I interviewed Gabriel Cadar who discussed Procurement/Facilities Management.
I`m a 48 y.o professional, running as a Business Consultant (you may see my profile here: ro.linkedin.com/in/gabrielcadar
I have a large experience in different management positions within multicultural large corporations, starting with McDonald's ( starting within 1994), Orange Romania- ( nine years, from 1997), RODIPET (2006), and Bayer Romania (from 2008), currently performing as business consultant on different areas of expertise, such as:, Operations ( Facilities, Properties, Procurement, Car Fleet and related) Interims, Corporate Operations, Transition and Interim Management, Corporate Procurement, , Business start-up management, Project Management, Process Analysis, Business Process Management, Procedures, Modeling of Business Strategy, Risk Management and related. I also worked in industrial environment (heavy industry) back in 1983-1990;
Up to July 2009 (for 1 year and 4 months) I was running, on a contract project basis, the Operations Department at Bayer SRL- the Romanian extension of Bayer A.G., as Head of Department and- also member in the Country Council of BAYER SRL, being responsible for Facilities, Properties and Administration, Procurement, Health Safety and Environment, Car Fleet and Logistics and the IT departments;
This was a challenging Transition project involving the entire Romanian Bayer crew- such as Bayer HealthCare, Bayer Material Science and Bayer Crop Science- together with Bayer Local Services- to a restructured Organizational Chart.
I was involved in Technical Operations projects at Orange Romania – from the positions of Facilities Supervisor, Facilities Administrator, Health and Safety coordinator and Technical Senior Offices Administrator, for more than 9 years between 1997 and 2006. Also- in this position I had to deal with different Romanian Authorities- obtaining function authorizations (for Shops and new technical facilities Construction Authorizations (more than 80) for technical sites and premises, health and safety authorizations for the technical department (more than 400 employees)
I participated to 5 start-ups in Romania- Mc Donald’s, Romanian Franchising Systems- (a.k.a. -Jerry`s Pizza) - as business consultant, Orange Romania, INFO Distribution and Bayer, and runs budgets of dozens millions euro’s.
My education is fulfilled by a Master Degree in Financial Audit and Advisement (IAS-IFRS) at the Academy of Economical Science- in Bucharest (2008) graduated with 921 points (out of 1000)
What is Procurement/Facilities Management?
Procurement and Facility management is a crossover function / /Department of the Company that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology to a company;
The core competencies are: Emergency Preparedness, Communication and Business Continuity (meaning that – even in a emergency situation, or in a moving/relocation situation, the core business must go on without interruption), Environmental Stewardship and Sustainability, Finance and Business acumen, Human Factors Leadership, Strategy Operations and Maintenance, Project Management. Quality, Real Estate and Property Management, Car Fleet management, and many others (according to the industry related)
Why is it important?
Procurement and Facilities Management offers an integrated approach to maintaining, improving and adapting buildings and other infrastructures of the company, keeping the “backbone” of the core business “healthy” a. in order to create a very good work environment;
Procurement and Facilities have the function of managing facility resources, support services and working environment to support the core business of the Company in both long and short terms
It’s like a house administration- but at a larger scale: if you don’t have all the utilities (such as, electrical power, gas, communications,) and facilities (air conditioning, TV /internet; garbage services, cleaning e.t.c.) you`re not feeling comfortable in your house.
How is it done?
Sometimes procurement and Facilities are outsourced services (because the core business may be on any industry)
The procurement can buy some other outsourced services ( such as facilities and maintenance, Real Estate /warehouses / logistics and transportation services, IT, accounting, legal and so on)- making the operations to be more focused on the core business;
The P&F must be efficient in terms of delivering the service at the right time and at the required level of accuracy; we may not forget the SLA-s (service level agreement) as well as the “back-ups” for any “link” of the chain; So we may have in mind all the time that- even if something goes well today there is no warrant for the day of tomorrow;
Prepare , follow-up and upgrade all the time : Procedures;
Keep under control the budgets and have all the time “an eye” on the market evolution;
Keep the right balance in procurement: price vs. quality (and service); This is not same as common purchasers doing, when achieving commodities: price first, and then delivery terms and that`s all because the structure / the backbone of the company is counting on a continuous service;
Build a trustful and respectful connection/ contract with suppliers of services I mentioned above; I`m a huge fan of “Kereitsu” (the connection of companies helping each other and building each other a common business.)
Control and improve (keeping low and lower) indirect costs, quality and services;
While the Company has to keep the right balance between the horizontal and vertical integration, the procurement can choose to mix them together – having a better control if you have a responsible manager hired but having an outsourced team to work-with;
The Procurement and Facilities manager:
Often he provides more than “accommodation” services to the core business departments:
Administration of facilities/premises where the business is running and, sometime administration of warehouses /facilities / premises rented from third parties, all tasks included ( rent, contracts management, premises administration and maintenance, budgets, e.t.c)
Premises and personnel security
Car fleet (where applicable)
He have an important role when a Headquarter /or Facility / Factory is moving: together with the other involved persons/ departments he have to plan how to move company`s assets /people / furniture / IT items without breaking off / interrupt the business process;
He may act as Project manager- for the relocation - working close with the other involved departments.
He keeps the inventory of company`s assets, as well as the inventory of common office supplies.
He is responsible of the office accommodation budget: You may not see this as important for production, but, you may find out that the office accommodation is the second on the list of employee’s best benefits, after the salary package and before “a good team”, “a challenging job”.
About Gabriel Cadar
Expert Business Consultant @ Gabriel Cadar Consultancy Office
( former Operations ( P&F) Manager @ Bayer