The Facilities Management (FM) market consists of a large and competitive supply base, ranging from small "man-in-a-van" individual service providers to huge Facilities Management outsourcing conglomerates such as CBRE and Jones Lang LaSalle. These latter firms deliver greater value to their customers by bundling facilities services, such as janitorial services, repair and maintenance services, and waste management into an integrated solution. The result - Integrated Facilities Management (IFM) - has become a common strategy for organizations with complex facilities portfolios.
I recently spoke with a prospective client in the automotive industry about their sourcing and procurement function and the common theme during our discussions was the decentralized nature of their operations. As I said to them, this is not an uncommon situation in today’s spend management processes.
MRO is significant to the performance of companies’ asset bases, directly impacting the asset performance. It has the potential to greatly affect the bottom line of a manufacturing operation.