Digital transformation in the Facilities Management industry
The FM industry has grown in recent years due to the need of organisations who require support across multiple facilities of its buildings and operations. Service providers often have a high volume of requirements across multiple partners that can result in complexity and unnecessary cost if not managed correctly. It is due to this complexity and the increased pressure from clients to deliver operational costs efficiency and enhanced agility that digital transformation in the FM industry is required.
In comparing the FM industry with others such as Retail, Food Manufacturing & Banking its clear that it is behind in its adoption of technology in Procurement & Supply Chain. Traditional procurement process can be long, slow and admin heavy and in moving towards elimination of these issues it is important to view the Procurement function as being much more than a department that simply delivers tendering, signing and awarding of contracts. It is a value added function that is integral in the delivery of digital transformation.
When looking at suitable technology to support the FM service providers then one technology that must have focus in Blockchain. Applying Blockchain technology to this industry can provide a number of benefits such as:
Complex records related to maintenance and other works can be digitalised. This can then be overlaid with a Smart Contract function. This means that a consensus agreement between parties is reach and when this is achieved during the contractual process an automation execution is applied.
Data is visible to approved parties
Completing of documents is verified
Information is immutable and therefore time stamped preventing data being amended
Automation of transactions is processed in a secure and trusted manner
Data silos are removed and therefore the needs for multiple data maintenance is removed
Reduction in admin costs
PO process can be automated and directly related to inventory control
Detailed spend analytics is provided creating enhanced control and opportunities for improved supply base management
This industry is a the start of its digital transformation journey and this in itself creates the opportunity to deliver multiple benefits and reduced operational costs, it should embrace change and realise the benefits technology supported by Procurement can deliver.