Being more selective in Facilities Management services
In a highly fragmented potential 380 billion euros market*, Sodexo is now taking a more selective approach to developing its Facilities Management (FM) services, focusing on synergies with food experiences to support clients’ operational efficiency and create quality experiences for consumers.
This complementarity is successfully expressed, particularly with global strategic accounts, through the relevance of integrated services and Sodexo’s support in helping them, with confidence, to strengthen their employer policy or transform their operations in a more responsible way. Sodexo’s expertise in this area is built around cleaning, hygiene, reception and support services (Soft FM) and technical services, project management and energy management (Hard FM).
To enhance efficiency, Sodexo is also continuing its strategy of standardization and adoption of its Command Centers, with the aim of improving efficiency in service management, reliability in implementation and quality of services delivered on site. These command centers generate value thanks to centralization and optimal execution of processes, professionalization and industrialization of functions, and the leveraging and pooling of resources.
These strategic pillars are supported by three key enablers:
a. Tech & Data
A major driver of growth, Sodexo’s investments in this area are designed to improve the quality of IT infrastructures, digital & data to create a solid and secure foundation. The aim is twofold: firstly, to constantly optimize business processes and applications, and secondly, to strengthen the direct relationship with consumers, through greater engagement and offers. By 2025, Sodexo aims to have 10 million active consumers on its On-site Services digital ecosystems.
b. Commercial excellence
Commercial excellence is driven by Sodexo's deep commitment to retaining clients and having a best-in-class selling machine. To do so, Sodexo has been reinforcing implementation of its rigorous client retention program Clients for Life to continuously improve client retention, above 95%. This more disciplined approach is based on anticipation to track Top 200+ accounts with a long-term view of the client lifecycle and solid incentive plans for the Sodexo teams.
The acceleration of the commercial machine is supported by the end-to-end sales process with a strong tech stack in which the Group will continue to invest. To go further, Sodexo will grow and evolve its account-based growth mindset with revised incentive schemes and new training programs as well as reinforce its targeting with better quality and higher margin contracts, including First-time outsourcing in specific environments.
c. Supply Chain Power
Against a backdrop of global pressure on supply chains and inflation, Sodexo is pursuing its efforts and investments in supply chain management. While continuing to manage a balanced approach, with strong category and compliance management, and the development of local, inclusive and responsible sourcing, Sodexo aims to buy 2 billion euros a year from SMEs by 2025, strengthening the role of the supply chain in the sales process, and fostering collaboration to co-construct strong and innovative offers with suppliers. This objective was achieved in Fiscal 2023.
The Group is also continuing to develop Entegra, its Group Purchasing Organization (GPO), in the United States and Europe, in food & hospitality services as both a profit center and a means of increasing its purchasing power, with the target of doubling its 2021 sales by 2025.
* Source Sodexo