The Company
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 the 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 the repair & maintenance of all stores as well as related regulatory compliance and site inspections.
The Challenge
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 a lack of data to evaluate the spending, quality, and 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
The Solution
After evaluating its options, Fendi selected and implemented ServiceChannel Service Automation to modernise 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 customising 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 prioritise 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 analyse checklist results to identify common failures and frequently recurring issues
- Analytics Custom provided Fendi with 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
The 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 (Levels 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 optimising intervention
- Reducing reaction time from problem occurrence to resolution by 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 by 95%, from 20 minutes per invoice down to one minute, saving the FM team more than 1,000 hours per year
