Commercial Imperative:
Following a series of corporate acquisitions Rentokil’s estate had significant excess capacity and duplication. Consolidation could yield significant economies (route efficiencies, fuel, vehicles, staffing, property savings) and CPA developed and implemented a compression plan to bring about savings at the same time as evolving a modern, flexible distribution platform. CPA Role:
CPA deployed resource to Sydney to develop a fully costed ‘best fit’ property model in conjunction with senior local management. Once the strategy had been endorsed CPA assumed a “hands-on” project management role, ensuring the programme ran to time and budget. The Result:
Properties were reduced from 78 to 53, including new hub and spoke networks in all major cities. Modernisation of the network also achieved ongoing property cost savings of 4% pa despite increased depreciation charges arising from capital investment in new hubs, paid for in part by proceeds from freehold disposals.