Supply Chain Derailment Can Cost You Over The Course of Your Office/Industrial Project

Scott Price | September 8, 2016

supply chain derailmentSo you’re ready to move into a new office space. You’ve got a plan, you’ve got a budget, you’ve appointed a project manager to handle the move, and you’ve got a strong idea of what you want. You should be good to go, right? Wrong. Even the best laid plans can come undone if your supply chain gets derailed. In fact, even if you are operating with a straightforward approach – focused on things like reducing costs or improving function and image – you can easily get thwarted by the suppliers themselves.

Often, the ad-hoc project manager – usually a facilities manager or procurement specialist – is expected to complete the project, without having the leadership involvement necessary to ensure the project’s success. That very same project manager may be handicapped by senior management’s poorly vetted or premature selection of vendors (such as broker or contractor). Those vendors could be jockeying to secure their position and control the process by introducing their coalition of compliant, loyal trade partners. Doubt it? Think about this: nearly 90% of mid-market workplace vendor referrals are lined up by the first vendor.

The derailment often starts when the project manager – under the pressure of a barrage of decisions and deadlines – is seduced by the ease and convenience of a “coordinated” project team, arranged by the vendors themselves. After all, if a vendor recommends the team, it is an apparent low-risk strategy to follow their lead. Workplace objectives are subtly transformed as the vendor co-op – now the project team—gains momentum. The combined force of these cooperative vendor teams can be difficult and they have proven to be particularly adept at controlling the very direction of the project. That control can cost you time and money.

So what should you do? First of all, keep in mind that the responsibility for selecting and managing vendors should not be handed over to any member of the supply chain. Ever. Its also important to keep the role of support front and center. Project managers are already fearful that mistakes can and will be held against them, so trust and learning must precede the workplace initiative. Executive leadership, advocacy and active feedback are also essential elements in creating the right environment for a new building or move initiative. The entire team must understand how the decisions they make will impact the firm’s strategy and competitive advantage for better or worse.

It’s difficult for many companies to discern the return on investment available through strategic workplace planning, as they lack the basic measurement and control mechanisms necessary to understand how each link in the supply chain (broker, property manager, contractors, architect, furniture firm, etc.) impacts the results that can be achieved by the others. At PlaceValue we offer a revolutionary way to lease, buy or build industrial and office workplaces. With our planning and procurement tools, mid-market firms get world class workspace for a fraction of the conventional price. There’s a place for your vendors: real estate agents, designers, the building owner… and we’ll help you keep them there. We consider every relevant strategy, free from vendor bias or sales pressure. Our process is fast and engaging. We’ll explore game-changing possibilities others miss or simply don’t see because it’s outside their scope. And we will bring your project in on budget, and on time, helping you create a great workplace for years to come.

Bring In An Expert

Keeping your supply chain in place and providing proper project framework is only part what you need to keep in mind while you consider your next commercial lease. It makes sense to have someone working with you, and for you as you reexamine your workplace needs. As a leading independent planning, procurement and project management firm, PlaceValue helps our clients realize today’s high performance, adaptable work place, objectively and without bias. By aligning business workplace design with business strategy, managing the supply chain for maximum value, integrating project delivery, and leveraging our buying clout, we bring our clients immediate cost savings and long-term return on workplace investment. Our independence, world class process and pricing transparency, ensure the best possible outcome for your new workspace. And, our fees usually come from the demonstrated savings! Call us to schedule your free consultation today.

If you’d like to read more about how to maximize space and pitfalls to look out for, download our free report, 3 Insider Secrets for Creating a Great Workplace.