Integrating SME’s into the Supply Chain

The Added Value of a Facilities Management Integrator

Benchmarking – Using Big Data for Smarter Procurement

Advantages of the Facilities Management Integrator Model

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Integrating small and medium-sized businesses (SME’s) into the facilities supply chain is a big challenge for both the public and private sectors. With public sector organisations all agreeing to spend at least 30% with SME’s, it is a challenge to engage with them as history has shown that public sector outsourcing is generally more favourable to larger providers.

 

One of the barriers to success is the increased management resources needed to manage multiple smaller regional contractors. With management resource already stretched, FM’s are fighting a losing battle. With little C-Suite influence and growing responsibilities across the wider workplace, do they have the time and support to integrate SME’s? Probably not is the answer.

 

But, is there another solution? Outsourcing to one company has been the preferred choice for many reasons. It is easier to deal with and pay only one company, that company can provide a full end to end management with FM’s responsibility only being auditing and signing off works. Outsourcing puts the majority, if not all risk on the outsourced contractor, and often it seems like the most cost-effective solution – but is all of that true?

 

No, in reality, you can lose control and visibility when outsourcing through TFM and most often than not, what is promised at the tender stage is not delivered throughout the contract. When chasing the unsustainable margins that were tendered, contractors are more likely to cut corners and underdeliver. As a lot of contractors use their own systems for self-reporting, it is often difficult for the client to get transparency and in turn, this can create an issue with trust.

 

Now we are not saying that all TFM contracts are bad, but a lot can be improved and through our experience the above outlines the thoughts and concerns of some clients that we work with and speak talk to regularly. On the flip side, integrating SME’s into the supply-chain on a direct contractual basis also has its barriers to success.

 

Both local and central government contracts can be sizable, often enough to put significant strain on an SME in both delivery and management of contracts. The scalability of such organisations can be a concern. Some SME’s don’t have the same quality business processes or CSR experience that more prominent, more established contractors do, and this can also be a put-off.

 

So, is there a better way to integrate SME’s into the supply-chain? In short, the answer is yes. How? Use an FM Integrator.

 

BIFM describe the Integrator as “a matured and improved version of the Managing Agent model. The Integrator sits between the client and supply chain providing business intelligence and an independent, impartial view on supplier performance, finance and cost control, workplace experience and FM compliance together with a strategic approach to the entire estate.

 

“The benefits include a single point of information and the ability to choose the best service partner for the job together with an increased strategic insight into the estate. This approach is being adopted by organisations with large, complex portfolios”.

 

An integrator provides independent asset and contract management using advances in technology and business intelligence to deliver FM services. As an independent management service, we can manage and audit a TFM contract, or more importantly integrate any number of specialist service providers to support facilities delivery. We offer the flexibility to choose the best possible solution while using one management resource.

 

We provide third-party technology to funnel all performance information through a centralised system, by removing self-reporting from contractors, we can monitor, audit and approve work in real-time. Working in real-time allows us to manage data and use business intelligence for benchmarking and trend analysis, which is proven to save clients an average of 30%.

 

Our integrated model is 100% client focussed, with no vested interest in the contract delivery we are free to create innovation, value and improved integration throughout the supply-chain. With SME’s set to miss out on £33.5bn worth of contracts by 2020, we offer a scalable solution that is proven to deliver results.

 

Please don’t hesitate to get in touch with Mark Taylor at mark.taylor@autonomousfms.com or 07518 444 838 to discuss the Integrator model and see how it could benefit your future FM strategy.

 

Link to Proactis blog on SME’s losing out on £35.5bn worth of contracts by 2020 – https://blog.tendersdirect.co.uk/2018/04/09/smes-to-miss-out-on-33-5bn-worth-of-government-contracts-by-2020/

At Autonomous, our whole business model is designed to add value to clients by ensuring they always receive improved service, greater value and innovation from their supply chain. We do this in several ways:

 

 

 

 

 

 

 

 

 

 

We would love to let you know a little more about our unique Facilities Management Integrator service and how it could benefit your future FM requirements. To find out more, please contact Mark Taylor at mark.taylor@autonomousfms.com or 07518 444 838.

The race to the bottom has been a common theme in facilities management procurement for some time, and with so much competition in the market there will always be a contractor willing to do it for less, but as we’ve recently seen with Carillion, it is not sustainable.

 

Most property and procurement professionals know there is a smarter way to procure but don’t have the data that they need to do so. In a recent paper by RICS on ‘Big Data’, 37% of respondents were in the pre-adoption stage of implementing big data management while 35% are in the early adoption stage. The research highlights just how few companies are collecting or using the potential data they have available.

 

In our experience, very few clients have any data of value, with most assets lists out of date and lacking quality information. Having the correct data on your assets and contracts allows for specific smart procurement which creates much better value in the long run.

 

We generally find that:

 

With advances in technology, managing assets and contractors has never been as efficient. Costs can be benchmarked across different contracts and countries to get a real cost of FM delivery, allowing you to highlight areas of concern.

 

Through benchmarking, you can see where you are paying over the market rate, and it allows you to explore the reasons in real-time as soon as a trend is identified. The same goes for where you are potentially paying lower than the market rate, trend analysis can highlight that under-spend is potentially putting your assets, compliance and general maintenance at risk.

 

By using real-time business intelligence and benchmarking, we can procure or work with procurement departments to use the most accurate asset and performance data to benchmark current market costs.

 

The benefits to successful procurement are massive, you know before going to market what the prices are to deliver the work through already benchmarked data. You use that data to assess the submissions and help inform your decision making picking the best contractor for the job.

 

The other main benefit is using the data to split tenders into regional/national specialists, moving away from TFM to gain even better value. SME’s and regional contractors can’t compete nationally and often struggle to compete with the established main contractors. Our solution supports SME’s and simplifies tendering by using benchmarked information that is true and valid.

 

We aim to remove the often-blind pricing process, using out of data cost schedules and poor asset information. Instead, we offer real-time asset, contract and performance information, benchmarked against other contracts on a national and international level.

 

In the case of Carillion, had benchmarked data been used by the numerous public and private sector organisations it would have become apparent a lot sooner that their pricing and delivery was unsustainable and may have led to Carillion winning less work and stopped them becoming a “giant and unsustainable corporate time bomb”.

 

This blog follows the recent article published by FMJ titled ‘Life After Carillion’ – https://www.fmj.co.uk/life-after-carillion/

Link to the RICS Paper titled ‘Big Data: A new revolution in the facilities management sector’ – http://www.rics.org/uk/knowledge/research/research-reports/big-data-a-new-revolution-in-the-uk-facilities-management-sector/

Link to Parliamentary Inquiry into the Carillion collapse – https://www.parliament.uk/business/committees/committees-a-z/commons-select/work-and-pensions-committee/news-parliament-2017/carillion-report-published-17-19/

In the wake of the collapse of Carillion and diminishing trust in outsourced contracts, the FM Integrator model provides clients with all of the benefits of outsourcing to one company while putting you in full control through a true partnership for improved facilities management.

 

A facilities management integrator will work with your in-house FM team to provide a holistic view of FM and the workplace, focusing on key metrics like KPI’s, benchmarking, business intelligence and asset life-cycles & Capex projections – the real value added services that FM’s sometimes struggle with when managing day-to-day works.

 

Here we have put together some of the main advantages of the Integrator model:

 

We never work for or employ contractors directly to allow us to provide unbiased real-time independent management and reporting. We have no vested interest in service delivery meaning we are free to derive the best value, service improvements and innovation with 100% focus on clients.

 

A single point of information and the ability to choose the best service provider for the job. Through our integrated systems, we can ensure all FM delivery is carried out to the same standards and processes, controlled centrally from inception to completion.

 

We remove contractor self-reporting and centralise all data to provide a consolidated view of all delivery. This gives you the most comprehensive overview of performance and full visibility of spending on a regional, national or global scale.

 

We work with your existing or new supply chain using business intelligence and performance data to improve service delivery. We make sure works are completed and closed out on time and within SLA.

 

Through our real-time contractor monitoring, 1st line resolutions, data analysis and benchmarking we could commit to a saving of at least 10% in the first year while improving service delivery, increasing to 20-30% over three years.

 

We ensure you are fully compliant with all regulations and provide real-time information demonstrating progress and outstanding issues across your estate. We make all compliance records available in real-time and accessible from any device.

 

Our 24/7 multi-lingual service centre supports German, French, Italian, English, Portuguese, Spanish, Polish, Arabic, Norwegian, Chinese and Russian languages, and we are happy to support any other languages as required by clients.

 

We carry out real-time audits. No works are closed out for billing unless we see live cost data, real-time material costs, and photographic evidence that work is carried out to a high standard.

 

Our systems show in real-time how long your providers worked on sites allowing us to ensure you only pay for the actual works completed. We benchmark costs to ensure that what you pay is accurate and provide consolidated invoice certification for all works to reduce our client’s administration time.

 

We carry out full asset cost verification and provide real-time spend analysis on asset performance allowing for automated five and ten-year asset projections.

 

We will provide any business intelligence report you require. The data is yours, and we can provide full downloads in any format you require. We remove the need for self-reporting and make it easier to switch out vendors if there is a performance or cost benefit to you.

 

Because we can take over management of any contractor from a full TFM outsource through to multi-vendor services we can be implemented at any time to deliver immediate savings and service improvements.

 

Please contact Mark Taylor at mark.taylor@autonomousfms.com or 07518 444 838 to discuss how the Autonomous Integrator model can benefit your future FM strategy.