Optimize any Costs and improve services with LAUNCH Procurement Solutions

We specialize in implementing strategic procurement solutions that optimize costs, improve services, and streamline operations. Our expertise in should-cost analysis and service standardization can help you successfully manage any costs with LAUNCH Procurement Solutions.

The Challenge

Managing janitorial costs across multiple plants can be a complex and costly endeavor, mainly when relying on local service providers with whom management has a long-standing relationship.
Benchmarking efforts and negotiations often result in slight concessions and do little to improve services or lower costs. Facing these challenges, a large manufacturer with multiple plants in North America turned to should-cost analysis for a new solution.

The Solution

To address the issue of janitorial costs, the procurement team employed a novel tactic for the company - should-cost analysis. Time studies by activity and plant were initiated, cost inputs were studied, and redundancies and gaps in service were identified. Service levels were standardized across plants, and competitive rates were established and negotiated per service type. In most cases, favored incumbent suppliers remained and in turn appreciated clear work instructions at competitive rates. These measures resulted in over 40% reduction in annual janitorial services costs across all plants, delivering significant cost savings and improved services to the manufacturer.
Partner with us to unlock the full potential of your organization's procurement capabilities. Contact us today to learn how LAUNCH can support your janitorial cost savings.