If there is one word that sums up what companies are looking for when they seek to make real progress along the path to profitability, then that word is efficiency.
One of the main allies for a company pursuing this objective – where the over-riding aim is to do more while using fewer human and financial resources – is to adopt a successful outsourcing process.
When this happens, it becomes possible for the company to save money without sacrificing any quality. Another decisive point is that implementing a well-thought-out process of outsourcing creates a permanent requirement for the organization to clearly define its focus.
By delegating services, for example cleaning and maintenance, to a specialized service supplier, a company is free to concentrate on its core business – being competitive and achieving a situation of prominence within its chosen sector of operation.
JLL counts on its Integrated Facilities Management area to show the way and enable clients to focus on their core businesses.
This area is responsible for offering a wide range of services to companies that operate a policy of outsourcing all the activities that do not form part of their core business.
One such case is MSD, a global leader in pharmaceutical products.
The company has been served internationally by JLL since 2010, when a partnership contract was signed in the United States. In Brazil, the Integrated Facilities Management team has served MSD for more than two years, since March of 2011.
Services offered in Brazil include, amongst others, cleaning, kitchenette, reception, building maintenance, pest control, dispatch, entrance control, surveillance and gardening. These are available to the four MSD units in the country.
MSD’s head office is located in the Chácara Santo Antônio neighborhood of São Paulo and comprises two buildings. Together these are occupied by some 600 people. The medicines factory covers 36,000 square meters and is located at Sousas near Campinas in upstate São Paulo, while the 1,000-square-meter office of the Animal Health Division is located on Avenida das Nações Unidas, a major urban freeway that forms part of the Marginal Rio Pinheiros expressway.
The MSD account in Brazil is handled by eight JLL staffers from the Integrated Facilities Management area. Some 150 outsourced service suppliers make up the team headed by Gerson Gonzalez, for whom the successful experience gained working for MSD can be used as an example for companies of all sizes that want to take advantage of high-quality outsourcing.
It’s essential to be conscientious and mature enough to understand that if outsourcing is to really make a difference then it must not only reduce costs but also improve processes and promote modern and professional management,” he said.
Gonzalez noted that while the process of cutting cost and administrative time related to suppliers might not yield immediate results, it will produce real savings over the longer term.
“A five-year contract sets very aggressive targets and they are being rigorously achieved.”
Ricardo Oliveira, who is responsible for the Facilities area at MSD, said that the company’s plans to use JLL services in other industrial installations are based on the desire to overcome a great challenge.
Reducing costs in manufacturing units is much more complex than in commercial offices. Offices are geared towards sales and revenue generation, so they don’t make cost-cutting in these activities a priority. Factories, on the other hand, have tight budgets and constant cost-reduction initiatives, so the process is more challenging,” Oliveira said.
Oliveira emphasized, however, that cost savings are not the only relevant factor when opting for this form of outsourcing.
“For MSD, the great advantage in relying on integrated Facilities management – in addition to lower costs and the ability to focus on our core business – is that it ensures uniform processes for the company.
Brazil currently accounts for 40% of JLL revenue in the Integrated Facilities Management area in the South Cone region of South America.
Gerson Gonzalez explained that, in addition to implementing a diversified range of services, the Integrated Facilities Management area has been able to interact with other departments within JLL to generate new business.
This synergy can be seen, for example, when looking at other services provided to MSD.
The search for the property where MSD’s Animal Health Division is located, on Avenida das Nações Unidas, part of the Marginal Rio Pinheiros expressway, was carried out by the Tenant Representation area at JLL.
Bringing this rental deal to fruition required a great deal of effort in negotiations with the lessor to achieve favorable commercial terms for the client,” said analyst Yara Matsuyama of the Tenant Representation area.
“After some rounds of negotiation, we achieved a 12% reduction in the rent value originally proposed by the lessor. This made it possible for the Animal Health Division to close an excellent deal in one of the most modern buildings in São Paulo.”
The Investment Sales & Acquisitions area has also been much in demand by MSD. This department was hired in March of last year to carry out the sale of the old industrial plant and offices of the MSD Animal Health Division located in Cotia, a municipality in the São Paulo Metropolitan Region. Land area was roughly 50,000 square meters.