Customer Profile

• Largest Retailer in their market
• Revenues in 2009: $2.5 billion
• Over 1,300 locations
• Annual Facilities Management budget of $9,500,000.00

Customer’s Business Situation
Customer experienced tremendous growth through both new build-outs and acquisitions. While taking on the additional workload and responsibility from this growth, the customer’s Facilities Department was faced with specific challenges brought about by a company wide initiative to reduce overall expenses in their facilities department by at least 5% while maintaining the high standards of service and facility appearance that the customer had modeled its success on.

Customer’s Operational Situation
After evaluating their current operating procedures to determine costs to fully integrate their facilities maintenance in-house into their business, it was determined that the expense in additional personnel, new IT systems and overall processes would exceed any cost benefit and keep them from meeting the company wide expense initiative.

Emcon Associates’ Solution
Emcon provided customer with a complete turn-key solution that addressed all their processes while still maintaining their operational philosophy. The key components of the solution were:

1. Cost Controls – Emcon provided on-demand repairs at a set hourly rate for all core trades and executed a multi-year contract with fixed costs. Provided customer with multiple bids for project work and created Preventive Maintenance programs to extend assets useful life. Additionally, Emcon’s call avoidance protocol and triage reduced the number of work orders.
2. Vendor Management – Emcon utilized their vendor management system that identifies the most qualified vendor based upon an internal algorithm. The vendor management system also confirms validated Certificates of Insurance, licensing and qualifications.
3. Job Tracking System – Customer was provided with full access to Emcon Interactive. Web Based Software System allows customers to input work orders on-line, analyze all costs and assist in budgeting process. Additionally, all work orders for non FM activity are dispatched by Emcon while still maintaining the activity on the system.
4. Accounts Payable and Invoicing – Emcon provided customer with one consolidated invoice and manages the vendor accounts payable.
5. Single Point of Contact – Emcon provided a single point of contact for all on-demand repairs via a dedicated toll free number, a customer specific email account, and the utilization of the web based application to log a service request.
6. Contractor and Trade Integration – Customer provided list of preferred contractors that was integrated into Emcon’s hierarchy.

Customer Benefits

1. By implementing a national fixed cost model and executing a multi-year agreement their average cost per job was reduced by 17% over a three year period
2. The number of billable reactive work orders was reduced by 4% thanks to Emcon’s call avoidance protocol and emergency triage resulting in annual savings of over $150,000.00
3. By directing the service repair and maintenance (R & M) calls to Emcon, Customer removed the burden of daily, on-call, holiday and weekend R & M call management from customer staff thereby enabling the re-allocation of resources to other productive uses
4. Client was able to re-allocate facility management employees to work on energy saving and other major cost saving company wide initiatives
5. Saved $113,000.00 annually by utilizing Emcon’s free interactive web-based software over other facility software management solutions
6. Emcon Interactive gave full visibility over their facilities department activities and costs through instantaneous real time financial, statistical and work flow management reporting
7. Gained the productivity of one FTE in their Accounting Department and reduced the associated costs of checks, paper, postage etc.

Customer Profile

• Retailer with 1,200 locations
• Initiated a project to install/retrofit new customer service casework and counters to generate an additional revenue stream at every location

Customer Business Opportunity and Challenge
This large retailer’s goal was to generate new revenues from the activities of in-store technicians who will provide home computer troubleshooting and technical repair services face-to-face with customers. The purpose of this installation/retrofit project was to install the newly designed, ready-for-fabrication casework and countertops for this new business activity in each store. The Company faced several challenges. How do you coordinate an enterprise-wide rollout? How long will it take for the rollout to be completed? Did each location have the same store layout and installation specifications, and if not, how can the installations be properly executed? How long will the project take so revenue could be earned? (All location layouts and specifications were not identical). It quickly became clear that the Company had to partner with a firm – Emcon Associates - whose existing service capabilities are structured to implement such projects for companies with large numbers of geographically dispersed locations and complete the rollout on-time and on-budget.

Emcon Associates’ Solution
Emcon reviewed the casework/countertop installation specifications and the store layouts with the manufacturer and Company representatives. As a result, a small number of modified step-by-step installations specifications were created to fit the layouts of all stores. Additionally, Emcon ensured that each installation was documented with photographs. Emcon’s team of specialists created an aggressive installation schedule and coordinated the delivery of materials, etc. with the manufacturer. Emcon’s specialists were well versed with the Company’s goals and objectives, the store layouts, and installation specifications to identify and resolve issues as they arose while the tech was in the field. Emcon’s specialists simultaneously managed the installations across the enterprise to complete the entire project in 5 weeks. All of the installation documentations included photos which were stored on CD and provided to the Company weekly. Daily updates and communication with the Customer were also part of the operational procedure during the project. This efficient execution enabled the Company to earn new revenue from this strategic initiative within 1 quarter.

Multi-Site Retailer #2 – Customer Testimonials
"I just wanted to take moment to write to you on the great teamwork and partnership that I have experienced with Emcon and the staff handling the install these past two months. Your staff has done a good job being: cooperative, patient, responsive, and practiced excellent communication skills with me in order to have this project go as smoothly as it did. Whether it would be reaching out to me during business hours or after, they seemed to have the time to speak with me to make sure each store was installed properly. I am very satisfied and pleased with the execution that these ladies put forth during our important project for our initiative."
Thank you
Senior Project Coordinator for the Retailer