Sourcing project for cleaning services in a Belgian public institution
Cleaning services sourcing project
Sustainable value created
- We implemented centralised purchasing activity for cleaning services, an online communication platform, and a time registration tool
- Helped introduce technology (e.g., robots) and improved cleaning processes to reduce work hours
- By establishing long-term contracts with a clear pricing structure based on pre-determined parameters for cost calculations, annual savings of €1 million were achieved without sacrificing quality or employee satisfaction
Client Profile
A public institution in Belgium with an annual spend on cleaning services of nearly €4 million.
Project Scope
More than 80% of these cleaning expenses were contracted out to a single supplier. As time has gone on, in-house cleaners are being replaced by the cleaning services of this supplier. The challenge was to negotiate a sharp long-term contract with a clear pricing structure based on pre-determined parameters for cost calculations.
Hudicor’s Approach
We approached the project following the strategic sourcing methodology, conducting internal and external analyses.
During the internal analysis, we examined the evolution of spend per year, per building, and per category. In addition, we benchmarked the efficiency levels of different cleaning service providers based on fixed parameters (number of hours work per square meter/cleaning activity/…).
During the external analysis, all potential suppliers were identified, and the market dynamics were examined. The final step was to develop a sourcing strategy, which was completely different from before, and turn this strategy into reality through public tender.
An improvement in employee satisfaction coupled with increased efficiency.
Long-term contracts based on fixed parameters with realised annual savings of €1 million.
Interested in accelerating procurement performance and savings?
