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Case Study

Cost Reduction: A Multi-Pronged Approach that Gets Results

Wanting to reduce operating expenses by 2.5 percent, a major technology firm turned to Jones Lang LaSalle to optimize its portfolio and realign service delivery.

To begin, Jones Lang LaSalle took a close look at the company’s facility work requirements and staffing levels.  Our facility management experts determined that more than half of the facility staff on the firm’s payroll could be trimmed, resulting in instant savings of $6 million. Outsourced employees were then hired by a strategic partner. We helped the smaller staff work not only more efficiently, but also more cost effectively by implementing best practices such as real-time web-based tracking tools and Kaizen/Six Sigma methodologies, resulting in operating cost savings of $1.9 million and cost avoidances of $510,000. 

To further reduce facility expenses, our team implemented sourcing improvements including regional and national contracts to reduce the supplier base.  To date we have achieved an average savings of 7 percent, while reducing the vendor base by 85 percent.

Encouraged by the improved savings and efficiency, the technology firm retained Jones Lang LaSalle to develop and execute a strategy to downsize its real estate holdings.  In 12 months we reduced the portfolio by more than 1 million s.f., saving $39 million in operating expenses– a 215% improvement over the initial recovery target.

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