Case Study: Fendi

Implement ‘Game Changing’ Health & Safety Auditing Across EMEA with ServiceChannel Service Automation

Customer

Fendi is an Italian luxury fashion house founded in 1925, renowned for its fur and fur accessories. Today it produces fur, ready-to-wear, leather goods, shoes, fragrances, eyewear, timepieces and accessories. A member of LVMH group, Fendi operates 270 company stores and store-in-store locations in 35 countries, including 85 retail locations in the EMEA region. The facilities management team of two is responsible for repair & maintenance of all stores as well as related regulatory compliance and site inspections.

Challenges

As a luxury brand, Fendi made the upkeep of its stores a business priority, which included big investments to maintain its premium brand image toward the goal of making the stores “perfect.” However, as a global company, it was difficult for Fendi to maintain consistent brand standards for its facilities across the diversity of cultures, languages and legacy practices in different countries and regions. Further compounding the problem was the company’s highly manual FM operations and site auditing process leading to issues such as:

  • Zero visibility into the more than 3,500 work orders per year from over 100 service providers, making it difficult to manage spending according to a budget plan
  • Little to no accountability of contractor performance due to lack of data to evaluate the spending, quality, results of each service provider
  • Different countries have different requirements for site audits, which often meant creating a unique store review checklist for each country
  • Long processing times to generate the results from the health & safety audits, as well as high degrees of complexity in taking multiple corrective actions at once

Goals

Fendi looked to modernize its site auditing and its facilities management operations through technology solutions. The company’s initial attempts included modifying its ERP (enterprise resource planning) platform for FM work orders and site audits, though that did not produce the results the Fendi team wanted. The company eventually issued an RFP for FM-specific solutions with stated goals such as:

  • Simplifying the semi-annual health & safety inspection process for both Fendi EMEA and its H&S consultancy, THSP Risk Management
  • Implementing a real-time and historic analytics program that replaced time-consuming reviews of spreadsheets
  • Making it easier for stores to initiate necessary work orders that could be routed directly to the FM team
  • Accelerating invoice reviews and approvals, which had required manually processing more than 1,500 invoices per year
  • Arming the company with contractor performance data so that the company could optimize the number of its core service providers

Solutions

After evaluating its options, Fendi selected and implemented ServiceChannel Service Automation to modernize its FM operations, and simplify and improve its site auditing & inspection program:

  • Site Planning Manager was a critical solution for Fendi and its UK-based partner, THSP, for customizing and
    automating required detailed health & safety inspections, with a checklist of 25 to 50 items per store. Key benefits
    included:

    • Enabling THSP to initiate work orders through Service Automation during the audit in order to expedite necessary repairs and maintenance work
    • Ability to prioritize the audit checklist through Site Planning Manager’s rating system for each item
    • Significantly accelerating the overall site auditing process, including gathering findings and results
    • Being able to analyze checklist results to identify common failures and frequently recurring issues
  • Analytics Custom provided Fendi new levels of visibility of its FM operations such as overall costs that could easily be tracked against budget forecasts and historic data
  •  Further enhancing Fendi’s FM Operations with Planned Maintenance Manager to schedule routine work orders such as servicing HVAC, lighting and elevator systems as well as managing janitorial services
  • Automating many aspects of Fendi’s invoicing and payment process for facilities service providers through Invoice Manager, which eliminated the FM team’s having to do manual reviews and approvals of thousands of invoices

“ServiceChannel is now one of our biggest drivers in how we manage facilities services. It’s a highly efficient way to keep our stores up to the same luxury brand standards as our products. As the ‘owner of our information,’ we can now spend less time to accomplish more at a higher quality than was possible before.”

Francesco Fassio Facilities Manager, Fendi EMEA

Benefits

Overall, implementing ServiceChannel’s platform made Fendi’s FM operations more efficient and provided greater control of its third party outsourced health & safety auditing program. Specific benefits included:

  • Cost containment through enhanced visibility into work orders and invoices that provided insights into spending trends and outliers
  • Improved contractor performance management that helped Fendi identify and retain top performing service providers and eliminating underperforming ones with high degrees of confidence
  • Better working relationship between Fendi and its auditing firm THSP, including empowering THSP with the ServiceChannel software to initiate necessary work orders on-the-spot, during an audit
  • Influencing refurbishment of existing stores, and design and building of new stores through FM insights and quantifying issues gained from existing locations

Results

With the ServiceChannel platform in place, the Fendi FM team was able to establish a benchmark of key performance indicators for the first time in its operations history. These KPIs included:

  • Eliminating 95% of critical issues (Level 1 & 2) identified between annual audit periods
  • Cutting share of on demand service requests (vs planned maintenance) from 60% to 35%, due to improving planning and optimizing intervention
  • Reducing reaction time from problem occurrence to resolution 88%, from 12.5 days to 1.5 days
  • Reducing percent of invoices with costs and supporting data (who requested, resolution status, etc.) not clearly associated to work order results from 30% to zero
  • Slashing invoice processing times 95%, from 20 minutes per invoice down to one minute, saving the FM team more than 1,000 hours per year