By giving a single supplier more reliable and greater volumes of work allows the supplier to discount cost by volume yet protects the supplier's cost structure. Figure 2 below illustrates the evolution and leverage benefits of moving from arms-length supplier to preferred supplier and, finally into a strategic partnership. The integration of FM service tasks and activities is an ideal medium for single supplier strategy. Unless a strategic alliance is in place multiple connections can create opportunities for confusion, priority conflict, and allow destructive information leaks that do exist in traditional arms-length relationships. This friction can be magnified as rivals often share the same facilities management value chain.
Value chains are self-reinforcing mechanisms.
Just as they contribute to better performances and sharper strategies, chains will continue to evolve and gain importance in response to the heightened competition they help produce. Aspects of that progression include an increased emphasis on technology, more direct ties between chain members, and a greater strategic emphasis. In most industries, technology is an integral component of value creation and the pace of that dependency appears to be accelerating. This trend is shaping the role of value chains. All of these tools greatly assist the information flow by dramatically cutting down time-consuming tasks and by improving the accuracy of records and databases.