Today, the function of integrated facility management, both from a service provider and a client perspective goes far beyond the workplace.
The FM companies are expected to not only maintain office spaces but also offer property management, township management and even municipal services management,” S. Narayan, Founder & President Integron, said moderating a session on supply chain during the IFM summit organized in January 2016.
The services sometimes extend beyond a single building or services to cover entire complexes, varied services or are spread across multiple functions and locations. In such a situation procuring or even planning for the services has become an extremely complex issue,” he added.
Other panel members were Aval Sethi, Head Supply Chain management & Procurement, Asia at Jones Lang LaSalle; Vikas Rawat, VP-Operations, Nirlon Ltd; Ruediger Schroeder, MD Karcher Cleaning Systems Pvt. Ltd and Navin Upadhyay, National Manager- Procurement & Capacity management at Kotak Mahindra Bank Ltd.
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What has worked well for us, is the in-house procurement, where we have been able to take advantage of economy of scale while dealing directly with the OEMs. We look at the cost of initial purchase and thereafter subsequent maintenance cost for next ten years of the product and the reputable vendor offering the best rate accordingly is then finalized.
– Vikas Rawat
Outsourcing or In-house
Vikas Rawat said, “The procurement process for a large commercial space is indeed a difficult task. Same as, when developing any project, customer needs remain central during the design and project management, in case of procurement too, the emphasis remains on getting the right material at the right cost not only at the time of project construction, but also during the maintenance stage as per client requirements. I want the assurance of the supply and the guaranty of the price even after five years to manage the cost of replacement and maintenance budget. Thus, procurement has to be a very deeply embedded stream not only at the time of project execution but also during the life span of the property.
Narrating his own experience on Narayan’s query of whether the outsourcing of procurement is better for the clients than managing in-house, the supply chain across various verticals Rawat stated, “What has worked well for us, is the in-house procurement, where we have been able to take advantage of economy of scale while dealing directly with the OEMs. We look at the cost of initial purchase and thereafter subsequent maintenance cost for next ten years of the product and the reputable vendor offering the best rate accordingly is then finalized.”
As FM service provider, Aval Sethi, deliberated on the factors driving the supply chain and the rising complexities in next few years. He remarked, “When we talk of supply chain, what immediately comes to mind is a very fine map of the process but, as we move from companies to companies, there are a lot of variations. Today there are different factors driving a supply chain such as, IT, sustainability, compliances and risks within the supply chain. The entire landscape and the context itself is changing so, there are a lot of disruptive forces within the supply chain. Evidently, service providers in dealing with the risk and opportunities are imbibing technologies in their delivery modules, taking on board various technology platforms and integrating them together to create a very efficient delivery model for the clients.
“In 2015, we have seen a lot of acquisitions in the market that brought together completely different set of employee culture. Their integration and the time taken become a challenge as companies become more trans-national requiring consistent delivery modules across geographical locations. The supply chain itself is becoming smart and connected with use of technologies like RFID. Very soon we will see a smart FM emerging that will interact with the client, passing information back into real time to the supply chain network, providing solutions instantaneously. Therefore, we need professionals who are tech savvy and who can identify, plan and then roll out initiatives as per the client satisfaction.”
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When we talk of supply chain, what immediately comes to mind is a very fine mapof the process but, as we move from companiesto companies, there are a lot of variations. Todaythere are different factors driving a supply chain such as, IT, sustainability, compliances and risks within the supply chain.
– Aval Sethi