Tag: facility services industry

Facility management

Why is Spend Analysis a Necessity for Reducing Facility Management Costs?

The market for facility management services is a multi-billion dollar industry in the U.S. alone. Facility management involves the integrated management of multiple and interdisciplinary technologies, personnel, systems, and processes. The ultimate goal of facility management is to promote an efficient and collaborative environment to meet and fulfill the key objectives and mission of an organization. However, this requires business owners to invest in strategies that are going to allow their facility management personnel to work with large sets log compliancy information, asset maintenance information, and every process through the facility management lifecycle. One of the primary challenges involved in facility management is that as more data points enter a facility, it becomes harder to ensure that accurate asset maintenance records are kept. Due to such factors, companies in the facility management industry are unable to reduce risks and increase operational control.

Key facility management challenges

Efficient facility management involves constantly tackling critical issues every day in the face of a host of obstacles. They are also responsible for bringing together a multitude of distinctive elements. Diligence and flexibility in handling facility management not only defines their success but also that of an entire company. Both large and small businesses must devote a considerable amount of their capital and energy to ensure their facilities are properly maintained and are prepared to meet the challenges of the future.

Cost management

Every instance of demand placed in a facility management enterprise has a cost associated with it. This includes costs incurred on repairs and maintenance, hiring of staff, inventory and supplies, and safety and security. We at SpendEdge, help clients in facility management organizations track cost expenditures, including detailed historical analysis, to allow for proper administrative reporting and reduction of operational costs.

Resource management

Another key facility management challenge is the need to rely on many resources to operate the facility efficiently. This includes both full and part-time staff. It also requires different types of service providers. Furthermore, due to limited budgets, facility management teams are expected to deliver more at lower costs. In this case, facility management companies are left with no choice than to identify their optimal staffing requirements and maintain a constant flow of communication between the team so that they are aware of how to increase the overall productivity and improve efficiency.

Meeting compliance guidelines

It is essential for companies to ensure the statutory regulations for managing their documents. This requires a process to ensure that data is stored correctly. In order to remain compliant, it is also important to stay updated on the legislative changes. Facility management professionals often face problems associated with inadequate record keeping that do not meet the expected compliance standards.

 

One of the best ways to resolve facility management challenges is to bring in a professional and competent solutions provider to help you carry your load. SpendEdge has been helping facility management professionals across the world to build strategies that increase their profits while staying within the budget. Contact us today!

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Cutting facility management costs: What businesses must do


As businesses face the need to utilize state-of-the-art infrastructure to remain competitive, controlling facility management spend becomes more important than ever before. Strategic planning is critical to align capital spending with budgets and ensure proper allocation of resources in facility management. While budgets are typically controlled by individual departments within the organization, there are certain steps every facility management professionals can take to contain costs. Here are five ways facility management can control the overall spend:

  • Purchase Pre-owned, Refurbished or Rental Equipment
  • Preventative maintenance of existing equipment can help reduce operating expenses and create a safer work environment
  • Research the supplier and the equipment through product reviews and testimonials for optimal prices and service.
  • Organize data and analytics to gain better visibility of expenses across the organization and enable the allocation of resources in the most efficient manner
  • Leverage spend analysis to get all the possible benefits from the company’s current spend cube

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Supply Chain Risk Analysis Solution Helps a Leading Facility Management Services Provider Devise an Effective Supply Chain Governance System

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, request free proposalthe 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:


The Result:

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.

To know more about our supply chain risk analysis solution

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Facility management

Supply Chain Analysis Helps a Facility Services Provider Boost Contract Visibility and Productivity

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. request free proposalSupply 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

request free proposal

 

Request free proposal