Pest Control Strategic Sourcing Services for Fortune 100 Retailer
This nationwide retailer operates nine strategically located distribution centers dispersed across the United States. As the company went through a period of extreme growth, they brought several new DCs online in a short period of time in an effort to distribute product to its rapidly growing store footprint in a more effective and efficient manner. As the footprint continued to grow, the leadership of the supply chain division recognized the need for tighter controls as well as more visibility into the spending across the distribution centers. One of the initial areas the group wanted to evaluate for corporate centralization was pest control services. The intent of this sourcing effort was to review national pest management suppliers that could provide complete and comprehensive integrated pest management solutions. The objective was to develop a corporate integrated pest management program (IPM) and decision-making process that leveraged planning and regular monitoring to determine if and when treatments are needed and evaluate effectiveness. The client also desired to achieve a long-term, cost-effective, and environmentally sound pest control in its distribution centers.
WR-Martin was engaged to lead a strategic sourcing effort to source a single pest control provider that would be responsible for providing pest control and compliance monitoring services. The project involved developing and managing a three phased selection process that included an initial request for information (RFI), a request for proposal (RFP), and an onsite interview selection process. The RFI responses were used to narrow down the initial group of interested suppliers based on experience and geographic coverage area. The RFP responses were then leveraged to evaluate each supplier’s capabilities and price proposal. A weighted scorecard was developed for the client selection committee to compare the responses in an objective and unbiased fashion. The results of the RFP narrowed down the pool of possible suppliers to three. Each of these suppliers was then invited onsite for a final round of interviews. The successful supplier was then awarded the business for all of the distribution centers. WR-Martin was further retained to oversee and manage the contract development phase of the sourcing engagement.
The supplier that was selected implemented a comprehensive IPM program that included development of individualized pest control, monitoring, and compliance plans to meet the unique needs of each location. Each custom plan took into consideration the unique circumstances present for the location and outlined a comprehensive plan for proactively mitigating and managing pests. Each IPM outlined a plans for use of a mix of biological, cultural, mechanical/physical, educational, and least-toxic chemical strategies and tactics to keep pest numbers low enough to prevent intolerable damage, contamination and/or nuisance. Additionally, the chosen supplier rolled out a web based monitoring and reporting software platform that provided the corporate supply chain division visibility into the programs in place and pest related issues for each DC and more tightly manage expenses. The client was also able to reduce spend associated with pest management services by approximately 10%. While cost reduction was not the primary objective of this sourcing effort, it was a certainly a value added element.