Breaking the Buyer-Vendor Paradigm with Supplier Advisory Councils

Breaking the Buyer-Vendor Paradigm with Supplier Advisory Councils Harvard Maintenance John Ravaris Executive Vice President JLL Denver Clark CPO Jason Linn SVP, Strategic Sourcing sig.org/eval

Jason Linn SVP, Strategic Sourcing - JLL John Ravaris EVP Harvard Maintenance Supplier Advisory Councils Denver Clark CPO - JLL Breaking the Buyer - Vendor Paradigm October 2016

Opening Breaking the Buyer Vendor Paradigm with Supplier Advisory Councils Segmentation TIER 1 TIER 2 TIER 3 Performance Measurement Formal Reviews Strategic Alignment Month 00, 2014 3

JLL Overview Highlights 2015 revenue $5.2B Employees 60,000 Managed Portfolio 4.0 B Sq. Ft Corporate offices 280 Countries 80 Financial & Professional services firm specializing in commercial real estate services Fortune 500 LinkedIn Top 40 Attractor Company* a World s Most Ethical Company* Pioneer in Facility industry strategic supplier councils Global platform serves corporate clients worldwide Facility & Property Management Agency Leasing Transaction Advisory Services Tenant Representation Project and Development Services Energy and Sustainability Construction Investment Sales & Management 4

Harvard Overview Highlights 2015 revenue $360M Employees 8,500 Managed Portfolio 280M Sq. Ft Corporate offices 8 Countries US Only Managed Services organization specializing in delivering high quality janitorial service to commercial office space nationwide. We: Drive a People First culture Have transparency in our relationship Manage business using quantitative, metrics-based information Lead in Sustainability and Cleaning for Wellness initiatives Lead in Innovation Early adopter of Facility industry advanced council relationships Sectors Served Corporate Office Space Financial Services Medical Office High Tech / Pharma 5

Presentation Objective: Demonstrate how JLL uses Supplier Advisory Councils to develop cooperative value with our strategic suppliers to more effectively achieves business objectives Goals: Introduce Concept of Supplier Councils Provide Examples and Benefits Generate ideas and promote implementation 6

Business Requirements What do our business stakeholders expect? 7

Supply Chain / Procurement Solutions Tools / Methods Used Supplier Performance Mgt P2P Competitive RFx Strategic Relationship Mgt Market Analysis Six Sigma, Lean, Kaizen, JIT Risk Frameworks Strategic Plans 8

Common Supplier Relations What are our common supplier relationships? Strategic Core Transactional Month 00, 2014 9

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A different way? How can we break the mold of strategic supplier relationships? Desired outcomes 11

Breaking the Buyer-Vendor Paradigm Supplier Advisory Councils JLL assembles groups of best in class companies; Focused around critical and high spend categories To all meet together twice a year Chaired by buy side org To Co-Operate, Co-innovate, Co-llaborate 12

Supplier Advisory Council Charter What is the mission of Supplier Advisory Councils? Council Charter Statement The Supplier Advisory Council will serve as a cooperative partnership to support the servicing of clients by providing advice and counsel on best in class service performance, quality, innovation and financial standards as well as feedback regarding existing or planned initiatives and service experience(s) of existing clients. The council will work collaboratively to support and enhance service offerings and to continue to create value for clients. 13

Breaking the Buyer-Vendor Paradigm Supplier Advisory Councils Requirements Build a Foundation of Trust, Transparency and Compatibility Need Vested commitments Be Candid Collaboration is a working practice whereby individuals work together to a common purpose to achieve business benefit. 14

JLL Supplier Advisory Councils Janitorial Security Guarding Customer Satisfaction Strategy Alignment Exterior Services Risk Management SRM Council Innovation Facility Trade Aggregator Office Services Corporate Responsibility Service Level Optimization Cross Sectional 15

Benefits What are the benefits to stakeholder groups? Why? Benefit Sourcing Supplier End Stakeholders Quality Best Practices development Advanced client engagement Priority Service Market Intel Industry Intelligence Access and Alignment Supply Chain Transparency Financial Savings Reduced Cost of Sales Optimized Costs 16

Council KPI s How do we measure success? Financial Innovation SPM Quality Increase in supplier Revenue Innovation / Best practice submissions, implementations Supplier Performance Management scores Improved quality metrics Activity Intelligence Increase in transactional activity Development of white papers, case studies, training, workshops 17

Host Company Success Example JLL Case Study Scenario JLL was challenged to reduce janitorial costs within a $40 Million contract. Market conditions; Union (CBA) governed, Escalating wage pressure, Recently sourced and consolidated to 1 provider. Solution With the partnership of Council members, JLL was able to proactively advise members of intent and goals. With their input, JLL Created TCO RFP pricing model structure for transparency. Lotted RFP to optimize bidder strengths. Competitively bid via leveraged RFP event utilizing esourcing platform. Result RFP delivered ~7% savings JLL awarded to 2 council partners Mitigated future service risks Maintained high service levels Introduced Sourcing led strategic relationship programs Month 00, 2014 18

Supplier Success Example Harvard Case Study Scenario JLL Strategic Sourcing was engaged with their Pursuit team on a new Business Development initiative. Janitorial was a core offering of the JLL value proposition due to being a pain point for the prospect. Scenario JLL engaged Harvard early in the pursuit process, transparently shared goals and account objectives to include janitorial savings goals and anticipated budgets parameters. We openly shared SOW modification thinking. Result JLL was awarded the contract, the completeness of the janitorial offering was cited as one of the reasons. Harvard will be providing Janitorial services and picks up a $3M new piece of business. Month 00, 2014 19

Presenters Jason Linn JLL SVP, Strategic Sourcing John Ravaris Harvard Maintenance EVP, Sales & Marketing Denver Clark JLL Chief Procurement Officer Tel: 404-995-6528 Email: jason.linn@am.jll.com Tel: 610-662-8406 Email: jravaris@harvardmaint.com Tel: +00 (0)00 12345678 Email: name.surname@eujll.com Month 00, 2014 20

Thank you COPYRIGHT JONES LANG LASALLE IP, INC. 2014

Appendix and References Month 00, 2014 22

Supplier Advisory Council Framework Who makes up a Supplier Advisory Council? When / Where are meetings? Chaired by Sourcing organization Chair Company Participants: Sourcing (Council Chairperson, CPO, Category Mgr., SRM lead, Regional sourcing rep(s), Ops/Engineering rep, SME, Sr. Business Line Leader) Supplier Members: Supplier Participants: Strategic Suppliers (~3-6 firms), 2 representative each Council Meeting Cadence & Place: Council will meet bi-annually, at member hosted (rotating) facilities Meetings are collaborative sharing environments with all stakeholders together 23

Council Selection How will the Suppliers and Members be selected? SUPPLIER SELECTION Evaluate candidate firms on criteria of: - Performance (SRM) results and account / region feedback - Strategic alignment with your firm - Proactive and Sr Supplier Mgt support - Competitive pricing and current activity - Innovation - Client / stakeholder satisfaction - Total Spend *~3-6 firms per category council Internal Committee Member Selection Team Sourcing - Chairperson - SVP, Sourcing - Co-Chair Category Mgr. - Sourcing/Purchasing regional leads - CPO Operations - Engineering / Ops Leadership rep Business Leadership - Business line reps **Evaluated via Formal Team Survey 24

Supplier Advisory Council Dialogue & Output What is the expected dialogue and output within these councils? TOPICS - Market & business trends - Create specific solutions for clients - Discuss challenges - Provide Expertise, Speed, Service, Value - Produce white papers, industry trade articles, etc. - Internal Memo s and SME content 25

Supplier Advisory Council Charter What is the mission of Supplier Advisory Councils? Council Charter Statement The Supplier Advisory Council will serve as a cooperative partnership to support the servicing of clients by providing advice and counsel on best in class service performance, quality, innovation and financial standards as well as feedback regarding existing or planned initiatives and service experience(s) of existing clients. The council will work collaboratively to support and enhance service offerings and to continue to create value for clients. 26

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Session #15 www.sig.org/eval Breaking the Buyer-Vendor Paradigm with Supplier Advisory Councils JLL Denver Clark 678-938-2586 denver.clark@am.jll.com JLL Jason Linn 404-585-1086 jason.linn@am.jll.com Harvard Maintenance John Ravaris 610-662-8406 jravaris@harvardmaint.com Download the App: bit.ly/sigfall16 Tweet: #SIGfall16