How to meet physical security needs and cost objectives without sacrificing quality
As
a result of economic pressures, many companies often procure goods and
services on a strictly low-price basis, oftentimes ignoring experience
and past performance and failing to take into account necessary best
practices when looking at specific services.
Physical security
for instance, is an area where services cannot be based on the same cost
criteria as the purchase of material goods. The idea that purchasing
security services equates to the purchase of desktop computers is
fundamentally flawed. To win and maintain low-bid contracts, service
providers must reduce their own costs, which often mean cutting corners that result in sub-par security and increased liability.
So
how do companies get the best value for their yearly security services
expenditure? The following recommendations will put you on the right
track:
Change your model
Adopt
a best-value approach vs. a low-cost procurement approach to contracts
for services. Low-cost procurements award a contract to the service
provider submitting the lowest bid. This procurement approach is an
effective tool when purchasing commodities. The best method to adopt
when services are an important component to the property is to identify a
full set of bid evaluation criteria, in addition to cost, which will
benefit the organization.
It is critical that quality indices
outweigh price as a means to obtain the best value. This is important
because measuring the quality of services like security is a subjective
process.
Obtain top management support
Experience
has shown that senior executive buy-in is required if quality
procurement is to succeed. Executive support should be obtained early,
and frequent updates are necessary to ensure timely and realistic
decisions.
Develop clear procurement policies and goals
Establish
policies and objectives to provide guidance in the use of best-value
acquisition methods. A company may have a goal to upgrade the quality
of personnel assigned to their facility. With this goal, your RFP
should require responders to clearly describe their staffing
methodology, supervision structure, management experience, training
programs and compensation and benefits offered to the security
personnel. These items will impact the caliber of individual the
security firm will be able to attract and retain.
Ensure that the relationship between the purchaser and the seller is mutual
No
contract that proves unsatisfactory to the security contractor can be
regarded as satisfactory to the buyer. It is often the case that a
buyer will attempt to leverage the volume of the contract which the
security service provider should be willing to compromise price without
compromising quality. Unfortunately, this is a fallacy. The reality in
a service-based industry is that you can’t compromise on cost and still
maintain quality. A security service provider should only be willing
to compromise profit, not process. This is a critical distinction. Low
bid service providers will cut corners on their program to win the bid.
Ues.
Your company can potentially save time and money by having the
security provider perform these duties, as well as ensuring the security
personnel remain busy and challenged on their shift. This can only be
achieved if competent, quality personnel are present.