Facility Management
ESG-Driven Supplier Consolidation in Cleaning Services
Rationalized cleaning service providers across all sites to improve sustainability, reduce cost, and enforce ESG-compliant standards.
Industry
Financial Services
Direct/Indirect
Indirect
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Sourcing Context & Procurement Challenge
The client operated a decentralized facility management model with multiple local cleaning service providers across Europe. This fragmentation led to inconsistent service levels, non-compliance with ESG regulations, and a lack of cost transparency. The procurement challenge was to align regional stakeholders, streamline supplier management, and ensure sustainability without compromising operational continuity.
Procurement Objectives & Strategic Levers
Key objectives included achieving a >15% cost reduction, ensuring 100% ESG-compliant cleaning services, and minimizing administrative complexity. The primary procurement levers were spend aggregation, vendor rationalization, and ESG-based selection criteria embedded in the tender process. Additionally, we aimed to implement uniform service level agreements (SLAs) to drive consistency
Sourcing Strategy & Execution Approach
A pan-European RFP was launched, targeting qualified providers with proven ESG capabilities. Using a weighted scorecard approach (TCO, ESG, SLA quality), we benchmarked all bids against both financial and non-financial KPIs. Central negotiation rounds were led by procurement, with local facility managers involved in the down-selection to ensure stakeholder buy-in and operational feasibility.
Results & Values Delivered
The initiative delivered cost savings exceeding 15%, while consolidating over 25 local contracts into 3 regional master service agreements. ESG compliance rose from 42% to 100% through audited criteria and supplier self-reporting obligations. Harmonized SLAs resulted in a 23% increase in service quality ratings (measured via bi-annual site surveys). Administrative overhead was significantly reduced through centralized invoice and performance management.
Role & Contribution
As Group CPO, I sponsored and led the initiative from initial diagnostics to contract execution. I coordinated cross-functional stakeholders, owned the sourcing strategy, and conducted final negotiations with shortlisted vendors. My role was instrumental in aligning ESG and commercial targets, and in institutionalizing governance structures post-implementation.
Conclusion & Reflections
This project demonstrated how ESG goals can be a catalyst for broader sourcing excellence. The success hinged not only on pricing but on building trust with operations and embedding compliance into vendor KPIs. A key learning: ESG integration is most effective when it becomes a core sourcing criterion – not an afterthought. Cross-border collaboration and local empowerment were essential for adoption and long-term success.