Business Challenge

A global gaming & hospitality company with more than 50 properties sought to improve earnings and leverage its global spend while simultaneously meeting established supplier diversity spend objectives. Accel was engaged to perform an assessment to identify cost reduction targets and a strategy for achieving the targets.

Approach

Accel performed a full Spend Analysis across all facilities categories including janitorial services, HVAC, electrical services, waste management, landscaping and plumbing services.

Results: Over $34 Million in Savings & $29 Million Potential Increase in Diversity Spend

Leveraging our team and methodology, we developed category-specific sourcing strategies for over 30 facilities-related sub-categories representing $200 Million in annual spend. Subcategories included environmental services (EVS), public areas cleaning; carpet care, floor care, power washing, window cleaning, kitchen cleaning, lawn maintenance, snow removal and HVAC contract maintenance.

Business Challenge

A global provider of HR, Billing and Customer Care Services was faced with the challenge of reducing cost to remain profitable in an increasingly competitive market. Additionally, mandates from corporate and government customers required that a specified percentage of contract value be awarded to qualified minority companies.

Accel was hired to conduct an assessment to identify cost savings as well as opportunities to increase spend with minority suppliers. Additionally, the client wanted to institutionalize a corporate-wide supplier diversity policy and program.

Approach

Accel performed a global Spend Analysis across all business units and geographic locations. Corporate spend was segmented into 14 sourceable categories. In addition to the spend analysis, the team also conducted an assessment of the existing procurement processes, organization and technology.

Results: $15 Million in Savings & $50 Million Potential Increase in Diversity Spend across five categories.

Categories driving benefits were as follows:

• Contract Programming
• Temp Labor
• HR Services (recruiting, training and relocation)
• Facilities Services
• Facilities Build-outs

Other benefits included:

• Exceed customer requirements through implementation of formal supplier diversity program
• Opportunity to increase diverse supplier spend in select categories by 10% to 75%
• Business case to support consolidate multiple purchasing functions across the globe and better leverage global spend

Business Challenge

A provider of Medical Equipment Maintenance & Repair Services sought to aggressively shrink its cost structure to support growth under a new operating model and achieve profit targets established by its new private equity owner. Accel was hired to develop and execute strategies for the sourcing of Parts and Third-party maintenance spend. Once complete, Accel was hired assist the client in executing the recommended strategies.

Approach

Accel performed a Spend Analysis that resulted in the identification of $5.8 Million in savings. The team developed and executed category-specific sourcing strategies and tactics that ranged from aggressive negotiations with incumbent suppliers to full competitive bid process utilizing a reverse auction.

Results: $5 Million in Savings and a New Sourcing Organization

In addition to sourcing strategy and execution, Accel developed a customized parts price look-up database that enables the client to manage unit pricing to a benchmark price in real time.

Business Challenge

A $5 Billion global provider of Information Technology Services & Support recognized the profit improvement power of strategic sourcing and launched a global initiative aimed at developing global category strategies within IT, Telecom, Contract Labor and numerous Indirect categories including travel, office supplies, facilities, MRO and P-card.

Approach

Collaborating with established client sourcing teams in Europe, Latin America, Asia Pacific and North America, Accel performed a Spend Analysis and developed category-level sourcing strategies that centered on supplier rationalization, standardization, global contracts and leveraging volume globally.

The teams immediately launched into implementation of the sourcing strategies. Based on current run-rate, targeted savings will be exceeded.

Results: $49 Million in Annual Savings Across Over 20 Categories