Through effective Facilities Management, SpringTide saved £539,000 on a spend of £1.7 million for a UK retail chain.
This chain has 50 sites throughout the UK, with over 4.14 million gross sq.ft. of sales and retail space. The company had sole sourced for 30 years, but had recently encountered difficulties after their supplier was sold and fell into new management. This resulted in the retailers performance deteriorating across many of their stores when assets came to the end of their life and there were no formal in measures set in place to renew.
SpringTide undertook a range of approaches to generate a significant saving for the retailer. Firstly, as part of initiating a formal tender process, SpringTide undertook pre-tender site visits and questioned a prequalified list of 5 bidders. The tender process that was followed, included a number of negotiating rounds in order to achieve the desired outcome.
Another avenue for savings was challenging the cost breakdowns on all staff grades which generated a saving of £206.280 per annum.
Despite labour being a significant cost driver, SpringTide saved the retailer £539,000 per annum – a 31% saving.
By negotiating terms and renewing the contract with the existing supplier resulted in limited disruption to the retailer was avoided.
SpringTide was able to renegotiate with the existing supplier to re-write the contract specifications to create a service that is more appropriate to the retailer and reduce costs.
Let SpringTide take away the stress of sourcing.
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