The deployment of a facility vendor management program is rapidly growing in popularity in the field of facilities management. Traditional Facility Managers would handle facility vendors in-house. Unfortunately, this includes a host of added responsibilities that only contribute to higher costs. However, modern Facility Managers can use a facility vendor management program to reduce the resources needed to fulfill work orders and achieve a higher return on investment (ROI).
Managing Facility Vendors In-House Contributes to Stress and Higher Costs
The biggest problem with managing facility vendors in-house goes back to the added stress and costs of more responsibility within an existing, stretched department. Since facility management is often one of the first departments to see budget cuts when stakeholders express concern over profitability, failure to keep unnecessary expenses in check can be disastrous. At the same time, it is unlikely that a Facility Manager will willingly make maintenance cuts due to the added costs of deferred maintenance. So, the Facility Manager must consider other ways to achieve these costs and reduce risk. As explained by FacilitiesNet, in-house facility vendor management presents several risks that make it the best way to eliminate risk and expenses within the facility management department, including ethics, safety problems, poor accounting, cybersecurity threats, inability to manage labor and more.
A High-Quality Facility Vendor Management Program Augments Your Department
As noted by FacilitiesNet, hiring the personnel for highly specialized repairs, such as HVAC maintenance and repair, can be a significant cost. At the same time, skilled professionals are not necessarily a full-time need. Thus, it is easier to outsource the technician, but even that presents obstacles, comparable to the risks of in-house facility vendor management. However, the implementation of a vendor management program that leverages data and automated capabilities can expand your department and mitigate such risks.
Working with an expert vendor management services provider also builds consumer-centric rapport. Consumers see less maintenance in your facility, and all maintenance activities are handled professionally.
What Are the Additional Benefits of Utilizing a Vendor Management Program?
Utilizing a facility vendor management program opens the door to additional benefits, asserts Facility Executive, including:
- Ideal vendor vetting that manages compliance risks.
- Planned visits to make repairs.
- Minimal disruption to guest experiences.
- Access to a broader vendor network.
- In-depth accountability and insights gained from IVR-based systems, improving reporting capabilities.
- Optimal processing of invoices and payment.
- Stress-free management for complex issues.
- Access to new technology, including mobile apps, to manage vendor-business interactions.