Efficient management of investments (Capex) and increasing productivity are constant challenges faced by engineering teams in retail or expanding companies, especially in the context of rising input costs and other issues in the construction industry.

The Engineering Manager of Localiza&Co, Stefan Zeller, shared during his presentation at the Retail Expansion by Construct IN event, the main barriers faced in the sector and his strategies for budget control of their projects.

Below are the 5 pillars of Localiza&Co to reduce Capex and improve their team's productivity.

1. Technological Innovation: Modernizing Processes

The engineering team is focused on bringing new technologies to their processes, both to reduce project costs and to improve the work environment and productivity. Some of the innovative initiatives include:

• Remote management applications: the Construct IN platform has assisted in the remote monitoring of project execution. Through 360° images, professionals can visualize the entire physical evolution of the projects, reducing costs related to travel and bringing more agility to their routine.

• BIM: some partners are already using this methodology, and Localiza&Co aims to start implementing BIM in internal projects starting in 2024.

• BI’s: dashboards are extremely important for analyzing numbers, understanding results, and identifying possible improvements based on generated information. Knowing your business is essential.

• Electronic Daily Reports: automating Daily Construction Reports (RDO) saves a huge amount of time, given that it's a mandatory activity requiring time when done manually or without the aid of technology.

• GED: Electronic Document Management is also part of the team's processes, ensuring better data security and preventing outdated projects.

• Virtual immersion: 3D simulation allows for better visualization of projects, especially for those who are not very involved or do not have much experience with 2D projects.

• Virtual surveying: greatly helps architecture, as a team maps with a laser scanner and generates everything in point maps, saving time and trips, in addition to having all data collected and archived.

• New materials: one of Localiza&Co’s cases with innovative materials is the use of recycled plastic blocks in the construction of agencies, which speeds up construction and contributes to sustainability.

• Industrialization of the construction site: this involves minimizing manual processes on the site, as the cost of labor is increasing and quality is diminishing.

2. Supplier Management: Strategic Partnerships

More than just having suppliers, the company understands that establishing solid partnerships is crucial. The goal is to select partners committed to quality and aligned with the company's values. To achieve this, they seek to take several actions, such as:

• Preparation of a vendor list by region and specialty

• Evaluation of suppliers by engineering, procurement, and on-site teams

• Training suppliers on the company's standards

• Annual ranking of companies that provided service, including rewards and penalties

In 2023, there were over 100 contractors working for Localiza&Co.

With these partnerships, it is possible to promote long-lasting business relationships, as well as reduce costs and rework, since the supplier commits to collaborate throughout the project cycle and to deliver quality work.

3. Procurement Area: Negotiation Strategies

Shifting negotiations to the procurement area has proven to be a strategic step for the team.

This change allowed for a more specialized approach in hiring suppliers, resulting even in cost reduction due to actions such as the use of virtual auction software.

The engineering department is still responsible for overseeing the technical area, project, and supplier capacity, but those who negotiate, in a more efficient manner while maintaining the quality of materials and services, are the procurement team.

4. Data Analysis: Guidance by Indicators

Data analysis and the establishment of KPIs (Key Performance Indicators) are essential for monitoring progress and identifying improvement opportunities.

Manager Stefan Zeller emphasized the importance of creating a narrative from the data, enabling a clear understanding of the business, customer flows, and facilitating informed decision-making.

5. Team Management: Focus on People

Investing in team management is crucial for a healthy and productive organizational culture. After all, every company is made by or for people.

Localiza&Co adopts an approach of autonomy with responsibility, promoting a stimulating work environment that values continuous learning and encourages innovation.

In addition, the implementation of “squads” has brought agility and efficiency in the exchange of information, increasing productivity and avoiding the use of emails and chats. Another important aspect is constant training and the ongoing personal pursuit of career advancement.

According to Stefan, it is pointless to hire intelligent people if they do not have the freedom to think, produce, and create. “Tried it and it didn't work? Seek to improve and let's move on to something else, and that's how we grow and create engagement,” he highlights.

Efficiency and quality for your projects

Stefan Zeller's strategy and his team's demonstrate a continuous commitment to innovation, strategic partnerships, effective use of data, focus on people, and process optimization.

The five pillars presented offer a practical example for engineering teams that seek to reduce Capex, increase productivity, and improve the quality of deliveries in a challenging environment like construction.

About the Retail Expansion event

The 8th and final edition of the year of Retail Expansion by Construct IN took place on November 7, in São Paulo, filled with innovation and lessons learned.

In addition to Localiza, the company R4DESIGN, a specialist in retail architecture and high-performance corporate environments, was also present at the event, represented by architects and founding partners Leonardo Blumm and Marcelo Cunha.

Only in 2023, 7 editions of Retail Expansion were held, with special guests from the engineering and expansion teams of Leroy Merlin, Grupo Nós, Dasa, Grupo Pão de Açúcar, Grupo Carrefour, Petz, and in this last one, from Localiza.

The programming returns in 2024 with more content and unique connections for the retail and expansion construction sector. Stay tuned for updates and the event agenda through the Retail Expansion News newsletter.

Click here to subscribe for free!