2020-11-10
Can collaborative procurement deliver long-term real value to business?
Industry panel discusses the value of collaborative procurement in FM
What is Collaborative Procurement and how can supply and demand side organisations work together to build more sustainable supplier relationships to deliver real value in the long term?
A panel of industry experts this week discussed the question and solutions from different perspectives including supply representation from Simon Titchener, Chief Commercial Officer for ISS UK and Ireland, client/demand; Sean Gibbons, Head of Global Facility Management and Real Estate, Roche and David Hawkins, Chief Operating Officer for the Institute of Collaborative Working.
Whilst the combined factors of the recession and the uncertainty over Brexit will leave a lasting impact for businesses in the UK, it is clear that, a challenging economic environment can stimulate new approaches that create positive change. The facilities management profession and industry now, more than ever, needs to demonstrate sustainable value. Fundamental to that value is the supply chain and its interaction with demand organisations.
Consideration should be given to the procurement process and rewards on offer to the FM supply chain; potentially placing more focus on mutual benefits linked to organisational performance of the demand-side business, rather than service outcomes based on a commoditised and low-cost service model. The discussion 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.
Representing the supply side organisation as an FM Service Provider, Simon 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.
"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.
The International Special Interest Group (ISIG) provides a forum for workplace and facilities professionals responsible for, or interested in, international facilities practice. Find out more: @IWFMISIG
A panel of industry experts this week discussed the question and solutions from different perspectives including supply representation from Simon Titchener, Chief Commercial Officer for ISS UK and Ireland, client/demand; Sean Gibbons, Head of Global Facility Management and Real Estate, Roche and David Hawkins, Chief Operating Officer for the Institute of Collaborative Working.
Whilst the combined factors of the recession and the uncertainty over Brexit will leave a lasting impact for businesses in the UK, it is clear that, a challenging economic environment can stimulate new approaches that create positive change. The facilities management profession and industry now, more than ever, needs to demonstrate sustainable value. Fundamental to that value is the supply chain and its interaction with demand organisations.
Consideration should be given to the procurement process and rewards on offer to the FM supply chain; potentially placing more focus on mutual benefits linked to organisational performance of the demand-side business, rather than service outcomes based on a commoditised and low-cost service model. The discussion 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.
Representing the supply side organisation as an FM Service Provider, Simon 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.
"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.
The International Special Interest Group (ISIG) provides a forum for workplace and facilities professionals responsible for, or interested in, international facilities practice. Find out more: @IWFMISIG