Since 2020, when the COVID-19 outbreak radically rocked supply chains and usual modes of production, the facilities management (“FM”) business is largely unrecognizable now compared to its pre-COVID form. These days, FM firms must be ever-increasingly adaptive and flexible in their approach to guarantee services their clientele actually want. Here, we look at the top five difficulties that the industry is addressing.
Supply networks are becoming more complex, global, and interdependent. When one portion of the network is jeopardized, it can start a domino effect. Leaning into supply chain resilience education can allow organizations to react to bad events quicker than the competition, minimize the damage, and increase market share. This means making sure every member of your team, even those not directly connected to distribution, understand the mechanisms of your place in the supply chain.
Supply Chain Automation
While AI improvements and automation in the supply chain may sound like an overall good thing, there are several problems that come with rapid automation. According to current trends, the use of AI and machine learning for predictive and prescriptive analytics will continue to increase, this rapid increase will, then, most directly benefit the businesses with the resources and expertise to take advantage of it. Businesses that use big data and automation will gain a competitive edge in terms of visibility, operational efficiency, and quality. This means that smaller businesses with staff or R&D resources will likely continue to lose out to big-name competitors.
With the increase of dependence on technology comes the increase in risk of that technology being exploited by bad actors. Cybersecurity is a never-ending cat and mouse chase between cybercriminals and the businesses they target. So once again, businesses who don’t have the resources to insulate their infrastructure from the latest threat are often the ones at the most risk for cyberattacks.
In general, however, improvements to cybersecurity as a whole also provide chances to transform supply chains by boosting visibility and real-time monitoring of both raw materials and finished goods. As a result, networks are becoming more responsive and competitive. Cheap and dependable sensors capable of collecting massive volumes of data are required for wide-scale IoT system adoption. Again, supply chain resilience will be critical in limiting risks.
The epidemic triggered a price increase in the worldwide wholesale energy market. Fuel costs have equally soared, putting further pressure on global supply networks. It’s no stretch to say that today’s businesses are treading new ground. Over the next two years, managing energy expenses will be a crucial component of FM. This may be accomplished in two main ways:
Reducing consumption – FM organizations may consider increasing their investment in energy-saving technologies, such as energy management software and machinery. This type of tech analyzes real-time data to discover chances for consumption reduction, or energy-efficient building solutions. A practical example is a warehouse or office implementing smart building sensors that only switch on lighting or heating when spaces are occupied.
Rate reduction – FM firms should be proactive in negotiating with energy providers to achieve the lowest pricing. FM firms may not realize the power they hold in the partnership with their power companies. It pays to maintain close contact with your energy providers and exercise your right as a client to negotiate your rates. Keep track of contract renewals and prepare ahead of time when a deadline approaches. Think about employing a contract management system.
The Reshoring Decision
While globalization increased the number of national stops in the average supply chain, corporations have lately embraced the concept of re-shoring, or returning abroad corporate activities to their original sites. There are dozens of reasons why reshoring may be right for a business. From taxes, labor, or simply perception, reshoring has its share of positives. Delivery performance, product quality, and the ability to adapt to consumer requests more locally are all significant benefits as well. The epidemic exposed a key disadvantage of globalization: when borders were blocked, whole companies were forced to shutter owing to a shortage of raw materials. Businesses are rethinking which aspects of their operations will be global and which will be local. Altering a supply chain, however, comes with its own slew of difficulties. Reshoring frequently is a lengthy endeavor and can mean relocation or releasing an entire staff.
Difficulties in the Facility Management Industry ought not be seen as a negative development exclusively. Difficulties mean that the FM industry is finding new ways to grow and making tough decisions. Each of the difficulties on this list represent a major decision that once carried out can make businesses more agile and experienced.
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