The Customer:
A discount variety retailer offering both brand name and generic merchandise – including off-brand goods and closeouts of name-brand items. The client is currently operating over 10,000 stores in 40 U.S. states.
The Objective:
The store’s objective was to reduce lighting maintenance and service costs while at the same time providing a brighter retail environment for its customers to enhance the shopping experience and sales of merchandise.
The Solution:
Retrofitted the store location during the store’s normal business operating hours with minimal customer disruption. In total, fifty-seven T12, 4-foot, 2-lamp fixtures had fluorescent lamps replaced with 4-foot linear LED lamps. Seventy-eight T8, 4-foot, 1-lamp fixtures had fluorescent lamps replaced with 4-foot linear LED lamps. Six T12, 8-foot, 2-lamp fixtures had fluorescent lamps replaced with 8-foot linear LED lamps. Thirty-one 250 watt metal halide lamps were replaced with fourteen, 4-foot, 38-watt LED linear luminaire lighting fixtures and LED lamps.
The Results:
Based on current annual hours of store operation and current electrical rates, the store location is expected to:
1. Save $2,760 in first-year maintenance costs – projected to equate to $31,645 in maintenance costs over 10 years anticipated LED lamp life.
2. Realize a $4,457 reduction in energy savings within year one. Equal to a 70% reduction in kWh/year of energy usage.
3. Provide an annual emissions reduction of 65,342 lbs of greenhouse gases. Saving approximately 174 trees annually.
4. Current store customers have remarked about the brighter look the store is now projecting upon entering the store as well as the ability to see merchandise detail and colors more vividly while shopping in the store.
5. This led to changes throughout the client’s portfolio on the national level.
Interested in Learning More?
To learn more about lighting and general maintenance for your multi-site portfolio,
give Ferrandino & Son a call at: 866-571-4609
and ask to speak to someone in our Business Development Team.
You can also reach us at: sales@ferrandinoandson.com
Customer:
A supermarket chain engaged principally in the retail sale of groceries, dairy products, frozen foods, meats, seafood, fresh produce, flowers, pharmacy services, deli products, prepared foods, bakery products, beer/wine, fuel, and general merchandise.
Objective:
This supermarket chain needed a program to enhance the visual appeal of its refrigerated vertical cases while reducing its associated energy costs.
Challenge:
Reviewing the refrigerated display case specifications, we recognized that a traditional retrofit approach of replacing components with upgraded lamps and ballasts would not achieve the required improvement. We needed to recommend a solution that would slash energy and maintenance costs while enhancing the visual appeal of their vertical cases.
Solution:
We offered a retrofit program created specifically for refrigerated vertical cases. GE’s Immersion™ RV40 LED Refrigerated Display Lighting cuts annual operating costs while improving illumination of the packaged products. The perfect replacement for fluorescent lighting, GE’s Immersion™ solution efficiently delivers bright uniform light on the inside of the case, while significantly reducing energy consumption and maintenance expenses. This is an easy to install solution, contains no lead or mercury as with other lighting sources, and is both RoHS and NSF compliant. A rated life of 50,000 hours and a 5-year warranty are icing on the cake.
Results:
For a typical location with 18 cases and 83 door retrofits:
- An immediate $5,000 per year reduction in maintenance costs. An immediate 86% reduction in energy usage resulting in $6,100 annual utility cost savings.
- An annual reduction of 78,533 lbs. of greenhouse gases emitted into the atmosphere Qualified for a $4,700 utility rebate.
“Ferrandino & Son is a great partner that provided a turnkey solution to my LED
cooler door retrofitting projects. They were involved in all aspects of the process from
providing return on investment analysis, implementing retrofits and processing rebates.”
Interested in Learning More?
To learn more about lighting and general maintenance for your multi-site portfolio,
give Ferrandino & Son a call at: 866-571-4609
and ask to speak to someone in our Business Development Team.
You can also reach us at: sales@ferrandinoandson.com
Case Study Overview
A national REIT with thousands of properties anchored mostly by well-known grocery chains was looking to consolidate their capital expenditures with one company. Some of the outcomes they hoped to achieve included improved pricing, faster turnaround times from “scoped job” to completion, better communication channels with the partner doing the work and a completely upgraded validation process for when work is completed.
They needed a better way of handling their capital work.
Project Kickoff
After multiple meetings with different stakeholders to learn more about the needs of the program, Ferrandino & Son launched the program with a two day workshop, bringing in members of our own Capital Projects Team along with IT, Finance and Senior Leadership.
The client was represented with stakeholders from their Facility Department, Operations, Procurement, Accounting and Risk Management teams.
The goals of the workshop included the following:
- Identify the goals of each department and then to define the outcome that would be achieved if we delivered on those goals.
- Develop a project workflow that would be the guide for every capital initiative, regardless of scale or spend.
- Develop a plan to provide transparency and better budget certainly around the projects.
Project Challenges
The client was burdened with what they felt was an outdated model. Each project was being managed by a local stakeholder, using unique vendor pools with different scopes, missed deadlines and a complete lack of transparency on the final product delivered. The client needed guidance on how to manage the workflow.
Through the initial planning stages, we identified 3 critical steps:
Step #1: Planning: Identify each area for repair, how each bid should be broken down (areas of the site), and what the time frame is for the project. This would allow all vendors to quote the same scope of work.
Step #2: Communication: Work directly with the Property Managers to ensure each site had before and after pictures and the work was done to the full extent requested by the Property Manager.
Step #3: Budget: Using our Subject Matter Experts, we were able to negotiate the best price per project and ensure that all work would be completed to brand standards.
Ferrandino & Son’s Solutions
With multiple locations in different territories, it was important for Ferrandino & Son to create a plan that was easy for the client to understand and stay within their budget.
Ferrandino & Son first executed site walks at each property. Conversations with each Property Manager, validating areas to be covered, detailed breakdowns of the bids, defining strong time frames and reviewing photos were crucial to ensuring a detailed SOW would be supplied to each vendor to follow. This was all validated by the Property Managers.
After vendor submissions estimates were received, negotiations began with quotes being resubmitted and proposal drawn up for each Property Manager. Once approved by the Property Managers, Ferrandino & Son was able to offer complete oversight during the project. Project updates and pictures were sent throughout the process to keep the Property Manager up-to-date. In addition, once each project was completed, pictures and completed punch lists were issued to the Property Mangers for final approval.
These new processes significantly improved the time each project took to complete with one point of contact to manage each project from beginning to end.
Summary
Communication was the key to completing this project and driving costs within the budget. The initial stages of reviewing each property with the Property Manager was crucial to ensuring each vendor was able to submit a proposal based on the same requirements.
In addition, this helped with further negotiations and receiving better prices for the work to be completed. The consolidation this REIT took with Ferrandino & Son helped reduce project completion by 30% and additional Cap Ex projects were able to be funneled into this program for Insurance Claims, Emergency Services, and Violations from Inspections resulting in a higher ROI for everybody.
The program ultimately landed on a cost-plus model that allowed both sides to remove the uncertainty around cost and allowed the relationship to move into more of a collaborative effort.
A win-win for everybody.
Interested in Learning More?
To learn more about Capital Projects and a Cost-Plus program for your multi-site portfolio,
give Ferrandino & Son a call at: 866-571-4609
and ask to speak to someone in our Business Development Team.
You can also reach us at: sales@ferrandinoandson.com
The Customer:
A premier kitchen and bath distributor twice named America’s “Wholesaler of the Year”. The company is responsible for supplying some of the most exclusive residences, opulent estates, hotels, landmarks, sports stadiums, hospitals, and universities in the Northeast.
The Objective:
This distributor needed a solution to reduce both energy and maintenance costs while improving current light levels at one of its largest Northeast distribution facilities.
The Challenge:
Review both their existing interior and exterior lighting configurations and components (Interior-T12-Lamps, Magnetic Ballasts: Exterior–HID/HPS Lamps, Magnetic Ballasts) to decipher a more cost effective solution. After review, we recognized that a traditional retrofit approach of replacing these outdated components with upgraded lamps and ballasts would not achieve the cost-effective improvement required.
The Solution:
We offered an LED retrofit installation program to replace the existing outdated 943 interior T12 fluorescent lamped-fixtures with new high-performance, long lasting, energy efficient LED Tubes, and the 33 exterior HID/HPS fixtures with new energy efficient LED fixtures. The Project Management Team executed this retrofit on time and on budget.
The Results:
- An immediate reduction in maintenance costs estimated at $23,000 annually for the next 10 years due to both the products rated life (60,000 hrs.) and their multi-year warranty.
- An immediate reduction of energy usage by 68% AND an estimated $40,000+ annual utility cost savings based on the U.S. average retail price of electricity of $0.1032.
- An annual reduction of 303,000 lbs. of Greenhouse Gases emitted into the atmosphere.
- This installation qualified for the maximum $63,000 Energy Improvement and Extension Act 2008 (EPACT) tax deduction for capital improvements.
Interested in Learning More?
To learn more about lighting and general maintenance for your multi-site portfolio,
give Ferrandino & Son a call at: 866-571-4609
and ask to speak to someone in our Business Development Team.
You can also reach us at: sales@ferrandinoandson.com
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