Breaking the Buyer-Vendor Paradigm with Supplier Advisory...

Breaking the Buyer-Vendor

Paradigm with Supplier Advisory

CouncilsHarvard Maintenance

John RavarisExecutive Vice President

JLL

Denver ClarkCPO

Jason LinnSVP, Strategic Sourcing

sig.org/eval

Supplier Advisory Councils

Breaking the Buyer - Vendor Paradigm

Jason Linn

SVP, Strategic Sourcing - JLL

John Ravaris

EVP – Harvard Maintenance

Denver Clark

CPO - JLL

October 2016

Opening

Month 00, 2014 3

Breaking the Buyer – Vendor Paradigm with Supplier Advisory Councils

Formal

Reviews

TIER 1

TIER 2

TIER 3

Performance

Measurement

Segmentation

Strategic

Alignment

JLL Overview

• Financial & Professional services firm specializing in commercial real estate services

• Fortune 500

• LinkedIn Top 40 Attractor Company*

• a World’s Most Ethical Company*

• Pioneer in Facility industry strategic supplier councils

Highlights

Global platform serves corporate clients worldwide

• Facility & Property Management

• Agency Leasing

• Transaction Advisory Services

• Tenant Representation

• Project and Development Services

• Energy and Sustainability

• Construction

• Investment Sales & Management

2015 revenue

$5.2B

Employees

60,000

Managed Portfolio

4.0 B Sq. Ft

Corporate offices

280

Countries

80

4

Harvard Overview

• Managed Services organization specializing in delivering high quality janitorial service to commercial office space nationwide.

We:

• Drive a People First culture

• Have transparency in our relationship

• Manage business using quantitative, metrics-based information

• Lead in Sustainability and Cleaning for Wellness initiatives

• Lead in Innovation

• Early adopter of Facility industry advanced council relationships

Highlights

Sectors Served

• Corporate Office Space

• Financial Services

• Medical Office

• High Tech / Pharma

2015 revenue

$360M

Employees

8,500

Managed Portfolio

280M Sq. Ft

Corporate offices

8

Countries

US Only

5

• Goals:

• Introduce Concept of Supplier Councils

• Provide Examples and Benefits

• Generate ideas and promote implementation

6

• Presentation Objective:

Demonstrate how JLL uses Supplier Advisory Councils to develop

cooperative value with our strategic suppliers to more effectively

achieves business objectives

Business Requirements

7

What do our business stakeholders expect?

Supply Chain / Procurement Solutions

8

Tools / Methods Used

Supplier

Performance

Mgt

P2P

Competitive

RFx

Strategic

Relationship

Mgt

Six Sigma,

Lean, Kaizen,

JIT

Market

Analysis

Risk

Frameworks

Strategic

Plans

Strategic

Core

Common Supplier Relations

Month 00, 2014 9

What are our common supplier relationships

Transactional

?

Month 00, 2014 10

A different way?

Desired outcomes

11

How can we break the mold of strategic supplier relationships?

Breaking the Buyer-Vendor Paradigm


JLL assembles groups of best in class companies;

• Focused around critical and high spend categories

• To all meet together twice a year

• Chaired by buy side org

• To Co-Operate, Co-innovate, Co-llaborate

12

Supplier Advisory Council Charter

• Council Charter StatementThe Supplier Advisory Council will serve as a cooperative partnership to support the servicing of

clients by providing advice and counsel on best in class service performance, quality,

innovation and financial standards as well as feedback regarding existing or planned initiatives and

service experience(s) of existing clients. The council will work collaboratively to support and enhance

service offerings and to continue to create value for clients.

13

What is the mission of Supplier Advisory Councils?

Breaking the Buyer-Vendor Paradigm


Requirements

• Build a Foundation of Trust, Transparency and Compatibility

• Need Vested commitments

• Be Candid

14

Collaboration is a working practice whereby

individuals work together to a common purpose to

achieve business benefit.

JLL Supplier Advisory Councils

• Security Guarding

• Facility Trade

Aggregator

• Janitorial

• Exterior Services

15

SRM

Customer

Satisfaction

Strategy

Alignment

Risk

ManagementInnovation

Corporate

Responsibility

Council

Service Level

Optimization

•Office Services • Cross Sectional

Benefits

16

What are the benefits to stakeholder groups? Why?

Benefit Sourcing Supplier End Stakeholders

QualityBest Practices

development

Advanced client

engagementPriority Service

Market Intel Industry IntelligenceAccess and

Alignment

Supply Chain

Transparency

Financial SavingsReduced Cost of

SalesOptimized Costs

Council KPI’s

Increase in supplier RevenueFinancial

Innovation / Best practice submissions, implementations

Intelligence

Supplier Performance Management scoresSPM

Increase in transactional activity

Quality

Development of white papers, case studies, training, workshops

Innovation

17

How do we measure success?

Improved quality metrics

Activity

Host Company Success Example

ScenarioJLL was challenged to reduce janitorial costs within a $40 Million contract. Market conditions; Union (CBA) governed, Escalating wage pressure, Recently sourced and consolidated to 1 provider.

SolutionWith the partnership of Council members, JLL was able to proactively advise members of intent and goals. With their input, JLL Created TCO RFP pricing model structure for transparency. Lotted RFP to optimize bidder strengths. Competitively bid via leveraged RFP event utilizing eSourcing platform.

ResultRFP delivered ~7% savingsJLL awarded to 2 council partnersMitigated future service risksMaintained high service levelsIntroduced Sourcing led strategic relationship programs

Month 00, 2014 18

JLL Case Study

Supplier Success Example

ScenarioJLL Strategic Sourcing was engaged with their Pursuit team on a new Business Development initiative. Janitorial was a core offering of the JLL value proposition due to being a pain point for the prospect.

ScenarioJLL engaged Harvard early in the pursuit process, transparently shared goals and account objectives to include janitorial savings goals and anticipated budgets parameters. We openly shared SOW modification thinking.

ResultJLL was awarded the contract, the completeness of the janitorial offering was cited as one of the reasons.Harvard will be providing Janitorial services and picks up a $3M new piece of business.

Month 00, 2014 19

Harvard Case Study

Presenters

Month 00, 2014 20

Jason Linn

Tel: 404-995-6528

Email: [email protected]

JLL

SVP, Strategic Sourcing

John Ravaris

Tel: 610-662-8406


Harvard Maintenance

EVP, Sales & Marketing

Denver Clark

Tel: +00 (0)00 12345678


JLL

Chief Procurement Officer

Appendix and References

Month 00, 2014 22

Supplier Advisory Council Framework

Chaired by Sourcing organization

Chair Company Participants: Sourcing (Council Chairperson, CPO, Category Mgr., SRM lead, Regional sourcing rep(s), Ops/Engineering rep, SME, Sr. Business Line Leader)

Supplier Members:

Supplier Participants: Strategic Suppliers (~3-6 firms), 2 representative each

Council Meeting Cadence & Place:

Council will meet bi-annually, at member hosted (rotating) facilities

Meetings are collaborative sharing environments with all stakeholders together

23

Who makes up a Supplier Advisory Council? When / Where are meetings?

Council Selection

SUPPLIER SELECTION

• Evaluate candidate firms on criteria of:

- Performance (SRM) results and account / region feedback

- Strategic alignment with your firm

- Proactive and Sr Supplier Mgt support

- Competitive pricing and current activity

- Innovation

- Client / stakeholder satisfaction

- Total Spend

*~3-6 firms per category council

24

How will the Suppliers and Members be selected?

Internal Committee Member Selection Team

• Sourcing

- ‘Chairperson’ - SVP, Sourcing

- ‘Co-Chair’ Category Mgr.

- Sourcing/Purchasing regional leads

- CPO

• Operations

- Engineering / Ops Leadership rep

• Business Leadership

- Business line reps

**Evaluated via Formal Team Survey

Supplier Advisory Council Dialogue & Output

25

What is the expected dialogue and output within these councils?

TOPICS

- Market & business trends

- Create specific solutions for clients

- Discuss challenges

- Provide Expertise, Speed, Service, Value

- Produce white papers, industry trade articles, etc.

- Internal Memo’s and SME content

Supplier Advisory Council Charter

• Council Charter StatementThe Supplier Advisory Council will serve as a cooperative partnership to support the servicing of

clients by providing advice and counsel on best in class service performance, quality, innovation

and financial standards as well as feedback regarding existing or planned initiatives and service

experience(s) of existing clients. The council will work collaboratively to support and enhance

service offerings and to continue to create value for clients.

26

What is the mission of Supplier Advisory Councils?

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JLL Denver Clark 678-938-2586 [email protected]

JLL Jason Linn 404-585-1086 [email protected]

Harvard Maintenance John Ravaris 610-662-8406 [email protected]

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