Procurement Modernisation & Strategic Sourcing

For many Australian and New Zealand organisations, procurement has traditionally been viewed as a transactional function — focused on running tenders, negotiating rates, and enforcing compliance. In periods of stability, that approach was often “good enough”. Today, it is no longer sufficient.

Volatility in global supply chains, sustained inflationary pressure, labour shortages, heightened regulatory scrutiny, and rising stakeholder expectations have fundamentally changed what is required from procurement. Boards, CEOs and CFOs are increasingly looking to procurement not just for savings, but for risk management, resilience, sustainability, and long-term value creation.

This shift has brought procurement modernisation and strategic sourcing firmly into focus.

Rather than a single project or system implementation, procurement modernisation is an end-to-end transformation of how organisations define demand, engage markets, manage suppliers, leverage data, and govern spend. Strategic sourcing sits at the core of this transformation — ensuring that sourcing decisions are aligned with business strategy, not just short-term cost outcomes.

For organisations across Australia and New Zealand — particularly in government, health, infrastructure, retail, FMCG, manufacturing, education and large asset-intensive industries — getting this right has become a material source of competitive advantage.

Why procurement needs to modernise

1. Cost pressure is structural, not cyclical

Many organisations initially responded to inflation and margin pressure with short-term cost-out programs. However, it has become clear that cost pressure is structural:

• Input costs remain volatile
• Labour markets are tight
• Energy, compliance and insurance costs are rising
• Suppliers are under pressure themselves

In this environment, traditional “price-down” sourcing approaches are often ineffective or unsustainable. Procurement must move upstream — addressing demand, specifications, scope of service, and operating models, not just unit rates.

2. Risk and resilience are now board-level issues

Disruptions over the past few years have exposed just how fragile many supply chains are. Procurement teams are now expected to understand:

• Supplier financial viability
• Geographic concentration risk
• Dependency on single suppliers or regions
• Contractual exposure and exit options

Modern procurement functions embed risk-based sourcing strategies, diversified supplier portfolios, and proactive supplier relationship management rather than relying on reactive mitigation after issues emerge.

3. Sustainability and regulation are reshaping procurement decisions

Environmental, social and governance (ESG) considerations — particularly Scope 3 emissions, modern slavery obligations, and ethical sourcing — are no longer optional.

Procurement teams must now balance cost, service and sustainability outcomes, often with incomplete data and fragmented systems. This requires new capabilities in data capture, supplier engagement, and category strategy design.

4. Procurement is expected to enable the business, not slow it down

Business leaders increasingly expect procurement to be an enabler of growth, innovation and operational performance. Lengthy sourcing cycles, rigid processes and poor data visibility undermine confidence in the function.

Modern procurement organisations are redesigning processes, governance and technology to support speed, transparency and better decision-making, without sacrificing control.

What procurement modernisation really means

Procurement modernisation is often misunderstood as simply implementing a new source-to-pay system. Technology is important — but on its own it rarely delivers sustainable value.

In practice, procurement modernisation spans six interconnected dimensions:

1. Demand management and specification discipline

One of the most overlooked levers in procurement is demand.

Modern procurement functions work closely with stakeholders to:

• Challenge what is being bought, not just who it is bought from
• Standardise specifications where possible
• Remove gold-plating and legacy requirements
• Align demand with actual business need

In many organisations, a significant proportion of addressable savings sits upstream of the sourcing process — locked into poorly defined scopes, inconsistent specifications, and unmanaged demand growth.

2. Strategic category management

Strategic sourcing is most effective when embedded within a robust category management framework.

This involves:

• Deep spend and demand analysis
• Understanding supply markets and cost drivers
• Segmenting categories based on risk, value and complexity
• Defining clear sourcing strategies aligned to business objectives

Rather than running one-off tenders, modern procurement teams manage categories as ongoing portfolios, continuously adjusting strategies as market conditions change.

3. Smarter go-to-market strategies

Procurement modernisation enables more nuanced go-to-market approaches, such as:

• Multi-supplier frameworks
• Panel arrangements with performance differentiation
• Outcome-based contracting
• Collaborative sourcing models
• Long-term partnerships for critical categories

The right approach depends on category characteristics, risk appetite, and organisational maturity — not a one-size-fits-all tender template.

4. Supplier relationship and performance management

Modern procurement functions recognise that value is delivered after the contract is signed, not at award.

This requires:

• Clear performance metrics linked to business outcomes
• Regular, structured supplier reviews
• Transparent issue escalation pathways
• Joint improvement initiatives

Strategic supplier relationship management (SRM) is increasingly important in categories where service continuity, innovation or risk management matter as much as price.

5. Data, insights and digital enablement

Data remains one of the biggest constraints in procurement.

Modernisation focuses on:

• Improving spend visibility and classification
• Integrating procurement, finance and operational data
• Enabling real-time reporting and dashboards
• Supporting scenario analysis and decision-making

Technology should support better behaviours and decisions — not simply automate broken processes.

6. Governance, capability and operating model

Finally, procurement modernisation requires clarity on:

• Decision rights and delegations
• Centralised vs decentralised models
• Category ownership and accountability
• Capability uplift and change management

Without the right operating model and skills, even well-designed strategies struggle to stick.

Strategic sourcing: moving beyond tactical savings

Strategic sourcing is often used as a catch-all term, but in a modern context it has a specific meaning.

At its core, strategic sourcing is about aligning sourcing decisions with long-term organisational strategy, not just near-term budget cycles.

This includes:

• Understanding total cost of ownership, not just price
• Aligning sourcing outcomes to service, risk and sustainability objectives
• Designing sourcing strategies that remain viable in volatile markets
• Engaging suppliers as partners where appropriate

For many organisations, this represents a significant shift in mindset — particularly where procurement has historically been measured primarily on annualised savings.

Where procurement modernisation delivers the most value

Across Australia and New Zealand, procurement modernisation is delivering material benefits in several common areas:

Indirect procurement and services

Categories such as facilities management, property services, labour hire, IT services, professional services, logistics, cleaning, security and maintenance often suffer from:

• Poorly defined scopes
• Fragmented supplier bases
• Inconsistent rates and service levels

Modern sourcing approaches can unlock both cost and service improvements without compromising operational outcomes.

Capital projects and asset-intensive environments

In infrastructure, health, education and large facilities, procurement plays a critical role in:

• Managing contractor risk
• Aligning commercial models to delivery outcomes
• Ensuring transparency and governance

Strategic sourcing supports better risk allocation and lifecycle cost management.

Regulated and government environments

Public sector and highly regulated organisations face additional complexity around probity, transparency and compliance.

Procurement modernisation in these environments focuses on:

• Strong governance and auditability
• Clear evaluation frameworks
• Supplier performance management
• Market engagement that encourages competition and capability uplift

Common pitfalls organisations encounter

Despite good intentions, many procurement transformation initiatives fall short. Common issues include:

• Treating procurement modernisation as a technology project
• Over-focusing on savings targets without addressing demand
• Underestimating change management and capability uplift
• Implementing complex processes that stakeholders avoid
• Failing to embed accountability post-implementation

Sustainable outcomes require a balanced, pragmatic approach grounded in how organisations actually operate.

How Trace Consultants can help

Trace Consultants works with Australian and New Zealand organisations to design and deliver practical, commercially grounded procurement modernisation and strategic sourcing outcomes.

Our approach is deliberately independent, solution-agnostic and execution-focused.

End-to-end procurement modernisation

We support organisations across:

• Procurement strategy and maturity assessments
• Operating model and governance design
• Category management frameworks
• Demand and specification optimisation
• Source-to-pay process redesign
• Change management and capability uplift

Our focus is on delivering outcomes that are implementable and sustainable, not theoretical.

Strategic sourcing and go-to-market execution

Trace supports complex sourcing initiatives across:

• Indirect procurement and services
• Logistics, transport and warehousing
• Property and facilities services
• Labour and workforce-related categories
• Technology and professional services

We work closely with stakeholders to ensure sourcing strategies balance cost, risk, service and sustainability — and that suppliers are set up for success.

Data-driven insights and decision support

We help organisations improve procurement decision-making through:

• Spend analytics and opportunity identification
• Should-cost modelling and market benchmarking
• Scenario analysis to support sourcing strategy decisions
• Performance measurement frameworks

Where appropriate, we leverage fit-for-purpose digital tools, including low-code and analytics solutions, to enable better visibility and control.

Independence and objectivity

Unlike many firms, Trace is not tied to specific software vendors or outsourcing providers. This allows us to provide objective advice focused solely on what works best for your organisation.

The road ahead

Procurement modernisation and strategic sourcing are no longer optional initiatives or “nice to have” capabilities. They are becoming core enablers of financial performance, resilience and organisational agility.

For Australian and New Zealand organisations navigating uncertainty, the question is no longer whether to modernise procurement — but how to do it in a way that delivers lasting value.

Those that succeed will be the organisations that:

• Look beyond short-term savings
• Address demand and operating models, not just contracts
• Invest in capability and governance
• Use data to support better decisions
• Treat procurement as a strategic partner to the business

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How to Take Cost Out of Property Services — Cleaning, M&E, Plumbing, Vertical Transport & Waste (Universities, Hospitals, Hospitality, Schools, Prisons)

There’s a familiar meeting in many organisations: the facilities manager, the procurement lead and the CFO sit down to discuss next year’s budgets. The line for property-services looks immovable. “That’s just the cost of doing business,” someone says. But it isn’t. Property services — the combination of cleaning, mechanical, electrical, plumbing, vertical transport, waste and other critical facilities activities — are often a mix of poorly scoped services, legacy contracts, duplicated responsibilities and soft productivity that quietly leaks cash month after month.

Reducing that cost is both art and science. It’s about spending time up-front to understand the true scope, the operating model and the drivers of cost — then aligning procurement, operations and contract management so savings stick. This article is a practical blueprint for Australian and New Zealand facilities, procurement and finance leaders working in universities, hospitals, hospitality, schools and correctional facilities. It covers the levers you can pull, the pitfalls to avoid, the governance you’ll need, and the role of technology and sustainability. It also explains, plainly, how Trace Consultants can help you turn ideas into a deliverable program.

Why property services cost reduction matters

Property services are a recurring, high-touch portion of the facilities budget. The reasons they offer rapid savings opportunities are simple:

• Labour intensity. Labour is usually the largest cost component. Small improvements in productivity, rostering or travel time translate to significant dollar savings.
• Hidden scope & legacy assumptions. Old contracts often include vague scope descriptions, generous supervisor ratios or historic allowances that no longer reflect current needs.
• Fragmentation of responsibility. When responsibilities sit across operations, procurement and estates, duplication or gaps are common.
• Lack of data & performance management. Without good metrics and verification, suppliers tend toward risk-averse behaviour, and opportunities for efficiency go unidentified.
• Complex stakeholder needs. Hospitals and prisons have demanding compliance and safety requirements; universities and hotels are service-led. Each needs a tailored approach.
• Opportunity to link sustainability & productivity. Less waste, better dosing systems, route optimisation and lower water use are both environmentally sensible and cost saving.

When done well, cost reduction delivers more than a smaller line item — it improves service predictability, reduces risk and frees funds for higher-value investments.

The six levers to take cost out of property services

Successful programmes typically combine several levers. Think of them as the toolkit you’ll use:

1. Scope clarity & rationalisation
2. Commercial model & market engagement
3. Operating model & workforce design
4. Productivity, technology & digital verification
5. Procurement, contracting & governance
6. Sustainability & waste minimisation

We’ll walk through each in turn with practical actions and sector considerations.

1. Scope clarity & rationalisation

Most savings programmes start with scope. If you don’t know what you’re buying, you can’t buy it efficiently.

Actions to take:

• Inventory your sites and tasks. Build a central site data pack: floor plates, room types, opening hours, access constraints, and the periodic work that happens (e.g. deep cleans, lift servicing, emergency call-outs). For multi-site organisations (universities, hospitals) this is the foundation for consistent scoping.
• Create standardised service specifications. Move from “hours per week” to outcome-based specifications: audit pass rates, frequency by room type, accepted cleaning methods, allowed chemicals and required PPE. Outcome specs reduce ambiguity and price gaming.
• Rationalise non-core or ad-hoc activities. Identify tasks that don’t need contractor input (e.g. in-team minor repairs, small-value consumables) and consider bringing them in-house or routing through a central helpdesk.
• Tier services by criticality. Not all areas require the same standard: clinical theatres demand different standards to general admin areas. A tiered approach focuses resources where risk and service outcomes are highest.
• Standardise schedules. For institutions with multiple buildings, standard schedules remove bespoke arrangements that add cost and complicate rostering.

Sector note: Hospitals and prisons need higher-control scopes (infection control, security), while hospitality and universities value front-of-house presentation. Scope rationalisation must respect these differences; the point is to remove unnecessary variation, not service.

2. Commercial model & market engagement

How you pay shapes the supplier’s behaviour. Moving beyond simple hourly rates opens opportunities for productivity and innovation.

Commercial models to consider:

• Activity-based pricing: Price by task or area (e.g. per washroom clean, per m² for general areas). This clarifies pricing comparability and links payment to work done.
• Guaranteed FTE (staffing) model: A supplier guarantees rostered hours or FTEs. Useful for predictable demand but requires robust productivity baselines.
• Output/outcome contracts: Payment linked to KPIs and audit results; incentivises performance but needs solid measurement.
• Gainshare or shared savings: Agree a baseline and share improvements — aligns incentives for continuous improvement.
• Hybrid models: Combine guaranteed FTE for core services with activity rates for variable or specialist tasks.

Market engagement tips:

• Run an RFI first. Use a market sounding to understand capacity, innovation and price drivers. The cleaning and facilities market is competitive; RFIs also tell you which operators can deliver multi-site or specialised services.
• Transparent pricing templates. Force bidders to submit comparable pricing by using a detailed pricing schedule and activity matrix.
• Benchmarking. Use defensible benchmarks for labour rates, supervision ratios and productivity standards for each sector and geography.
• Pre-qualification. Screening for safety, insurance, financial capacity, and modern slavery compliance reduces tender risk.

Sector note: For hospitals, ensure bidders demonstrate clinical cleaning capability and infection control training. For prisons, security clearance and experience in custodial environments are mandatory.

3. Operating model & workforce design

Labour is the principal cost. Designing the workforce and rostering to minimise non-productive time is a large lever.

Workforce optimisation actions:

• Activity time studies. Understand real task times for cleaning, inspections, plant maintenance and waste routes. Avoid relying on rule-of-thumb.
• Rostering & travel minimisation. Design rosters that reduce travel time between buildings, cluster tasks spatially, and align shifts with demand peaks (e.g. room turn-around in hospitality).
• Supervision ratio review. Challenge historical supervisor levels. Right-sized supervision reduces overhead yet must preserve safety and quality.
• Multi-skilling & key-person risk. Train staff to perform multiple tasks (e.g. minor M&E fixes), reducing handoffs and wait times. For regulated tasks (mechanical, electrical) keep certified specialists but minimise downtime through task bundling.
• Labour model review: Consider mix of permanent, part-time, casual and contingent labour. Each sector has different constraints — hospitals need higher certainty; hospitality values flexibility.
• In-house vs outsourced design. For some specialised services (vertical transport maintenance, complex M&E), retain strategic in-house capability or a managed supplier; for commodity tasks, a competitive market may be best.

Sector note: In schools, seasonal demand and after-hours access shape rostering. Universities with student labour pools can optimise term-time rosters. However, student labour requires strong governance and supervision.

4. Productivity, technology & digital verification

Productivity gains are sustainable when backed by measurement and digital tools.

Practical technology & productivity levers:

• Digital cleaning verification. QR codes, photo evidence, or checklists on mobile apps increase accountability and reduce disputes. These systems also create auditable records for compliance.
• Workforce management systems. Basic rostering tools and timekeeping reduce payroll leakage and help enforce agreed shifts. Advanced systems optimise travel and skill matching.
• Route optimisation for waste & maintenance. Route planning reduces transport time and fuel; for waste collection, compaction and bin routing is a quick win.
• Predictive maintenance for M&E. Move from reactive repairs to condition-based maintenance to reduce downtime and emergency call-outs for plant and vertical transport.
• Low-code and smart spreadsheets. Pragmatic tools like Smart Excel or Power Platform apps (which Trace Consultants has implemented with clients) can provide immediate visibility and automation without long IT lead times.
• Analytics & dashboards. Pull together hours, audit scores, call-outs and costs into a simple dashboard the facilities and finance teams use to spot trends.

Implementation tip: Start small — pilot digital verification in a handful of buildings before scaling. That proves process change and cultural acceptance.

5. Procurement, contracting & governance

A good contract and an organised governance framework lock in savings.

Contract design essentials:

• Clear scope & exclusions. Avoid ambiguity about responsibilities for minor works, consumables, and site fixtures.
• Performance KPIs & payment linkage. Include KPIs that matter (audit pass rate, response time for emergency call-outs, lift downtime) with balanced incentives and reasonable remedies.
• Transitional arrangements. Mobilisation and demobilisation clauses, training requirements and data migration specifics. Don’t leave mobilisation to goodwill.
• Modern slavery & compliance clauses. Require supplier transparency across labour and subcontractors. For public institutions, this is often a mandatory check.
• Variation management. Define how extra works or scope changes are priced to avoid cost creep.
• Termination & contingency. Include rights and practical steps for supplier failure, including access to key staff records for operational continuity.

Governance model:

• Single point of contract management. A named contract manager coordinates supplier performance, invoicing and governance.
• Monthly performance reviews. Regular scorecard reviews with operations, procurement and finance; escalate for under-performance.
• Quarterly strategic reviews. Focus on continuous improvement, innovation proposals and safety incidents.
• Annual market benchmarking. Revalidate pricing against market movement before price review windows.

6. Sustainability & waste minimisation

Sustainability is increasingly material — and delivers cost benefits.

Sustainability actions that reduce costs:

• Chemical dosing & microfibre systems. Dosing reduces chemical waste and cost; microfibre improves cleaning performance and reduces product use.
• Water efficiency & HVAC controls. Investment in water saving and HVAC optimisation reduces energy and water bills.
• Waste segregation and recovery. Improve recycling, organics removal and reduce general waste to decrease landfill costs and potentially generate revenue.
• Fleet electrification & route optimisation. For organisations with in-house fleets, electrifying vehicles and optimising routes reduce fuel cost and emissions.
• Product procurement & circularity. Moving to re-usable consumables, longer-life assets and supplier take-back programs reduces replacement spend.

Sector note: Hospitals have complex waste streams with regulatory disposal costs — careful segregation delivers both compliance and cost benefit.

Mobilisation & change management — the place where savings are won or lost

Many programs hit difficulties in mobilisation. Treat transition as a project.

Mobilisation essentials:

• Detailed mobilisation plan. Include timelines, recruitment/training, equipment delivery, IT access, and site readiness gates.
• Baseline audits. Capture condition and current performance; these baselines prevent disputes.
• Stakeholder communications. Inform internal teams, unions (where relevant), tenants, clinicians or campus users about changes.
• Trial periods & readiness gates. Pilot approach for 4–8 weeks before full handover; move to full payment only when acceptance criteria are met.
• Risk register & contingency. Identify and mitigate risks (supply chain, mobilisation slippage, industrial relations).

People factor: The supplier’s workforce is your operational asset. Investing in their training, wellbeing and rostering pays dividends in productivity and quality.

KPIs and measurement — what to track

A short, focused KPI set is better than a long wish list.

Suggested KPIs:

• Cost KPIs: Cost per m², cost per bed/room, cost per lift service incident.
• Service KPIs: Audit pass rate, number of corrective actions, average response time for urgent call-outs.
• Productivity KPIs: Cleaned m² per labour hour, first-time fix rate for M&E, average time per service call.
• Risk & compliance: Number of WHS incidents, contractor audits passed, modern slavery screening coverage.
• Sustainability KPIs: Waste diversion rate, water usage per m², Scope 1/2 energy per site.

KPIs must be reconciled to finance for savings to be visible and recognised in budgets.

Common pitfalls and how to avoid them

Avoid these frequent mistakes:

• Buying by price alone. The cheapest hourly rate often hides lower productivity and higher supervision or rework. Compare bids on activity and outcomes.
• Under-specifying the scope. Ambiguity leads to disputes and cost creep. Invest time to specify properly.
• Ignoring mobilisation. Many savings are lost during a poorly executed cutover. Treat mobilisation as a project.
• Weak governance. No one owns the scorecard or pays attention to drift. Create clear contract management routines.
• Neglecting labour and safety obligations. Non-compliant suppliers are a reputational and legal risk. Ensure award compliance and WHS oversight.
• Over-reliance on one supplier. Risk concentration is real — prefer panels or option for multiple suppliers across regions where practical.

How Trace Consultants can help

Trace Consultants brings practical, multi-disciplinary capability to help organisations remove cost from property services while preserving or improving service and compliance. We work with universities, hospitals, hospitality groups, schools and correctional facilities across Australia and New Zealand. Our services are focused on delivery and include:

1. Scope definition and activity-based modelling: We convert building inventories and service requirements into robust activity models so you can procure like-for-like and compare supplier bids on a level basis.
2. Market strategy & procurement design: We design RFI/RFT and procurement strategies (single supplier, regional panels, managed services) and run market engagement to attract capable bidders.
3. Commercial drafting & negotiations: We write clear scopes, pricing schedules and contract clauses that balance commercial outcomes, performance incentives and risk protections.
4. Mobilisation & transition management: We treat mobilisation as a project — recruitment, training, baseline audits and readiness gates — ensuring suppliers meet day-one readiness.
5. Workforce & rostering optimisation: Practical review and redesign of rosters, supervision ratios and travel flows to improve productivity while maintaining compliance.
6. Digital enablement: Rapid deployment of pragmatic tools — Smart Excel or Power Platform apps, cleaning verification and dashboards — to provide immediate control and visibility. This approach accelerates results without heavy upfront IT projects.
7. Risk, compliance and modern slavery reviews: We ensure award compliance modelling, WHS risk assessment and supplier due diligence are embedded so savings are sustainable and defensible.
8. Sustainability planning & waste optimisation: We identify interventions that reduce cost and environmental impact — from dosing systems to waste route optimisation.
9. Continuous improvement frameworks: We establish governance, scorecards and joint improvement programs with suppliers to capture ongoing productivity gains.

We focus on practical outcomes: a defensible plan, a ready market process, a controlled mobilisation, and measurable savings that finance can recognise.

Quick checklist — 20 practical actions to get started this quarter

1. Build a single, auditable site and task inventory.
2. Define tiered service specifications for all building types.
3. Run time-and-motion studies on core activities.
4. Pilot digital cleaning verification in three buildings.
5. Run an RFI to understand market capability and innovation.
6. Create an activity-based pricing template for procurement.
7. Review supervisor ratios and test a right-sizing model.
8. Rework rosters to cluster tasks and reduce travel time.
9. Identify quick wins in waste diversion and dosing systems.
10. Design mobilisation readiness gates and acceptance tests.
11. Implement a simple KPI dashboard (cost, audit, response time).
12. Conduct supplier modern slavery due diligence for top spend.
13. Test predictive maintenance for a key piece of plant (lift or chiller).
14. Negotiate gainshare mechanisms in new contracts.
15. Standardise consumable specifications and consolidate procurement.
16. Embed WHS audits into monthly performance reviews.
17. Map variations and create transparent pricing for extras.
18. Start an employee training programme for multi-skilling.
19. Pilot a small in-house team for a non-critical scope to compare outcomes.
20. Set up monthly governance with finance to track actualised savings.

Taking cost out of property services is not about cutting corners. It’s a disciplined programme of scope rationalisation, smarter commercial levers, better workforce design, pragmatic technology and strong governance. For complex environments such as hospitals, prisons or universities, the challenge is to reduce cost while protecting safety, compliance and service outcomes.

Trace Consultants helps organisations bridge the gap between ambition and delivery. We bring activity-based costing, market knowledge, procurement rigour and hands-on mobilisation experience — so your savings are real, repeatable and defensible. If you’d like to take the next step, a short diagnostic that maps your top spend categories and identifies three tangible savings initiatives is a practical and low-risk place to start.

Ready to turn property services from a tired cost line into a managed, optimising function? Contact Trace Consultants to discuss a pragmatic next step for your organisation.

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Going to Market for Cleaning Services — a practical guide for Australian & New Zealand organisations

Cleaners move through buildings like the quiet guardians of reputation and safety. They’re the people who make a hotel feel welcoming at dawn, keep a hospital safe for clinicians and patients, and ensure an office is presentable for visitors. Despite that vital role, cleaning services are often tendered in a rush, drafted around historical hours and a handful of line items — which creates risk: poor service, industrial disputes, hidden costs and regulatory headaches.

Going to market for cleaning services in Australia and New Zealand demands a different approach. The market has matured: labour is a dominant cost, compliance expectations are higher, sustainability matters to customers and regulators, and digital tools can now make service delivery visible and auditable. This article is a practical primer for procurement and facilities leaders on how to get it right — from scoping and market engagement through to evaluation, contracting and mobilisation — and explains how Trace Consultants can help at every step.

Why getting your go-to-market (GTM) right matters

Cleaning services is a deceptively complex category. At face value it looks like “hours and materials”, but the outcomes you actually buy are health and safety, user experience, asset preservation and regulatory compliance. When procurement focuses purely on hourly rates or the lowest bid, downstream costs often emerge: rework, higher supervision, infection control failures, reputational impacts and industrial relations problems. Conversely, a well-designed GTM can deliver consistent service, reduce total cost of ownership, and build continuous improvement into the contract.

Key reasons to take a structured approach:

• Labour-led cost base: Labour is typically the largest cost. Small changes in roster design, travel allowances, or productivity yield large savings.
• Regulatory and safety risk: Healthcare, education and food environments demand infection control, hygiene and safety expertise.
• Hidden scope & variability: Are you buying window cleaning, periodic deep cleans, or supply of consumables? Ambiguity costs money.
• Service visibility: Digital cleaning verification, audits and KPIs shift the contract from trust to measured performance.
• Supplier market: The supplier market ranges from national providers to specialist local operators. How you structure the market and evaluation determines who bids and who wins.

Start with clarity: define outcomes, not just hours

The most common GTM mistake is an under-specified scope. A clear, unambiguous scope of works is the foundation of a successful tender. It should answer:

• What is to be cleaned — spaces, assets and surfaces (e.g. public toilets, patient rooms, back-of-house kitchens, façades).
• How often — frequencies (daily, weekly, periodic deep cleans), triggers (events, spills), and expected duration or results.
• Standards — quality standards or audit methodologies (e.g. cleaning audit scorecards, infection control standards).
• Exclusions — what suppliers are not responsible for (e.g. pest control, grounds maintenance).
• Materials & consumables — who supplies cleaning chemicals, equipment, PPE and consumables.
• Access & security — hours of access, photo identification, security screening.
• Special requirements — biohazard handling, chemicals of concern, or work during low-occupancy windows.

Translate outcomes into measurable deliverables. Instead of “cleaning toilets twice daily”, define the expected audit standard and maximum acceptable escalations. This moves the contract from time input to service output.

Understand cost drivers and choose the right commercial model

Cleaning contracts are driven by labour, travel, consumables, equipment and overhead. How you price and contract for those components determines supplier behaviour.

Common pricing models

• Blended hourly rate: Simple — often used for ad hoc or low-risk services. It can hide differences in skill levels and incentivise minimal effort.
• Guaranteed FTE (staffing model): You contract for a guaranteed number of FTEs (or rostered hours). This gives certainty but requires careful productivity modelling and strong mobilisation governance.
• Rate card by activity or area: Pricing per room type, per square metre, or per task. This supports transparency and can be linked to volumes.
• Output-based pricing: Pricing linked to achieved KPIs (audit scores, response times). This incentivises performance but needs robust measurement systems.
• Hybrid models: A mix of guaranteed hours for core services and activity rates for variable or event cleaning.

Choosing the right model depends on your risk appetite, desire for control, and the maturity of suppliers. For example, hospitals often favour a hybrid model that guarantees rostered clinical cleaning resources while paying activity rates for deep cleans.

Cost modelling essentials

• Build a detailed activity-based cost model that maps every task to time, skill level and consumables. This allows price comparisons to be like-for-like.
• Include productivity assumptions (cleaning rates per square metre, travel time, handover time).
• Model peak, off-peak and event requirements — not all cleaning is steady state.
• Consider award rates and industrial instruments in AU & NZ — wage settings, penalty rates and employer superannuation/kiwiSaver obligations materially affect costs.
• Account for management, supervision and overhead rather than assuming the supplier will absorb these.

Market strategy: single supplier, multi-supplier, or managed service?

How you structure the supplier relationship shapes competition and risk.

• Single supplier (national or lead supplier): Easier governance and economies of scale. Risk: single point of failure and potential lack of local agility.
• Regionally appointed suppliers / multi-supplier: Good for local knowledge and resilience. Requires stronger contract management to ensure consistent standards across contractors.
• Managed service/Principal Contractor: The supplier oversees multiple service lines (cleaning, waste, grounds), acting as a single interface. This supports integrated delivery but requires strong contractual clarity on responsibilities.
• Panel arrangements / prequalified panel: Useful when demand is variable or for specialist cleaning where several suppliers can be called off.

Your market approach should reflect operational realities. Large property portfolios often benefit from a single strategic partner for consistency, whereas distributed sites (e.g. regional hospitals or schools) may prefer a local multi-supplier approach to reduce travel and increase local employment.

Tender design: stages and documents

A typical, well-structured GTM for cleaning services follows staged engagement:

1. Market sounding / RFI (optional): Test capability, innovation and interest without committing to a tender. Useful to understand supply constraints, digital capability and sustainability offerings.
2. Detailed RFT/RFP: Provide a full scope of works, schedules, evaluation criteria, sample contract and pricing template. Make the submission requirements clear.
3. Clarification and supplier demonstrations: Site visits, interviews and demonstrations (equipment, cleaning methodology).
4. Evaluation and negotiation: Transparent scoring across capability, commercials, risk and value add.
5. Award and mobilisation: Detailed mobilisation plan with milestones, training, and transitional KPI baselines.

Key documents to prepare

• Scope of Works / Service Schedule — definitive list of tasks, frequencies, standards, and exclusions.
• Pricing Schedules — activity rates, FTE schedules, consumables pricing, and escalation clauses.
• Evaluation Criteria & Weightings — clearly articulated so suppliers understand how they will be scored.
• Draft Agreement / Contract — include governance, KPIs, payment mechanisms and termination clauses.
• Mobilisation Plan template — require suppliers to detail their transition approach, recruitment plan, training schedules and risk mitigations.
• Site data pack — drawing, site photos, operating hours, footfall and special access needs.

Clarity in the RFT reduces questions and makes evaluation faster and fairer.

Evaluation: beyond the base price

Procurement should evaluate bids holistically. Price is important, but capability, cultural fit and risk appetite determine outcomes.

Suggested evaluation pillars

• Service delivery capability: Experience in similar environments, cleaning methodology, supervision ratios and training programmes.
• Operational systems & technology: Workforce scheduling systems, quality auditing tools, incident reporting and digital verification.
• Commercial offer: Price transparency, escalation mechanisms and value for money.
• Resilience & continuity: Business continuity planning, backup resources, and industrial relations approach.
• Sustainability & innovation: Use of green chemicals, water efficiency, waste management and substitution of single-use products.
• Compliance & safety: WHS systems, worker screening, induction and relevant certifications.

Use a balanced scorecard with clear weightings. Panels should include operational stakeholders (facilities managers, infection control, HR) to validate supplier capability claims.

KPIs, audits and governance

Measurement converts promise into performance. A well-designed KPI framework drives accountability and continuous improvement.

Common KPI categories

• Quality & cleanliness: Audit scores, cleaning defect rate, pass/fail rates.
• Response & service: Response time for spill cleanups, complaint resolution time.
• Health & safety: Incident reports, PPE compliance, training completion.
• Workforce metrics: Staff turnover, background check compliance and training records.
• Sustainability: Chemical usage, waste diversion, equipment energy efficiency.
• Reporting & data: Timeliness and accuracy of reports, digital verification rates.

Design incentives and remedies carefully. Avoid punitive systems that encourage gaming; prefer balanced incentives that reward improvement and collaboration.

Quality assurance techniques

• Independent audits — periodic third-party audits provide objectivity.
• Digital verification — QR code checks, photos, and IoT sensors to prove work completed.
• Customer feedback loops — quick surveys or apps for building occupants to flag issues.
• Root cause analysis for failures — require suppliers to demonstrate corrective actions, not just one-off fixes.

Transition & mobilisation — the make or break phase

Even the best tender can fail where mobilisation is poor. Mobilisation should be planned as a project with governance, milestones and dedicated resources.

Mobilisation checklist

• Recruitment & training plan: Clear timeline for hiring and induction.
• Baseline audits: Capture existing condition and set baseline KPI scores.
• Supply chain & consumables: Confirm sourcing, labels, chemical approvals and stock levels.
• HR & compliance: Police checks, right to work documentation, payroll set-up and award alignment.
• Site access & security: Keys, access cards, sign-in processes, parking.
• Equipment & uniform: Deliveries, maintenance plans and storage.
• Test cleans & trial periods: Early operational trials to iron out schedules.
• Stakeholder communications: Inform occupants and relevant teams about changes, contact points and escalation.

Mobilisation should include a joint governance calendar — weekly standups, milestone sign-offs and readiness gates. Payment shouldn’t move to full scale without key readiness checks.

Technology, visibility and innovation

Innovation in cleaning is no longer just about chemicals. Digital tools and data drive productivity and customer confidence.

Digital opportunities

• Workforce management systems — optimise rosters, reduce travel, and match skill to task.
• Cleaning verification tools — QR scanning, photo evidence and mobile checklists.
• IoT & sensors — occupancy sensors to target cleaning frequencies, smart bins and soap dispensers to reduce waste.
• Mobile reporting — real-time defect capture and escalation.
• Analytics dashboards — link audits, complaints, and costs to identify hotspots and improvement opportunities.

Technology also supports sustainability: metered dosing systems reduce chemical waste; microfibre systems extend equipment life; and route optimisation reduces travel emissions.

Risk & compliance: what to watch for in AU & NZ

Cleaning suppliers operate within a governance web. Procurement must be alive to regulatory and reputational risks.

Key compliance issues

• Workplace health & safety (WHS): Ensure suppliers have robust WHS systems, hazardous chemicals registers, and training in manual handling.
• Modern slavery & labour standards: Due diligence on supply chains, subcontractors and labour hire is expected. Include clauses for forced labour, wage compliance and subcontractor oversight.
• Industrial instruments: Understand relevant awards and agreements in AU and collective agreements in NZ that affect wage costs.
• Background checks & vaccinations: Particularly for healthcare and education, requirements for police checks and vaccination records are common.
• Environmental compliance: Disposal of chemicals and waste may be regulated; ensure suppliers can demonstrate compliance.
• Insurance & liability: Verify indemnities and insurance limits appropriate to your risk profile.

Contract clauses should require suppliers to provide evidence of compliance and allow for audits and corrective action plans.

Sustainability & social value

Clients and regulators increasingly expect sustainability and social procurement. Cleaning contracts present genuine opportunities to deliver both.

Sustainability levers

• Green products and dosing systems to reduce chemical footprint.
• Microfibre and low-water cleaning systems to reduce consumables and water use.
• Equipment efficiency — invest in energy-efficient machines.
• Waste separation & diversion — separate organics and recyclables at source.
• Local employment & social procurement — clauses that encourage local hiring, indigenous supplier participation, or employing people from disadvantaged cohorts.

Social value is not a tick box. It should be measurable, reported and linked to contract performance.

Supplier relationship & continuous improvement

A high-performance cleaning contract is a partnership. Once mobilisation is complete, the focus shifts to continuous improvement.

Practical governance

• Monthly performance reviews — track KPIs, disputes and improvement plans.
• Quarterly business reviews — strategic items: cost optimisation, technology adoption and workforce issues.
• Joint improvement plan — a formal roadmap for efficiencies and innovation.
• Clear escalation routes — for disputes, safety incidents and urgent unscheduled cleaning.
• Benchmarking — periodically benchmark prices, productivity and audit scores to understand market movement.

Change is inevitable. Contracts should be structured to allow scope changes, price review mechanisms and collaboration on productivity gains.

How Trace Consultants can help

Going to market for cleaning services is as much a project as it is procurement. Trace Consultants brings specialist supply-chain, procurement and facilities expertise to ensure your GTM delivers outcomes. Practical ways Trace can support your organisation include:

• Scope definition & activity-based cost modelling: We translate your building inventory and service requirements into a detailed scope and an activity cost model so you procure like-for-like.
• Market strategy & supplier shortlisting: We advise on the optimal market approach (single supplier, panel or managed service) and identify capable suppliers across AU & NZ.
• Tender documentation & drafting: We prepare clear scopes of works, pricing schedules and contract documents that reduce ambiguity and procurement risk.
• Evaluation design & facilitation: We build balanced scorecards, run bidder clarification sessions and facilitate evaluation panels that include operational stakeholders.
• Commercial negotiation: We lead negotiations to ensure commercial transparency and value, while protecting your operational and compliance position.
• Mobilisation & change management: We plan and manage mobilisation as a project — recruitment, training, baseline audits and readiness gates — so your supplier is ready on day one.
• KPI design & governance frameworks: We design meaningful KPIs, audit programmes and reporting to ensure performance is measurable and managed.
• Technology and productivity reviews: We assess digital cleaning verification, workforce management and IoT opportunities and help select practical solutions.
• Risk, compliance and modern slavery reviews: We assess supply chain risk, ensure award compliance modelling, and incorporate modern slavery due diligence into procurement.
• Sustainability & social value planning: We embed sustainability opportunities and social procurement outcomes into the strategy and contract.

Trace’s approach is pragmatic and evidence-based: we combine activity modelling, market insight and operational understanding so your GTM is fair to suppliers, defensible to auditors and focused on outcomes.

Practical checklist: 10 steps to a successful GTM for cleaning services

1. Map every space and activity — create a site data pack with drawings and activity lists.
2. Define outcomes and standards — convert frequencies and tasks into measurable standards.
3. Build an activity cost model — capture time, skill and consumable assumptions.
4. Choose the commercial model — decide between FTE guarantees, rate cards, output pricing or a hybrid.
5. Engage the market early — run RFI/market sounding to test capability and innovation.
6. Draft clear RFT documents — include pricing templates, contract and mobilisation requirements.
7. Score holistically — include capability, compliance, innovation and price.
8. Plan mobilisation as a project — with readiness gates, recruitment and site trials.
9. Implement digital verification & audits — to remove ambiguity and measure delivery.
10. Run joint continuous improvement — monthly and quarterly governance with a focus on productivity.

Cleaning services are fundamental to safety, user experience and asset care. They’re also an area where an upfront investment in planning — good scope, robust modelling and a strong market process — pays dividends in service reliability and total cost of ownership. Whether you are a facilities leader, procurement manager or a project sponsor, the way you go to market will shape outcomes for years.

If you’d like a partner who understands the operational realities, the commercial levers and the market dynamics across Australia and New Zealand, Trace Consultants can help you design and run a go-to-market process that delivers measurable outcomes — without the friction.

Ready to turn your cleaning contract into a strategic asset for your organisation? Contact Trace Consultants to discuss a tailored GTM plan.

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