SUCCESS STORY
Over 14% savings from sourcing optimisation
- One of the UK’s largest care providers, with over 200 care homes providing in excess of 12,000 beds.
OUR IMPACT
A critical success factor of this project was the achievement of savings whilst not reducing quality and service standards – particularly important in the care sector. Categories such as furniture, beds and mattresses demonstrated that quality standards could actually be improved through this process.
Working as one team allowed us to thoroughly understand the requirements of each area and ensure our engagement with incumbent and potential suppliers was fully tailored to the needs of Barchester.
The programme delivered, on average, over 14% savings, with notable achievements in Energy, Hygiene Consumables and Temporary Recruitment, the latter seeing a 60% reduction in the number of suppliers with a more auditable and efficient neutral vendor system deployed.
Aside from savings many of the categories were left with a far more efficient supply chain and market leading enhancements in the IT processes/disciplines by which they were managed.
THE Business challenge
Our Approach
Procure4 undertook an initial full review of all spend within the organisation and identified 28 categories which would deliver a significant saving and supply chain optimisation.
These opportunities were split and prioritised in line with their strategic importance, size of the saving and impact on operations. This allowed for a number of areas to deliver savings quickly in the 18-month programme.
More strategic areas planned to allow major changes to specification and supplier or operational processes to be carefully managed into the business.
One of the critical success factors was the establishment of strong governance and excellent relationships with the key category stakeholders.
I’ve used procurement service providers on a number of occasions and I can honestly say that Procure4 are first amongst equals. The team have responded to the challenge very quickly and engaged with our stakeholders across our business. I’m delighted with the performance of Procure4 and can strongly recommend them.