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Role of Procurement in the Facilities Management Industry
Role of Procurement in the Facilities Management Industry

April 28, 2022

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It is undeniable that the pandemic disruptions have aided the technology transformation across board and as such, the facilities management industry has seen many breakthrough innovations & solutions altering the complete ecosystem of its service compositions & packaged offerings. Adding to this, the revised business strategy of all organization has seen or probably been mandating significant attention to Sustainability, or more extensively the overall ESG (Environmental, Sustainability & Governance).  

Essentially, Organizations now firmly believe that sustainability is vital to their business profitability and technology adoption is the quickest way to more client acquisitions and business growth. However, though, it is imperative that Organizations ascertain their priorities correctly choosing the right framework to determine the short-term goals whilst also providing a clear road map for achieving their audacious but sustainable goals!

With many advocating ‘change’ being the only constant, facility management professionals, realizing this earlier than others, have wholeheartedly embraced the adoption of technology and practicing sustainability, into their bottomless list of job responsibilities. This early adoption benefits the FM fraternity and as such the organization they serve should also take lead in the inclusion of the non-core FM outsourcing functions as a more integral part of their technology to drive sustainable business growth.

With this, the task of the facility managers has become even more vital as they are the ones who facilitate various aspects of services and are the closest to see the complete life cycle of a product starting from the conceptualization stages to the eventual user experience!

The cost will continue to remain the driving point for any selection of facility managers; however, this is where the organization key stakeholders or functional custodians come into play that fine balancing act of ensuring the partner selection upholds the true spirit of partnership for more growth centric collaborations with mutual recognition and rewards.

By taking on the balanced scorecard performance evaluation approach, that ensures the right cost allocation and selection of core service providers, further augmented by the right technology partners, the cost for sure will be well regulated whilst ensuring service excellence that’s detrimental to the customer satisfaction. The resulting impact also considerably minimizes the resource utilization with the right introduction of technology and digitization of services.  Sustainable procurement or technology-enabled green procurement is often the missing link in driving the overall balance and more so the sustainability across all levels, between the stakeholders, key suppliers, and the procurement teams.

There is a unique opportunity for companies to rebuild their business relationships and supply chains emerging from the pandemic with sustainability strategies at the forefront. In this context, green procurement practices require a deeper understanding of product or services requirement accounting for the social, and economic impacts of products, as well as the environmental impacts throughout their life cycle with real-time data analytics.

Finding this right balance is very key to the overall success of the FM program, as those organizations who have repurposed their business in the new normal, will want to bring in more checks and balances in the redefined business environment and stay on course to quickly get over the pandemic disruptions.   

This calls for meaningful deliberations with all stakeholders and the preparation of a sustainable purchasing program. Speed of sourcing and making the right selection is the key success ingredient which is further amplified by the adoption of the right technology & digitization. Besides this, Innovation is another success ingredient that would also facilitate sustainable growth contributing to the Net Zero mission signed up by key larger developers & corporates.

It is perceived that Innovation largely is a result of a technology intervention however having experienced talents understanding the complete life cycle of the product, are detrimental to developing a great strategic growth plan. And hence the green procurement program should thrive to bring about the right balance between talent-driven subject matter knowledge owners and the cost-driven procurement professionals, enforcing forward operating procedures than the age-old standard operating procedures.  

Many new smaller emerging organizations or entrepreneur-driven start-ups have shown great promise and have led the technology innovation, but it’s the equal responsibility of corporates to bring in a much-desired volume of investments for the success of the program. Here again, the procurement role has a critical role in finding the balance between the organization’s articulated objectives versus the benefits realized across all stakeholders mix.

The pandemic has altered the users outlook and expectations, further adding pressure on the procurement role to ensure the sustenance of pre-existing culture & new normal practices, while having a strong prevention plan for the forecasted business risks, to remain on course with greener outcomes. The buyer and the suppliers have a critical role in contributing to the overall program, driving the organizations sustainability initiatives mutually challenging and influencing one another for better and stronger outcomes. The jointly developed procurement strategy is the key to sustainable business growth going forward, with facility managers leading the discussions whilst corporates prioritize their expectations & desired outcomes.  

- By Rajesh Shetty, Managing Director, Real Estate Management Services, Colliers India 


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Colliers India
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Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

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