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Craig Mincher
Craig Mincher

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30 March 2020 Craig Mincher

A range of services need to be integrated in TFM contracts, says Craig Mincher.

TFM contracts require the integration of a range of services such as waste management, H&S, compliance, energy management, maintenance, security and cleaning.

This has led to a sharp rise in the development of planning tools and systems to manage the resources effectively (i.e. CAFM, dynamic scheduling, and now outcome-based maintenance). This has enabled ‘people’ resources to be deployed at the right place at the right time.

However, how many times have we, as FMs, been in a position where the distribution of materials or the logistical control of a subcontractor has led to a failure of the contractual KPI?  Probably more times than we deem acceptable. But now, more than ever, we need to develop more diverse logistical and supply chain arrangements so that we can meet the needs of clients and end users.

We need to focus on:

a) Integrated supply chain smart-locker services to ensure that materials are delivered to a single point close to the FM site and that they never go missing. This approach would also serve to improve KPI scores and reduce van stock of parts, thus releasing cash.

b) Fast purchase-to-pay processes, including self-billing, lodge cards for low-value, high-volume transactions and EDI, ensuring that supply chains are paid to agreed terms, turning WIP to revenue quicker and increasing cash.

c) Integrated end-user logistics and distribution chains with the outsourced FM, sharing distribution best practice, bundling deliveries to the facility and reducing carbon footprint for both organisations. 

d) Value stream mapping the FM supply chain to remove waste and only deliver value for the end user, continually improving performance.

We need innovations to meet end-user expectations, cut carbon footprints, deliver competitive advantage and retain accounts. Are you thinking about your integrated logistic distribution supply chain on new and existing outsourced FM accounts?

Craig Mincher is head of operational transformation at Interserve