Case Study: Snow Removal

Case Study: Snow Removal

Using eSourcing to Streamline & Automate the Impossible

Background:

A national facility management provider issued their annual snow removal bid using FlexRFP™ instead of their traditional email based process. Their goal was to streamline and automate a very cumbersome and inefficient process. FlexRFP™ proved to be a game changer—creating major efficiencies in process, data management, supplier participation and time.

Previous Process:

In years past, this RFP was issued by region via email. Each regional manager was responsible for their territory. Each manager then spent three to four weeks consolidating the information, negotiating with suppliers and analyzing data. The summarized information was then forwarded to a centralized group that reviewed, accepted, and finalized contracts

Inefficiencies with previous process:

  • Tedious & manual with many painful steps
  • Prone to human error
  • Requires several people to manage
  • Cycle time too long – frustrating everyone, including suppliers who couldn’t plan ahead

Efficiencies Gained with FlexRFPTM:

Instead of sending separate bids locally, only one project was needed using FlexRFP™. With the click of a button, FlexRFP™’s Dynamic Invitation feature automatically invited suppliers to bid on the 50 or 60 sites within their approved service areas (by zip code ). Each supplier could only see their area; they were blocked from the other 7500 locations. Then FlexRFP™’s auto-reminder feature followed up with suppliers at predefined dates if they were falling behind. This virtually eliminated the need to follow-up via phone. Lastly, real-time visibility of the project status and analysis allowed for faster and better decisions by management who was able to monitor the process on a part-time basis with fewer people.

Key Improvements:

  • 50% cycle time improvement
  • 50% fewer resources needed to manage the process
  • Bidder participation increase of 30%
  • Supplier technical questions: ZERO

Key Stats:

  • Regions covered — Nationwide
  • Service location included — 7,500
  • Email reminders sent automatically by FlexRFP™—2,500
  • Participating Service Providers — 1,716
  • Bid submissions — 992 (58%)