ASM Global: $3M saved and risk coverage rebuilt across security and cleaning

Baseline

ASM Global is a world-renowned venue management company with a portfolio of more than 300 venues worldwide. It had recently built a procurement department, but the team was not yet at the scale needed to support the breadth of the organization.

Two of its largest facility management categories, security and cleaning, were the priority. Across a portfolio that size, agreements had accumulated venue by venue: rate structures varied, risk and insurance terms followed each vendor’s standard paperwork rather than ASM’s, and there was no consistent way to measure whether service levels were being met.

What we did

We ran sole-source negotiations with the top suppliers in each category and rebuilt the agreements to a best-in-class standard:

• Normalized the rate structure across the portfolio so the same service could be compared and priced consistently venue to venue.
• Set ASM’s own risk management standards into every contract, replacing vendor-standard terms.
• Negotiated substantially larger umbrella coverage, moving from an average of roughly $4.5M to a standard of $25–28M.
• Built in growth incentive rebates, so expansion across the portfolio returns value rather than simply adding spend.
• Defined specific KPIs to measure and manage the services being delivered.

Implementation and adoption

New terms only create value if the organization can hold suppliers to them. We implemented a quarterly business review (QBR) process and service level agreement (SLA) terms tied to the KPIs, giving ASM a repeatable rhythm for reviewing performance with each supplier and a contractual basis for acting when performance slips.

Validated result

• $3M in savings from the new contracted rates.
• Reduced risk, with liability coverage increased fivefold and ASM’s own risk standards applied across all contracts, rather than each vendor’s.
• Improved service levels, measured through defined KPIs and managed through the QBR and SLA framework.

The work also left ASM’s growing procurement team with contract standards, KPIs and a review process it could apply to the next category without starting over.

“They did a wonderful job of supporting, negotiating and providing value to my team.”

Related

• Spend Analysis: S2V Compass
• Strategic Sourcing: S2V Accelerator
• Value Tracking: S2V Pulse
• Facilities Management
• Venues, Sports & Entertainment
• Facilities & Janitorial Services