Shell has renewed its Facilities Management Contract (FMC) with physical asset management company Pragma for another four years. Pragma will continue to offer its services over the next four years to the South African retail and commercial business of Shell.
Says Ronnie Taljaard, Pragma Operations Manager: “We're absolutely thrilled with Shell's renewal of the contract. Shell is one of our oldest clients and our largest single account in Africa, making up 15% of our African subsidiary's turnover. It's a feather in our cap that Shell again chose Pragma as its South African physical asset management company. The competition was fierce as we tendered successfully again.
“Shell is well known as one of the five major national suppliers of petroleum products and has a proud record of presenting a global brand and an extremely high level of compliance with safety and environmental standards. Shell supplies their fuel and convenience products through a vast network of retail and commercial sites across South Africa, with more than 40 000 assets in constant daily operation, which makes this contract even more attractive,” says Taljaard.
The contract will entail delivery on Pragma's global model of facilities management, which is the same for all the countries in the world. Delivery on facilities management will be based on a performance scorecard, with a built-in bonus to reward effective delivery.
Says Taljaard: “Pragma has undertaken to guarantee savings as part of our delivery of value to Shell. Furthermore, we'll offer continued focus on asset register administration, work planning and control, Health Safety Security Environment (HSSE), L3 contractor management, financial control and asset life cycle optimisation.
“The FMC outsourcing business model imposed very specific conditions on and new challenges to the Asset Care Centre (ACC) operation. As part of our contract, we need to handle telephonic service calls from 800 and more sites in southern Africa, plan, issue and control more than 1 000 work orders per week, manage sub-contracting of more than 75 L3 contractors, including receiving and distributing payments, maintain the operational asset register of the network, including a regular condition assessment, and be able to adapt to evolving client requirements. Tools used to deliver on these expectations include Pragma On Key Enterprise Asset Management system v4, MITEL 6110 Telephony Call Management system, and the Shell HSSE standards.”
Taljaard continues: “We managed to directly affect the bottom line with a 15% reduction in average cost per job from 2009 to 2010 attained through job batching and closer monitoring and planning of outstanding work, further reduction in maintenance spend from 2009 to 2010 by prioritising work, greatly simplified asset care processes for Shell staff and retailers, a steady improvement of equipment downtime and reliability, as well as a win-win partnership between Shell, Pragma and sub-contractors.”
Says Richard Hunter, Engineering Manager of Shell Africa: “By outsourcing our Asset Care on the global FMC model to Pragma, we are realising our vision of a consistent global strategy, aimed at improved site standards, service delivery and increased efficiency in site maintenance.”
For further information, please contact Ronnie Taljaard on (+27) 21 943 3900 or e-mail him at Ronnie.email@example.com.