Success Story - "Janitorial Services"

Company Description

Publicly Traded Global provider of computer components and integrated hardware and software solutions to private and public sector industries.

The Client operated technical, administrative, sales and fulfillment centers across the US.

Company Situation and Problem

The Client had negotiated new lower rates with current suppliers during the depths of the recent recession.

  • Based upon discussions with the supplier, the Client anticipated rate increases for the future renewal period.
  • The Client felt the Supplier’s pricing was reasonably competitive and did not identify any services issues.
  • The Client preferred the retention of the majority of personnel and had concerns regarding transition cost s and risks if a new supplier were to be recommended.

Paladin Actions & Recommendations

Paladin worked closely with the Client, compiled historical costs and analyzed the current services.

  • Paladin identified best practices across facilities and current suppliers.
  • Paladin then prepared a complete Janitorial Services Request for Proposal and engaged both local and national service suppliers in the potential bid process.

Client Results

With strong Paladin competitive negotiations, the incumbents were awarded a 3 year extension.

  • The Client received an additional 20% reduction of cost beyond that which they had already negotiated.
  • In addition, since the incumbents won the extension, potential switching costs and risks were eliminated and the Client was able to implement best practices across facilities and providers.

A Competitive Bidding Process Resulted in Lower Costs from Incumbent Suppliers and Avoided Switching Costs and Risks.