SOURCE: Intesource, Inc.

Intesource, Inc.

December 12, 2012 11:36 ET

Facility and Maintenance Services Present Immense Cost-Cutting Opportunities for Retailers and Grocers

New Intesource Data Reveals Huge Savings for Floor Care, Store Cleaning, and Snow Removal Services

PHOENIX, AZ--(Marketwire - Dec 12, 2012) - Facility and maintenance services are ripe with potential savings, according to new sourcing data from Intesource.

Intesource found that, in the last two years, retailers and grocers that used e-sourcing to competitively source facilities maintenance service contracts saved approximately 22 percent per event. Floor care, store cleaning, and snow removal services presented buying organizations the highest average savings per event:

  • Floor Care: 24.15 percent per event
  • Store Cleaning: 27.15 percent per event
  • Snow Removal: 15.92 percent per event

Organizations that competitively sourced lawn care services achieved the highest average percent savings per event -- 36.23 percent. Additional categories presenting high savings percentages include trash hauling services (7.6 percent) and parking lot maintenance services (15.21 percent).

"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, VP 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."

An earlier study from Intesource found that many procurement executives are mistakenly overconfident in the value their organization derives from its suppliers. According to the report -- The Sourcing Confidence Bubble -- 75 percent of buyers that don't use e-sourcing feel that they get the best possible value from their suppliers. Contrarily, market reports from Aberdeen and Intesource found that companies save an average of 16 and 18 percent, respectively, when using e-sourcing techniques.

"Over the past two years, e-sourcing maintenance suppliers has 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."

For more information on e-sourcing facilities maintenance services and other categories, visit www.Intesource.com.

About Intesource

Companies are caught between two opposing goals: drive cost savings or invest in innovation. Both require people, technology, and expertise in a time when resources -- and the skills and time required to source effectively -- are scarce.

Intesource eliminates operational headaches from the sourcing equation by offering the industry's only enterprise wide, unlimited, full-service e-Sourcing package. Intesource's turnkey approach to e-Sourcing consistently drives double-digit savings without requiring additional staff or process overhauls -- an approach that saves valuable time and frees up staff to focus on strategic initiatives.

With a history of success in the most challenging sourcing climates, and expertise in both direct and indirect categories, Intesource ensures that buyers are getting the best value every single time. Learn more at www.Intesource.com.

Contact Information

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