Preventative Maintenance Program Delivers Millions in Annual Cost Reduction for Industry Leading Retailer

A national retail conglomerate operating hundreds of store fronts and distribution facilities nationwide.

$40M
direct annual savings
$6.1M
annual spend reduction

Challenge

In the past year, the total network cost of maintenance exceeded $330M CAD, part of an undesired trend upwards for seven consecutive quarters. Three spend categories accounted for more than 80% of the total costs: Utilities, Maintenance, and On-Demand Work-Orders. On Demand Work-Orders, roughly $53M of annual spend, was determined to have the greatest opportunity for improvement and the became the focus of further analysis.

Discovery

Partnering with both local and corporate teams, we conducted a rapid assessment of current spend categories and delivered on several objectives:

  • Prioritized list of opportunities targeted towards cost-optimal decision making
  • Identified quick wins and advisement of execution for near-term gains
  • Timing and resource requirements to execute opportunities
  • Recommendation of future state processes, framework, and Facilities Management team structure

These insights provided the Retailer direction and focus on how to reduce reactive work-order volume and spend through preventative/proactive maintenance and asset management.

Value Created

As result of this initiative, our client enjoyed both immediate and long-term financial and strategic benefits:

  • $40M annual spend reduction through algorithm rewrite on cooler temperatures (kilo/hour)
  • Identified $6.1M in annual spend reduction opportunities through preventative maintenance programs, eliminating 8,404 work orders through 15 error-proofing mechanisms
  • Recommended enhanced org structure to enable and sustain future deep dives with a ~$9.1M 3 Year NPV

The success of this project led to a multitude of future engagements aimed at efficiency and optimization across the value chain.

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