Overview of the Facility Services Industry

In today’s competitive environment, cost reduction has become imperative in almost all sectors, be it corporate, educational, manufacturing, and residential. Facility services have emerged as the ideal tool to offer high-quality services such as maintenance, security, and cleaning at a low cost. The facility services industry caters to several end-use sectors including public and government, retail and commercial, manufacturing, healthcare, corporate, and residential and educational. Fueled by the improvement of business activities, effective control of harmful gas emissions, rising government regulations on waste management and energy have compelled organizations to turn to facility services in a bid to improve the long-term sustainability of businesses and the environment.

Let’s look at some of the fundamental factors that are expected to influence the growth prospects of the facility services industry in coming years.

• Cutting down costs: In a lot of companies, facility managers are constantly asked to save the company money and help increase revenue. For instance, as machines get older, they become energy hogs if not taken care. Improving the lifespan of equipment and adequately tracking inventory and assets are two ways a company can achieve this goal.
• Aging inventory systems: As equipment and building structures age, they begin to wear out. This will eventually lead to breakdowns and issues with structural integrity. Proper budgeting and planning for the upkeep of these will help to soften the blow and keep them from draining corporate revenues.

These factors are forcing firms operating in the facility services industry to leverage the use of supply chain analysis solutions. Supply chain analysis solutions help firms facilitates tighter controls of procurement spends and compliance monitoring. These solutions also provide visibility into supplier capabilities, operational experience, and contract status.

The Business Challenge and Journey

The client, a leading facility services provider, required a better alignment between its supplier engagements and sales teams to enhance its delivery capabilities and boost productivity. The client’s existing procurement function was highly decentralized and hence required an innovative solution to meet its requirement. They also wanted to streamline their procurement function to improve productivity, inter-department supply-demand visibility, and compliance. Furthermore, the client wanted to enumerate key supplier performance metrics and identify high-performance suppliers to build relationships.

To streamline the client’s sourcing and contract management abilities and boost cross-functional visibility SpendEdge’s supply chain experts tailored a comprehensive research methodology. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the course of this supply chain analysis engagement, the client was able to effectively identify the value-add services they could offer and engaged with the right sub-contractors to strengthen the organization’s delivery capabilities. The client also gained enhanced visibility and control, particularly in supplier relationships. This helped their sales team drive more business.

Key questions answered in this supply chain analysis engagement

The Results

The supply chain analysis engagement enabled the facility services client, set up periodic sub-contractor performance evaluation cycles for all sub-contractors to ensure quality and compliance across the entire supply chain. Improved compliance and monitoring of sub-contractor certificates and mission-critical documents also helped the client mitigate the risk of potential legal actions.

To know more about our supply chain analysis solutions