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Case Study

How the Midwest region has saved clients millions through innovative procurement programs

Jones Lang LaSalle has saved its Midwest clients and buildings well over $2 million in maintenance service contract fees over the last five years, thanks to an innovative regional vendor procurement program.

The program solicits bids from a variety of premier maintenance vendors—from janitorial, to window-washing, to landscaping vendors—to service the entire Jones Lang LaSalle portfolio in the Midwest region. Bidding vendors offer deep discounts in return for the substantial amount of business they could win.

While managers and clients may elect out of using the awarded service provider, few do because top-tier vendors are secured at discounted rates. In fact, upon the firm’s selection of a vendor, many managers and clients discover they don’t even have to switch. Often, the service provider they have been using all along is chosen—just at a better price, and typically with even better service.

For instance, in 2007, Jones Lang LaSalle made its first attempt at bidding out its Midwest portfolio’s janitorial services. Interestingly, 85 percent of buildings were already using the same vendor because of its superior service. As a result, the firm offered that vendor the exclusive opportunity to bid on the remaining 15 percent of the business.

The janitorial company agreed to a three-year contract that made it the sole cleaning vendor for just less than 20 million square feet of real estate. It agreed to view the real estate as a portfolio, rather than individual properties, and did pricing accordingly. In addition, the company also offered Jones Lang LaSalle an account management team as a single point of contact for the purpose of resolving issues—a service not previously offered.

Managers and clients have been so satisfied with the heightened level of service and the nearly $750,000 in cleaning contract savings, portfolio wide, that the contract was extended for an additional year. However, competitors will have the opportunity to bid on the business upon the extension’s expiration.

Success bidding out janitorial services on a regional level spurred the Midwest team to bid out security, waste hauling, window washing and landscaping, as well. And while the bidding process was slightly different each time, the results—big savings and great service—were the same.

Over multiple years, Jones Lang LaSalle has reduced its annual spend $700,000 with regional security vendor procurement; $250,000 across its Chicago portfolio with waste hauling vendor procurement; $332,000 with regional window-washing vendor procurement; and $340,000 with landscaping vendor procurement.

For more information regarding this unique and innovative approach to service contract delivery please contact Steve Zsigray at +1 312 228 2940.

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