Leading the Way to Cost Savings

We are not simply consultants, but peers with real transit management experience who understand the critical need to find quantifiable solutions that produce efficient, effective and innovative enhancements to your transit business. Our Core Service Review is a discovery process to cost savings, new dollars and ways to stretch the maintenance, operational and capital dollars already within your budget.

Core Service Review

What is a Core Service Review?

Core Service Reviews often differ from city to city, but the process represents an opportunity to compile a clear foundation of information about the current state of a city’s / agency’s services and programs; how these services and programs have changed over time; and what services and programs may, or may not, be desired going forward. Once the review is completed, a report is prepared for the Client containing options outlining how challenges may be undertaken and how opportunities can be achieved.

What is the objective of a Core Service Review?

The Core Service Review should form part of management’s overarching performance management system with the objective of improving the effectiveness and efficiency of the services under study. The result of the assessment is a series of detailed implementable recommendations to improve performance and save costs.

Benefits of performing a Core Service Review

  • Deliver more effective and efficient services
  • Save on operating costs
  • Discover capital cost savings and avoidances
  • Identify new revenue sources

What’s the process for a Core Service Review?

  1. Assess your current operations and collect data
  2. Identify areas for potential cost savings
  3. Discuss and agree on options for a more detailed analysis
  4. Create a detailed cost benefit analysis
  5. Deliver a final report and presentation

Case Study: Core Service Review

Zero-Based Review (ZBR) of Calgary Transit, Calgary, AB
We were retained as Lead Transit Advisor to the City of Calgary, Corporate Initiatives Department, for the in-depth study of several strategic portfolios of Calgary Transit. With the objective of improving overall effectiveness and efficiency of operations the study examined Procurement, Fleet Maintenance, Transit Revenues and Alternative Service Delivery (ASD) model assessments. The study was able to identify significant capital and operating savings opportunities for the client.

Scope: Examination of services and budgets within scope of project requirements, organizational goals, stakeholder needs and best practices to identify quantifiable cost-reduction opportunities.

Audited study areas:

  • Procurement & inventory management
  • Fleet maintenance
  • Business model assessment
  • Transit reviews (janitorial & outside maintenance services, bus fleet service lanes, rail system communications)
  • Transit revenues

Financial results:

  • Actual cost savings: $2,000,000
  • Capital cost savings/avoidance: $7,800,000
  • New potential revenues: $18,000,000
  • Total of all opportunities: $27,800,000
  • Investment cost: $330,000
  • Return on investment: over 8000%

What did this Core Service Review examine?

  • Procurement & inventory management
    • Effectiveness review of relationship between Procurement Services and Fleet Management
  • Fleet maintenance
    • Current business practice analysis for higher performance options
  • Scalability for future growth
    • Impact of technology choice
  • Fleet service lanes (Daily bus & LRT fleet servicing)
    • Internal efficiencies and alternate service delivery models
  • Janitorial and outside maintenance services
    • Internal efficiencies and alternate service delivery models
  • Rail system communications maintenance
    • Business case to validate functional distribution between in-house/contracted service
  • Transit revenues
    • Assessed revenue & cost drivers to develop sustainable revenue strategies

What did the City of Calgary think of the Core Service Review?

“There are always moments of doubt, pain and wrong turns in these type of projects but the team’s persistence, professionalism and experience got us through to the very strong finish we were always aiming for. Well done! I was particularly impressed that even after the PFC meeting, you were providing additional advice to me (for CT) on how to think through and proceed with some of your recommendations…true transit professionals to the core!”

Mr. James Robertson, MBA, Senior Corporate Consultant Corporate Initiatives
City of Calgary, Chief Financial Officer’s Department

Contact us and we’ll lead the way to cost savings with our Core Service Review


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