FM Security Explained
by Brian W. Oldham

Getting best value from suppliers has always been a key focus for FM departments. The trend for outsourcing all services through FM suppliers has brought this further up the agenda and is placing 3rd party service suppliers under increasing pressure to cut costs and reduce margins.

With a quality security provider it is straightforward to integrate FM services into an existing security service. As a security provider Group 4 Total Security have been managing a range of FM services for clients who are able to draw upon our expertise in recruitment, vetting, training and management to create a seamless service with a single point of contact and single invoice. These criteria are as critical for FM services as they have always been for security.

The cross over from security to FM services has traditionally been via reception and mailroom duties. With contract stability Group 4 has been able to develop these base services over time to encompass full-scale FM services including building, contractor, and systems management, as well as telephony, maintenance and repair work.

The provision of high value FM services to clients delivers a number of benefits to service provider and client alike. The value to our clients has been significantly reduced costs, improved service levels, simplified invoicing, reduced numbers of suppliers and the ability to work in partnership with a service supplier.

For many security providers the choice is fast becoming uncomfortable; the options appear to be to accept downward cost pressures and reduce already thin margins by lowering standards or to find new customers. This pressure on costs has a huge knock on effect; reduced standards inevitably lead to contract failures, customer dissatisfaction, labour turnover and ultimately higher costs for the customer who always foots the bill in the long run.

Whilst best value is something that the customer should expect from their suppliers, cost pressure is not the best way to achieve it. Margins in the security market have halved over 10 years due to increased competition and a host of other factors. If customers feel that they are paying too much for their security then it is the scope of their security that needs addressing not the unit price they are paying. Paradoxically this unit cost is increasing due to the impact of the minimum wage, the Working Time Directive and wage inflation.

To realise wholesale cost benefits from outsourcing services; economies of scale are vital. Rather than focus on the 15% of costs that represent overhead and profit to a security company it is better to examine the total costs of all outsourced services and see where economies lie. The service providers best able to reengineer services are those with overhead and management infrastructure to invest in this type of activity; these are only found at the top and quality end of the industry.

For Group 4 the value lies in longer-term contract retention, improved client relationships, lower labour turnover and increased margins. It also allows innovation within a contract and the introduction of new products and services from the group portfolio.

As a solutions provider we have a responsibility to ensure that the services we provide meet and exceed client expectations; to do this over long-term contracts requires the ability to offer new services or technologies to supplement traditional security and FM roles.

The explosion in cheaper and more reliable security systems has lead to the development of mobile patrol and response services to secure smaller sites in client property portfolios. Today our patrol & response division is responsible for over 10,000 client sites providing patrol services, keyholding and remote site access to contractors.

Integrating security technology and manpower via remote monitoring creates further cost and service efficiencies. Our Alarm Receiving Centre has over 60,000 alarm signal terminations ranging from intruder alarms to CCTV feed to real time information from Locator, our vehicle tracking and fleet monitoring system.

This product portfolio and expertise allows us to provide our clients with total security and FM solutions that are forward facing, cost efficient and that routinely exceed customer expectations without a drop in quality standards.

Are you getting the most from your suppliers?