Learn why having a diverse vendor base in Facility Management (FM) is crucial for your innovation, customer satisfaction, compliance, and employee engagement, and how to create one.

My experience tells me there are potential issues around: Innovation. The number of operatives available during peak demands. Transparency of cost on quoted works/projects. Competitive leverage. Single point of failure. Over reliance of sub-contracting. The list goes on. It is the responsibility of the sourcing team along with the FM function (where this differs) to create a balanced risk based approach to supplier strategy, ensure you always have a plan B.

What are the risks of not having a diverse vendor base in Facility Management (FM)?

Facility Management (FM) is the process of managing and maintaining the physical assets, services, and operations of an organization. FM involves working with various vendors, such as contractors, suppliers, consultants, and service providers, to ensure the optimal performance and functionality of the facilities. Having a diverse vendor base in FM means engaging with vendors from different backgrounds, cultures, perspectives, and experiences, and fostering an inclusive and respectful relationship with them. In this article, we will explore some of the risks of not having a diverse vendor base in FM, and how to overcome them.

1 Lack of innovation and creativity

One of the risks of not having a diverse vendor base in FM is that you may miss out on the benefits of innovation and creativity that come from working with different types of vendors. A diverse vendor base can offer you new ideas, solutions, approaches, and technologies that can enhance your FM processes, improve your efficiency and quality, and reduce your costs and risks. By limiting your vendor pool to a homogeneous group, you may be restricting your opportunities for innovation and creativity, and losing your competitive edge in the market.

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Mike McHale

Strategic Development Director
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My experience tells me there are potential issues around: Innovation. The number of operatives available during peak demands. Transparency of cost on quoted works/projects. Competitive leverage. Single point of failure. Over reliance of sub-contracting. The list goes on. It is the responsibility of the sourcing team along with the FM function (where this differs) to create a balanced risk based approach to supplier strategy, ensure you always have a plan B.

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Shivani Seunarine

I believe that practice makes perfect so I teach in order to constantly improve my skills. Project Management Practitioner| Facility Manager Practitioner| Agile Practitioner | Trainer |Business Owner
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This must be researched. I found using one vendor for any different categories of FM may not be tbe best. Even if the main subcontractor is subcontracting for services we must look at some innovation that may have done. This should be a criteria in FM contracts for selection of vendors.

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Paul Mundy

Providing a single pane of glass solution - desk / room booking, visitor management, help desk ticketing and digital access control. Also helping business save money through space optimisation by understanding occupancy.
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It is correct having a small pool of vendors does lead to a lack of innovations and creativity but you also need to constantly review the vendors you have and challenge them to bring you the best innovations. If you are not having these dialogues with your vendors, you may miss a solution that is right for your clients. Especially if you are in the Corporate sector and have a relationship with senior stakeholders. It is your teams that are on site and know the issues that need to be solved in the workplace. For example, you often see in the Workplace Experience App space corporates seeking out solutions themselves when it could have been presented by the FM. This leads to loss revenues and also does not help in retaining that contract.

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2 Reduced customer satisfaction and loyalty

Another risk of not having a diverse vendor base in FM is that you may not be able to meet the needs and expectations of your diverse customers and stakeholders. Your customers and stakeholders may have different preferences, values, requirements, and feedback that require you to adapt your FM services and products accordingly. A diverse vendor base can help you understand and address the diversity of your customers and stakeholders, and provide them with customized and tailored solutions that meet their specific needs and expectations. By failing to have a diverse vendor base in FM, you may risk losing your customer satisfaction and loyalty, and damaging your reputation and brand image.

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Shivani Seunarine

I believe that practice makes perfect so I teach in order to constantly improve my skills. Project Management Practitioner| Facility Manager Practitioner| Agile Practitioner | Trainer |Business Owner
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What are the benefits of using a FM contractor? Is it increased loyalty and then we need to look at how are FM processes can help us to achieve that. A diverse fm vendor can be one but we need to look at things more as a system.

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Emmanuel Ogbida

Facilities Manager I Project Management I Logistics Coordinator
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Another risk of not having a diverse vendor base in FM is that you may not be able to meet the needs and expectations of your diverse customers and stakeholders. Your customers and stakeholders may have different preferences, values, requirements, and feedback that require you to adapt your FM services and products accordingly. A diverse vendor base can help you understand and address the diversity of your customers and stakeholders, and provide them with customized and tailored solutions that meet their specific needs and expectations. By failing to have a diverse vendor base in FM, you may risk losing your customer satisfaction and loyalty, and damaging your reputation and brand image.

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3 Increased compliance and legal risks

A third risk of not having a diverse vendor base in FM is that you may face increased compliance and legal risks related to diversity and inclusion regulations and standards. Many organizations and industries have policies and guidelines that require or encourage them to promote diversity and inclusion in their procurement and contracting practices. These policies and guidelines may be based on ethical, social, or business reasons, and may vary depending on the location, sector, and size of the organization. A diverse vendor base can help you comply with these regulations and standards, and demonstrate your commitment to diversity and inclusion as a core value of your organization. By neglecting to have a diverse vendor base in FM, you may expose yourself to potential fines, penalties, lawsuits, or audits that can harm your financial and legal position.

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4 Reduced employee engagement and retention

A fourth risk of not having a diverse vendor base in FM is that you may reduce your employee engagement and retention levels. Your employees are an integral part of your FM operations, and they interact with your vendors on a regular basis. Having a diverse vendor base can enhance your employee engagement and retention by providing them with opportunities to learn from different vendors, develop new skills and competencies, expand their network and connections, and feel valued and respected for their diversity. By ignoring to have a diverse vendor base in FM, you may demotivate and alienate your employees, and increase your turnover and absenteeism rates.

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5 How to create a diverse vendor base in FM

To create a diverse vendor base in FM and avoid the risks of not having one, you should take proactive and strategic steps. Conduct a diversity audit of your current vendor base to identify any gaps or areas of improvement. Establish clear and measurable goals for your diversity and inclusion efforts, and develop and implement a policy and plan for your vendor management. Seek out diverse vendors from various sources, such as industry associations, trade shows, online platforms, referrals, and certifications. Evaluate and select vendors based on objective criteria such as quality, price, performance, and diversity. Build long-term relationships with diverse vendors by providing them with feedback, support, recognition, and opportunities for growth and development. Monitor your progress and outcomes regularly to adjust your strategy accordingly. By creating a diverse vendor base in FM, you can leverage the advantages of diversity and inclusion like innovation, customer satisfaction, compliance, and employee engagement.

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Shivani Seunarine

I believe that practice makes perfect so I teach in order to constantly improve my skills. Project Management Practitioner| Facility Manager Practitioner| Agile Practitioner | Trainer |Business Owner
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Data Data Data. Do we have this? We need to conduct an analysis of the vendor in terms of who they are and who they may be working with. It is all connected.

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Paul Mundy

Providing a single pane of glass solution - desk / room booking, visitor management, help desk ticketing and digital access control. Also helping business save money through space optimisation by understanding occupancy.
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I agree trade shows are a must but also by attending industry events like the IWFM regional meetings. Always have insightful speakers and a relaxed atmosphere for networking. It is better to get a recommendation from a contact rather than be approached cold.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Samprit Ramesh Chandake

Analyst - Facilities & Maintenance at XPO Logistics 🏢 | Real Estate 🏡 | Workplace Management 🛠️ | LTL Facilities 🚛
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Tenders should be rolled out before finalizing the vendors. Price, Quality & Other factors should be compared between different vendors. For large organisations it is advisable to keep changing your vendors every 2 years.

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Oluwatomisin Arogundade (M.Sc, FMT, HSE.)

A facility manager, currently leading a team of Hard and Soft FM which includes grounds men, Gardeners, janitors, security protocols on two sites with about 50 flats, These evolves duplex, bungalows and detached houses
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The risk of not having many vendors is high!!!..... Let me share that if the only vendor you have falls sick for example, and then you have to ensure a particular Facility is place based on priority need. The Facility mamager may loose such Facility if care is not taken. Hence it is always advisable to have so many vendors. The risk accustomed to having one vendor is high.

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What are the risks of not having a diverse vendor base in Facility Management (FM)?

1

2

3

4

5

6

1 Lack of innovation and creativity

2 Reduced customer satisfaction and loyalty

3 Increased compliance and legal risks

4 Reduced employee engagement and retention

5 How to create a diverse vendor base in FM

6 Here’s what else to consider

Facility Management (FM)

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What are the risks of not having a diverse vendor base in Facility Management (FM)?

1

2

3

4

5

6

1 Lack of innovation and creativity

2 Reduced customer satisfaction and loyalty

3 Increased compliance and legal risks

4 Reduced employee engagement and retention

5 How to create a diverse vendor base in FM

6 Here’s what else to consider

Facility Management (FM)

Rate this article

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