For CFOs and CEOs of property-based businesses, managing the complexity and cost of property services procurement and facilities management procurement can be a daunting challenge. From waste management and building maintenance to mechanical, electrical, and plumbing (MEP) services, these operational necessities often account for a significant portion of operating expenses. Without an effective strategy in place, businesses risk inefficiencies, inflated costs, and subpar service delivery.
Enter Trace Consultants, a proven partner for property-based businesses across Australia and New Zealand. Leveraging templated approaches, cutting-edge data analytical tools, and deep industry expertise, Trace Consultants delivers significant cost reductions (typically 8–27%) while driving service improvements. Here, we explore how Trace Consultants helps property-based businesses optimise their property services procurement and facilities management procurement processes to achieve measurable outcomes.
Understanding the Challenges of Property Services Procurement
Property-based businesses—from integrated resorts and shopping malls to hospitals, schools, and industrial facilities—face unique operational challenges. The scope of property services required is extensive, often including:
- Waste Management: Efficient disposal and recycling programs.
- Mechanical, Electrical, and Plumbing (MEP): Maintenance and upgrades to essential systems.
- Building Management Services (BMS): Ensuring operational efficiency through automation and monitoring.
- General Contracting: Routine repairs, upgrades, and capital projects.
- Cleaning and Hygiene Services: Maintaining a clean and healthy environment.
Each service area demands careful management to balance cost, quality, and compliance. However, fragmented contracts, limited visibility into spending, and supplier misalignment often create inefficiencies and excessive costs.
Trace Consultants: Proven Experience and Industry Expertise
Trace Consultants brings a wealth of experience in supporting property-based businesses to streamline and optimise property services procurement. With tailored strategies and a results-driven approach, Trace delivers benefits in three critical areas:
1. Data-Driven Insights and Spend Analysis
At the heart of Trace Consultants’ approach is a commitment to data analytics. Using advanced tools and methodologies, Trace provides deep insights into property services procurement spend, including:
- Cost Visibility: Identifying areas of excessive spending across categories like waste management and MEP services.
- Supplier Performance: Analysing service quality and value for money from existing suppliers.
- Opportunity Assessment: Pinpointing areas to consolidate contracts, standardise services, and achieve economies of scale.
For instance, Trace’s work with a major Australian shopping mall operator revealed overlapping supplier contracts and under-utilised economies of scale. Through spend analysis, Trace identified potential savings of over 18%, which were realised through contract renegotiation and service consolidation.
2. Templated Approaches for Go-to-Market Activities
Going to market for property services procurement can be complex and time-intensive. Trace Consultants simplifies the process with proven, templated approaches that deliver results efficiently. Key components include:
- Specification Development: Creating clear, detailed scopes of work for services like building management and general contracting.
- Tender Management: Managing end-to-end tender processes, from supplier shortlisting to contract negotiation.
- Evaluation Frameworks: Applying weighted criteria to ensure supplier selection aligns with business priorities and standards such as Mechanical DA19, Electrical NFPA, and Plumbing HSG-274 p2.
By leveraging these templates, Trace enables CFOs and CEOs to secure competitive pricing while ensuring service quality. One notable example involved a New Zealand healthcare organisation, where Trace helped reduce waste management costs by 12% while improving service delivery through a streamlined tender process.
3. Change Management and Transition Support
Optimising property services often involves significant changes, including transitioning to new suppliers or restructured service agreements. Trace Consultants excels in managing these transitions seamlessly, with minimal disruption to business operations. Their approach includes:
- Stakeholder Engagement: Collaborating with internal teams to align on goals and priorities.
- Transition Planning: Developing detailed timelines and action plans for smooth implementation.
- Performance Monitoring: Establishing KPIs and tracking progress to ensure service improvements are realised.
For a government facility in Australia, Trace oversaw the transition of cleaning services to a new supplier. Despite the complexity of the site, which included high-security areas, Trace ensured a smooth handover and delivered annual cost savings of 22%.
Reviewing Asset Management Practices
Effective asset management is critical to maintaining operational efficiency while controlling costs. Trace Consultants provides a comprehensive review of asset management practices to ensure alignment with business goals and industry standards. Key areas of focus include:
- Replacement vs. Run-to-Fail Analysis: Evaluating whether assets should be replaced proactively or allowed to run to failure, supported by cost-benefit analyses.
- Preventative Maintenance Schedules: Developing optimised schedules to minimise downtime and extend asset life.
- Reactive Maintenance Practices: Identifying inefficiencies in reactive maintenance approaches and implementing process improvements.
- IT Systems Integration: Supporting the implementation and optimisation of asset management systems such as Maximo, ensuring accurate tracking, reporting, and decision-making.
- Standards Alignment: Ensuring compliance with Australian and international standards for asset maintenance, including Mechanical DA19, Electrical NFPA, and Plumbing HSG-274 p2.
For example, Trace worked with an integrated resort client to overhaul their asset management practices. By implementing a preventative maintenance program and integrating it into their Maximo system, the client achieved a 15% reduction in maintenance costs while improving asset reliability and performance.
Unlocking Cost Reduction Opportunities
Trace Consultants consistently delivers significant cost savings for property-based businesses. Typical savings range from 8–27%, depending on the scope of services and opportunities for improvement. Key strategies include:
- Contract Consolidation: Reducing the number of suppliers to leverage volume discounts and simplify management.
- Rate Optimisation: Benchmarking costs against industry standards to secure fair pricing.
- Scope Rationalisation: Eliminating redundant or non-essential services to focus on core needs.
For instance, an integrated resort client partnered with Trace to review their MEP services. By consolidating contracts and renegotiating rates, the client achieved a 24% reduction in annual costs while maintaining high service standards.
Driving Service Benefits
In addition to cost savings, Trace Consultants delivers measurable service improvements, including:
- Enhanced Reliability: Clear KPIs and performance monitoring ensure consistent service delivery.
- Improved Quality: Supplier selection processes prioritise high-performing vendors.
- Operational Efficiency: Standardised processes and technologies streamline service management.
For example, Trace supported a manufacturing client in Australia to improve building management services across multiple sites. By implementing a centralised BMS system and optimising supplier contracts, the client experienced fewer service disruptions and achieved a 15% improvement in operational efficiency.
Why CFOs and CEOs Should Act Now
In today’s economic climate, taking control of property services procurement and facilities management procurement is more important than ever. Rising costs, increasing regulatory requirements, and growing expectations for service quality make it critical for businesses to adopt a proactive approach.
Trace Consultants offers the expertise, tools, and proven strategies needed to drive meaningful results. By partnering with Trace, CFOs and CEOs can:
- Achieve Significant Cost Savings: Realise reductions of 8–27% across key service areas.
- Improve Service Delivery: Enhance reliability, quality, and efficiency in property services.
- Strengthen Strategic Focus: Free up internal resources to focus on core business priorities.
The Trace Difference
What sets Trace Consultants apart is their commitment to tailored solutions and measurable outcomes. Key differentiators include:
- Industry Expertise: Deep knowledge of property-based businesses and their unique challenges.
- Proven Track Record: A history of delivering cost and service improvements for clients across Australia and New Zealand.
- Cutting-Edge Tools: Advanced data analytics and templated approaches ensure efficient, impactful results.
- Collaborative Approach: Strong partnerships with clients and stakeholders to achieve shared goals.
Ready to Optimise Your Property Services Procurement?
For CFOs and CEOs in property-based businesses, optimising property services procurement and facilities management procurement is not just an opportunity—it’s a necessity. With Trace Consultants as your partner, you can unlock cost savings, improve service quality, and drive long-term operational success.
Whether you operate a hospital, integrated resort, shopping mall, or industrial facility, Trace Consultants has the expertise and tools to deliver results tailored to your needs. Contact Trace today to explore how they can support your business in achieving its goals.
