Buyer-supplier collaboration: the aim of FM procurement?: Fid-Bau Portal

Buyer-supplier collaboration: the aim of FM procurement?

Plane, Caroline V. / Green, Andrew N.

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The purpose of this study is to explore the causal link between procurement route and ongoing buyer-supplier relationship.

Design/methodology/approach –

The research draws on literature in the areas of: facilities management (FM) outsourcing; purchasing and supply chain strategy; and collaborative business relationship management. The research methodology is qualitative, and comprised semi-structured interviews with buyers and suppliers of FM services.

Findings –

Findings suggest that in general clients are seeking more collaborative relationships and this may determine a more relational procurement process. Some organisations appear more practiced than others in defining the level of collaboration and business benefits sought. Results support the view that a relational procurement process provides greater clarity of service requirements and facilitates cultural alignment between the buyer and supplier. However, additional time, effort, and cost are incurred, and concerns arise regarding the maturity of the supplier-market and the sincerity of client intentions to collaborate.

Practical implications –

A major practical implication is that facilities managers should recognise the importance of determining relationship objectives and the benefits sought within the context of FM procurement activity and select a purchasing route which supports the achievement of those objectives.

Originality/value –

Originality exists in the qualitative approach used to inquire into the causality between relationships and procurement routes. The study offers potential value to both buyers and suppliers of FM services through describing the attributes of a successful collaborative relationship and how they link to a given procurement process, and identifying the potential risks and rewards involved.