The client was a large retailer who wanted to review their building refurbishment spend and challenge their current strategy in sourcing this requirement.
The client had informal agreements in place with 8 contractors and each requirement was quoted on a job-by-job basis.
This process was both time intensive for the client and the contractors and it was clearly inefficient in terms of quickly delivering the solutions for the internal customers.
Scope – Building refurbishment & repairs
- Fabric work
- Floor coverings
We worked with the client to understand their refurbishment programme, timescales their current challenges in the area.
Our strategy was to address the total cost of ownership, by removing the tactical approach to site-by-site quotations by forming a preferred supplier list, utilising set rates for high-volume and ‘non bespoke’ jobs.
We managed a robust tender process for the client which included the development of the tender document, the facilitation of short list presentations, the award to the suppliers and the creation of the contract.
The strategy allowed for branches to be tendered by region which gave significant economies of scales benefit whilst removing many internal process costs.
In doing so, formal agreements were formed with a preferred supplier list of building fit-out contractors, who had extensive experience of refurbishments in a retail environment.
The client saw cost savings in the region of 12% through direct price savings; a more committed supplier base; and a simplified quote-to-order process.
- Fixed prices for key components of the work and much more cost transparency.
- Significant improvement in terms of the delivery timescales on the refurbishments.
- Much improved communication, collaboration and quality of output from the contractors due to increased commitment from the client.
- 12% cost saving due to buying on a regional basis.