Indirect Spend Procurement

The key objective has been to put in place group wide contracts which are easy to use, provide the breadth and scope to support operations, whilst achieving the service levels required of the business and deliver a reduction of costs.

Key achievements include:

• Recruitment – Through a RPO and preferred Vendor arrangements savings of over £1.6 Million PA on a £6Million spend were delivered whilst still retaining quality ‘routes to market’ plus improvements in the request to start date times. This was also a key element (as part of a wider initiative) in delivering significant reductions in staff turnover.

• Cleaning and Catering – Improvements were made over a 12month period which delivered better service, an overall improvement in customer and end user satisfaction plus a 12% saving on spend.

• Mobile phone – A 16% reduction in costs was achieved in the first year together with the introduction of service level agreements, operational support which was supported by improved and relevant management data.

• Stationery – 25% reductions in spend were achieved through the introduction of a focus on cost per head which enabled specific areas to be measured taking account of their specific needs and cost drivers.

• Managed print services – A 15% reduction in cost was delivered by introducing a single print ordering portal which directs requirements to a variety of providers (in house and external) plus significant service level improvements

• Office printing – Costs were reduced by 7% through the introduction of reliable MFDs which matched the business needs and provided operational support and management data to enable further cost reductions and service improvements

• Corporate gifts – Costs were reduced by 10% and the quality and brand match of gifts improved. Reduced lead times and improved controls on the corporate image were also delivered.

• Couriers – A 21% saving and improved service was achieved

• Furniture – A 31% saving, improved lead time, compliant corporate image and inter-changeability was delivered.

• Security – A 6% reduction in cost and improved service was achieved

• Waste management – Costs were reduced by 21% and environmental achieved

• Telecommunications, landlines and infrastructure – Savings of 15% were delivered through the removal of lines, price reduction and improved service.

• Utilities – Water consumption was reduced by over 50% through the introduction of zone metering and gas and electricity cost reduced by 9% through negotiating group contracts

• IT Consumables – A 15% reduction in cost was achieved through lower prices and approval controls

• IT, Hardware, software and support – A 14% reduction in costs through competition and separation of corporate and educational supplies

• Work wear – A 17% saving through consolidation of providers, consistent practices and competition

• Lease Cars – The cost was reduced by 16% PA through competition, improved vehicle management, reduced emissions, improved staff retention and a commitment to deliver ongoing cost saving

• Various – other areas have been delivered including Hotels, Travel, Plant hire, Hire cars, Publications with a combined price reduction of £3m .