* Cleanzine_logo_3a.jpgCleanzine: your weekly cleaning and hygiene industry newsletter 25th May 2017 Issue no. 775

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Cost saving opportunities for the global janitorial cleaning services market 2017-2021

* Cost-saving-opp.jpgTechnavio's new procurement market intelligence report on the global janitorial cleaning services market from 2017-2021, reveals that the global janitorial cleaning services market is expected to grow at a CAGR of 4.3% from 2017 - 2021. This growth is being driven by the demand from private and public sector companies, as outsourcing helps them reduce management complexities while procuring high-quality services.

The research report titled 'Global Janitorial Cleaning Services Market: Procurement Intelligence Report 2017-2021', provides an in-depth analysis of category spend, best procurement practices and cost-saving opportunities, aimed at helping organisations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.

"During the forecast period, the janitorial cleaning services market will be driven by an increase in demand from large government, industrial, and commercial entities that seek to outsource these services to capitalise on the technological capabilities of suppliers," says lead Technavio procurement specialist for category spend intelligence, Angad Singh.

"Also, the growth of economies and increase in construction of commercial and non-commercial buildings in APAC will also drive the market."

The report's writers say that the adoption of various cost-optimisation tactics helps buyers of janitorial cleaning services realise direct cost savings and enhance category management and value benefits (including reduced procurement complexities).

Technavio procurement experts have segmented the cost saving opportunities in the janitorial cleaning services market into the following value-enhancement opportunities:

* Adoption of technology
* Supplier Competition
* Adoption of negotiation strategies
* Optimisation of procurement practices
* Bundling of services
* Adoption of technology saving aspects

Adoption of technologies such as janitorial software helps schedule tasks efficiently and robotic cleaning products the facilitate cleaning of surfaces without supervision. Janitorial services can rely on IoT (Internet of Things) applications to monitor resource utilisation and intimate maintenance requirements.

Organisations prefer to engage with suppliers that use advanced technology to ensure effective and efficient services while at the same time being mindful of the health and wellbeing of the workers and the environment.

One of the most significant levers to employ against supplier competition is the offering of specialised capabilities, which can assure better business opportunities, notes the report. Certain sectors such as the automotive and electronics industry require suppliers to offer customised plans that cater to specific needs related to compliance and management of cleanroom environments, for example... The automotive sector can require suppliers to come up with plans to deal with residues of oils and lubricants that are a part of everyday activities in this sector.

The most opportunistic strategic cost-saving lever in the global janitorial cleaning services market is the need for consolidation and unification of service providers. Organisations are looking to reduce the number of external service providers from a security and efficiency standpoint. Therefore, bundling of janitorial services with additional services such as car park maintenance is preferred by organisations and can result in cost-savings to the extent of 10%.

Sample reports, which are free of charge, contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Request a sample report, via:

W: www.technavio.com

26th January 2017




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