Savvy sourcing professionals agree that seeking cost savings for a national janitorial contract misses the mark.
Inconsistent quality, disjointed programs and little attention on minimum wage complexities for differing regions define many national janitorial agreements. Volume contracts seem like a great way to reduce costs, but can any company really provide a consistent and customized service for national sites? Here are 4 reasons why regional janitorial contracts can better accomplish your goals.
Janitorial companies have select regions where their service thrives; density = more high level managers to tend to the client as well as experience with the local labor market, the right labor wages are key!
Local Executive Support– Leverage executive engagement. You don’t want VPs flying in once a year to get caught up during your annual meeting. Nothing beats proximity!
No subcontracting necessary – Regional companies can control their service by utilizing their own well trained employees and a consistent quality assurance program. Not even the largest national cleaning companies can clean a small site out in the boon docks with their own employees. Find local companies and let them excel at what they do best, local services.
Regional contracts are not more expensive. This is a total myth. The market price of services depends strongly on labor rates. Any “volume” discount you are being offered is only paid for by the client through a lack of staff, supplies or supervision.
Our transparent suggestion?
Breakup your national contract into regions that make sense and invite the best regional vendors to bid on the sites they can perform well. Have an open conversation and ask vendors, “if you could only bid on one region, which one would be your top priority?” to better understand their dominant region(s). Regional players know that their best service is given in areas of the most management density. Bid your sites right the first time and avoid RFPs every 2-3 years.
For more janitorial services advice check out our insights page at Servicon Systems.