Operational procurement processes play a central role in the operations of real estate companies and are often complex. Factors such as insufficient system support, decentralization, inadequate follow-up, and increasing demands for sustainability, digitalization, and risk management complicate these processes and present significant challenges. By exploring operational procurement in medium-sized real estate companies, this research aims to identify and provide insight into the potential challenges these companies face and offer recommendations on how to address them to remain competitive in the market.
To answer the research questions, a literature review was conducted followed by a comparative case study of two medium-sized Swedish real estate companies, referred to as Real Estate Company A and Real Estate Company B. The case study included semi-structured interviews, document analysis, and on-site observations to gather in-depth insights into the companies’ operational procurement processes. The information obtained was then analyzed to draw relevant conclusions.
The results indicate that the lack of digitized procurement processes, clear structures for follow-up and sustainability work, as well as policies for risk management, are major challenges within the operational procurement efforts of real estate companies. Both Real Estate Company A and Real Estate Company B acknowledge the need to digitize their procurement processes and enhance their efforts in follow-up, sustainability, and risk management to remain competitive in the market.
The study also shows that medium-sized real estate companies aiming to address operational challenges in the procurement process should implement a hybrid model that coordinates central and local procurement needs, introduce digital systems that integrate all parts of the procurement process, utilize sustainability key performance indicators (KPIs), systematically monitor sustainability requirements in procurement, and conduct regular supplier follow-ups and risk management to succeed in operational procurement.
This study is targeted at medium-sized real estate companies seeking to address challenges and improve their operational procurement processes. It is also relevant for real estate companies in general that are interested in developing their operational procurement practices, presenting a framework based on theories and practical insights for how real estate companies can manage operational procurement within their operations.
The discussion also highlights the importance of management support and a culture that fosters change to implement successful improvements in the operational procurement process. It emphasizes the need to engage employees at all levels in the process and ensure that results are continuously monitored to achieve long-term effects.