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A Vital Ingredient

15 February 2005

Legislative changes and financial, waste and energy management pressures provide an environment in which FM can make a real difference, as the winner of the Multi Service category in the PFM Awards 2004, Reliance Integrated Services, showed at food manufacturer, Campbell’s

THE POTENTIAL OF PARTNERING in facilities management to make a significant contribution to the UK manufacturing sector is already recognised. The 2003 winner of winner of the Multi-Service category and overall PFM Partnership Award showed what an impact it had made on the improved management and performance of a steel works. This year, the winner of the Multi Service category is recognised as having played a vital part in supporting the business and processes of one of the UK’s leading food manufacturers.

Campbell’s UK is a wholly-owned subsidiary of The Campbell Soup Company – one of the world’s leading food companies with an annual turnover of $6.5bn. In the UK, Campbell owns market-leading brands including OXO cubes and gravy, Homepride sauces, Batchelors Cup-a-Soup and SuperNoodles and Fray Bentos pies, with total annual sales of more than £250m.

Campbell’s first imported its famous Cream of Chicken and Cream of Mushroom condensed soup to the UK in 1933. As demand for the range increased, the company opened a factory in King’s Lynn, Norfolk in 1959. In the past ten years, the company has grown rapidly through acquiring well-known UK brands. These include Fray Bentos pies in 1993, Homepride in 1995, and Unilever Culinery Products including Batchelors and OXO in 2001, which resulted in the business doubling in size. The company now employs over 1,200 people in its King’s Lynn, Worksop and Ashford factories, at its head office in Cambridge, and at the Worksop Research and Development centre.

In 2000, Campbell’s evaluated the delivery of FM services across all its sites. FM services were delivered and managed separately at each site by an internal FM team. Campbell’s wanted to consolidate non-core activities and use experts in FM to deliver improved services and bring new practices and processes established in other sectors to bear on its food processing business. The outsourcing route was decided on and Reliance Integrated Services was selected as the partner to manage and deliver FM services to, initially, the King’s Lynn site.

The results have been so impressive that Reliance Integrated Services soon added the FM service delivery at the Cambourne and Ashford sites to the contract (2002), and its original remit of 10 services has over the course of the contract increased to more than 30. In 2003 the relationship was reviewed, and Campbell’s and Reliance Integrated Services agreed to continue to work together for a further three years.

The partnership that Reliance Integrated Services and Campbell’s have developed is a leader in a sector that is facing considerable change and business pressures. On the one hand there is the commercial pressure of sophisticated supermarket purchasing arrangements and the need to safeguard the credibility of the Campbell’s brands, while on the other new legislation that the food manufacturing industry has to address and implement. This included the Integrated Pollution Prevention and Control Regulations (IPPC) which had to be in place by August 2004.

One of the first priorities for Reliance Integrated Services was to audit the existing requirements and contracts throughout the three Campbell’s sites. The first year of the contract was spent in consolidating activities to forge improved quality of service whilst improving costs, setting up national contracts where appropriate and continuing with local contracts to take into account local needs. It has 15 people in its FM team at Ashford and 20 at King’s Lynn, all of whom transferred from Campbell’s. Three new staff were employed for the Cambourne team. Reliance Integrated Services reduced the number of suppliers that Campbell’s used. For example, considerable savings were made by moving from three laundry suppliers to just one serving all three sites. RIS was also able to reduce the cost of purchasing personal protective equipment for Campbell’s staff by 20 per cent.

Developing this relationship with Reliance Integrated Services has enabled Campbell’s to direct the management of its facilities from both a site and national perspective. A Joint Review Board was initially set out to manage the technical requirements of the contract, but its role has developed into one that has been critical to making decisions and driving continuous improvement across all its locations quickly and effectively.

Monthly site meetings ensure that the continuous improvement processes adopted at the Joint Review Board are translated into action at an operational level. Attended by local management from both Campbell’s and Reliance Integrated Services, these meetings allow both partners to raise issues and make suggestions that relate to that particular site. They have fostered an honest and open relationship that encourages a focus on increased levels of service and profitability for both partners. The PFM Awards judges noted “a very close working relationship exists between Reliance Integrated Services and Campbell’s, reflected in the growing number of service streams that it has been asked to take over. Business changes in Campbell’s are jointly discussed, demonstrating a one team approach.”

The Service Level Agreements and Key Performance Indicators were developed with a significant level of detail. Once established and agreed these measures have formed the basis of Monitoring Sheets that are the core of a selfauditing process. Services are monitored on each site by the supervisor in line with the pre-agreed KPIs. Each service then receives a monthly score of performance that is transparent and understandable, and the results are recorded in a central databank. Both partners can access the information that is vital to the management of the contract.

From the beginning of the contract, Reliance Integrated Services had to understand the step changes within the business that Campbell’s had to make in order to comply with the new IPPC regulations. These require all food manufacturing to be licensed. Cambell’s processes had to be documented in an operating manual and submitted by August 2004 to assure accreditation. The application was submitted and accreditation granted, enabling its factories to continue to manufacture food. Annual checks will be carried out on its policy and procedures.

The FM strategy was a key component and integral part of success in this compliance process. The compliance policies had to be extended across all Campbell’s manufacturing locations. Services and systems have been developed to support this key business process, and some had not been part of the FM team’s remit in the past. The judges said “The support to Campbell’s to produce the IPPC submission documents was milestone for both organisations.”

The quality monitoring and measurement tools that have been developed by Reliance Integrated Services for the Campbell’s sites have also been used in other parts of its business and with other customers.

Waste recovery
Waste management was another high priority for both partners. Campbell’s and Reliance Integrated Services developed a Waste Recovery Strategy together, implemented a detailed operational plan that simplified the process, reduced the number of man hours dedicated to the task, and reaped savings for the organisation.

Previously, all Campbell’s waste went to landfill. Revenue generating opportunities from Campbell’s waste products were researched, and now 100 per cent of its metal and tin is recycled, and 95 per cent of its cardboard and polypropylene are sold for recycling. In addition, 20 per cent of its general waste to land fill has been reduced and waste disposal costs also reduced. The partnership plans to reduce waste to landfill by a further by 40 per cent. Reliance Integrated Services also gained the commitment to the purchase of a bailer that started to generate revenue after a pay back period of six months.

These waste management improvements will help Campbell’s to gain accreditation for ISO14001. The PFM Award judges took particular note of these successes. “The achievement in the change management process, the implementation of a co-ordinated waste policy and the ongoing challenge of the ‘status quo’ has led to noteworthy progress in a relatively short time.”

The last four years have seen a radical change in the relationship between Campbell’s and Reliance Integrated Services, as both learn more about each other’s business and capabilities. Integration of service provision across the three sites under Reliance Integrated Services has proved significant in sharing best practice across the estate. The focus on key performance indicators illustrates the effectiveness of the Campbell’s and Reliance Integrated Services’ management partnership. Through an intimate knowledge of each other’s business objectives and vision, and with a high level of trust between both parties, this partnership been able to develop and grow.

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