Risk & Resilience: Navigating Your Facilities Management Supply Chain Amid Uncertainty

Facilities management (FM) leaders are facing potential disruptions from increased tariffs, evolving government regulations and geopolitical tensions. They need solutions to mitigate the potential impacts to their operations and service delivery.

While these challenges aren’t new, a long-term vision and proactive approach to supplier management, data-driven decision-making and collaborative partnerships can mitigate potential disruptions.

In this article, CBRE’s procurement professionals share five best practices to help global occupiers build a resilient FM supply chain, enabling reliable, compliant and cost-effective operations.

01. Establish a Supplier Management Program to Promote Transparency and Mitigate Risk

A well-structured supplier management program is essential for promoting transparency and mitigating risk. This program should establish minimum global standards and include a thorough assessment of a company's risk tolerance for various factors, such as regulatory compliance, price increases and critical product shortages. FM teams must also follow a consistent approach to due diligence, continuous monitoring and accountability.

Due Diligence:

Due diligence is critical when identifying potential suppliers, entering new markets or expanding capabilities. This process should include evaluating compliance with local regulations, labor and human rights practices and safety standards, along with community impact and a supplier's long-term financial stability.

EXPERT TIP:

Closely monitor suppliers’ financial health to avoid solvency issues with key vendors, which can put FM operations at risk. A knowledgeable category management team for each FM function can help with this step; however, many organizations lack sufficient resources to implement.

Continuous Monitoring:

Annual vendor reviews are no longer adequate. Procurement teams must establish key performance indicators (KPIs) along with a regular cadence for reporting and evaluation. For large or global occupiers, integrated technology paired with AI is becoming increasingly necessary to identify and resolve issues effectively.

EXPERT TIP:

Watch out for immediate or reactive price increases, especially when a situation—2025 tariffs, for example—unfolds rapidly or lacks key information. If this occurs, work directly with suppliers to identify the cause and renegotiate terms as required.

Accountability and Ongoing Improvement:

Create a culture of accountability—focused on mutually beneficial outcomes—across all parties in an FM supply chain. Establishing clear performance expectations promotes transparency and trust, which are key in resilient procurement organizations.

EXPERT TIP:

A strategic or trusted supplier program ensures transparency for all parties and promotes open, collaborative dialogue before taking specific actions, such as price increases or quantity limits.

02. Develop a Balanced Supplier Network to Avoid Single Points of Failure

To mitigate disruptions that often arise in single- or dual-sourced FM procurement models, occupiers should determine the optimal number of primary and backup suppliers to include in their networks. This approach helps avoid dependency on a limited pool of suppliers and a lengthy process to access alternative suppliers that may charge higher prices and have longer lead times.

While retaining a robust supplier network is essential for avoiding single points of failure, having too many providers can complicate compliance monitoring and management, increasing risk. Optimizing a supplier network through consolidation is one approach occupiers can take to achieve balance, with technology and advanced data playing an integral role in setting benchmarks required for decision-making.

Depending on the size and complexity of an occupier’s operations, FM supply chain optimization may require corporate real estate and facilities (CRE&F) teams to rethink or redesign their procurement organizations to achieve the right balance.

03. Deploy Integrated Technology and Centralize Data Collection for Accurate Benchmarking

To stay ahead of supply chain impacts, occupiers must quickly adapt and make complex decisions. Utilizing tools such as AI, the Internet of Things (IoT) and automation enables CRE&F teams to access critical data and gain real-time visibility across all touchpoints within their FM supply chain. Centralized data and technology facilitate scenario planning and help proactively identify and track various sources and impacts of disruption, including tariffs, across products, services, locations and suppliers by identifying:

• Suppliers with the greatest financial stability.
• Locations or vendors with the lowest prices.
• A manufacturer’s capability or capacity to meet demand.
• The effects of a key supplier failure.

Due to the size and intricacy of global supply chains, technology and advanced analytics are key enablers for occupiers to understand how various disruptions—which may be unrelated and concurrent—will impact their operations. Additionally, an integrated and centralized platform enables accurate and reliable benchmarking by collecting in-depth data aggregated across hundreds or thousands of vendors and subcontractors, significantly increasing a supplier management program’s effectiveness.

EXPERT TIP:

A strategic CRE outsourcing partner often has greater access to benchmarking data and leverage through its scale and purchasing power. This enables FM teams to assess supplier risks, identify vulnerabilities and cost efficiencies and take the best course of action more strategically and quickly than if managed internally.

04. Cultivate Supplier Relationships to Drive Innovation

Fostering strong relationships with preferred suppliers through transparent communication enhances problem-solving capabilities and innovation, enabling a world-class supply chain that provides mutual value and growth opportunities to partners that meet or exceed expectations.

Examples of benefits from enhanced supplier relationships include:

• Identifying and sourcing from regions with favorable trade policies or economic incentives
• Sourcing comparable quality alternative products and materials at lower costs (strategic sourcing)
• Nearshoring supply chains to reduce transportation delays and costs
• Optimizing inventory management and securing safety stock of critical spares, e.g., batteries for UPS systems or HVAC parts

EXPERT TIP:

As a first step when faced with a potential impact, such as price increases, production issues or service disruptions, procurement teams should work directly with preferred suppliers to negotiate or renegotiate mutually beneficial terms.

Above all else, promoting a culture of trust throughout a procurement organization is the key to driving innovation and collaborative problem-solving forward. CBRE, for example, invites strategic partners to participate in annual innovation challenges focused on solving industry issues such as cost control and sustainability. This level of collaboration and information sharing requires mutual trust and understanding.

05. Develop a Scalable Continuity Plan

Disruptions are inevitable, and while it may be impossible to predict all potential scenarios, a well-defined continuity plan is essential for quickly navigating supply chain challenges and resuming operations—whether caused by a pandemic, natural disaster or geopolitical event.

For example, in the case of a manufacturing or logistics firm, planning for outages—including how to reallocate capital to access essential products, such as conveyor belt components or overhead door parts—can significantly enhance an occupier's ability to avoid or minimize downtime.

In addition to an FM organization’s continuity plan, procurement teams must understand how suppliers and contractors handle their business disruptions. When vetting new suppliers, review and test their contingency plans. Do they maintain safety stock, source from alternative regions and have mitigation plans in place?

EXPERT TIP:

Continuity planning is not a one-time exercise. Teams must regularly revisit and update plans to ensure they remain relevant and effective. Engaging strategic suppliers in this exercise is another way occupiers can strengthen relationships while ensuring ongoing readiness.

Future-Proofing the FM Supply Chain

Building a resilient supply chain requires a thoughtful, long-term vision to navigate uncertainty and adapt successfully. By adopting a proactive and strategic approach to risk and supplier management, FM procurement teams can build a resilient supply chain that delivers reliable, compliant and cost-effective operations.