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Corporate Real Estate has often been reluctant to engage with Procurement because of the department's historic focus on first-in cost to the exclusion of ongoing service quality. An effective partnership with Procurement however can be quite powerful in helping an End User implement creative delivery methods, improve vendor performance management and leverage their resources. In addition, many large service providers engage in procurement activities on behalf of their End User clients and can be much more effective when they develop an effective partnership with their client's Procurement department. Finally, service providers who bid on periodic work often find it very difficult to sort through a company's procurement processes and propose creative solutions when the End User and their Procurement group are not aligned. Given that CRE is under continued pressure to drive down costs and improve service levels, it is time to disrupt the status quo by embarking on a new partnership focused on "strategic sourcing."
Keywords: Los Angeles Summit 2015, Procurement, Sourcing, Partnership, Iron Mountain, Sarah Abrams
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