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Collaborative Procurement in FM

12.11.2020, 13:48

Collaborative Procurement in FM

Simon Titchener, ISS UK’s Chief Commercial Officer, Sean Gibbons, Head of Global Facility Management at Roche, and David Hawkins from the Institute of Collaborative Working were recent contributors to a panel discussion on the value of collaborative procurement in FM which took place under the auspices of the IWFM.

Representing supply side organisations as an FM service provider, Titchener shared his views on the benefits of a collaborative procurement approach and the value that it brings to not only the tender process, but to the value and success of a long term partnership.

Having spent considerable time on collaboration with customers and prospective customers, Simon shared how Commercial teams require a different skill-set to provide a more consultative approach in the early stages of the buying process to understand risks, develop solutions and the right commercial model in collaboration with the customer.  

Despite the uncertain commercial environment that has emerged globally as a result of Covid-19, and additional uncertainty in the United Kingdom as a result of Brexit, several panelists cited the positive impact of enforced change in stimulating new approaches to procurement and services delivery – with the argument being made that the facilities management profession and industry now, more than ever before, need to demonstrate sustainable value, a fundamental of which is the supply chain and its interaction with demand organisations.

Discussions also centred on the consideration that should be given to the procurement process and rewards on offer to the FM supply chain; and how it potentially places more emphasis on mutual benefits linked to organisational performance of demand-side businesses and creates opportunities from moving away from service outcomes based on a commoditisation of often already low-cost service models.

Panelists additionally explored the value of collaborative procurement for both demand-side and supply organisations and the key commercial and contractual terms that would incentivise both parties, with Titchener observing: “Investment in upfront and open discussions are greatly valuable for both sides transition and a real opportunity to convert risk into opportunities that can be managed effectively. Cost-driven exercises can restrict the opportunities and long-term benefits of an FM partnership.”

You can watch the full discussion here.

IWFM’s International Special Interest Group (ISIG) provides a forum for workplace and facilities professionals responsible for, or interested in, international facilities practice. Find out more: 

CAMFIL HVAC Filtration Solutions

Staff Reporter

FMIndustry.com covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.

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