"I don't think it will be long before you can commoditise support
services. Services in FM are as near as you can get to commodities."
This was the rather startling claim put forward by Phillip Russell, MD
of Servus Facilities Management at a presentation of its Servus Clubsite
B2B e-commerce service last Thursday.
Speaking to a meeting of The Bartlett's FM Exchange at University College
London, Russell explained why Servus (financed by Nomura) were moving
into e-commerce: "As companies begin to move out of property ownership
Nomura is moving into the 'total property scenario'. Turner & Townsend
(bought by Servus in 1998) has always done procurement we're simply applying
e-commerce to it."
As presented, the Servus solution is simply an online catalogue of office
commodities, built on the Marketsite product from Commerce
One , licensed to BT in the UK. Behind your password to the system
lies a set of business rules governing choice of suppliers, authorisation
and spending levels.
Where Russell believes he has an edge over the competition, such as Chesterton's
e-team, is that Servus already has significant procurement contracts.
However, he acknowledges that unless his operation adds value it could
go the way of other intermediaries, such as travel and estate agents,
faced with online competition.
Asked why FM contractors would buy through the Servus site, Russell said
they wouldn't have a choice: "If they haven't developed a solution
themselves customers will want to know why. There will be a shake-out
amongst FM suppliers and aggregators."
The FM Exchange audience was fairly sceptical, expressing doubts as to
whether Servus could achieve critical mass and disputing the idea that
FMs buy services on price.
Servus is currently conducting a three month trial with three internal
Nomura companies: Nomura Bank, Thorn Rental and Inn Partnership. "The
success factors are different for each," said Russell, "For
example, Nomura Bank already has the economies of scale but has poor procurement
processes - there are nine stages of approval to buy a mobile phone."
Although Servus talked about extending the concept to services, it is
by no means clear how this would be done and at the moment Clubsite is
not a fully-integrated supply chain solution.
Richard Byatt
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