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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- 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.
- 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.
- 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.