Background
The Bank provides catering services including staff restaurants, vending and hospitality services in major office locations throughout the world covering 150 locations across 40 countries. The majority of services were outsourced to professional catering contractors.
Litmus was commissioned to work alongside and support the project team in undertaking a strategic review of the global catering strategy for the Bank which at the time of commencing the project had an estimated catering turnover of over $55million per annum.
Brief
Litmus was briefed to make recommendations for the future strategic and operational management of the Bank’s global catering contracts which would:
- Maximise economies of scale and reduce management fees regionally/globally;
- Provide a single point of contract with global catering providers (one contact, one service,
one fee structure);
- Enable and support global supplier relationship management;
- Shorten communication lines;
- Enable the application of a global catering policy, procedures and service standards;
- Allow KPI’s and performance management to be managed in a consistent manner;
- Streamline and standardise administrative processes;
- Consolidate individual country service specifics to a global level; and
- Leverage and harmonise contracts and benchmark service fees.
Approach
Chris Durant, the Litmus Partnership, said: “We collated significant data and information from the portfolio of global sites and analysed, validated and benchmarked this against the market which gave us a sound understanding of how the catering was performing against industry standards.
“Research was then undertaken on global employee catering trends including specific country and regional legislation and practice which could impact on decision making. We then met with service providers who were capable of providing a global catering service and then went on to support the contract negotiations.”
Outcomes
A global catering contractor was appointed and the new contract identified significant savings which would not adversely impact service. A global consistency of the catering service model, standards and branding was also achieved and the Bank can also look forward to stronger supply chain partnerships, leverage spend and transfer of risk.
