By: Vidhya Karthik --
01 January, 2017
Category managers of global companies look to obtain more value out of their spend for IFM procurement. They formulate their procurement strategies aligned with best practices to achieve cost savings. However, they fail to understand that complex strategies are devised out of experience, and there is no common strategy that will work for all.
Buyers who outsource their IFM services try to consolidate their supplier base and empower them with a larger volume of their spend for better efficiency. To achieve the desired outcome, the buyers adopt a single service provider model across their multiple large facilities. However, the model may not be a success for all.
Buyers should therefore evalutate the internal (the buyer’s procurement organization) and external (supply market) factors which are key to the decision-making process. To begin with, buyers should understand the spend profile for FM services.
Spend analysis helps understand spend history and identify problem areas. With the data from the analysis, buyers can assess their level of maturity in terms of spend control, visibility of spend. They can also examine the level of strategic element in their relationship with the supplier.
American Red Cross CPO will talk about the Art of Stakeholder Management on Aug 4