Best approach to partnering and supply chain management

Winner

The Fusion 21 joint procurement initiative is a partnership of seven Merseyside-based housing associations and Knowsley council and was established to create a new approach to housing stock reinvestment. Over the last year it has delivered a stock reinvestment programme of 56 projects for five registered social landlords. The partnership has agreed common specifications for 22 elemental components, developed partnering relationships with 14 installer companies and 22 suppliers and achieved impressive cost savings. It has also provided construction skills training for more than 200 unemployed people and given 120 graduates permanent jobs in the industry. “It is a good example of using a consortium across rather than up and down the supply chain. The e-procurement initiative was impressive, and it is creating a lot of jobs along the way,” said the judges.

Finalists

Bowey has focused on changing its relationship with its subcontractors, introducing a series of rewards for good performance. As a result of the intiative, the company has achieved better cost control of budgets, reduced its maintenance costs and improved its delivery of homes.

Haslam Homes

Respect for people is at the heart of Haslam Homes’ strategy, which has seen its supplier base reduced from 3500 to 32 partners. The company monitors supply chain partners with a comprehensive key performance indicator system and rewards them in a variety of ways. “The company has shown true commitment in treating suppliers as equals,” said the judges.

Keegans Group

Many initiatives lining up for this award were cost-driven. The judges felt that Keegans Group’s entry came closest to Sir John Egan’s broader philosophy. “The company promoted the broader benefits of working with the supply chain,” they said. The multidisciplinary practice has won four major long-term public sector partnering projects to date in 2004, including one for the London Borough of Haringey.

Pennine Housing 2000

Housing association Pennine Housing 2000, which was founded with 12,700 former Calderdale Council properties, uses partnering to create employment and provide training opportunities in construction. It has a five-year strategic partnering arrangement with contractors Keepmoat and Lovell.

United House

United House’s strategy is delivering clear benefits. On its strategic partnership with Portsmouth council to renew central heating systems in existing homes, the company is delivering big cost savings, cutting call-backs and increasing customer satisfaction. The company won praise from the judges for looking beyond cost savings and referring to the health and safety benefits of partnership working.

Willmott Dixon

The contractor has rationalised its materials supply base from 300 companies down to 30. This has allowed the company to tap into supply chain expertise, improve predictability of project delivery and give its clients better value for money. Supplier performance is also improving, and the best suppliers are recognised in a supplier of the year awards scheme.