Delivering more with less: improving procurement processes across the housing supply chain
This month we are attending the Homes Event in London where we will discuss how partnership working with Travis Perkins has boosted successful contract and supply chain management for Property Care, our Direct Labour Organisation (DLO).
The 1% rent cut has meant that driving cost savings is now firmly embedded in organisations across the sector. Extracting and embedding value across the supply chain is crucial if savings are going to be realised.
Our partnership with Travis Perkins has provided:
- Dynamic Procurement System (DPS)
- Travis Perkins provide an automated stock solution
- Replenishment processes that enable minimum downtime and loss of productivity
- Clear results “Right First Time” approach and operative efficiencies
Greg Lakin, our Director of Property Care will be presenting with Wayne Powell, Regional Manager, Travis Perkins at the Homes event on Wednesday 16 November 2016.
Property Care timeline
2013 – Midland Heart Piloted 3000 units via In-house team
• Cashable efficiencies £200k
• Improved Customer Satisfaction
2014 – 2015 Midland Heart – Launched Property Care to undertake repairs and voids to 11,600 units Central Birmingham
• Target Savings £4M over 10 years compared to the incumbent contractor
• 12% Increase in First Time Fix
• 37% increase in Productivity
• Customer satisfaction with repairs 92%
• £500k savings (Year 1)
• 20% reduction in overheads
• Sickness absence dramatically reduced
• Workforce skills gap assessment undertaken
• Reviewed Procurement Strategy
• Cultural transformation
2016 – Further expansion into the Midlands North Region
The expanded area runs from Stoke on Trent, Cannock Chase through to Dudley. In terms of general needs (GN) stock Property Care’s market share will increase by 52% from its Birmingham base of 11,613 by 6160 to a combined operating total of 17,773 units.
Clear expectations of £5m savings over a 10 year period with further operational and procurement efficiencies.