The Challenge

Procure4 was commissioned to undertake a strategic review of the procurement capabilities of Derby Homes Ltd. This included a full spend analysis across a number of categories such as stationery, property maintenance, insurance, energy, uniforms, ICT and grounds maintenance.

The Approach

Using EFQM principles, Derby Homes was benchmarked against a framework of best practice to identify an organisational SWOT. From this a set of procurement principles were aligned with the strategic direction of the business.

These were then used to design the optimal procurement function making recommendations relating to all aspects of the internal service function including people, process and governance.

Procure4 devised an implementation plan. This included the development of a Procurement Handbook/Intranet Site to support the training of the newly appointed Category Managers and specialist procurement project managers.

In conjunction with the transformed procurement function, a full spend analysis was undertaken. This identified thresholds for new procurement processes and key categories where best practice management techniques could be implemented.

The Results

Procure4 identified opportunities across 50% of G&SnfR spend and delivered >10% cost reductions across 8 categories including branch consumables, print, food service, buildings & maintenance and telecoms. The delivery phase was completed in 8 months, with over £2m annualised spend removed from budgets for 2009.