TOTAL FM THE CRITICAL ROLE OF SUPPLY CHAINS


Supply chain management within Total FM has always been challenging, but it is even more complex now thanks to a range of issues from the pandemic to political and economic change. Janet Gibbs, Account Manager at 14forty, offers some practical advice for organisations looking to ensure business continuity.


FMs are experiencing record freight rates, choked ports, and out-of-place shipping containers as a result of Covid-19, Brexit, the war in Ukraine, and the cost-of-living crisis.


In the past, business focused on driving down costs and enhancing productivity, but the unprecedented chaos has caused a shift. Now, businesses must build resilience and flexibility to ensure business continuity, and to survive.


Why supply chain is critical in TFM To create efficient and effective environments for clients, building occupants and visitors, facilities managers need to ensure materials and information needed to service each element of the contract are in the right place at the right time.


This makes supply chain performance critical to the smooth-running operation of Total FM (TFM) contracts because they typically span across a diverse range of functions including repair and refurbishment, maintenance, building operations and services, water and energy management, health, safety, security and hygiene.


The sheer volume and variety of materials and information needed to service TFM contracts can be complex, making supply chains numerous and multifaceted.


Managing supply chains From an FM perspective, supply chain should be seen as the system used in the delivery of services to support client objectives.


This places the onus on facilities managers to be diligent and efficient when it comes to managing supply chains. It is vital to coordinate material, information and finance flows in order to optimise work environments and keep them operating efficiently.


Ultimately, this helps facilities managers give clients a competitive advantage and deliver value, which is integral as this is one of TFM’s main selling points.


This starts with clearly identifying all the parties involved in the supply chain. These include suppliers, as well as outsourced service providers and specialist repair teams.


Facilities managers should split parties into the major FM functions such as energy and water management, maintenance, repair and refurbishment, building services and operations, health, safety and hygiene.


Then add columns covering detailed activities, information flow, finance flow and service / product flow.


42 | TOMORROW’S FM


Take maintenance, repairs and refurbishments as an example:


• Detailed activities: Including procurement of spare parts, preventative maintenance, renewing building service certificates and service agreements, tests and surveys.


• Parties involved: For instance, manufacturers and suppliers of spare parts, machinery or equipment, building services providers, chemical suppliers and maintenance contractors.


• Information flow: Including maintenance procedures and precautions, specification of spare parts, client requirements, identified issues and services undertaken and cost estimates.


• Finance flow: For example, the cost of spare parts, maintenance and testing.


• Service/product flow: Maintenance service, spare parts and construction materials.


By following this process, facilities managers can map out and organise their supply chains for each FM function.


Importance of delegation The next step is delegating actions. Decide early who will communicate with which suppliers/contractors/service providers and establish reporting intervals and criteria.


It is important that all activities work in harmony to keep key services in client workplaces running effectively, as well as achieve value through TFM delivery.


Finally, building rapport and trust with the client is essential. They may be nervous when it comes to critical infrastructure and equipment, such as generators, especially when it comes to switching suppliers or making other changes.


With many clients, particularly those who have only just switched to TFM, gradual transition is often the best policy, then working closely with them to ensure they are getting the best value, the best service and, most importantly, business continuity.


Ultimately, managing supply chains in TFM is extremely challenging. It takes facilities managers who are highly organised, good communicators and adept leaders.


In a safe pair of hands, supply chain management can significantly contribute to clients’ complete confidence in their TFM, resulting in contract renewals and long-term business growth.


https://14forty.co.uk twitter.com/TomorrowsFM


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