Landscaping SHE Janitorial
Transportation Services
Spend Data Post last four years
Changes (in euros) XYZ XYZ XYZ XYZ XYZ XYZ XYZ
Total – XYZ Euros
• The sub-category “Building Management” defined at the organizational level has services like Office Furniture, Lighting, Landscaping, Pest
Analyst’s Control which share little synergies among them, but rather share synergies with services from other sub-categories
Comments
• If the category is well defined to suit the supply market, the spend from the suppliers can be consolidated, resulting in larger discounts
Pain Points from Spend Analysis – Tail Spend (1/2)
Average Spend per Supplier STEENS BEHEER BV

KROPMAN BV
12% INTERGARDE BV
21%
BERENDSEN DIVISION MICRONCLEAN
KWAKKERNAAT ELECTR.-KABELTEL
12%
HECTAS BEDRIJFSDIENSTEN C.V.
2% BAM UTILITEITSBOUW BV
2%
KOOP KANTOORMEUBELEN B.V.
2%
2% VDP BEVEILIGINGSTECHN. BV
3% 12%
DKC KOUDETECHNIEK B V
3% SITA RECYCLING SERVICES
5% HEIJMANS UTILITEIT BV
11% RENTOKIL
6%
7% OTHERS
XYZ suppliers contribute 80% of the spend. Rest 20% spend is with XYZ suppliers
High usage of local suppliers

• It can be noted from the analysis that the majority of suppliers forming the band of high spend are local suppliers, having few or no
presence in the regional/global scale. XYZ out of top ten suppliers are local suppliers
Analyst’s
• While moving toward a global FM model, it is imperative to have major spend suppliers with global presence
Comments
Larger usage of specialized service providers
• Most of the suppliers used at the plant level have been sourced keeping in mind, the current service requirement
• A broader view of the service requirement at the plant level would have lead to choosing more capable suppliers with a wider array
of services to offer
Pain Points from Spend Analysis – Tail Spend (2/2)
Number of Suppliers per Spend range

40 100%
34 90%
35
80%
30
26 70%
25 54% 60%
20 50%
15 13 40%
9 30%
10 14%
6 12% 5 20%
7% 9%
5 1% 4% 2 10%
0%
0
0 0%
0 - 1000
1000 - 5000
5000 - 10000
10000 - 25000
25000 - 50000
50000 - 75000
75000 - 100000
100000 - 200000
No. of vendors Percentage spend
Long tail of low-spend suppliers

• XYZ% of the total spend is catered by ABC% of the suppliers. The tail suppliers can be reduced by consolidating the demand with core
suppliers
Analyst’s
• Maverick Spend: Such low spend suppliers usually involve an ad-hoc purchases where the full value of the spend (in terms of
Comments
rebates/discounts) and cost savings cannot be achieved
• Such maverick spend can be avoided by a sound contract covering all possible ad-hoc spend situations, which will help in achieving
cost savings
Pain Points from Spend Analysis – Category Maturity
Number of Suppliers per Category

600,000 27 30
500,000 25
19
400,000 20
300,000 10 15
8
200,000 6 6 5 10
3 4 4 Average Spend for last 4 years
100,000 1 2 1 1 5
Count of Vendors
- -
Mature Categories
• Property and Uniforms* are the most mature categories with the entire spend under contract with a single supplier each
• Uniforms category require specialized service providers and often outsourced as a single service. Since the category is already mature
and consolidated, the best solution is to continue with the current state
Analyst’s • Property services is also outsourced as a single service usually, as only CBRE and JLL have the capability to integrate FM and CRE in a
Comments single contract. This solution can be explored in the future when the buyer maturity is high, and for this consolidation exercise, property
services can be retained as it is
Low Maturity Categories
• Hard FM services, Office Supplies and Catering services are least mature categories because of the following reasons
• High number of tail suppliers
• High consolidation possible in the Netherlands market. For example, Office Supplies has 19 suppliers providing single services,
whereas a supplier like Staples or Office Depot has the capability to provide all the services under this category in Netherlands
*Though two suppliers are listed in spend sheet for Uniforms category, they are both the same supplier
Category Strategy
• Hard FM
• Security Services
• Office Supplies
• Cleaning
• Waste Management
• Catering
• Landscaping, Pest Control and Janitorial services
• Internal Transportation, SHE and Support Services

Category Strategy – Hard FM
Category Level 2 Hard FM Current State Review
Country NL Total Spend EUR XYZ
No. of sites XYZ Industry Category Maturity Low High

No. of suppliers XYZ
Buyer’s Category Maturity
All suppliers except one Low High
Suppliers in scope for consolidation
(XYZ)
Local consolidation possibility High Sub-Category Services required Current Major Suppliers
Supply-base post-local Max. 9 I & B* Support Electrical maintenance XYZ

consolidation Min. 5
I & B Support Mechanical maintenance XYZ
HVAC
Possible categories to be bundled NA I & B Support XYZ
Maintenance
I & B Support Automation XYZ
IFM Service A1 – A9, B1 – B6
provider (Link to Supplier Listing) Building Management Lighting XYZ
Possible supplier engagement
strategy Specialized
New – CBRE, Engie
service Key initiatives for Cost savings
Existing – XYZ, XYZ
provider • Buyers can save substantial maintenance costs savings by increasing their Preventive
Possible Consolidation Levels Maintenance to 60-85% of total maintenance costs
Strategy Supply-Base Scenario

• The industry best practice is to bundle all technical services together to a single service provider. Since “XYZ” is Supply base reduction
Suppliers
not in scope for consolidation, the buyer can use a single supplier alongside XYZ to cater to all the Hard Facilities achievable
Management demand.
• Since all the IFM service provider have good capabilities in hard FM, consolidating to an IFM supplier can increase
the buyer power, as Hard FM category constitutes one-third of the overall spend ~5-9 suppliers 66 – 81%
• Low Spend services like Doors & Blinds which are not covered by the Hard FM service provider can be sourced
from a local supplier
Source: PE1, PE2 and Beroe Analysis *Infrastructure & Building © Copyright 2016 Beroe Inc. All rights reserved 21
Category Strategy – Security Services
Category Level 2 Security Services Current State Review
No. of sites XYZ Industry Category Maturity

Low High
All suppliers except two Buyer’s Category Maturity
Suppliers in scope for consolidation Low High
(XYZ)
All the major Current Major
Local consolidation possibility High Sub-Category Services required
security service Suppliers
providers have
Supply-base post-local consolidation 3 Security Services Manned Guarding XYZ
good service
capabilities in
Cleaning, Waste security systems Security Services Security Systems XYZ
Possible categories to be bundled as well
Management, Catering

provider (Link to Supplier Listing) Key initiatives for Cost savings
Possible supplier engagement • Having an optimal configuration of global security suppliers (1-2 suppliers globally)
strategy Specialized • Ideally, a combination of CCTVs, cameras etc. and manned guarding works well for
New – G4S, Securitas
service companies in preventing warehouse hijacking, thefts etc.
Existing – XYZ, XYZ
provider • Technology plays a very significant role in successful security services contract in
terms of spend and quality of service. Global players tend to adopt best-in-class
technologies that can derive more value from the spend on security services
Possible Consolidation Levels

• Since XYZ are not in scope for consolidation, the buyer can consolidate all other security services to Intergarde who is Supply base reduction
Suppliers
a core supplier achievable
• IFM providers are generally preferred for security services when services are bundled or an IFM model is adopted.
One of the significant advantages being the possibility of enabling synergies across services to achieve cost savings 3 suppliers 63%
Source: PE1, PE2 and Beroe Analysis © Copyright 2016 Beroe Inc. All rights reserved 22
Category Strategy – Office Supplies
Category Level 2 Office Supplies Current State Review

No. of sites XYZ
Industry Category Maturity
Low High
All suppliers except one Buyer’s Category Maturity
Suppliers in scope for consolidation Low High
(XYZ)
Local consolidation possibility High
Office Furniture can Current Major
Max. 5 Sub-Category Services required
Supply-base post-local be procured along Suppliers
consolidation Min. 3 with Office Supplies Building Management Office Furniture XYZ
from major
suppliers like
Possible categories to be bundled NA Office Services Office Supplies XYZ
Staples, Office
Depot and Lyreco
IFM Service
NA
provider
Possible supplier engagement Key initiatives for Cost savings
strategy Specialized • Bill rate reductions through negotiations on volume
Existing – Staples, Office
service • Potential cost savings through E-Auction
Depot
provider • Better inventory management reduce requirement of local suppliers especially for high
cost products
• Office Supplies is treated as the specialist services and cannot be clubbed under the engagement of IFM or Supply base reduction
Suppliers
Bundled service model. achievable
• Buyers are looking for discounts on self-branded items through OEM’s
• Staples and Office Depot are both major service providers of Office Supplies and any one can be engaged to
achieve a high level of consolidation ~3-5 suppliers 74 – 84%
• Photography and any other services with minor spend and not catered by the big suppliers can sourced from
a existing local suppliers
Category Strategy – Cleaning
Category Level 2 Cleaning Current State Review
Total Spend EUR XYZ

Country NL

Low High
Low High
Suppliers in scope for consolidation All suppliers in scope
Local consolidation possibility High Sub-Category Current Major Suppliers
Supply-base post-local Max. 3 Cleaning Services XYZ

consolidation Min. 1 Consumables and
equipment's are provided Cleaning Consumables XYZ
Waste Management, by the suppliers and billed
Security Services, together with the service. Cleaning Equipment XYZ
Possible categories to be bundled
Catering, Landscaping, Hence, these services can be
Janitorial, Pest Control bundled along with cleaning Infrastructure & Building
XYZ
services Support Services
provider (Link to Supplier Listing)
strategy Specialized • Accurate manpower utilization is an effective key initiative for cleaning services
XYZ(Existing Supplier) • Use of technology and innovations to improve process efficiency and reduce man-hours
service provider
are prevalent in Netherlands

• Cleaning services are usually bundled with other FM services like landscaping, janitorial services, pest control Supply base reduction
Suppliers
to an IFM service provider achievable
• A large number of FM players and specialized cleaning providers are adding other FM services to their
existing service portfolio to provide a more holistic range to the buyers ~1-3 suppliers 50 – 83%
Category Strategy – Waste Management
Category Level 2 Waste Management Current State Review
Total Spend EUR XYZ

Country NL

Low High
Low High
All suppliers except one
(XYZ)
Sub-Category Services required Current Major Suppliers
Local consolidation possibility Medium
Waste Waste Management XYZ
Supply-base post-local consolidation 3
Sewer Sewer Management XYZ
Possible categories to be bundled Cleaning, Catering, Hard FM Infrastructure & Building

Water Treatment XYZ
Support Services
IFM Service A1 – A9, B1 – B6 Key initiatives for Cost savings

provider (Link to Supplier Listing) • More emphasis on waste minimization and recycling lead to effective cost savings
Possible supplier engagement • Strategies for waste management should be customized at a regional level. This will lead
strategy Specialized to better regulatory compliance and waste minimization practices
New – Veolia
service • Bundling of services based on supplier specialization can derive quality service and cost
Existing – XYZ
provider savings

• XYZ being out of scope can be retained for Sewer Management, while Waste Management services can be Supply base reduction
Suppliers
consolidated with XYZ (existing supplier) achievable
• Alternatively, Waste Management can also be bundled to an IFM supplier, if IFM model is engaged
• Water Treatment is a specialized service and existing supplier XYZ can be retained ~3 suppliers 40%
Category Strategy – Catering
Category Level 2 Catering Current State Review

Low High
All suppliers except one Low High
(XYZ)
Current Major
Sub-Category Services required
Local consolidation possibility High Suppliers
Max. 5 Catering Goods Catering XYZ

Supply-base post-local
consolidation All the services
Min. 2 Catering Goods Vending XYZ
listed here can be
Cleaning, Landscaping, commonly sourced
Possible categories to be bundled Janitorial, Security, Waste from a single Catering Goods Beverages XYZ
Management catering supplier
Catering Goods Fruits XYZ
provider (Link to Supplier Listing)
strategy Specialized • In catering services, after food cost, the largest cost is labor. By increasing self-service
New – Compass Group,
service and sometimes reducing service hours to eliminate times of minimal activity, one or
Sodexo, Albron
provider more positions can be eliminated
• Suppliers pass on some of the rebates based upon the volume to the buyers upon
Possible Consolidation Levels payments

• Compass group and Sodexo are global FM service providers, with catering as their USP. If IFM model is Supply base reduction
Suppliers
engaged with these suppliers, catering can be included, else can be outsourced as a single service to ensure achievable
self-delivery capability and high quality
• Since the number of suppliers in this category are high and the ease in sourcing all the services from a single ~2-5 suppliers 50 – 80%
supplier makes this category highly attractive for consolidation
Category Strategy – Landscaping, Pest Control and Janitorial services
Current State Review

Category Level 2 Cleaning
Total Spend EUR XYZ
Country NL
Industry Category Maturity
Low High
No. of sites XYZ
No. of suppliers XYZ Low High
Suppliers in scope for consolidation All suppliers in scope Current Major

Sub-Category Services required
Suppliers
Local consolidation possibility High These sub- External Estates
Landscaping XYZ
categories can be Management
Max. 3 consolidated due to
Supply-base post-local synergies in services
consolidation Building
and supplier Pest Control XYZ
Min. 1 Management
capabilities
Building
Possible categories to be bundled Cleaning, Security, Catering Janitorial XYZ
Management
Key initiatives for Cost savings

Possible supplier engagement IFM Service A1 – A9, B1, B3, B4, B6 • Adopting maintenance plans for right locations, perform the services with use of
strategy provider (Link to Supplier Listing) technologies to reduce manpower
• Grounds maintenance service may be integrated with other external Services (such as
Possible Consolidation Levels cleaning and general plant maintenance) to reduce duplication of tasks in external areas

• Landscaping, Pest Control and Janitorial services are commonly bundled to an integrated service provider Supply base reduction
Suppliers
achievable
~1-3 suppliers 40 – 80%
Category Strategy – Others (Internal Transportation, SHE and Support
Services)
Internal Transportation, SHE and Current State Review
Category Level 2
Support Services

Low High
Low High
All suppliers in scope except two
(XYZ)
Sub-Category Services required Current Major Suppliers
Local consolidation possibility Low
Max. 11 Material Handling

Supply-base post-local Internal Transportation XYZ
equipment's
consolidation Min. 9
SHE Safety Equipment's XYZ

Possible categories to be bundled NA
Specialized
Possible supplier engagement Building Management Support Services XYZ
service Existing Suppliers
strategy
provider

• All the three categories are tail spend categories with low spend and number of different suppliers Supply base reduction
Suppliers
• For material handling, as the equipment's leased or purchased are similar, supplier consolidation potential is high with achievable
1 or 2 preferred suppliers
• For SHE and Support services categories, due to lack of synergies between the services and lack of supplier capability,
consolidation potential is low and engaging with specialized local service providers (existing suppliers) is the best ~9-11 suppliers 15 – 30%
possible option
Consolidation Strategy
• Consolidation Strategy
• IFM + Specialized
• Bundled + Single
• Single services outsourcing
• Case Study – Consolidation

Consolidation Strategy (1/2)
PHASE I – Assessment and Strategy Formulation PHASE II – Trial and Implementation
DEFINITION: Assessment 2 DEFINITION: Strategy Formulation

1
During the evaluation process, it is imperative to study the structure of the Post a thorough assessment process and a spend analysis, a
current supply base. A detailed spend analysis and evaluating the outputs of clear strategy for the consolidation process can be framed.
the same are important for formulating the strategy for consolidation
Strategy Formulation
Critical Outputs of Spend Analysis Current level of

Low Medium High
consolidation
Critical components that should be deduced out of the spend analysis
to understand the current state of consolidation.
Inputs
Co-operation from
Low High Low High Low High
stake-holders
• Identifying such suppliers • Understanding such spends
Low Spend
will help in digging deeper Suppliers will result in better contract
into why such low spend formulation covering all the
possible services Approach suitable
contracts occur
• This can help to decide if Cost savings possible 15–20% 10–15% 7–10%
• This data point will help in Major Spend
Suppliers the supplier can be
understanding the value
leveraged to achieve The
benefits from the current
Outcomes
Risk of business
buyer’s goal of Low Low Low Medium Medium Low
major suppliers disruption
consolidation
Supplier
Capabilities Target time to
• Knowing the supplier’s achieve high 2–4 years 1–3 years 6–18 months
• Service and geographical
capabilities will help in consolidation
capability can be leveraged
knowing areas where
to the maximum when Gradual Consolidation Process
supplier is under-utilized
identified Radical Consolidation Process
Source: PE1, Beroe Analysis © Copyright 2016 Beroe Inc. All rights reserved 30
Consolidation Strategy (2/2)
PHASE I – Assessment and Strategy Formulation PHASE II – Trial and Implementation

3
DEFINITION: The Consolidation Process
Independent of the approach toward the consolidation process, the process of elimination is the same. From the spend analysis, the low spend and low value suppliers are eliminated. Potential suppliers
who have the service and geographical capability are considered for expanding the current contract. Internal consolidation of contracts of a single supplier across geographies and services can also take
place in this process.
STEP III: Engagement with Primary
STEP I: Eliminating Incumbent Suppliers STEP II: Selecting Primary Suppliers
Suppliers
Level 1: • During the process of elimination, those suppliers controlling • Internal consolidation of
• Resolve engagement with all the current suppliers that majority of spend and those suppliers having presence in multiple contracts of suppliers serving
are: geographies are filtered multiple services and
– At the end of the contract period • Those suppliers (from existing list above and new) who can aid in geographies should take
– Ad-hoc in nature and low in value achieving the buyer’s goal of global consolidation are shortlisted place
Inputs from PHASE I
– Having issues such as cost over runs and service • Primary suppliers will
level concerns gradually be given contracts
• Consolidation of multiple contracts under a single Assessment of service providers in new plant locations
primary service provider across locations covering a larger chunk of
Level 2:  IFM/TFM Service Capability Existing/New Supplier services
• Retain those contracts
– which have high value, when terminated will result  Geographical Presence • Sodexo
in high switching costs for the buyer • JLL
 Service Delivery •
•
ISS
Compass
 Specializations • CBRE
Contracts not in the end of contract period are not terminated A bottom to top with potential suppliers majorly from existing supply base is chosen. Some amount of flexibility lies
with the local stake holders with respect to choosing suppliers
0.5–1 year 1–3 months 1–2 years
Some high spend ongoing contracts may also be terminated in Potential suppliers are fixed in the top level, and plant level control on choosing the suppliers during consolidation is
this case seldom given. New suppliers may also be considered
2–3 months 1–2 months 3 months–1 year
Source: PE1, Beroe Analysis Gradual Consolidation Process

Radical Consolidation Process
IFM + Specialized
The buyer can implement IFM contract at a site level to monitor the engagement and then scale up to a national/regional IFM model across their sites globally
IFM + Specialized Services
Buyer ‘s FM Team
Global/ Global/
Regional Bundled Single Regional
Hard Other
Specialized Services
Services Soft Services
Analysis
• Categories that require specialized service providers
like Property, Uniforms and Office Supplies can be Specialized Service
Outsource to a Single Service outsourced to a specialized service provider Providers
Provider • Also, categories that cannot be included in IFM
contract and typically have low spend like Interiors,
Internal Transportation, SHE, Support Services can
be sourced from specialized local service providers
Analysis
• Better cost savings and high level of consolidation can be
achieved when this strategy is employed Specialized Service Providers
• Lean procurement organization structure is achieved
Internal
• There is a level of uncertainty in the quality of services Office Support
Property Uniforms Transport SHE Interiors
delivered with regards to subcontracted spend categories Supplies Services
ation
• When sourcing IFM services to one contractor, buyer may
miss key focus on critical service XYZ XYZ XYZ XYZ XYZ XYZ XYZ
IFM Service Providers
XYZ XYZ XYZ XYZ XYZ XYZ XYZ
Sodexo ISS Compass Group Vinci SS Facility
Apleona XYZ XYZ XYZ XYZ XYZ XYZ XYZ
CBRE JLL Hectas Facilicom
Bilfinger
Bundled + Single
If buyer maturity is low in handling large contracts, bundling strategy could be the first step in achieving consolidation
Single Services+ Bundled Outsourcing
Option 1 Buyer ‘s FM Team

Global/ Global/
Regional Single Bundled Regional
Hard Specialized Services Other Soft Services

Services
Outsource to a Single Service Provider Specialized Service Providers Outsource to Single Service Provider
Option 2
Hard Specialized Services

Other Soft Services Specialized Services
Services
Outsource to a Single Service Provider Specialized Service Provider
FM Service Providers
Analysis
• Widely preferred model by medium and large- Hard Services Soft Services Refer Previous
sized buyers to achieve balance between cost Slide for
and quality Kropman Sodexo Specialized Service
• Should adopt service provider who is competent Providers
in all the services procured from them SPIE ISS
Engie Hectas
Yask Facilicom
Single services outsourcing
If buyer maturity is low to engage an IFM model, then this model can be adopted as an initial step towards consolidation by reducing the number of suppliers at category level
One Category to specialized service provider
Single Services Outsourcing
Buyer ‘s FM Team
Global/ Global/
Regional Single Single Regional
Waste Management Cleaning

Hard Services Security Services Ground Maintenance
Services
Outsource to Outsource to Outsource to Outsource to Outsource to

Specialized Service Specialized Service Specialized Service Specialized Service Specialized Service
Provider Provider Provider Provider Provider
FM Service Providers
Analysis
Waste
• Consolidation could be done at a category level, where one or two Hard Services Security Soft Services Catering
Management
specialized suppliers handle all the services in that category
• This will drive innovation with better quality assurance by Compass
Kropman G4S Sodexo SITA
engaging specialized player for all the services Group
SPIE Securitas ISS Veolia Sodexo
Engie Intergarde Hectas Attero Albron
Yask Facilicom
Case Study – Consolidation
For a leading Telecom Company
• A leading telecom company was exploring options on cost savings by consolidation of the supplier base. A two-phased approach was followed by the central facilities
management team to achieve the consolidation from a highly fragmented supply base to one supplier
• Successful management of the transition process in 55 countries and 140 sites
• Later, the geographies were increased for 290 locations in 66 countries and planned to be implemented by the end of 2014
Phase 1
Time required: 2–4 years
Initial Supplier Base: Intermediate Supplier Base: Final Supplier Base

Fragmented 8–10 1 (Sodexo)
Approach followed: Approach followed:

Bottom to Top Top to Bottom
Phase 2
Contract: IFM contract
Time required: 3–4 months
Cost savings achieved: 12–14%
Phase: 1 Gradual Approach Phase: 2 Radical Approach

Suppliers for a particular service are decided at a Suppliers for a particular service are decided at a
Description
facility level regional level
Number of suppliers High Medium to Low
Consolidation achieved Low High
Procurement Best Practices
• Sourcing Models
• Sourcing Models – IFM
• Pricing models: Definition

Sourcing Models – Comparative Analysis
Involvement Quality Execution Savings

Sourcing Models Challenges in implementation Decision Enablers
of the buyer achievement risk opportunities
Currently not adopted by many buyers but

It’s a very management intensive model and
In house Very High Low Very low Very low possible to implement through effective
does not provide much cost savings
internal team and clear goals
Minimal cost of contract, hence minimal cost Adopted by many buyers but possible to
Single Services
High Medium Low Low savings. May also lead to service implement through effective contract
Outsourcing
inconsistencies management
Should adopt service provider who is Widely preferred model by medium and
Bundle Services
Medium High Medium Medium competent in all the services procured from large sized buyers to achieve balance
Outsourcing
them between cost and quality
There is a level of uncertainty in the quality of Widely preferred model by medium and
Integrated FM
Low High High High services delivered with regards to large sized buyers to achieve balance
Outsourcing
subcontracted spend categories between cost and quality
In-house + Single Not cost efficient and quality of service is not Currently not adopted by the organizations
Very High Low Very Low Very Low
Services Model assured due to very low cost effectiveness
In-house +
Less cost efficient and there are risks of service Critical categories can be retained in-house
Bundled Services High Medium Medium Medium
complacency and the rest can be bundled and outsourced
Model
In-house + IFM Quality of services is compromised for cost It is feasible to implement this model but
Medium Medium Medium High
Services Model saving opportunities the benefits are low
Even though the risk in implementation is not Categories that require specialized service
IFM + Single high as TFM, concerns of outsourcing to a providers can be bundled and outsourced
Low Very High Medium High
Services single service provider still prevails and whereas others can be outsourced to IFM
requires high buyer maturity. service providers
Sourcing Models - IFM
Description
 When both hard and soft services are combined and outsourced to a service provider it
comes under integrated regional sourcing
 Countries where the buyer has similar service requirements or countries with similar
industry trends, can be clubbed together
Key Take Away

Self Performing Sub-contracting
Questions Answers
FM requirements of the buyer What are the services for which regional IFM A combination of hard and soft services
sourcing model is most suitable? covering majority of services will make a good
Hard Services Soft Services
IFM contract
Possible exclusions from the IFM Contract XYZ
1 XYZ has signed a regional IFM contract with What can be the geographical scope of regional IFM IFM contracts can cover single/multiple sites at
ISS for a ABC period contracts? country level as an initial step towards regional
Recent Contracts
IFM model, before outsourcing to a single

XYZ has signed a IFM contract with Carillion provider across Europe
2
for a ABC period
Adoptability of IFM (Regional) in Netherlands High
XYZ extended its global IFM contract with
3 ISS till ABC
Pros Cons
 Specialized service providers who have strong presence in each region  More time required to identify players that can provide the best quality
can be engaged service for each business division
 Less number of supplier contacts and less overhead in administration of
service providers
Source: Secondary Sources and Beroe Analysis IFM Service Provider Sub-contractor Services © Copyright 2016 Beroe Inc. All rights reserved 38
Pricing models: Definition
Pricing Components
Risks Risk Mitigation Impact on service delivery
Models of the price
Open book contract

Direct+ Cost over runs are can be adopted, • Not much incentive for the provider to work efficiently w.r.t. cost/manpower
Indirect+ Fixed borne by the buyer, whereby the supplier • Buyer has flexibility to increase scope when necessary and thus can achieve efficiency to
Cost plus costs+ as the costs quoted is bound to report all some extent
Predetermined by the buyer is not the actual costs • Open book contracts can be helpful to maintain strategic relationship with buyer, which
margin very transparent involved, to the can be enhanced by adding incentive structures related to service delivery
buyer
Fixed Fee Suppliers typically • Suppliers work towards economical service delivery so as to achieve maximum profit
(includes Cost over runs are add a big margin to
Fixed Price • Outputs of such a model will be standard (the one that offers maximum cost savings)
supplier borne by the supplier cushion on cost over-
margin) runs and customized delivery will not be entertained under a current contract
Target cost • Supplier works with the aim to reduce costs so as to increase his profits
(approved by • To keep a tab on performance, performance based incentives should be added to the
Supplier works with
buyer)+ contracts or else quality can be lost in the effort to reduce costs
Cost over runs are maximum efficiency
Target Price contractor
borne by the supplier to avoid cost • The contracts need to updated each time the scope of services change
fee(based on
overruns
level of target • Quantifiable performance standards/KPI’s should be in place to achieve efficient service
achieved) delivery
All costs Supplier works with • Efficiency in services can be achieved by including profit/loss sharing components in the
Guaranteed model
incurred + Cost over runs are maximum efficiency
Maximum
Fixed profit borne by the supplier to avoid cost • Quantifiable performance standards/KPI’s should be in place to achieve efficient service
price
margin overruns delivery
• For very large contracts, GMP is the most commonly adopted pricing model
• The difference between the guaranteed maximum price (or the cap) and the overall cost (including the management fee) of the service delivery is
Key Takeaway shared between the buyer and the service provider
• The pass through expenses needs to be clearly defined in the contract. Expenses not defined in the contract need to be implied to be borne by the
service provider
Source: PE1, Beroe Analysis Preferred Pricing Model © Copyright 2016 Beroe Inc. All rights reserved 39
Supplier Analysis
• Key FM Global/Regional Suppliers
• Key Suppliers Profiling
• Key FM Local Suppliers

Key FM Global/Regional Suppliers
Service Portfolio
Services Offered
Soft Services Hard Services
Service
Reference Waste
Providers Security
Cleaning Catering Pest Janitorial Security Management
(Manned Landscaping Electrical Mechanical HVAC
Services Services Control Services Systems
Guarding)
A1 CBRE           
A2 Sodexo           
A3 ISS           
A4 JLL           
Compass
A5           
Group
Apleona
A6           
Bilfinger
A7 Vinci           
A8 ENGIE           
A9 SPIE           
Major Global Major Regional

Back to Category Strategy Self-delivery capability Majorly Sub-contracted
Suppliers Suppliers
Sources: Service providers Websites and Supplier Interaction © Copyright 2016 Beroe Inc. All rights reserved 41
Supplier Profile – ISS – Industry Context
Overview Financial Data (FY15) Financial Ratio (2015)
Business Description FY15 Financial Stats: Return on Assets NA
• Created in 1901 • Revenue: USD 11.96 Billion
• 510,968 employees worldwide (2014) • Operating margin: 5.6% Net Profit Margin 3.7%
• Operates in 53 countries globally
Service Performance Capabilities Current Ratio 1.13
• Majorly self-performed, and partially sub-contracted Revenue by
Regions Quick Ratio 1.15
• The company generates 31% of its revenue through Western Europe
IFM services, the rest through single (53%) and Financial Risk Rating 3/5
5% Easter Europe
multiple (16%) services 5%
17% Nordic Netherlands Contact Details

Headquarters 50%
APAC Address: Rijnzathe 8 3454 PV De Meern PO Box 115
Buddingevej 197, 21%
Latin America 3454 ZJ De Meern
DK-2860 Søborg, 2%
Denmark North America

Phone: +45 38 17 00 00 Ph.: +31 (0) 30-24 24 344
Web: http://www.issworld.com/ Email: info@nl.issworld.com
Business Services & IT
Revenue by Website: http://www.nl.issworld.com/
Services Portfolio Segments Industry & Manufacturing
• IFM Public Administration

• Cleaning Healthcare
• Landscaping 3%4% Retail & Wholesale
•
4%
Security 4%
4%
29%
Transportation & Infra
7%
Key Clients Energy
7%
14% Hotels/Leisure
• XYZ 29 11%
13%
• ABC Food & Beverage
24 Pharmaceuticals
Others
42
Sources: Service providers Websites and Annual Reports, Fmlink.com © Copyright 2016 Beroe Inc. All rights reserved 42
Supplier Profile – JLL– Industry Context
Overview Financial Data Danaher (FY15) Financial Ratio (2015)
Business Description FY15 Financial Stats:
• Created in 1783 • Fee Revenue: USD 5.6 billion Return on Assets 0.08%
• 58,100 employees worldwide (2014)
Net Profit Margin 7.15%
• Operates in 80 countries globally
Service Performance Capabilities Current Ratio 1.03
• Majorly sub-contracted Revenue by Americas
Recent Acquisition Regions Quick Ratio 1.17
In 2014 JLL acquired GCL Europe (Leading French EMEA Financial Risk Rating 2.8/5
Logistics & SCM firm), Tenzing AB (Swedish leader in 8%
property investment advice) and few more. 19% Netherlands Contact Details
46% APAC
Address: Jones Lang LaSalle - Kantoorgebouw Atrium
Headquarters
27% Strawinskylaan 3103 1077 ZX Amsterdam
200 East Randolph Drive LaSalle Investment
Chicago, Illinois 60601 Management
Tel: +1 312 782 5800 Ph.: +31 (0)20 540 54 05
Website: http://www.jll.nl/
Services Portfolio Revenue by

Segments
• Property and asset Management Leasing
• IFM
• Project and Development Services Property and Facilities
• Real Estate Investment Banking Management
• Government Services 19%
32% Project & developmenet
Key Clients 10%
29 8%
LaSalle Investment
• XYZ Management
10% 21%
• ABC 24 Advisory & Other
Capital Markets
43
Supplier Profile – CBRE – Industry Context
Overview Financial Data Danaher (FY15) Financial Ratio (2015)
• Created in 1906 • Revenue: USD 10.9 billion (+26% growth Gross Profit Margin 0.07%
• 52,000 employees worldwide (2014) from the previous year)
• Operates in 67 countries globally Net Profit Margin 5.37%
Service Performance Capabilities Americas
• Majorly sub-contracted Revenue by
Regions Operating Margin 1.21%
Recent Acquisition
• Acquired Johnson Controls’ global workspace solution EMEA
to increase the capacity with global FM services 1%
5% Debt to Equity 1.16
11%
APAC Netherlands
Headquarters Financial Risk Rating Contact Details
Safe
26% 58%
400 S. Hope Street, Address: Symphony Offices Gustav Mahlerlaan 405
Global Investment
25th Floor, 1082 MK Amsterdam
Los Angeles, CA 90071, US Postbus 7971
Phone: +1 212 984 6515 1008 AD Amsterdam
Web: http://www.cbre.com/ Ph.: +31 (0)20 626 26 91
Revenue by Email: netherlands@cbre.com
Services Portfolio
Segments Global Corporate Website: http://portal.cbre.eu/nl_en
• FM
Services and Asset
• Property management
Services
• Asset services Investmenet
• Corporate services 1%
1%
4%
Management
• Residential 15%
Appraisal and Valuation
Key Clients 44%
29 24%
• XYZ Leasing
• ABC 24
5% 6%
Sales
44
Supplier Profile – Sodexo– Industry Context
Overview Financial Data (FY15) Financial Ratio (2015)

• Created in 1966 Return on Assets 0.04 %
• Revenue: USD 19.8 billion (+10% increase)
• 420,000 employees worldwide (2015) – 19th largest • Operating margin: 21.7% Net Profit Margin 2.83 %
employer worldwide
• 32,000 sites worldwide (80 countries) Current Ratio 1
Revenue by Quick Ratio 0.95
Service Performance Capabilities Regions
• Majorly self-performed, and partially sub-contracted North America Financial Risk Rating 3.4/5
• The company’s FM services reached 31% of the
18%
revenue in Europe, with the UK constituting 57% UK & Ireland Netherlands Contact Details
41%
AddressPO Box 29100
31%
Europe
Headquarters 3001 GC ROTTERDAM
10%
Issy-les-Moulineaux, France Rest of the world
Phone: +33 (0)1 57 75 84 28 Ph.: +31 (0) 88 496 20 00
http://www.sodexo.com/ Email: info.nl@sodexo.com
Corporate
Revenue by Website: http://nl.sodexo.com/
Services Portfolio Activity Education
• Personal and home services
Health Care
• On-site service solution 4%4%
• Motivation solutions 4%
4%
30% Remote Sites
• FM 6%
• Food services 9%
Seniors
• Waste management
18% 21%
Key Clients Defense
 29
• XYZ Sports and Leisure
• ABC 24
Supplier Profile: Apleona Bilfinger
Apleona Bilfinger Berger
Contact Details Netherlands: Year Founded: 1880

Keizer Karel V Singel 45 5654 NM
Eindhoven Netherlands
Awards & Accolades:
Ph: +31 6 525 573 77 Number of Employees: • Ranked as #1 provider of industrial and facilities services in
Email: andre.polgar@Apleona 4490 (for Building/FM services) Germany
Bilfinger.com
• Ranked as #1 employer of choice by prospective candidates
http://www.facilitymanagement.Apleo
na Bilfinger.com Geographical Presence:
Americas, Europe, Middle East, Asia
Pacific
Services Portfolio:
Key Clients:Key Clients
• Facility management,
• XYZ
• Property management
• ABC
• Asset management services
Insights:
• Apleona Bilfinger with its expertise in Integrated facilities management has joined with IBM, specializing in intelligent IT solutions to optimize energy
utilization and processes in buildings
• Apleona Bilfinger has acquired the British industrial service provider ATG, which specializes in design, manufacture, installation, and maintenance of
integrated electronic systems
Supplier Profile: Vinci Facilities
Vinci Facilities
Year Founded: 1889

Awards & Accolades:
Contact Details Netherlands: • Vinci Facilities achieved BS EN50001 energy management
Databankweg 7, 3821 AL Amersfoort, Number of Employees: certification
Netherlands 9000 • Vinci Facilities received RoSPA Occupational Health and Safety
Ph: +31 33 454 4244 awards in gold category (2013)
www.vinci-facilities.nl • Vinci Facilities has secured British Institute of Cleaning Science
Geographical Presence: North
(BICS) accreditation
America, Latin America, APAC,
Europe
Services Portfolio:
Key Clients: • Facility Management
• XYZ • Energy Management
• ABC • Building Management
• M&E Maintenance
Insights:
• In 2010, Vinci Facilities acquired Faceo, a leading FM service provider in Europe. The objective of this acquisition was to support and add
momentum to its existing FM service portfolios
• In 2009, the company acquired Haymills. The acquisition of Haymills’ Property Solutions further consolidates VINCI’s position in this sector,
following the acquisition of Taylor Woodrow’s construction and facilities management businesses in September 2008. Taylor Woodrow FM, now
forms part of the VINCI Facilities division of VINCI Construction UK Limited
Key FM Local Suppliers
Netherlands
Supplier Contact Information
Reference Supplier Name Website Contact Details (Netherlands) Soft Services Hard Services
Lichttoren 32
http://ssfacilityservice 5611 BJ Eindhoven
B1 SS Facilities Service
s.com Ph.: +31 (0)40 282 00 90
Email: info@ssfs.eu
Hectas Facility Services C.V. Geograaf 30
6921 EW Duiven Postbus 2197
B2 Hectas http://www.hectas.nl
6802 CD Arnhem
Ph.: +31 (0) 88 - 0317 000
Karel Doormanweg 4, 3115 JD Schiedam Postbus
http://www.facilicom. 144, 3100 AC Schiedam
B3 Facilicom
com Ph.: +31 088 298 60 00
Email: info@facilicom.nl
High Tech Campus 32, 5656 AE Eindhoven, Netherlands
B4 Kien http://www.kien-fm.nl Ph.: +31 88 557 7650
Email: info@kien-fm.nl
Luchthavenweg 38, 5657 EB Eindhoven
http://www.aa- Postbus 80009, 5600 JZ Eindhoven
B5 AAFM
fm.com Ph.: +31 0 40 2332 800
Email: info@aa-fm.com
Rivium Quadrant 151
2909 LC Capelle aan den IJssel
B6 Yask http://www.yask.nl Nederland
Ph.: +31 (0)10 288 93 77
Email: info@yask.nl
Sources: Service providers Websites Service Available Back to Category Strategy © Copyright 2016 Beroe Inc. All rights reserved 48
Expert Profile
Details of Experts Contacted
Expert Profile Years of Experience Deliverables Assisted
PE1 • Consolidation Strategy

Facilities Management and 15+ • Engagement Models
Procurement SME • Pricing Models
PE2 • Market Specific Trends
10+
FM Consultant • Category Strategy
© Copyright 2016 Beroe Inc. All rights reserved 49 4


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© Copyright 2016 Beroe Inc. All rights reserved 1

© Copyright 2016 Beroe Inc. All rights reserved 2

© Copyright 2016 Beroe Inc. All rights reserved 3

Market Analysis Section Procurement Best Practices Supplier Analysis Section

© Copyright 2016 Beroe Inc. All rights reserved 4

CCTV Closed-Circuit Television

EMEA Europe, Middle East and Africa

GMP Guaranteed Maximum Pricing

HVAC Heating, Ventilation and Air-Conditioning

IFM Integrated Facilities Management

OEM Original Equipment Manufacturer

SHE Safety Health and Environmental Management

TFM Total Facilities Management

© Copyright 2016 Beroe Inc. All rights reserved 5

Major Locations Netherlands Market Maturity High Medium Low

Type of facility Manufacturing plant

Sourcing Strategy Sourcing Option - I Sourcing Option - II

Soft Bundle Hard Bundle • Property • Cleaning • HVAC

© Copyright 2016 Beroe Inc. All rights reserved 7

Who are the best-fit suppliers available in Netherlands?

Option 1/2: Most Suitable Global and Suppliers Capability Matrix

Self-delivery capability Majorly Sub-contracted

Option 1: Engaging with Global Service Provider

Option 3: Engaging with Local Service Provider

© Copyright 2016 Beroe Inc. All rights reserved 9

• Services that are performed through scheduled visits or

• Boiler House/Steam Generation Plant • Reception & Switchboard

• Mechanical Maintenance - Piping, Plumbing, Valves • Laundry and Uniforms

© Copyright 2016 Beroe Inc. All rights reserved 11

Market Information Growth Potential within

Pharmaceutical, Electronic and Equipment NA Value based approach is prevalent in

© Copyright 2016 Beroe Inc. All rights reserved 14

Spend Analysis Worksheet

Main Category Name Sub-Category Name

Maintenance & Repair Electrical

Maintenance & Repair Infrastructure & Building Support Services

1 Identifying areas of improvement 2 Re-defining the category at the service level

Challenges in the current state: 2a 2b

Security Office Waste

XYZ XYZ XYZ XYZ XYZ XYZ XYZ

Total – XYZ Euros

Average Spend per Supplier STEENS BEHEER BV

High usage of local suppliers

Number of Suppliers per Spend range

Long tail of low-spend suppliers

Number of Suppliers per Category

© Copyright 2016 Beroe Inc. All rights reserved 20

Category Level 2 Hard FM Current State Review

Country NL Total Spend EUR XYZ

No. of sites XYZ Industry Category Maturity Low High

Supply-base post-local Max. 9 I & B* Support Electrical maintenance XYZ

Strategy Supply-Base Scenario

Category Level 2 Security Services Current State Review

Country NL Total Spend EUR XYZ

No. of sites XYZ Industry Category Maturity

IFM Service A1 – A9, B1 – B6

Possible Consolidation Levels

Strategy Supply-Base Scenario

Category Level 2 Office Supplies Current State Review

Country NL Total Spend EUR XYZ

Category Level 2 Cleaning Current State Review

Total Spend EUR XYZ

No. of sites XYZ Industry Category Maturity