Sector: Retail

Client: A major nationwide retailer

Region: UK

The challenge:

The significance of daily, periodic and specialist cleaning services to the retail sector are highlighted by the diverse range of duties performed by contract cleaning companies. They include chewing gum and graffiti removal, washroom hygiene, dealing with spillages, escalator care, hard floor cleaning and keeping windows and fascias spotless.

Although keeping retail units looking their best is probably overlooked by most members of the general public, the consequences of ‘getting it wrong’ could prove to be disastrous and costly.

A clean retail unit makes a good impression for customers, staff and stakeholders. It also means a safer and healthier working and shopping environment. Yet with many overheads to consider, retailers need contract cleaning services which are reliable and provide great value for money.

The rapid expansion of a national retailer therefore prompted the business to review its contract for national cleaning services.

The solution:

The organisation was keen to appoint a cleaning services provider which could support its growing business needs. This was to include taking care of all 200 or so UK retail units.

They therefore approached Trade Interchange to find the best way to re-negotiate a new national cleaning services contract.

To provide a single platform for the pre-qualification, negotiation and selection process of a suitable contractor, Trade Interchange set up and managed the following:

• A supplier eRFX (online questionnaire) was completed by 19 cleaning contractors. Each was invited into the process following supplier research. All were asked to cover a variety of topics, including information about their business, customer references, account management, costs and other aspects of their proposed service. They were also asked to agree the terms and conditions of the contract
• The eRFX process ran for 14 days only. This allowed our client to assess and qualify potential suppliers quickly, by utilising the evaluation features provided
• Invitations to participate in an online eAuction were given to 15 contractors that successfully qualified at the eRFX stage. Contractors used either their own quotes from the eRFX stage as a pre-entered opening bid, or where higher, a ceiling price based on existing costs. During the auction, these prices were reduced as a result of competitive bidding.

The Results:

By appointing the contractor which best met the needs of the organisation, results included:

• Cost savings in excess of £100,000 per year in year one, with additional savings built into future contract years.
• Time savings in excess of two months for the negotiation process.
• Process time savings of several weeks, thanks to the use of the on-line tools which enabled a comprehensive review and negotiation to be completed within five weeks.