Overview of the Facility Management Services Industry:
The growth of the facility management services industry is expected to be fueled by the rapid developments in end-user industries, the need for a safe, comfortable, and professionally well-maintained environment. Additionally, the growth of MNC’s across emerging economies acts a major driver for the facility management services industry, mainly owing to their high awareness levels and willingness to invest in facility management services. Also, the recent boom in the end-user segments such as IT and BFSI are contributing to the growth of the global facility management services market.
The Business Challenge and Journey:
The client, a well-known facility management services provider, was looking at leveraging supply chain risk analysis solution. The client was facing several issues related to a decentralized supplier base as a result of rapid supply chain expansions. Also, the instability of their supply chain had increased their risks in conducting business operations, raising concerns on continuity of service delivery operations.
Moreover, the company’s supply chain management executives recognized the tremendous scope for adopting the best practices in supply chain risk analysis to minimize the impact of risks on profitability. As such, they were looking at reducing the company’s risk profile by implementing a centralized supply chain governance system. Supply chain risk analysis forms an essential part of a supply chain governance system to ensure risks are identified in the entire value chain and mitigated to deliver financial goals.
To identify challenges in the supply chain activities, the supply chain risk analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the transportation services sector. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Why should you leverage risk analysis?
A risk analysis engagement strives to address the risks proactively and well in advance. It also helps in optimizing the organization’s supply chain response to the occurrence of a risk. Supply chain risk analysis needs to be adopted as best practice for supply chain governance to minimize the impact on financial strategy and profitability. Moreover, an effective risk analysis solution stimulates supply chain best practices. Also, our supply chain risk analysis solution ensures that risk exposure is optimally minimized while the organization seeks the most significant rewards from its people, assets, capabilities, and resources.
Fundamental questions answered in this supply chain risk analysis study include:
SpendEdge’s supply chain risk analysis solutions offered relevant insights that helped the client to develop robust risk mitigation strategies. It also assisted them in identifying the potential risks in the supply chain network and devise effective strategies to tackle them. Moreover, the supply chain risk analysis solution provided valuable insights that helped the client to identify risks associated with the day-to-day management of the supply chain. Also, it assisted the client in developing a centralized supply chain governance system to gain better control of their supply chain activities.
Supply chain risk analysis greatly improves the decision-making process of organizations, as decisions will be based not only on the expected outcomes but also rely on the mitigation strategies adopted to tackle such risks. While it is impossible to know the unknown, it is essential to focus on forecasting the likelihood of unlikely events and develop strategies to avoid them.
Factors impacting growth:
- Increased demand for outsourcing and FM integration: There has been an increase in the outsourcing of facility management services across end-user sectors, with the majority of growth being contributed by the fast-developing Asia Pacific markets. Also, the rise in outsourcing facility management services goes hand in hand with the growing demand for integrated facility management systems.
- Rise in international contracts: The increase in international agreements will further drive the popularity and demand for facility management services. It has also increased the demand for simplification and standardization of services rendered.
- Economic and regulatory developments: Economic pressures arising from regulatory requirements and high competition is the main reason that has prompted companies to evaluate their overall business performance. As a consequence of higher scrutiny and tighter regulations, companies have started looking for partners that can deliver and manage facility services while taking on the associated risk.
- Market demand for value-added services: Customers increasingly demand that facility management service providers should possess an intimate knowledge of the corporate mission, and the competency to address the company’s specific needs.