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Contracts are normally written by the legal team, they are by nature one sided (or try to be) - procurement is also a little one sided too, which leaves the facilities manager to pick up all the pieces and do the balancing act. The first step is developing a good relationship at the start with a good procurement process that produces a workable financial/compensation model, balances risk between the parties, defines expectations, establishes a strong communication method, sets up a beneficial performance management process (not just KPI's) and work together for success, not as a traditional master/slave relationship…
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Download file to see previous pages... Procurement, innovation and FM services 9 3.1 Innovative procurement routes based on contingency approach 9 3.2 Innovative procurement routes through e-procurement 10 3.3 Innovative procurement routes based on real options 11 3.4 Innovative procurement routes – needs and challenges 11 4. Conclusion 12 References 13 1. Introduction The increase of competition in all industries worldwide has been a phenomenon of the modern market. Under these conditions, firms that are interesting in keeping their competitive advantage need to emphasize on innovation. Traditionally, innovation has been regarded as an element of the organizational strategy; indeed, most of organizational plans include rules that promote innovation. Current paper focuses on the examination of innovation in relation to FM but also in relation to the procurement process. In order to understand the context of innovation in FM, it would be necessary to refer primarily to the definition of the above concept, as given by Dogson et al. (2008); the above definition can be described as follows: ‘Innovation depends upon a firm’s ability to create new products and services and make and deliver them’ (Dogson et al 2008, p.235). Apart from innovation – especially in regard to Facilities Management, current study focuses on the identification of the forms of procurement – as it can being transformed, aiming to become more innovative; the requirements of procurement, especially regarding its alignment with the innovation process are critically discussed aiming to identify the terms under which innovative procurement routes can be related to improved FM services. The two key issues presented above are discussed in the sections that follow. It should be noted that the main body of the paper has been divided into two major parts – divided into sub-sections – so that the answers to each of the questions of the case study to be clear. It is concluded that innovation can be indispensable part of Facilities management supply chain management but their relationship is likely to change continuously, such as in the case of procurement and innovation. 2. Innovation in facilities management supply chain management 2.1 Supply chain management during the innovation design In the context of innovation, FM supply chain management can be highly differentiated, aiming to support the increase of organizational competitiveness within its market. It should be noted here that the potential update of FM supply chain management using the rules of innovation would be a complex process; an indicative form of this process is presented in the study of Chan et al. (2005). In the above study reference is made to innovation as a condition for the improvement of FM supply chai ...Download file to see next pagesRead More
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