Projects

Co-ordination and Leverage enable global property savings

The Client

A UK FTSE 250 world leading provider of mobile power solutions with a staff of 6000 who deliver solutions to clients in over 100 countries.

Odesma was engaged to provide expert support and deliver savings, enhance skills and deploy technologies that would accelerate the organisations procurement excellence programme, a key component of a company-wide global transformation programme.

Within weeks of being appointed, Odesma had undertaken significant analysis of the procurement operation and third party spend data. This identified a number of areas where significant savings could be made.

The client has a large, global property portfolio – almost 400 properties across America, Europe, Middle East, Asia and Australasia. Each organisation unit/ region managed their own property portfolio independently, and in some cases, was only resourced on a part time basis. There was no co-ordination via a central property register, no centralised dedicated expert resource and no means for any knowledge transfer across the global organisation.

Given the lack of information available, Odesma believed there would be a strong opportunity to create significant cost savings within this property portfolio.

The Objective

To negotiate contracts and create a global property register for the organisation.

Odesma Impact

A highly-experienced property category specialist from Odesma was deployed. As there was no information available centrally, Odesma had to initially contact the individual(s) responsible for managing the property portfolio in each and every region/ organisation unit, just to understand:

  1. The extent of the property portfolio.
  2. The nature of the contracts in place – scale, volume, cost, lease and license terms and timings.

This led to the creation of the organisations’s first global property register.

From this alone, Odesma was able to make a “first cut” on identifying properties with 18 months or less left on the lease. A break position within the next 12-18 months or a market rent higher than the benchmark for the location.

The “second cut” involved engaging with the individual senior stakeholders in each region/ organisation unit –  to understand the organisational needs and requirements as well as establishing if the existing properties were fit for purpose both now and in the future, creating leverage positions for negotiation and identifying rationalisation/ consolidation opportunities.

By working closely with the local teams, having the right information to hand, quickly understanding in depth the nuances of each local property market, having vast experience in negotiating with agents and landlords and allowing themselves expert thinking time to be able to scenario plan, Odesma was able to create leveraged positions for the client, which in turn, helped create significant savings.

The Results

  • Savings accomplished from projects in nine countries throughout the property portfolio.
  • Creation of a centralised property database and register.
  • Global consistency in how properties are dealt with.
  • Internal team up-skilled in both process and approach.
  • Organisation now aware of the commercial value of having an expert managing their property portfolio.

 

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