When retailers are tasked with a project that involves multiple locations, time constraints and a fixed budget they are focused on putting together the best plan of attack for success. The CEO of Nike, Mark Parker, delivers the message crystal clear; “The biggest sources of opportunity are collaboration and partnership. We need to expose ourselves to that as a matter of doing business.”
Ferrandino & Son recently partnered with a major retailer on an electrical project involving more than 650 locations nationwide. The three goals of the program were clearly defined:
- To create a seamless transformation
- In a short period of time
- With the most cost-effective solution.
Understandably, these goals are universal whether the retailer has 1 location or 10,000 locations.
Creating a seamless transformation often makes the most focused individual feel like they have 15 balls in the air while they coordinate store personal, contractors, parts and lift deliveries, permits and inspections while keeping a positive customer experience. As retailers continue to decrease their personnel, they rely on trusted partnerships to assist in managing the process. Big picture, what did that mean to the retailer and Ferrandino & Son.
Step #1 – Strategy – We created a plan and stuck with it (until we coouldn’t!). Dates, times and location. With only 3 months to complete all locations, a detailed plan was key, but it was also achievable. All strategies must be realistic to meet everyone’s expectations.
Step #2 – Communication- Weekly reports with photos gave all team members confidence the project was on time and deadlines would be reached. Quality assurance is key for both the retailer and Ferrandino & Son.
Step #3 – Honesty – We all know things occur on both sides… lifts not delivered, store personnel doesn’t show to open the door, trucks break down… When something goes awry, it is imperative to create a quick solution, and get back on track immediately.
Ferrandino & Son’s Solutions
Even though the project may be seamless on paper, timing is everything. As stated above, the project needed to be completed in 3 months, but the real hurdle facing this project was the installation schedule which was done in 2 phases over a 4-day period.
Ferrandino & Son’s technicians were required to begin the process by moving electrical lines on day 1 and then go back to the location on day 3 or 4 to complete the installation once the coolers were delivered. Talk about mandatory collaboration and partnership.
Ferrandino & Son dedicated a team to oversee the electricians and communicate progress with the retailer daily coordinating access to the floor, making sure lifts were delivered and setting the stage for success for the electrician.
Both teams agreed the objectives were to come in under budget, while finding long-term savings for the retailer. As the first few locations were completed, Ferrandino & Son’s Electrical Project Manager realized two important things: cost savings could be accomplished if the electrician worked from 5 am to 10 am, instead of the overnight and changing the wire gauge from 12 to 10.
These small, but important changes, resulted in significant savings not only on this project, but future projects. The morning shift reduced the personnel requirements by the retailer and the wire change protected the retailer’s equipment and offered longevity. Also, these changes were implemented across the entire project and every other service partner who was working on the program.
As stated, partnership truly plays a significant factor in success. The collaboration of all departments results in a successful project focused on a seamless transformation while protecting the customer experience. Creating a timeline that is aggressive, but achievable and working together to find savings in the program offers both the retailer and Ferrandino & Son long-term benefits.
So where do we go from here. Ferrandino & Son is excited to announce we have been slated to complete another 600-location project and believe this new opportunity was only achieved through collaboration and partnership.
When we think about curb appeal and managing brand image, our initial focus is almost always directed on the obvious things like landscaping and the exterior appearance of our structures. One of the lesser considerations (but no less important) is how you handle snow & ice remediation.
The fact is, Old Man Winter can wreak havoc on the retail world. Whether you manage a bank, restaurant, store, distribution center, or hospitality location, chances are you can’t just shut down operations every time it snows. This means even in the worst of conditions you still have customers to service and an image to uphold.
When thinking about winter weather and how it impacts your brand image, keep the following in mind:
Focus on the path most traveled. During a snow storm it can be hard to keep an entire site clear. Have a plan that places an emphasis on keeping the heaviest traveled areas clean. Entries, exits, sidewalks and the parking spaces closest to your entry should be your priority areas.
Don’t block sightlines. Be sure to avoid piling snow at critical intersections that could impair the view of vehicles or pedestrians. Keep snow away from traffic signage and be sure that stacked snow isn’t impacting visibility to your site.
Pay attention to the little things. Areas like drive thru’s, cart corrals, and handicap spaces can leave a poor impression if not properly serviced.
Collect your carts. Clearing your parking area of shopping carts prior to a snow event will allow your service provider to do a better job and avoid damage to carts. (photo caption: No one wants to find their carts in a melting snow pile in the spring.)
Maintain snow piles. Once the snow is cleared there will no doubt be stacked snow piles left behind. Be sure to monitor the melt and re-freeze of piled snow as it often leads to serious safety issues like “black ice.” It is also common for accumulated trash and debris to become visible as piles melt. Handpicking pile edges will reduce this unsightly exposure to the public.
While our first thoughts around snow removal are mostly focused on safety, creating a positive public opinion and strong brand image should also be at the forefront of these efforts. In reality, they go hand-in-hand. A safe site will most likely leave a positive impression. To learn more about effective snow and ice management programs catered to the retail sector and how to maximize your brand image, call (866) 571-4609 or email our Business Development Team at firstname.lastname@example.org.
While the most noticeable aspect of your property during the day may be your landscaping, when the sun goes down it’s all about the lighting. A well-lit property is an important aspect of any location’s overall curb appeal and can have a direct correlation to attracting and retaining customers. While a fully-lit site says “we’re open” and is inviting to customers, it also creates an environment that feels safe and reduces the potential for liability.
Here are a few things to consider when it comes to site lighting:
Reduce trip hazards by providing a well-lit parking lot. Consider guiding customers straight to your door by lighting paths with accent lights above sidewalks. You can also incorporate lighting into your brick or pavement work for an added touch.
Improve safety for guests by keeping your parking lot bright. Take a walk around your building after dark and note any poorly lit sections of your parking lot. Address these areas immediately by adding additional lights to ensure safety and security for everyone.
Deter crime and vandalism with spotlights. Whether you’ve got a large distribution warehouse or a small retail store on your property, ensuring that your property is adequately lit will make your location less attractive to criminals and reduce the risk of vandalism.
Improve your brand image by implementing a preventative maintenance program to eliminate outages in lights and signage.
Lighted signs can do wonders for your business when they function properly. Unfortunately, if you have burnt out bulbs or flickering lights inside your exterior signage, passersby may view that as negligent and be less likely to patronize your business as a result.
Like any youngster who just received their very first participation trophy, display your business with pride! You’ve got a great property and you’re proud of the products & services your business has to offer, so shine some light on them.
When it comes to cub appeal, it’s all about seeing your property through the customer’s eyes. A well-maintained exterior is the first step towards a well-maintained business. If you’d like help getting started with any exterior lighting projects and maintenance, reach out to the Subject Matter Experts at Ferrandino & Son.
For more information about Ferrandino & Son lighting projects, email Sales@ferrandinoandson.com or call (866) 571-4609.
In a world where there is no second chance to make a good first impression, retail business owners should consider including exterior maintenance in their annual marketing budget. That may sound strange, but think about this: Companies that spend millions of dollars on advertising campaigns but fail to properly invest in a routine landscape maintenance program could actually be losing customers at the local level.
People drive by your site every day and are subconsciously forming an opinion about your business before they even set foot on your property. What does your site’s appearance say about your brand? Is it clean and inviting or are people left guessing whether or not you’re even open for business? Does your store or business’ exterior appearance match the brand being portrayed in those big fancy advertisements? If not, you may want to consider making a few changes to your exterior maintenance program.
Before you put all of your budgetary “eggs” in the advertising basket, it may be time (and money) well-spent to consider improving your brand image through landscape maintenance. Here are some tips for a “clean & green” landscape:
Routine Services – Known as the backbone of the landscape maintenance program, routine services like mowing, shearing, and pruning should be performed regularly in order to maintain lawns at a reasonable height and avoid fluctuation in site appearance.
Turf Applications – You can’t have a “clean & green” site without the green! Keep your turf healthy, lush, and vibrant by scheduling weed control and fertilizer applications.
Litter – Trash is known to travel where the wind blows…but that doesn’t mean it has to stay there! Talk to your routine service provider or site managers about promptly removing all trash and debris that makes its way into your parking lots and landscaping.
Mulch – Nothing says “spring has sprung” quite like an application of fresh mulch. Consider it the proverbial “cherry on top” of your well-groomed landscape for that extra bit of added charm.
Curb appeal is all about seeing your property through the customers’ eyes. Drive by your site from every angle. Walk around on your sidewalks and stroll through your parking lot. As yourself if you would patronize your business based on its safety and aesthetics.
For more information about commercial landscape maintenance programs that cater to the national retail market, call (866) 571-4609 or email our Business Development Team at email@example.com.
Why Service Is A Verb, Not A Noun
By: Kevin Smith, Chief Operating Officer
Can we continue to deliver solutions in the models we’ve done for the last 15 to 20 years? Service sector business currently accounts for about two-thirds of the U.S. Gross Domestic Product, and about 8% of economic growth. A recent CAPS Center for Strategic Supply Research study found that purchased services averaged 42% of total purchasing spending. However, about 72% of the supply chain management professionals surveyed indicated that purchasing services is more difficult than purchasing goods.
In light of the continued trend towards outsourcing business processes and the likelihood of moving these business processes to offshore locations, it is prudent for our own industry to focus on improving the means for obtaining the services that keeps our businesses running. First, there are a number of barriers to address if service purchasing is to be improved.
Lack of resources focused on services
The CAPS survey mentioned above found that the average buyer of direct material is responsible for 33 active suppliers. The average buyer of direct services is responsible for about 125 active suppliers. These buyers are responsible for approximately the same level of total spending. The dilution of the services buyers’ time makes it difficult for the buyers to be proactive with their suppliers.
Lack of Information Technology support
Services buyers are less likely to be supported by technology and information systems, and often have to use software provided by the service suppliers or other third parties for making services purchases and tracking services spending and supplier performance.
Knowing when to outsource
Overdependence on local internal assets (i.e. Onsite Managers) and their knowledge decrease the power that the buyer has over the overall solution.
Understanding of cost drivers and structures
There is limited understanding of the cost drivers and underlying cost structures of the services supplied. Part of the problem with this lack of understanding is that it can create misaligned goals, as the buyer might think that the supplier wants higher volume when the supplier really desires more profit certainty within its volume serviced..
Lack of a holistic view of services spending
In the CAPS study, less than 60% of services spending flows through formal systems and processes. The spending on services is fragmented across many functions and locations, and often flows through decentralized structures. In addition, it frequently involves non-standard services unlike the more refined processes for purchasing goods.
These barriers are critical because services spending are growing as a percentage of total spending as firms outsource more activities, such as back-office operations, that used to be performed entirely in-house. In addition, because services are still largely segmented, services now presents a greater opportunity for potential cost savings than does the purchase of materials and components.
Addressing Our Opportunities
Service Supply Chain Management (and those identified as SCCM companies) will likely dominate discussions in Retailer boardrooms across the country as a more engaged, service solution is demanded. SSCM isn’t about outsourcing all of your services. It is defined by a motivation towards a more robust solution across each individual trade, defining a clear line between retailer and service partner where goals are more aligned together. But to take that journey, opportunities need to be overcome.
Understand the magnitude of the services purchasing spending
Without an understanding of the total spending, it is difficult to assess the potential for savings and difficult to make a business case for pursuing SSCM solutions.
Segment the purchasing spending based on value and risk.
This will allow you to set priorities, and allocate time so as to reduce the risk while maximizing potential rewards.
Allocate appropriate resources relative to economic return to the area of services supply management.
If there is a big opportunity, it is sensible to dedicate more resources.
Increase the professionalism of the services purchasing area.
A professionally trained service buyer can help control both overbuying and overspending. Services supply managers should have either focused college degrees or additional training on buying, negotiations, cost management, and the particular type of services that they are buying (can we do more within our own industry to train people better?).
Measure effectiveness and ensure proper business controls.
This can help reduce risk and improve compliance to Sarbanes Oxley. What gets measured gets done.
Put the best people in services supply management.
This will help to increase the level of accountability for services spending.
Even though the purchasing of services is growing in importance and magnitude, the resources to manage it are not. Because of the current state of services purchasing, it appears that there are untapped opportunities for organizations to improve their services purchasing in terms of both cost and value by dedicating more, and perhaps different, resources to services purchasing.
Bank of America reports in their annual statements that Supply Management is involved in 100% of its services it purchases. But they also share that the responsibility of these services is still kept in the hands of the users (Service Supply Chain) rather than Supply Chain as the users will be much more aware of whether the supplier is performing to expectations.
Ignoring the value of Supply Chain Management processes in a service solution is ignoring the future of our industry. As a supplier, we need to be aware of the systematic changes to our business and be prepared to be relevant in the future. As a Facility Manager, understanding what SSCM is and how it will be a required component of future business decisions will ensure your own relevance in your company’s business.
Dedicating skilled resources to establishing new systems for better managing the purchase of services could result in a tremendous return on investment and improvement in value of services for the dollars spent. Developing an outstanding capability to purchase, and manage the purchase of, services could truly be the next frontier for improved supply chain and organizational performance. The questions remains as an industry, can we help get ourselves there together?
|Kevin Smith is the Chief Operating Officer at Ferrandino & Son, Inc. You can reach Kevin at 866-571-4609 ext 1185 or by emailing firstname.lastname@example.org
Employee morale plays part in operational changes at Ferrandino & Son.
Farmingdale, NY – Ferrandino & Son recently announced some strategic changes to their operating model in an attempt to better align with their supplier base. However, when Chief Operating Officer Kevin Smith was asked what drove these changes, his answer was a little surprising. “While the changes were clearly driven with the intent of improving the vendor experience, I have to admit that employee morale was an underlying theme,” Smith said. “Our employees felt the stress that they couldn’t do more for our suppliers. As a company, we had to respect that feedback and own the fact that we weren’t empowering our employees the way we should.”
Smith went on to elaborate about the feedback already received by both the employee base and the suppliers. “There is no doubt we are still going through the growing pains of the changes,” Smith said. “However, I think everybody sees the long-term vision of what we want to accomplish. The right changes have been made and now we just need to execute to reap the benefits. As a company, we recognize if we think about our employees and the impact business changes will have, we will find much greater success in the execution of the services we deliver.”
Smith went on to share that the company has their own Spirit Committee which gives a segment of their employees a chance to meet with himself and provide feedback on both business initiatives and company morale. “We’ve made real changes based on the feedback delivered through the Spirit Committee”, Smith said. “It’s a great mechanism for honest and open opinions and while not everything can be executed on, understanding where the opportunities for improvement are and what we should focus on helps us strategize on a very high level.”
It must be exciting for employees to realize that an opinion shared in a routine meeting could result in sweeping changes as the company grows and evolves. “We are willing to listen and will only have ourselves as a company to blame if we don’t act on the great suggestions tabled on a daily basis”, Smith said.