Automate Facility Maintenance Webinar

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Sprouts Farmers MarketAutomating Facility Maintenance

CASE STUDY: Five Lessons Learned to Avoid the Pitfalls and Accelerate ROI

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=3kHZBIzriEgC5M&tbnid=lMzRmNOhzNxbKM:&ved=0CAUQjRw&url=http://sprouts.com/&ei=FbyKUbHTBYz-qAGw1YDIAw&bvm=bv.46226182,d.aWc&psig=AFQjCNEHURchdwqtQKq8F4T30W7B_nwezg&ust=1368133003502165

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WEBINAR: Automate Facilities Maintenance

Presenter:Jerry StutlerVP Construction and Facility EngineeringSprouts Farmers Market

Moderator:Mike StadelmanVP Marketing, Verisae

Moderator:Edward ParkerRegional Sales Manager

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AGENDA• Sprouts Overview• Challenges• Goals• Implementation• Results• Lessons Learned• Vision• Q&A

Automate Facilities Maintenance


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• Full-service natural food stores• Commitment to “fresh and natural “

fruit stand heritage• One of fastest growing retailers in US

2002 2004 2006 2008 2010 2012 2014

150+ Stores

Sprouts Overview – Full Service Grocery Retail

10 Stores

http://www.google.com/url?sa=i&rct=j&q=curved+arrow&source=images&cd=&cad=rja&docid=An6mKw1hyFtgbM&tbnid=N2jCjyBwbzW7oM:&ved=0CAUQjRw&url=http://www-03.ibm.com/software/lotus/symphony/gallery.nsf/GalleryClipArtAll/AF4C9D52286D32028525759500585186&ei=LbaLUZLOIYr5qwGxmoCABQ&bvm=bv.46226182,d.aWM&psig=AFQjCNEl9uAnlXuYsUIPzeIWQIYfuwBexA&ust=1368197021798816

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Facilities Maintenance Support• Central purchasing • Internal F&M call center• External service providers

• 2012: 3 FTE Staff • Today: 1.5 FTEs

Sprouts Overview – Internal FM Support

http://www.google.com/url?sa=i&rct=j&q=office+staff+working&source=images&cd=&cad=rja&docid=1ErebN8Q-actkM&tbnid=2etl53L_W96ULM:&ved=0CAUQjRw&url=http://topnews.net.nz/content/29028-kiwis-not-happy-their-present-career&ei=0LyLUc-mFo3BywGbt4HgCA&bvm=bv.46226182,d.aWM&psig=AFQjCNGrTpqw-BvY1jJyzsxcDn9_3z5nkg&ust=1368198710731534

http://www.google.com/url?sa=i&rct=j&q=Seervice+Technician&source=images&cd=&cad=rja&docid=hybTDm51T0J0HM&tbnid=BlPt6epHQUJBvM:&ved=0CAUQjRw&url=http://www.holsteadsinc.com/&ei=S0SJUeqVLOnbyAGpoYGgDg&psig=AFQjCNHczhprgexehP_-ausPPn_TgjB--g&ust=1368036797195432

http://www.workforcedevelopment.com/mechanics/fieldservice.html

http://www.google.com/url?sa=i&rct=j&q=Seervice+Technician&source=images&cd=&cad=rja&docid=GuJ5WVKOQ39zSM&tbnid=kqvM3NLCFf-YSM:&ved=0CAUQjRw&url=http://www.prweb.com/releases/Arizona-AC-Maintenance/Gilbert-AZ-AC-Service/prweb10698075.htm&ei=rUSJUb7HC4LlyAGa_IHQCA&psig=AFQjCNHczhprgexehP_-ausPPn_TgjB--g&ust=1368036797195432

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Sprouts Overview – Rapid Growth Drive Change

Rapid expansion exposed need for growth in F&M systems and processes

“We knew we had to change our systems and processes.”

http://www.google.com/url?sa=i&rct=j&q=sprouts+farmers+market+store&source=images&cd=&cad=rja&docid=6B9ZoABJJGOUlM&tbnid=nNiFBaYIZj_Y6M:&ved=0CAUQjRw&url=http://www.examiner.com/article/the-best-of-the-best-gluten-free-retailers-sprouts-farmers-market&ei=0bKLUZGLI8SmqwGxj4GAAg&bvm=bv.46226182,d.aWM&psig=AFQjCNGQ2NZPv3wnpVn7Cg5btYy0TEHUAw&ust=1368196158023899

http://www.google.com/url?sa=i&rct=j&q=sprouts+farmers+market+grand+opening&source=images&cd=&cad=rja&docid=QHt6Z9i7rMdPYM&tbnid=On1yG8fyyYRHEM:&ved=0CAUQjRw&url=http://naturalsunlight.info/tag/local&ei=hbKLUbW5KcqtqQGho4GQBA&bvm=bv.46226182,d.aWM&psig=AFQjCNECwCUG1uzY84c-2IXwRfGbGlsYVw&ust=1368196013746144

http://www.google.com/url?sa=i&rct=j&q=sprouts+farmers+market+grand+opening&source=images&cd=&cad=rja&docid=qEEtZXVbdxSGaM&tbnid=8cMoenuW_qpdhM:&ved=0CAUQjRw&url=http://southcountyleader.com/bixbybulletin/news/business/sprouts-farmer-s-market-to-hold-grand-opening-april-in/article_85fffb0e-a483-11e2-abf2-0019bb2963f4.html&ei=ULKLUYfXOoLTrQHm8ID4AQ&bvm=bv.46226182,d.aWM&psig=AFQjCNECwCUG1uzY84c-2IXwRfGbGlsYVw&ust=1368196013746144

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Manual & Inefficient Processes

• Duplicate data entry• Manual approvals• Everyone worked overtime• Temps for data entry• Copy machine overwhelmed

3 FTEs + potentially 2 more FTEs needed = !@?!*

Sprouts Challenges – Manual Processes

http://www.google.com/url?sa=i&rct=j&q=manual+paper+processes&source=images&cd=&cad=rja&docid=_4UVhIv6hLHkSM&tbnid=ezkCoj-ZzTaKNM:&ved=0CAUQjRw&url=http://exchange.ariba.com/community/solutions/procurement/blog?start=30&ei=8sGLUaCvMcHfyAGe1YGgCg&psig=AFQjCNEMZRvD40UxJlMKHL0kRG_H2ivEdA&ust=1368199987089471

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• Rapid expansion required tighter financial controls

• Needed improved systems to document maintenance and energy expenses

• No capacity for accruals

• Needed to maintain (or cut) costs amidst store expansion

Challenges – Outdated Financial Controls

11Confidential. Copyright Verisae 2013. All rights reserved.

Need to improve refrigerant tracking

• Manual and inefficient processes

• Hard to identify troublesome sites

• Needed visibility and accountability

• New reporting for CARB in 2014

Challenges – Environmental Compliance at Risk

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10%12%

Pre Post NewGoal

Refrigerant Leak Rate

http://www.google.com/url?sa=i&rct=j&q=refrigerant+gas+leak+danger&source=images&cd=&cad=rja&docid=Th4tEzucawwynM&tbnid=gbwfymW5jLp2dM:&ved=0CAUQjRw&url=http://hotelsportandleisure.co.uk/news-article/3668&ei=C86LUeXYGYjFyAHT8oCQDQ&psig=AFQjCNE525ofO6FaUgL6PebCW5HCM8WGDQ&ust=1368203116081748

http://www.google.com/url?sa=i&rct=j&q=refrigerant+gas+leak+danger&source=images&cd=&cad=rja&docid=zF4JYmSJArGiBM&tbnid=t6IZhATLbITHaM:&ved=0CAUQjRw&url=http://www.dw.de/natural-coolants-help-supermarkets-reduce-carbon-footprint/a-5978374&ei=Ts6LUfC9DeK5ywGLyYGgCw&psig=AFQjCNE525ofO6FaUgL6PebCW5HCM8WGDQ&ust=1368203116081748

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http://www.google.com/url?sa=i&rct=j&q=california+air+resources+board+logo&source=images&cd=&cad=rja&docid=Ll4MxIQlrI0LMM&tbnid=v9e3J8L2qAxjCM:&ved=0CAUQjRw&url=http://www.trucklawblog.com/regulatory-risks-in-2013-california-air-resources-board-carb/&ei=2c-LUe_zEcHUygH2-4GQBA&psig=AFQjCNGy3y_LwB7XkSClIB0XgguvHvZEJw&ust=1368203583077795


Sprouts Challenges – Need to Control Maintenance Costs

• Increased complexity and scope of service provider network

• Unclear equipment inventory at store level

• No data-driven means for vendor rating and contract compliance

• More service contractors to manage

http://www.google.com/url?sa=i&rct=j&q=invoice,+magnifying+glass&source=images&cd=&cad=rja&docid=eJCiNRdVayKn0M&tbnid=spNwHufq0nL2FM:&ved=0CAUQjRw&url=http://www.dreamstime.com/stock-photo-magnifying-glass-invoice-image14345260&ei=ftyLUZvKEKWtygGu-IHIDw&psig=AFQjCNGf09hcbxvvoYtAmeLS03g08900pg&ust=1368206807173088

http://www.google.com/url?sa=i&rct=j&q=rate+service+contractors&source=images&cd=&cad=rja&docid=LXmTZ36Km4BaFM&tbnid=ckLGoXKzsd12jM:&ved=0CAUQjRw&url=http://www.ocalaelectricianfl.com/&ei=RNqLUaXTLMmxyQHrvYHgDw&psig=AFQjCNEtK22pnhD_viwAPBvYK148yR_QyQ&ust=1368206164434920

http://www.google.com/url?sa=i&rct=j&q=service+scorecard&source=images&cd=&cad=rja&docid=ewOnyXPgyqZkjM&tbnid=d1l9doO8o1YrxM:&ved=0CAUQjRw&url=http://www.getelastic.com/customer-service-scorecard/&ei=PN2LUd6YBem0yAGN9YGIBg&psig=AFQjCNHN8x1bg0fp0l2Q46pHxic5FIQazQ&ust=1368206987652605


Sprouts Challenges – Change Management

Resistance to Change Amidst Rapid Growth

• Current vendor had delayed upgrade to SaaS

• Change is hard – even harder during major store expansion

• Skeptical of ROI from new system

http://www.google.com/url?sa=i&rct=j&q=many+questions&source=images&cd=&cad=rja&docid=wqWdJrxhTFyuvM&tbnid=OAnTfjvKFF7F4M:&ved=0CAUQjRw&url=http://falabra.com/blog/words-to-help-you-make-questions-in-portuguese&ei=CeGLUaqCKqT9ygGg4ICQBg&psig=AFQjCNH3xcYis1FW-XBjWgiTAlVkpqT-6A&ust=1368207904440504






Sprouts Goals

• Reduce costsfor current stores

• Add stores without increasing facilities staff

• Improve execution of Facility Maintenance

• Improve equipment buying process

• Improve reporting, transparency and accountability

• Involve all stakeholders in vendor selection process

• Technology platform for sustained growth

Goals:






Implementation

• Started at category level – (not asset Level)

• Despite urgency, focused on quality of implementation… did not rush it

• More of a process change than anticipated

• Went to asset tagging after 1 year; Finance Department pushed justification to do it

• Work Order Processing – Implemented best practices

“We asset-tagged 150 stores in 30 days. The process was much simpler and faster than we ever expected.”






Results

• Hard Savings Additional personnel costs avoided Improvements in vendor management Improved invoice management and processing to reduce billing

errors

• Soft Savings Process efficiencies – moving from manual to automated processes Equipment project costs containment (new stores and remodels) Better reporting, transparency and accountability

• ROI Estimated Payback in 1 Year


Operations Personnel are Efficient and

Effective

ROI - Headquarters

Better Oversight of Vendors

Accurate and Faster Reporting

Manual Processes Now Automated

Improved Financial Controls

http://www.google.com/url?sa=i&rct=j&q=circle+arrows+vector&source=images&cd=&cad=rja&docid=V3iiPFqTOJmWTM&tbnid=R5quxDkpThSfYM:&ved=0CAUQjRw&url=http://www.universal-web-design.com/vectors-arrows-04.aspx&ei=ZkJfUevABoi0qAHz_IGoDQ&bvm=bv.44770516,d.aWc&psig=AFQjCNEl_i47N6BSrcg9REg2S8BySDKXAg&ust=1365283800150244

http://www.google.com/url?sa=i&rct=j&q=Seervice+Technician&source=images&cd=&cad=rja&docid=hybTDm51T0J0HM&tbnid=BlPt6epHQUJBvM:&ved=0CAUQjRw&url=http://www.holsteadsinc.com/&ei=S0SJUeqVLOnbyAGpoYGgDg&psig=AFQjCNHczhprgexehP_-ausPPn_TgjB--g&ust=1368036797195432

http://www.google.com/url?sa=i&rct=j&q=reduced+paperwork&source=images&cd=&cad=rja&docid=Au5qp0zeeCVdsM&tbnid=Cluay7DpfvJfiM:&ved=0CAUQjRw&url=http://www.nrurehab.org/professionalism-and-integrity.php&ei=s1CKUdKoKKiQyAGb9YGgAQ&bvm=bv.46226182,d.aWc&psig=AFQjCNE9Bw085JZtnnOVaWMim_ixh60o2w&ust=1368105501588606

http://www.google.com/url?sa=i&rct=j&q=efficiency+and+effectiveness&source=images&cd=&cad=rja&docid=nQbUYWw-3_n7oM&tbnid=2mQLEfNTkr6xmM:&ved=0CAUQjRw&url=http://www.fwisd.org/pe2s&ei=RVqKUYulN4TuyAGl0ICAAQ&bvm=bv.46226182,d.aWc&psig=AFQjCNFGfWWWqGsTDnBBNm-XGu874NSSLg&ust=1368106059585880


Stores are happier and

more focused on customers

ROI – Store Level

Fewer instances of food loss

Reduced maintenance costs

Allows store Manager to focus on sales

Equipment

2%-3%

http://www.google.com/url?sa=i&rct=j&q=circle+arrows+vector&source=images&cd=&cad=rja&docid=V3iiPFqTOJmWTM&tbnid=R5quxDkpThSfYM:&ved=0CAUQjRw&url=http://www.universal-web-design.com/vectors-arrows-04.aspx&ei=ZkJfUevABoi0qAHz_IGoDQ&bvm=bv.44770516,d.aWc&psig=AFQjCNEl_i47N6BSrcg9REg2S8BySDKXAg&ust=1365283800150244

http://www.google.com/url?sa=i&rct=j&q=cantelopes&source=images&cd=&docid=Hv-pfRz7tq0c1M&tbnid=GmzQG2m8LA2OxM:&ved=0CAUQjRw&url=http://ecoaluminumpallets.com/2011/09/cantaloupe-warning-issued-after-listeria-outbreak/&ei=sWOKUe6eF4rFyAGHiYFw&bvm=bv.46226182,d.aWc&psig=AFQjCNFgeRPujgWw9O3E2EP86-n_WaUtLg&ust=1368110301104494

http://www.google.com/url?sa=i&rct=j&q=maintenance+costs&source=images&cd=&cad=rja&docid=xbUcZodZG5NEGM&tbnid=1tZglPHBpHfi9M:&ved=0CAUQjRw&url=http://www.toyota.com.au/fleet/lower-maintenance-costs&ei=gGyKUYnFMuiayAGv8oCwAQ&psig=AFQjCNFuV2OMFtF5I_JpHCXH7xvQKmlCtQ&ust=1368112481608785

http://www.google.com/url?sa=i&rct=j&q=equipment+uptime&source=images&cd=&cad=rja&docid=vO5xwPPVHa8iVM&tbnid=1WdKbJMZtEG5UM:&ved=0CAUQjRw&url=http://us.gfac.com/uptime/&ei=aGuKUdHKBIauyAH4r4DQBA&psig=AFQjCNGwo7Gai2rJ1DEM9Rg1MJRjMuTbKA&ust=1368112130258802

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=XIBincBXL9jQkM&tbnid=kIzd1GkLGmo_OM:&ved=0CAUQjRw&url=http://sprouts.com/about/careers&ei=yr2KUf6UMJL9rAGc8IDwDw&bvm=bv.46226182,d.aWc&psig=AFQjCNEHURchdwqtQKq8F4T30W7B_nwezg&ust=1368133003502165






Lessons Learned

LESSONS LEARNED - #1Don’t under-estimate the need for process change and advance planning:

• Changing behavior and processes takes time

• Be prepared to enforce accountability and adoption



Lessons Learned

LESSONS LEARNED - #2The sooner you get started the better:

• Easier to implement with fewer stores

• Gain compelling benefits sooner



Lessons Learned

LESSONS LEARNED - #3Leverage industry best practices:

• Asset tagging

• Automated workflows

• Reporting / environmental compliance



Lessons Learned

LESSONS LEARNED - #4Involve all stakeholders to:• Help define your needs • Develop a custom-tailored solution • Gain buy-in from internal and external

stakeholders



Lessons Learned

LESSONS LEARNED - #5Be open to a bigger vision:

• Become educated through the selection process

• Plan for the future, not just immediate needs







Sprout’s future with technology• Reporting – next level with advanced

analytics (Query Studio)

• Mobile technology (eliminates kiosk)

• Energy Analytics

• Alarm Monitoring

Vision - Next Steps


View the recorded webinar on YouTube

http://www.youtube.com/watch?v=y8U91UX86-Q&feature=youtu.be

http://www.youtube.com/watch?v=y8U91UX86-Q&feature=youtu.be