Leading Trucking and (LTL) Freight Company
National Janitorial Program

USM offers a comprehensive and customizable custodian service package.

CLIENT OBJECTIVES

  • Risk mitigation
  • Sustainable, year-over-year savings
  • Enterprise control and visibility of a top 10 indirect spend category–janitorial services
  • Optimization and standardization of source-to-pay processes and work scopes
  • Site-level contract compliance

VALUE DELIVERED

Phase I

  • Bring previously decentralized janitorial spend under centralized management
  • Change management program essential to the success of the program
  • Retention of over 90% of legacy vendor base
  • Implement performance-based vendor contracts
  • Measurement and reporting of vendor compliance and performance
  • Eliminated maverick spend related to one-off services
  • Streamlined administration results in significant soft savings
  • Realized significant year 1 savings

Phase II

  • Optimized work scopes by site type, yielding additional savings
  • Launched client web portal for easy online transaction transparency
  • Build out of scalable model to expand scope of categories managed
  • Ongoing central and site-level management to assure continuous improvement
  • Realized significant, ongoing savings off historic baseline spend since program inception

BACKGROUND

At the enterprise level, there was no visibility into what was being spent, what services were being purchased, and from whom. Thus, the client’s exposure to risk was unknown. As a result of rapid growth, multiple disparate legacy systems exacerbated the lack of visibility into spend and risk exposure. The client turned to USM to help them realize year-over-year savings by utilizing USM’s market and category subject matter expertise. Once the solution was in place, change management issues were lessened as the client acquired other trucking companies; the program was shared with new acquisitions as best practices.

SOLUTIONS

Under a dedicated account team, USM collected all data and interviewed all key stakeholders related to the legacy, decentralized program. The baseline spend was established and current program strengths and weaknesses were shared with client as well as a multi-phase transition plan. Key elements of the USM’s source-to pay solution include:

  • Address the full procurement value chain
  • Dedicated team with a depth and breadth of janitorial category expertise
  • Sourcing organization with existing supply base and market intelligence across the US
  • Real-time vendor compliance and transaction management
  • Proprietary technology infrastructure
  • Site-level contract compliance and quality control

Additional Contract Details

  • Selected USM November, 2003
  • Process Scope: Source to Pay
  • Category Scope: Facility Services
    • Janitorial
  • Geographic Scope:
    430+ locations across the US
  • Type: Principal Agreement with guaranteed save
COMMERCIAL
TRANSPORTATION

 

OPERATING COMPANY:
USM, Inc.

CLIENT:
National Trucking and Freight Company with 430+ locations

PROJECT DURATION:
Ongoing

ADDRESSABLE ANNUAL SPEND:
$12 Million

 

 

 

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