Improving facilities management services whilst reducing cost
May. 05, 2021
Chevron Corporation is one of the world's leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in almost every aspect of the energy industry.
Chevron produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power; as well as developing and deploying technologies.
We have been supporting Chevron for 6 years at over 30 sites worldwide both offshore and onshore, from corporate offices to refineries. Our over 1200 staff members support 18,000 of Chevron’s employees with hard and soft facilities management services as well as managing services at 130+ national surplus real estate sites.
Problem: Inconsistent services, systems and processes
Facilities maintenance services were inconsistent across facilities and geographies. This was due in part to maintenance being mostly performed by a series of local third parties, and the absence of a significant overarching guiding framework.
The situation was causing inefficiencies and gaps in business process; for example, without accountability for maintaining key data points, data quality for the facilities management business was estimated to be at just 19%.
In addition to this, Chevron was using a legacy integrated workforce management system across their business. Software licenses for the legacy product were costly and were required for each third-party contractor which substantially inflating the cost of maintenance services for Chevron.
Problems caused by stand-alone technology solutions for facilities management are common. While the trend to outsource facilities management is growing. The technology solutions that vendors offer with their services are usually standalone and do not integrate well with larger enterprise platforms.
Solution: Consolidation and digital workplace
In 2020 Chevron Environmental Management and Real Estate Company selected Sodexo to consolidate their service providers across the United States to resolve the inconsistencies and lack of overarching guiding principles.
At the same time Chevron decided to change their aging integrated workforce management system. The system had become increasing out of date, expensive, ineffective and difficult to manage. It was also crucial that a new mobile-friendly system was introduced to ensure that team members could perform their job functions efficiently and correctly.
Nuvolo, a connected workplace application suite, was implemented at Chevron’s request to have a common source of service for asset maintenance. Sodexo worked together with Deloitte, appointed to support the implementation, and Chevron teams to ensure the implementation was a success.
Through the consolidation exercise we were able to not only merge the third-party technology footprint into the Chevron ecosystem but also leverage our own workforce management technology to manage the portfolio, all while lowering costs for Chevron, increasing service levels and facilitating improved data quality of Chevron-owned assets.
Results: Improved and consistent service levels, reduced cost and optimal data quality
After just 6 months of the solution being live in 17 countries, the project resulted in reduction of the number of users by 38%, generating huge savings from the reduced cost of licensing, and improved the asset data quality by 81%.The implementation of the Nuvolo solution brought improvements as well. It was easier to configure, provided robust reporting and analytics capabilities, and offered an intuitive mobile platform. The integration enabled us to synchronize performance data in real time directly into Chevron’s Omni platform for a comprehensive view of real estate activities on a global scale.
Chevron’s decision to consolidate corporate real estate outsourcing to us was designed to strike a balance of efficiency and effectiveness. Our collaboration with other strategic Chevron partners provided stewardship of Chevron-owned assets and built a high level of trust that enabled the shift towards a strategic and visionary partnership.
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