In this case study read about the often-overlook area of building fabric repairs. Typically viewed as an area the reserve of technical specialists, quantity/management surveyors and alike, the introduction of a strategic approach to procuring this service can reduce costs, streamline day to day management and improve compliance visibility.
The client was a large retailer who wanted to review their planned and re-active building repairs spend and challenge the current approach to managing this area of spend.
Our client had grown over a number of years and as a consequence had introduced greater and more complex controls to manage this area of spend. Our client had reached the point where the internal management process was cumbersome and overly complex, with little to no evidence that it was adding value or mitigating risk.
Supplier-side, our client had outgrown its supply chain; service levels were not documented or agreed, there were no levels of account management and costs were unclear, resulting in a repetitive and costly approach to invoice validation. However, of most concern, was the fact that our client could not be confident that it remained compliant with its legal obligations.
- Reactive repairs
- Compliance checking
- Planned preventative maintenance
In forming a review strategy, we began with a large supplier engagement process. Working with our clients Facilities Management team, we met with the existing supply chain to understand their views on the account, in terms of challenges, opportunities and their experiences of working with our client. Further, we reviewed the internal purchase to pay process, reviewing their approach to specification setting; supplier and trade management; helpdesk processes; and post-works approval and payment. This comprehensive process enabled us to establish and present a range of opportunities and strategic options to our client.
This process gave clarity to our client; they were previously unaware of the various delivery models that were achievable. Working with our client, the chosen strategy was to consolidate all trades and appoint a single PPM and Reactive Repair provider, and give consideration to outsourcing some, or all, of their helpdesk and quantity surveying requirements.
With the strategy now set, we led a thorough and comprehensive tender process, starting from an initial requirements gathering phase and channelling this through our best-practice sourcing methodology, which led to our client appointing a leading building fabric repair provider, providing a comprehensive compliance management and multi-trade package service.
Our client struck a two year agreement with this provider; significant cost saving benefits were identified as a result of this tender and appointment, equating to an aggregate cost reduction of 17%.
In addition, our client benefitted from a number of vital service improvements;
- Proactive account management support, backed by technogology to give our client visibility of all planned and reactive works.
- The outsourcing of their helpdesk, connecting their branch network directly with the supplier.
- The simplication of post-completion works valuation processes, reducing admin and simplifying the payment cycle.
- 17% reduction in aggregate service costs.
- Consolidation of a previously fragmented supply chain, into a market leading provider whom would be the single point of contact for all trades (PPM and reactive).
- Introduction of technology offering to significantly streamline processes and improve the visibility of supplier performance, spend management and compliance monitoring.
- The introduction of a formal written contract to protect our clients interests in terms of commercials, supplier performance and the responsibility for legal compliance related tasks.