3 benefits of Canopy for FM and property management companies
When it comes to managing their portfolio of suppliers, FM and property management companies can turn to Canopy.
The UK is one of the largest markets for facilities management (FM) and property management services in Europe. In 2020, public-sector FM contracts amounted to an estimated £58.4 billion, with a similar amount in the private sector. But it's a sector that has faced challenges over the past five years, from major bankruptcies and the Covid-19 pandemic to the current disruption of global supply chains. And there's an increasing focus on ensuring that all contractors and suppliers are compliant with relevant legislation. That means getting to grips with the processes for managing their own supplier base. In this blog, we're taking a closer look at how the Canopy supplier management platform can do just that.
The landscape of FM and property management companies in the UK
The FM and property management industry operates at various scales. At one end of the spectrum, there are integrated contracts provided by significant vendors across continents and borders. On the other hand, small local players focus on single contracts and single-service solutions. And FM companies cover properties across multiple industries. For some, it’s manufacturing and industrial buildings, through to office buildings, retail centres and parks. For others, they cover sporting facilities and arenas to hospitals, hotels and beyond.
The FM sector has been changing over the past few years in the wake of the collapse of Carillion in early 2018. This challenged the business models of several providers, who have been undergoing transformation strategies to put themselves on a path to recovery. Increasingly, this is targeted towards the outsourcing of non-core operations. Needless to say, the Covid-19 pandemic further challenged the resilience and flexibility of FM companies. One key challenge was staff shortages owing to various factors that include lockdown restrictions, self-isolation, and illness. And with current global disruptions, FM providers have been experiencing supply chain disruptions, leading to difficulties in procuring materials and supplies. It's meant they've had to focus on risk management across all business functions.
How Canopy helps FM and property management companies
Take procurement. FM and property management companies need to have complete trust and confidence in the compliance of all suppliers who come onsite. And with likely consolidation in the sector in coming years, it's even more important to have a handle on suppliers. This protects the business from breaches in regulations on health & safety, data protection, modern slavery, and other key risk areas. It also gives assurance to the people who work or live in the properties under management that everyone entering the premises has been properly vetted, particularly from a health and safety perspective.
The good news for FM companies is that they don’t need to have all the answers in-house. Just as the business model for FM companies is about outsourcing, so they can tap into our expertise. The Canopy supplier management platform is used by blue-chip FM and property management companies to manage the supply of goods and services to properties as diverse as office buildings, data centres, and nuclear power facilities, worldwide.
Here are three key benefits of Canopy that are particularly relevant for FM companies:
1. Intelligent onboarding experience
You need consistency in ensuring all suppliers are compliant, but you need to recognise the contribution they have to your own risk profile. Canopy’s rules engine determines what information needs to be collected and from which source. For example, low-risk suppliers may complete their information directly. In contrast, information about high-risk suppliers could be pulled via API from a third-party rating platform (such as Avetta, Achilles or SafeContractor). This delivers a streamlined experience for your suppliers who are only asked for information relevant to their contract with you, making you easier to work with.
2. Ongoing risk monitoring
For many companies with manual processes, it can be difficult to update risk information on their suppliers. With Canopy, supplier certifications, training, qualifications, insurances, and sustainability credentials are hosted and managed centrally on the supplier profile. In-built automation ensures these credentials are monitored continuously, providing an ongoing assessment of risk and compliance beyond the initial onboarding stage. Canopy can flag if it's time for a supplier to prove they've updated insurance cover or completed mandated annual training.
3. Managing the supplier lifecycle
Too often, companies only have a snapshot of what their supplier had to offer when they onboarded them. As the supplier’s business evolves, so too does their profile on Canopy. Suppliers can maintain marketing information so that buyers learn about new products and services. These changes can also be reflected in changes in supplier status or classification. And this in turn, allows for the promotion or demotion of specific companies based on your category strategy.
To find out more about how Canopy can help improve supplier management in FM and property management companies, contact one of the team today.
Post by Nick Verkroost
Nick is an experienced business leader and the COO for Canopy (OCG Software), the rules-based Supplier Management platform. Nick's focus is on commercial and operational excellence and ensuring our clients maximise the opportunities that Canopy offers.