There is often a misalignment between procurement departments and FM departments in corporate governance terms, where generally speaking delegated authority and budgetary control gets confused in the mix. Very often FM operates outside of corporate purchasing control.
Governance can range from quite complex to near non-existent. The same is true for policies and procedures. For example, when procurement of service providers also includes contract terms where the service provider is responsible for the provision of spares and consumables within their annual contract price – who owns the assets and how are they accounted for? Do you work to a set of cost thresholds? What about supplier mark-ups on actual cost? Who approves expenditure – the supplier, the FM, someone else on the client side?
And what about issues around inventory and stock control?
To understand procurement challenges and potentially identify best-practice procedures, consultancy Agents4RM has launched a brief international survey, designed to explore the level of engagement between procurement departments and FM practitioners and to establish any regional differences in approach.
Whether you work in a corporate purchasing department, manage a property or deliver facilities services – in-house or as a third-party supplier – your input will be of great help in understanding current practices and trends.
Please join in – all responses are anonymous.