For this edition of #CRE Dispatches, we rounded up recent news stories of real estate-related procurement strategies from around the web. The verdict is in: cloud-based platforms are winning and the time for adoption is upon us.
Wall Street Journal
"Maersk Takes Procurement to the Cloud"
A.P. Møller-Maersk, the 111-year old global shipping and energy giant, is the latest entrant in a list of old-line conglomerates adopting cloud-platform technology to drive sourcing, tracking and reporting activities.
The WSJ lists efficiency and risk management as primary drivers of the decision. "The cloud-based software analyzes data for projects spanning thousands of transportation lanes, products and suppliers, and it often does so faster and more accurately than a procurement officer hunched over an Excel spreadsheet."
Commercial Property Executive
"Property Management – Getting the Goods"
We love CPE's overview of the variety of procurement strategies across and within major firms like Transwestern, Greystar, DTZ, JLL and others.
In some of these shops, regional teams and even individual property managers create their own procurement processes and requirements. We wish the article went into more detail about the challenges resulting from the lack of portfolio-wide standardization and collaboration tools.
We bet it's akin to a giant hairball clogging the shower drain.
"NYC Rises As A Hub For Software-As-A-Service Startups"
This one article has two of our favorite sentences of the year:
- "Debating the importance of Software-as-a-Service long ago became a great way to flag yourself as a luddite."
- "You can’t find a credible CIO in corporate America anymore who isn’t cloud first in her orientation.
Hear, hear. We're also in total agreement "that NYC is poised to become a genuine leader in the formation of companies leading the next wave of enterprise transformation."
"OpEd: A fair request of NYC to help build MTA"
The Metropolitan Transportation Authority estimates it can save $2 billion from streamlining procurement processes. Whatever you think about the agencies other funding strategies, that statistic provided by MTA's chairman and chief executive Tom Prendergast is pretty remarkable.
Also Worth a Look:
"There's an app for that... 1980's vs. 2015"
This 7-second video says it all.
Original video produced by Bestreviews.
Building Owners and Managers Association (BOMA)
BOMA Energy Performance Contracting Model (BEPC)
The recently updated BEPC Toolkit is bursting with useful information, best practices and RFI and contract templates.
While it's aimed at energy efficiency projects, it's useful framework for all building owners and managers "to provide transparency on pricing and performance expectations and to give building owners a high degree of confidence that the project will meet the stated goals."
We strongly disagree that the "service provider selection process can be as formal or as informal as the owner wishes" (see here and here for more on the importance of a formal bidding process), but this guide is well worth reviewing.