Smarter delivery over cheaper delivery is how facilities management providers can advance competitive edge

In its eBook ‘From Efficiency to Intelligence’ RS offers insights to help FM engineers, contract managers and procurement specialists navigate common cost-cutting scenarios amid new and growing demands. It covers key areas including the limits of cost-led efficiency, unlocking innovation through data, bringing sustainable delivery into practice and achieving resilience.

The FM sector in the UK is worth £49bn and undergoing continual growth. Those working within this field are under constant pressure to deliver more, faster, and with fewer resources. Contract managers are facing a battle to protect performance without going over budget - and meeting changing client expectations around key issues like Environmental, Social and Governance (ESG).

The FM landscape features the common scenario of short contracts often with regular cycles of re-negotiation, sparking fierce competition. This increases price pressure as bidders are promising to do more with less despite already slim profit margins. Budgets remain static amid rising expectations and demands. Meanwhile, teams are stretched further as labour and energy costs rise, and supply chain disruption remains a reality.

"FM contracts have been won and lost on price for many years, with the ongoing requirement to squeeze margins and generate savings. This has forced providers to run lean processes and tight operations. This is no longer feasible, and running this type of efficiency is costing the industry more than it saves. FM providers need to use intelligence to prove performance in order to survive," said Richard Graham, industry sector manager for RS. 

"There’s a real opportunity to work closely with strategic partners in the supply chain to extract insight and potential value from complex and unpredictable consumption. Embracing a shift from cost-led efficiency to data-driven intelligence will help managers prove value through this visibility, and prioritise reliability and sustainable performance. The next competitive edge isn’t cheaper delivery, it’s smarter delivery."

From Efficiency to Intelligence offers practical insights into the immediate benefits of connecting data, highlighting its value for monitoring and managing compliance. Another benefit is real-time ESG reporting, meaning action can be taken where needed, and elements like carbon impact can be tracked across multiple categories. This is particularly pertinent as sustainability has become a clear contract requirement. 

"Public sector contract frameworks demand measurable progress on areas like carbon reduction and social value, and this is increasingly emerging in the private sector. FM operations touch every part of a client’s estate, from heating, cooling and lighting, to cleaning and logistics. This area can account for 60 to 80% of a client’s Scope 3 emissions, so firms must be able to demonstrate environmental performance to make the shortlist," Graham continued. 

RS’ FM insight suggests that while FM can represent the greatest environmental impact, it also provides the greatest opportunity for change. Practical improvements in service delivery can reduce emissions while improving efficiency.

"FM needs true visibility and the providers that thrive will be the ones who make their operations visible, predictable and sustainable. Connected data and systems make better decision-making possible, and the real value lies in how those insights translate into faster, safer, more consistent delivery on the ground. This approach will help deliver the innovation clients increasingly expect," Graham concluded. 

From Efficiency to Intelligence, is available to download here.