Fifth Third Bancorp, CINCINNATI, OH
Building & Facilities Management Services
VIOX FACILITIES SERVICES VALUE DELIVERED
The outsourcing of facility management allowed Fifth Third Bancorp to reduce their costs by $2.3 million during the first year of the contract. Contract year 2 generated an additional $1.93 million in savings. The facilities services outsourcing effort has also allowed Fifth Third to centralize and standardize the work request process, financial reporting, key performance measures, service level agreements, and standard operating procedures.
Fifth Third has also turned their facility management spending from fixed cost to variable cost. This has created flexibility and scalability to better prepare for future growth or economic downturns. The facilities services outsourcing effort is structured to promote continuous improvement and accountability.
CLIENT BUILDING & FACILITIES MANAGEMENT OBJECTIVES
In 2003, Fifth Third Bancorp faced numerous challenges to its core banking business and sought to continue to grow and thrive as a financial services leader despite regulatory changes, increased administrative costs due to a decentralized management structure, and stagnant stock prices.
Due to these challenges Fifth Third’s management conducted a series of initiatives to reduce the administrative support organizations pertaining to building and facility management, standardize processes across all affiliates to ensure compliance, focus on core banking business, and remove the risk associated with the employment of a facility management workforce.
EMCOR BUILDING & FACILITIES SOLUTIONS
To achieve its objectives Fifth Third invited Viox to investigate the merits of outsourcing all building operations. After evaluating the company’s goals, Viox has continually delivered effective building and facilities maintenance solutions to Fifth Third through strategic sourcing, implementation and operation of work order technology, and the development of standardized processes.
By focusing on strategic sourcing and leveraging Viox Services’ purchasing power with Fifth Third, the contract allowed for greater efficiency of facilities services and a greater value to the client. This strategy reduced the vendor base from 6,800 to 3,100 and has also reduced vendor spending by an average of $2,931 per branch.
In order to track efficiency and deliver quality information continually, Viox implemented a 100% electronic work order system for Fifth Third that processes 89,000 on-demand work orders and 24,000 facilities preventative maintenance work orders annually. In addition, standardized problem and priority codes were implemented and the CMMS is linked to the financial accounting system. This allows Viox to provide a customized report-writing capability for Fifth Third’s facility maintenance operations.
During the first contract year, 102 standard building operating procedures were developed for facility management operations at Fifth Third. In addition, all major processes are work-flowed and service-level agreements have been developed for all building operations. Viox continues to work with the client to evaluate and implement SOP’s as required.
The need for an adaptable, scalable total facilities management solution was evident during the first contract year as Fifth Third’s portfolio grew from 9,076,731 square feet to 10,091,778 square feet. This included the acquisition of Florida National Bank. Outsourcing facility management provided the scalability necessary for growth and a great foundation for the expansion of facilities maintenance operations. The development of standard operating procedures and implementation of support functions could easily be leveraged— such as the CMMS electronic work order system— and allowed Viox to expand coverage to accommodate Fifth Third’s growth.
FIFTH THIRD FACILITIES BACKGROUND
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $101 billion in assets, and operates 18 affiliates with 1,167 full-service Banking Centers, including 106 Bank Mart® locations open seven days a week inside select grocery stores, and 2,132 ATMs. Fifth Third operates five main businesses: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors and Fifth Third processing Solutions. They trace their roots back to 1858 and today Fifth Third is widely recognized as one of the strongest, top-performing, banks in the nation.