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BID and Selection of Cleaning Service Providers for DCs

Project Overview

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➤ Category

Operational Excellence & Customer Experience

➤ Location

7 DCs: SP; RS, MG

➤ KPIs (Acceptance Criteria)

[ • ] Project completion within 2 months
[ • ] Cleaning cost reduction
[ • ] Contract compliance (formalized agreements)
[ • ] Service level maintenance

• [SITUATION]:
As the Project Manager for Warehouse Facilities, I was responsible for leading a cost optimization initiative within the logistics division of a major food retail chain. At that time the company operated seven distribution centers, each serviced by outsourced cleaning providers with varying contractual conditions and staffing levels. Within the broader corporate cost-reduction program, my role was to assess and renegotiate the cleaning service agreements to achieve efficiency gains and cost savings, while maintaining service quality and compliance standards.

• [TASK]:
The objective was to review, qualify, and select cleaning providers across all warehouses within a two-month timeframe, ensuring proper contractual formalization and alignment between service scope, workforce sizing, and operational needs. Key tasks included:
➢ Building a project timeline jointly with the Procurement team.
➢ Conducting an operational assessment of cleaning staff per area and shift.
➢ Preparing and launching a new RFQ (Request for Quotation) process.
➢ Negotiating with current and potential service providers.
➢ Ensuring that all providers had formalized and compliant contracts in place.
➢ Delivering a cost reduction target defined by senior management.

• [ACTION]:
I led the end-to-end process by:
➢ Mapping and analyzing the current cleaning headcount across all DCs to understand discrepancies in resource allocation per zone and shift.
➢ Developing a “cleaning master plan” for each warehouse, determining the optimal number of operators and cleaning machines required.
➢ Collaborating with Procurement to draft and distribute a detailed RFQ covering service scope, SLAs, and equipment requirements.
➢ Conducting bidding sessions and commercial negotiations with existing and new suppliers.
➢ Working with the Legal team to formalize and update contracts, including those that previously lacked legal documentation.
➢ Aligning all stakeholders (warehouse managers, procurement, and suppliers) through regular review meetings to ensure timely execution.

• [RESULT]:
Within the established deadline, all seven warehouses had updated and legally compliant service contracts.
The optimization of staff and equipment utilization enabled a 45% total cost reduction in cleaning services, without any negative impact on operational performance or hygiene indicators.
The initiative also improved supplier governance, reduced contractual risks, and created a standardized service model for future procurement cycles.

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