What is an on-demand procurement solution, and what can it do?
On-demand is a centralized approach to procuring MRO purchases and service contract bidding without the fuss of housing it all yourself. Among other things, on-demand solutions help commercial real estate companies avoid the capital and operational expense of installing, integrating, customizing and maintaining servers and other infrastructure. It's a solution that can be deployed very quickly to standardize workflows, and it returns value equally fast.

Advantages of bringing purchasing and contract management under a central umbrella through on-demand procurement include:

• Centralizing control over the entire procurement process;
• Eliminating unnecessary expenditures through greater visibility and spend management;
• Establishing standard procurement procedures;
• Eliminating paper-based processes;
• Allowing 24/7 accessibility for purchasing, viewing invoices, and comparing bids.

Efficiency Through Standardization
By defining standard procurement procedures across an organization, on-demand drives efficiencies through uniform product and service acquisition. The result: fewer versions of products in the supply closets, shorter learning curves, reduced routine maintenance requirements, and a simpler purchasing process. Furthermore, a streamlined re-ordering process will reduce the opportunities for maverick spend.

Establishing these standards at the beginning of the bidding process builds a foundation for smoothly managed relationships throughout the contract lifecycle. By auto-assigning bid templates to your portfolio's service contracts in any service category, you can ensure that your chosen vendors will be asked the same core questions and will be prepared to perform the same duties from one building to the next.

Sustainability Compatibility
Positive impact on operational expenses is only the tip of the iceberg. On-demand tools are a critical element of any sustainability strategy, enhancing your company's stature in the eyes of various third parties including shareholders, regulators, investors, and communities.

For example, the on-demand tool can be equipped with templates that ensure contracts are consistent with corporate initiatives. It also can be configured with a product catalog that identifies third-party certified products. These features expedite the purchasing process and allow rapid deployment of corporate-sponsored initiatives such as green chemical mandates or paper conservation efforts. This integrated solution eliminates the need to search through the multitude of available eco-friendly products by placing them all at your fingertips. An on-demand solution also supersedes a typically paper-intensive negotiation process.

Centralized Insight
Equally as important in executing sustainability initiatives is having real-time visibility into expenses associated with energy, utility and waste reduction programs. Procurement systems that also enable spend management insight can provide the necessary data to tie environmental consciousness to bottom-line success, and ultimately lead you to the detail of your organization's ecological footprint. These on-demand metrics equip you to make educated decisions for your property at a moments notice.

As commercial real estate companies grow in scope and complexity, so does the technology required to manage daily operations. In the procurement arena, on-demand is forging the frontier, offering opportunities that complement strategies for growth, efficiency and sustainability.

Chris Detrich works for SiteStuff, which provides e-procurement solutions for commercial real estate. It is a wholly owned subsidiary of Yardi Systems, Inc.