Without a centralized sourcing strategy, portfolios are exposed to inefficiencies, inconsistent service and more risk. Properties operating independently often struggle with:

• Cost inflation and lost savings opportunities: Without consolidated buying power and preferred status, owners lose leverage and pay above-market rates for goods and services.
• Service inconsistency: Vendors may prioritize institutional partners with clear expectations and volume potential, leading to better responsiveness and quality. Independent properties may be treated as one-off clients without long-term value, resulting in slower response times or inconsistent service levels. 
• Lack of agility: Labor and trade policies, taxes and tariffs and other rapidly shifting macroeconomic conditions can disrupt a portfolio’s supply chain and service delivery. It is critical to have a deep understanding of the impacts and where delays might occur. 
   

Decentralized procurement can also prevent owners from benefiting from outcome-based contracts and coordinated supplier management—tools that help institutional portfolios control quality and reduce risk exposure. A strategic, centralized sourcing approach turns procurement into a proactive asset protection and value creation tool for long-term portfolio performance. 

Strategic sourcing plays a frontline role in mitigating operational and legal risk. A procurement team can manage certificates of insurance (COIs), ensure rigorous supplier vetting and evaluate contractors against compliance with labor laws and modern human rights standards.

This is especially critical in high-risk categories like janitorial and security services, where improper hiring practices have led to legal challenges across the industry. By embedding due diligence into onboarding and maintaining documentation throughout the supplier relationship, sourcing teams help reduce exposure for owners and operators.

Vague vendor contracts can also be a significant source of risk. Too often, inherited contracts lack specificity, which can create confusion around deliverables and accountability. One misread line can change an entire operational flow, resulting in a significant loss of time and money. 

Strategic sourcing is both an art and a science—requiring not only deep vendor relationships and nuanced category knowledge, but also the discipline of clear performance benchmarks. JLL develops scope-specific contracts using an outcome-based model that enables:

• Customized KPIs tied to portfolio goals 
• Greater legal clarity and enforcement capability 
• Proactive supplier performance conversations 
   

This model ensures expectations are clearly defined, measurable and enforceable, helping to align service delivery with long-term operational and financial outcomes.