Abstract
The aim of this paper is to identify the different elements of the sourcing strategy decision‐making process and to clarify what are the factors that lead to the selection of a certain sourcing strategy in FM services. The study is based on a literature review and a multiple case study, which was conducted with four organizations representing different types of FM service clients. To find the optimal sourcing strategy and understand the consequences of different sourcing options, five decision categories must be analysed: sourcing interface, organizational decision‐making, the scope of service package, the geographical area of sourcing and relationship type. There are also some other elements that must be taken into account in the process of sourcing strategy development such as different elements of business in general and the prevailing market conditions. It is strongly suggested that companies could apply the presented integrated approach as a starting point for the development of sourcing strategies in FM services. In addition, this study shows that companies should view the development of sourcing strategies as an important phase of the procurement cycle.
Highlights
Strategic planning of sourcing is gaining increasing attention in supply management practice and in academic research
Besides reviewing the literature on sourcing strategy approaches and creating a theoretical framework for the development of sourcing strategies in facilities management (FM) services, we present real-life examples, which came up during the multiple case study
The case study was conducted with four organizations representing different types of FM service clients and aimed to map the process of developing a sourcing strategy for the procurement of FM services and to analyze the elements of this decisionmaking process
Summary
Strategic planning of sourcing is gaining increasing attention in supply management practice and in academic research. As in other areas of supply management, a transition seems to be going on in the way companies plan and reorganize their purchases in facilities management (FM) services. While clients are changing the job description of in-house FM staff from routine purchasing tasks to more strategic tasks that support the overall goals of the company (cf Kadefors and Bröchner 2004), they are trying to trim their supply bases in many ways. While some companies are entering into closer relationships with their remaining suppliers (Incognito 2002), others are shifting from using a sole supplier to using a number of specialist partners (Usher 2004). This, among other reasons, is why the FM practitioners need to be more familiar with the expanding range of sourcing options (Smith et al 2004)
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