Commercial Improvement Plan

Developing and delivering a Commercial Improvement Plan for a housing client and outlining a roadmap to implement the Plan for the next 18 months.

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The Problem

  • During an existing engagement with the client on a Change Programme to drive benefits from the implementation of a new Enterprise Resource Planning (ERP) system, numerous opportunities were identified to drive savings through more co-ordinated working.
  • A need for a Commercial Improvement Plan to coordinate and implement change projects was identified.

The Solution

  • We engaged a wide range of stakeholders at all levels, to provide a robust case for a Commercial Improvement Plan beyond the capabilities of the incumbent Procurement team.
  • The 4C team co-ordinated a range of prioritised cost reduction activities into a Commercial Improvement Plan.
  • To start, we conducted a risk review, highlighting areas of non-compliance and seeking legal advice to avert legal breaches in ongoing procurement activity.
  • Consequently we gathered and cleansed data, carrying out a comprehensive spend analysis.
  • Based on data, we developed category procurement strategies and co-ordinated these into a prioritised workplan, including resourcing.
  • We conducted site visits to view the warehouses and talked to operatives to develop an inventory strategy.
  • Whilst developing the Commercial Improvement Plan, several urgent re-contracting requirements were identified and we supported the client with compliant competitive tender processes to deliver these quick wins in parallel with developing the Plan.

The Impact

  • A fully developed Commercial Improvement Plan drawing a clear roadmap for 18 months’ activity was presented to the Project Sponsor.
  • A total of £1.6m savings were identified in the first year of the Plan, with an accumulative saving of £8.8m within three years, enabling better resident services and housing improvements.
  • The Commercial Improvement Programme development increased stakeholder engagement, improved governance and stablished lines of communication.