Practically Speaking about Retail FM

The Evolution of Cleaning – a New PRSM White Paper

Retail facility pros face challenge to provide safe, clean store environments while maintaining brand standard for clean.

Even though the digital revolution has transformed shopping, two-thirds of customers purchasing online use a physical store to connect with brands and products, according to a recent survey conducted by AT Kearney. Given the increased focus on the importance of the store to the shopper, the in-store experience is naturally capturing the attention of retail industry leaders. 

Consequently, retail facilities management professionals are continually struggling to keep retail stores safe and clean in accordance with brand standards.

This white paper explores the primary issues and challenges of Retail Facilities Management (FM) professionals and the associated supplier community as they grapple with finding cost effective ways to provide a clean, safe store environment for sales associates and shoppers alike. Top issues discussed include: 

 

  • Defining clean for your retail brand
  • Defining the cost of clean for your brand
  • Understanding health concerns, LEED and green cleaning
  • Understanding contractors’ challenges, specifically labor laws for janitorial services, working with retail procurement and the total cost of ownership.

 

From benchmarking standards and cleaning program costs, to getting the job done in an environmentally friendly way, download your copy of the white paper to learn more today.


What is Your Overall Cleanliness Score?

Budgets, Finance and Metrics, FM Business Practices and Strategies, Janitorial

PRSM launched the Janitorial Workload Tool, earlier this summer, to help facilities managers generate an accurate scope of work by quantifying cleanliness and removing subjectivity. The tool is comprised of an interactive spreadsheet that uses information about the store and desired level of clean. After the data is entered, the tool will calculate the number of full-time staff required to accomplish cleaning tasks. The tool bases staffing requirements on factors that include, but are not limited to, cleaning schedules, store type and productivity rate.

The first step to generating this information is to determine your brand standard’s level of clean. In the recent webinar, “Best of PRSM2015: Janitorial Workload Tool, A Custodial Benchmarking Tool for Retailers, Allen Randolph, Vice President of Sales, Aqua ChemPacs, LLC says, this component of the tool is a “concrete way to evaluate your brand standard.”

The spreadsheet calculates your overall score by using scores from the following components: sales floor, office area, back room/storage, entryways/check out areas, janitor closets and restrooms. Additionally each component is broken down into its essential sub-components. For example, the “janitor closets” component is calculated by the scores of the cleanliness of the floor/sink, correctly labeled bottles, clean and organized carts, clean and working equipment and properly stored supplies.

“This tool is very important because it allows you to communicate across your organization, and with upper management, what your brand standards are,” says Randolph.

After you define what clean is for your organization, then you can then use the rest of the tool to determine the cost and staffing required to maintain your brand’s desired level of clean. Watch the rest of the webinar to see a demonstration of the Janitorial Workload Tool.


PRSM Association Releases New Retail Benchmarking Report

93 percent of retailers who use work order management systems have seen improved vendor accountability and communications

Work order management systems continue to evolve rapidly and today these high-tech, integrated tools can access and provide data from multiple platforms and provide both retailers and vendors the information needed to make better, faster decisions that cut costs and improve efficiencies.

Recently PRSM surveyed the retail industry to better understand the state of FM work order management practices and their impact on retail store maintenance operations. Results of the survey are included in The PRSM Association Work Order Management Practices Benchmarking Report.

Some key findings include:

 

  • 93 percent of retailers who use metrics report improved vendor accountability and communications.
  • Almost every retail organization uses insights gained from Computerized Maintenance Management Systems (CMMS) to make decisions
  • 82 percent of suppliers and 93 percent of retailers believe CMMS standards would benefit the industry
  • Suppliers track IVR compliance rates, acceptance times, arrival and completion times, travel costs, customer complaints margins and net promoter scores
  • 70 percent of suppliers use data insights to advise clients on ways to save and more than half use data to drive down costs and evaluate technician performance

 

More than half of multi-site retailers connect with their suppliers online through a third-party CMMS to manage work orders. One-fourth use an in-house CMMS, while 17 percent use a vendor/supplier, implemented CMMS. Seven percent of retailers still manage work orders manually using spreadsheets, emails, etc.

If you are considering a new work order management system, or just want to learn more about the latest trends, download your copy of this benchmarking report today.


Right Size, Right Solution: LEDs for Every Store Type

Since the early 2000s, when LEDs hit the market as an actual competitor to fluorescent lighting, it has been apparent that no one solution fits all store types.

One main challenge is determining the appropriate fixture for your product. Each fixture might look slightly different with each product. One PRSM member says their company will not use LED as it changes the look of their products. However, another PRSM members says they fixed this problem by using a combination of spot LED lighting.

When it comes to the physical replacement of the fixtures, small box stores have the advantage of having the ability to have store employees replace bulbs, whereas big box retailers require a vendor to replace bulbs.

However, due to the substantial increase in square footage being lit, suppliers can provide a better price on  lamps and units for big box retailers. Additionally, big box store hours are more favorable for routine lighting maintenance.

Despite some challenges, suppliers are seeing almost all new stores being designed with LED lighting. According to Jeff Codd, Senior Vice President, Wiedenbach Brown, the price is a big factor. “We’re right on the cusp of the payback on LED’s being what the CFOs want.”

In the PRSM2015 National Conference educational session, “Will LED Bust the Budget?” Mark Roush, RIES, M. Arch., Principal, Experience Light, LLC, breaks down the real cost of installing LED. Additionally, Roush outlines how lighting controls can increase savings. Roush says the easy controls are the parking lot, fitting rooms, freezers and other back of the house areas. However, floor space is a more difficult. He asks retailers to consider the following:

  • Can you afford to go “dark?”
  • Are you prepared to ZONE and DIM accent lighting?
  • Are you able to ZONE and DIM general lighting?

As for the future of LED, in the next six months, Codd predicts retailers will start to see more glass tubes versus plastic. He explains how the cost of the glass will drive down the price of the LED tubes. Glass tubes will reduce energy use and reduce the heat generated.

Comment below with how you think the LED lighting industry will evolve in the future.

You can download Roush’s PRSM2015 National Conference presentation here or find more PRSM resources on LED lighting on PRSM X-Change.


What Are YOU Doing to Elevate Your Game?

What are you doing to elevate your game? Today’s facilities management professional is a different breed than the individual of 10 years ago. 

The days are quickly disappearing when facilities departments are primarily call centers for maintenance work orders from the stores.  While that’s still an important role, multi-site FM departments of today are expected to be much more. They are asset managers, financial analysts, vendor partners and business unit owners. 

This current breed of FMs is expected to have a different set of skills than in the past.  Continuing education is not optional, it’s a necessity.  Formal education, professional development conferences, skills training, and peer-to-peer education are essential to ensure you are at the top of your game. No matter what stage an FM professional is at in their career – early, mid, or late – you should always be learning and evolving your personal skillset.

This year’s Mid-Year Conference, September 9-11, is focused on elevating your game both personally and as a FM Team.  Take a close look at the program and I’m confident you’ll find a new learning opportunity whether it’s at a session, or talking with your peers or from the industry suppliers who are attending. 

If you can’t join us in Scottsdale, AZ for the conference, make time for a reality check with yourself.  What have you done for yourself to brush up your skills lately?  Managing our time is a challenge for all of us, but it’s a necessity these days to make time for your professional development.  Stop and smell the (proverbial) roses as the saying goes. 

Within the PRSM office, we’re designated “Quiet Time” for one afternoon each month to learn something new, listen to a TedTalk, or set aside reading time for industry publications.  It takes personal discipline to implement. But, we want to prove to ourselves that we’re building our worth and knowledge to make PRSM a better organization. I suggest you try it; you may like it.   


Seven Steps to Asset Sustainability

Sustainable buildings have adapted to have more sustainable designs, accessible layouts, and green building materials with longer life cycles at comparable costs. Facility managers are tasked with maintaining the beautiful sustainable stores and facilities at a low cost. Michael B Cowley, President, CE Maintenance Solutions, LLC described a seven step process for sustaining sustainable operations.

The first step is to develop the culture and traditions of sustainability. Developing a roadmap is crucial to maintaining the standard required for sustainable initiatives. If a culture of sustainability, cost savings and innovative ideas are supported, constant innovation is achievable. 

The second step to asset sustainability is to properly staff your organization by assessing your organizational structure and developing processes and procedures. Cowley remarked, “If you do not have your standard operating procedures written down, you do not know what you’re doing.”

Then you will want to create your asset data management as the next step. As Cowley says, “You have to have a complete birth certificate on your assets.” In addition to tracking assets, Cowley recommends every piece of critical equipment should have a preventative maintenance plan. With this information and proactive maintenance, FMs can predict the life of their assets.

The next step is work planning and scheduling. Cowley says FMs should treat their planned work orders like a recipe, as it includes the ingredients (parts and tools), the instructions (procedures) and the preparation time.

The fifth step is to have preventative and predictive maintenance programs in place. If the culture encourages proactive maintenance, there will be less unexpected repairs which can ultimately keep maintenance costs down.

The sixth step is to implement craft and skill training. Cowley discussed what he termed the “maintenance crisis.” He believes FMs are challenged to find qualified technicians and each company should have a mandatory program for each employee. Cowley even goes so far as to say five to ten percent of all staff hours should be dedicated to training.  

The final step is procure and stock critical parts for assets. Major equipment should have their critical parts in house to minimize downtime.

For more information on asset sustainability, watch Cowley’s PRSM On-Demand webinar, “Maintaining Aging Equipment and Infrastructure without Breaking the Bank.”


The Transformational Economy: Transactions are No Longer King

The retail industry is transforming. Facility professionals have seen the changes over the years within their stores, whether it is new technologies being installed or what (and how) the shopper is making transactions within the store. Now it’s time for the landlords to respond to this transformation.

In the ICSC RECon educational session, “Envision 2020 Town Hall: Redefining Our Industry,” Stephen Lebovitz, ICSC Chairman and President and CEO of CBL & Associates Properties, Inc., led a panel discussing how shopping centers are reacting the transformation of retail. Out of all of the discussion between the real estate developers, it became clear: Shopping centers are becoming a hybrid between community center and retail destination. This is especially true of shopping centers, usually built in the late 80s, early 90s, which now need to be repositioned due to decreased traffic or other high performing centers in the area. The experts all agreed the most successful repurposed shopping centers will embrace interactive and engaging new concepts that are appropriate for their surrounding demographics.

Brick and mortar is not dead by a long stretch, just transformed into more of an experience. The new measure of success for landlords is the length of time people are staying in the complex – are they attending a cooking class and following it with dinner? Are they going to the children’s museum and then swinging by to get a new outfit?

This new measurement does pose a threat to how leases are developed. Square footage is no longer always an acceptable factor when a tenant isn’t selling any goods. These interactive experiences and stores who are choosing to “showcase” their goods to eventually be bought online will need a new type of lease to take into account the community areas being utilized. Retailers are becoming successful bending the physical and digital shopping experience, but now it is time for shopping centers to transform how they are structuring how to structure their leases and account for non-revenue businesses using the common spaces. 

The repurposing of shopping centers will also be advantageous for the supplier community, as the suppliers are already familiar with the properties and can gain these new concepts as customers. How do you think the transformation of the shopping mall will continue to change how vendors and retailers do business?


Imported Wood Flooring from China Raises Health Concerns

Environmental, Health, and Safety

Concern over imported wood flooring from China reached global audiences recently when 60 Minutes reported that a large supplier of imported flooring to the U.S.  knowingly provided products with high levels of formaldehyde, a known carcinogen. Although the company has denied its products are dangerous, the debate is ongoing.

According to PRSM Member Randy Weis, Chief Executive Officer of RD Weis Flooring Solutionists, now would be a good time to investigate the source and manufacturing origins of flooring purchased during the past few years and especially flooring installed in California, which has strict guidelines regarding the amount of formaldehyde present when the flooring is unpackaged and installed.

As an ongoing precaution Randy recommends purchasing flooring materials made in the U.S., to U.S. specifications.

"The products from China are very popular," Randy says, "they are less expensive and that is a key reason for their widespread use in commercial and residential applications. I would say that if you are using LVT or Laminate flooring from China, the cost increase vs U.S.-made, safe products is probably less than $2,000 per retail store. A small price to pay to insure the public safety."


Strategic Sourcing Retail FM: Lowering Costs without Sacrificing Quality of Service

The pressure to lower costs continues to impact how FM services are bundled and in some cases broken out of the traditional delivery model. In some areas such as janitorial, the services are being commoditized and the motivation to lower costs is actually driving small companies out of business, giving the impression that retailers don’t care about clean store environments.

Responding to the need to help retailers and suppliers navigate through the process with the added level of scrutiny and interaction from procurement, the PRSM Sourcing Committee has developed a comprehensive set of user-friendly worksheets that can help the entire industry collaborate more effectively.

The updated PRSM Sourcing Toolkit now includes a collection of worksheets to assist retailers from documenting needs and maintaining standards to completing scorecards from respondent material. The materials are useful to suppliers in better understanding how to respond to RFPs, while differentiating services and making the case for greater transparency.

PRSM Members go here to Download the interactive Sourcing Toolkit User Guide. You may download the templates individually or as a combined unit.

  1. Needs Assessment - a guide to help you outline your requirements.
  2. Execution Timeline: an outline to help you segment the time required to reasonably complete each step in the process.
  3. Financial Implications: a guide to help you compile your terms of service.
  4. Identify the Providers: a guide to help you create a short list of providers to receive the RFP.
  5. Create the RFP: a guide to help you structure questions and goals of the RFP.
  6. Ranking the Respondents: a comprehensive guide to ranking and scoring respondents, to assist in final decision making.

Download All Templates + User Guide (ZIP File)

Thanks to the Sourcing Committee for providing these resources. Good luck and happy sourcing.


Lower the Cost of Service Calls by Adopting Fleet Operational Standards Found in New PRSM Benchmarking Report

Budgets, Finance and Metrics

Although the bottom-line on every invoice doesn't include a breakdown of the many costs incurred when a truck and technician show up at the retail store location, the more retailers and vendors understand about this aspect of the business, the better they can strategize to minimize these costs where possible.

Matt Ashwood, PRSM Member and President of Bonded Filter Co., who participated in the new PRSM Benchmarking Report "Supplier Fleet and Technician Operations and Practices" said the results provided him with direction on lowering costs. "About seven percent of our overhead relates to fuel, lodging and per diem, basically the cost of keeping trucks and technicians out in the field. That's a big number," Matt said, "and understanding what others do to manage those expenses is beneficial for us."

"When we see increases in our expenses it puts pressure on our bottom line. We studied these survey results and made some changes to align our company with the best practices provided in the report. The effort we put in to managing our costs enables us to deliver a cost effective service to our clients."

Here are some key findings from the newest PRSM Association Benchmarking Report "Supplier Fleet and Technician Operations and Practices."

  • More than 90 percent of the suppliers use gasoline vehicles. However, 62.5 percent of the suppliers use only gasoline vehicles. Other fuel types might be more economical, depending on factors like distance traveled, percent of city travel vs. highway travel and cost of alternative fuels.
  • The maintenance on the vehicles is performed by in-house staff at one-half of the supplier companies. Most companies in this study who service vehicles in-house and purchase parts and supplies in bulk reported higher maintenance costs.
  • Suppliers spend more on repairs than on regular maintenance. The average regular maintenance cost for changing oil, filters, etc. for a truck is $1,593 per annum versus the average repair cost of $1,881 per truck annually. The average regular maintenance cost for changing oil, filters, etc. for a van is $1,192 per annum versus $1,377 for repair.
  • Suppliers reported increased customer satisfaction and more efficient routing because of the ability to track vehicle location. Sixty-three percent of the suppliers track the real-time location of their fleet.
  • Most companies, (i.e., 72 percent) have work that requires technicians to spend less than two nights per month out of town and use hotel accommodation. More than one-half of the suppliers, (i.e., 55 percent) reimburse the technician for actual expenses and 27 percent of the companies compensate the technician by paying a fixed amount per day.
  • Only 40 percent of the suppliers have coverage for uninsured / under insured motorists.

Were you surprised by the results of this survey? Like Matt, did you find areas for improvement in the results?


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