Our client is one of the oldest and largest youth charities in the world.
In England and Wales alone, the charity supports 228,000 young people every year, focussing on 5 main areas, Support & Advice, Accommodation, Family Work, Health & Wellbeing and Training and Education.
We were approached by the charity as they required procurement support to review several areas within their supply chain as they did not believe they were receiving the optimum service or value from these areas, however, a lack of experienced procurement resource to tackle the issues were absent from their organisation. In this case, we look at the challenges surrounding their property maintenance and compliance spend.
The need for good procurement practices within charitable organisations is obvious. There is an obligation to those who support the charity, through their donations, to ensure their funds are put to best use, but most importantly to those they serve, ensuring they can reach out as wide as possible and guarantee the best care and support is made available. Our client’s property estate had grown considerably over the years, outgrowing their existing trade supply chain. Reactive repairs were being failed, and our client did not have the confidence that compliance checks were being managed to a standard they required. Our strategy was to engage with leading national and regional building maintenance organisations by way of a competitive tender process.
When undertaking a review in this area, caution must always be made in the selection of tender participants. As an industry, subcontracting is standard and many providers purport to possess a whole-of-UK coverage, but in fact, possess a much smaller catchment area. Further, given the nature of our client’s business, we needed to ensure that tender participants held sufficient experience and accreditation in working in environments that house adults with complex care needs or vulnerabilities.
As such, a huge amount of up-front due diligence and ‘pre-qualification’ was applied to participants. Due diligence was conducted on matters such as employee and subcontractor vetting, supply chain management, well before the tender itself was issued. Thereafter, our sourcing methodology was brought to bear in undertaking the tender itself.
A two-stage affair; respondents were tasked with both a written proposal and a face to face presentation thereafter, addressing all key facets of their service, to ensure our client could make an informed decision.
Our client saw a fundamental change in their property maintenance supply chain. Moving away from a disaggregated and ‘per trade’ purchasing approach, our client adopted a consolidated and single-source supply chain in adopting our proposed strategy. This saw a lead contractor take on all responsibility for reactive and planned maintenance services, along with minor works refurbishments.
- Costs and rates were now clear, unambiguous and under control.
- Our client now benefited from clear management information; maintenance schedules and the type of information to give them confidence that their obligations to their service users were being met.
- Most importantly, our client now had a partner that possesses the capability to scale up as our client’s operations grow.