Facilities management procurement process is the integration of processes within an organisation, in charge of maintaining and developing the agreed services which support and improve the effectiveness of its primary activities.
As the marketplace evolves and higher budgets pressure the growth within facilities, managers reconsider their relationships with distributors, information and guidance of the various factors that need to be considered in the facility management procurement process, including activities and key decisions during planning and post-procurement.
Facility management procurement process is at the gist of many businesses.
Successful facility management procurement and logistics services begin with a deep understanding of everything your users anticipate, as well as careful evaluation of your budget and your needs. With this approach, MR Industrials are able to deliver strategic sourcing of facility management services, tailored to fit any own mould.
This text aims to property professionals who are involved in the facilities management procurement process. This includes property managers, directors of estates, headmasters, consultants acting for a landlord and procuring services from subcontractors.
Why do we use procurement in facilities management?
The aim of a procurement process in facility management is to select the bidder best able to deliver the services required by a client over a defined term, at a price that is acceptable to the client, with optimal commercial and legal terms acceptable to both parties.
For strategic sourcing of facility management to be successful in the long term, careful planning needs to be undertaken before going to the market, including developing possible objectives concerning what the client wishes to achieve and a clear description of the services to be procured.
Sort out the key elements for a successful procurement process in facility management:
- Understand what the client requires
- Recover detailed information about the property portfolio and the facility services
- Consider the affordability target of what the client wishes to spend on the services along with defined quality levels
- Make a realistic timetable for undertaking the process
Bidding costs are high for suppliers and, in a highly competitive market, clients can maximise interest in their procurement processes by demonstrably following a good practice that will provide and ensure transparency in the procurement process, improve public confidence and integrity.
Step by step facilities management procurement process in construction
Procurement in construction facility management is a set of managerial services performed to support. It involves the coordination of people and the work at a physical workplace ensuring efficiency in facility management procurement and logistics processes with a positive chain reaction within the entire organization.
The objectives of a world-class procurement organization are far beyond the traditional belief that procurement’s primary role is to obtain goods and services in response to internal needs. In fact, a successful procurement process in facility management aims to optimize the whole process to create significant business value.
There are various ways to improve the facilities management procurement process; some are minor changes that focus on improving part of the process such as creating essential internal documentation. Other major changes can go as far as improving the whole process.
1. Incorporating a contract management system
Technology creates wonders! So why not make the most of it as it can help you save a lot of time and money in becoming more efficient. One way of using technology to improve the facility management procurement and logistics process is by incorporating a contract management system.
Businesses often work with hundreds of vendors every year and creating contracts for every one of them can be time-consuming. Using a contract management system you can alleviate the whole task of creating new contracts every time you find yourself in need for one.
A contract management system will help you understand which contract can be reused from one supplier to the next. This will allow you to create standard contract templates which will require only minor updates when they are used.
2. Increasing employee capability through training and development
One of the main strategic sourcing of facility management is the proper training and development within the firm as one of the key factors that lead to a successful business. Some studies have shown that 60% of working people felt that they were not achieving their full potential at work due to lack of development opportunities.
The importance of training and development is to ensure successful business continuity.
Developing professional skills of your employees benefits not only their personal evolution but also impacts on the company’s productivity and profitability. It reinforces the goodwill of the business, allows it to maintain the competitive edge and leads to higher customer satisfaction, lower costs and faster growth.
3. Maintain good supplier relationships
Surrounding yourself by a group of professional and qualified suppliers is a form of strategic sourcing of facility management. Of course, a bid request can be put out to new vendors whenever you need a product and service but those bidders.
But having to start all over again every time you need some services involves a long process of researching each new supplier, learning about their industry position and identify their negotiation tactics.
Streamlining the procurement in this way will make your job more efficient
To prevent this from happening, the procurement process in facility management is kept to maintain a good relationship with a group of suppliers you can trust. Besides, a happy supplier might tell others how good you are which might lead to new sourcing avenues.
All you need to do is this:
Keep facility management procurement and logistics with the suppliers in your business dealings, ensure that they are paid on time, put out a detailed and straightforward contract and appreciate their professionalism and skills!
4. Reduce Expenses
One of the most appreciated qualities of the procurement process in facility management is the ability to reduce costs while procuring the items a company need.
And how do we do that?
The key is to think carefully before making a purchase. It sounds easy but any professional dealing with the procurement process in facility management will understand this point since they might get tempted to create purchases for every request that comes at their desk. It takes knowledge and experience to predict these kinds of traps and avoid unnecessary expenses!
When you take the time to identify, research, acquire and manage the products and services your company relies on, you are more apt to reduce expenses considerably and provide more strategic sourcing of facility management.
What other costs are associated with facility management procurement and logistics?
The total cost of ownership and a moderate or high level of flow depends on things like customized design, integration and installation. Use this information to budget for strategic sourcing and procurement in facilities you take care of, with a reduced risk of unexpected costs.
5. Using analytical and negotiation skills
As a professional who takes care of the procurement process in facility management, juggling between planning and executing projects, dealing with multiple vendors and negotiating the best deals, says that you have some great analytical skills.
Understanding of quantitative data is essential to make the best financial decision for your company. The procurement process in facility management needs to walk on a fine line as far negotiation is concerned.
The struggle is between making the best deal for the company, and at the same time, making sure that a good relationship is established with the suppliers. An effective procurement process in facility management will improve an organization’s bottom line and increase efficiency and profitability.
Strategic sourcing of facility management will definitely add significant value to your organization as a whole and making changes can seem daunting at first but in the long run, they prove to be beneficial in multiple ways.
Facility management additional services – how do they help us?
Besides construction and environmental quality, the quality of facilities in residential buildings is influential to the living quality of numerous residents there. The functional quality of the facilities is codependent on the operation and facilities management procurement process.
What should facilities management procurement processes include?
Services such as cleaning, repair and maintenance and so are critical to the operation of the facilities including building fabric, ventilation systems, electrical installations and many others such as:
The relationship between facilities management and procurement process in facility management is evolving and this presents its potential applied to the traditional procurement logic and methodologies that are too often complex and intangible. Facility management procurement and logistics can lead to frustration during the process and failure to achieve outsourcing objectives.
When it comes to construction facilities management procurement process, we offer day to day maintenance (also known as facility management cleaning services), but besides that we manage, procure and facilitate installation of further production within clients’ facilities, as well as coordinate with other trades and projects.
We can provide a professional statement and guidance through facility management procurement processes and routes, for the purpose of better insight into strategic development and optimization of your infrastructure design and management.