Keepmoat Group is using an e-procurement system to reduce its supply chain costs by up to 30 per cent. The eSourcing platform from BravoSolution has already cut £600,000 from the community regeneration provider’s £40 million sub-contractor costs.
With 2,800 staff and an annual turnover of £570 million, Keepmoat is one of the largest providers of community regeneration services to the UK public sector, comprising Keepmoat Homes, Bramall Construction and Frank Haslam Milan. David Hughes, efficiency director, Keepmoat, explained, “One of the key aspects of working with the public sector is that we must demonstrate ‘best value’ on each aspect of a project to ultimately ensure that everything that we procure is the optimal choice.”
To ensure that it could demonstrate best value and procurement efficiency, Keepmoat decided to implement e-procurement, choosing BravoSolution’s eSourcing platform. This has resulted in cost reductions of up to 30 per cent in the procurement of commodities such as kitchen units, doors and other materials.
In February 2010, the e-procurement system was deployed to subcontractors. Hughes said, “Since then we have e-procured approximately £40 million worth of subcontract value with an average saving of 15 per cent.”
The system has also been used to deliver a double-digit reduction in Keepmoat’s £2 million annual insurance premiums as well as making it easier and faster to source temporary staff and on-site labourers by removing the need to call each agency individually.