Ver 1.0 (Aug 23)

Direct Negotiate with Supplier

Yes

Yes

Yes

Direct negotiation with incumbent to determine options to offset increase- ie: SOW optimisation, frequency, specification modifications, fixed prices etc

Competitively bid sources of supply to uncover lowest market price, include traditional and non-traditional Supplier partners

Yes

Competitive Sourcing Event

Yes

Yes

Explore alternatives such as Hybrid solutions using Technology as a main base

Yes

Alternative services (including Hybrid offerings)

Yes

Yes

Reduce demand for services (ie-cut back services for minimally used facilities or spaces, defer maintenance, control out-of-scope spend

Yes

Demand Reduction

Yes

Yes

Seeks methods of operation with the service provider to improve how services are delivered on-site (ie: ride on mower versus push mower)

Optimise Service Levels

Yes

Explore alternative sources of supply on a global basis, take advantage of pricing arbitrage

Yes

Best Shoring

Yes

Re-design service delivery specifications. Engage relevant communities to identify alternatives 

Yes

Re-design service delivery specifications

Yes

Leverage innovation to reduce labour and material costs, make processes more efficient and improve productivity

Yes

Leverage Innovation

Yes

Yes

Standardise and bundle products and services to leverage buying power

Yes

Consolidation / Bundling

Yes

Yes

Calculate product / service should-be-cost to counter unnecessary or overinflated supplier price increases

Yes

Should-Cost analysis

Yes

Yes

Pass-through inflation cost increases to Customers, where applicable

Yes

Pass-Through

Yes

Yes

Design Supplier partner contracts to limit, delay, manage or eliminate inflation adjustments.  Ensure liquidated damage provisions are well defined in agreements before signature, mitigating risk of project delivery schedule

Yes

Smart Contracting

Yes

Yes

Confidential & Proprietary | 2023 CBRE Inc.

Grounds, Landscaping & Snow

Inflation Mitigation Strategies

Useful Information

Page 1 of  2

Description

MRO

Strategy

Services

Equipment

Roadmap for Procurement wins

Ver 1.0 (Aug 23)

Enable Immediate Action

Create Transparency and the right set up

to implement immediate actions

Take Action to secure supply and mitigate

Price increases now and in the next months

Deploy advance solutions to manage costs and

set targets to enable resiliency

Institutionalize to prepare for the new normal

Build capabilities, tools and processes to

manage future uncertainty

1. Have you prioritized categories based on exposure?
2. Is a cross-functional inflation nerve center in action to quickly capture value?
3. Are you deploying a full set of levers to mitigate short-term challenges (eg, supply, demand, inventory)?

1. Have you identified a full suite of levers that mitigate risk via technical, demand, process, financial, and commercial levers?
2. How will you define longer-term value creation in the face of continued uncertainty?
3. Do you have effective cross-functional partnerships in place to execute all levers?
4. Do you have effective strategic partnerships in place to assure supply and to stay relevant?
5. Do you have a way to accelerate alternatives (eg, new supplier partner's, new locations, new designs, new materials)?

1. How will you improve the procurement operating model with the learnings from mitigating current challenges?
2. Which new systems and tools will you put in place to assure future resilience?
3. Do you have the right talent and capabilities in your team?
4. How will you redefine procurement governance and cross-functional collaboration to enable both agility and resiliency?

Link to CBRE

Market Indices and Inflation data

Confidential & Proprietary | 2023 CBRE Inc.

Grounds, Landscaping & Snow

Procurement Roadmap

Useful Information

Page 2 of  2