Despite believing that "a lot of contractors still think it is dog-eat-dog", West says he is convinced the industry is changing its ways. "I'm close to clients and they are demanding better standards from construction. Clients are now recognising that we can add value to the process, by getting involved early in the design stage, for example, and that all contractors are not just price-led. We have relationship manager meetings with clients to discuss new systems and innovations we can use. We look to the future with them much more; 70% of our work is now repeat business, and we have seen our business grow substantially since 1995, so this process has benefits for us too."
"The move towards partnering and supply-chain management kicked off as being client-led, but we have taken it further," he adds."We provide design and mechanical and electrical consultancy services as well as construction now, and we don't see ourselves as just a shopfitter anymore. We are a service provider."
And if Styles & Wood is not simply aiming for lowest-price tender, it can't expect its subcontractors to either. An integral part of its "journey of change" has been improving relationships with its subcontractors and suppliers.
For the last four years, Styles & Wood has been running annual supplier workshops in an attempt to move the partnering message down its supply chain. West says it is a more formal way of reviewing the contractor's relationships with its suppliers. "We informally meet our subcontractors for review all the time, but this day is a chance to set out more officially where we are and formalise our supplier coaching and measurement."
The day consists of a series of short presentations from Styles & Wood and a guest speaker, in this case Nigel Keen from the John Lewis Partnership. After lunch, an hour is put by for discussion. Three key areas were focused on: supplier selection, supplier coaching and IT, as well as overviews of Styles & Wood and supply-chain management.
Clients are now recognising that we can add value to the process, by getting involved early in the design stage, for example, and that all contractors are not just price-led
Six keys to success
Styles & Wood has identified six keys to success that form the basis of its supplier selection: service innovation, quality standards, health and safety, zero defects, early cost advantage to the client and integrated projects. Once it takes its suppliers on board, it coaches them. This involves workshops to keep subcontractor staff up to date and regular site visits and reviews, including setting key performance indicators in the six key areas.
Styles & Wood doesn't just encourage its subcontractors to improve standards; it strives to keep its own house in order too. "We were one of the first construction companies to gain Investors in People [the award presented to companies who demonstrate a commitment to their staff], and we carry out regular staff satisfaction surveys," says West. "We also carry out regular reviews with clients and subcontractors, where we encourage them to tell us where we need to improve."
The IT section was included in recognition of the growing importance of e-business in construction. West says clients are increasingly demanding that contractors use electronic project management systems, and the supply chain has to be part of that development. "We have brought in Martin Ward, who is a specialist in IT in the retail sector, as IT manager to help us develop our e-business capabilities," says West. "IT is also important for managing our supply chain. If I can see one of my supplier's workloads at the click of a button, it would be a great advantage. It's not so much about the technology itself, but what benefits it can deliver to us."
What does Styles & Wood's supply chain think of the day? Colin Hawes is a senior design engineer with Oaksmere, a refrigeration-design engineering company based in Ipswich. "The ideas expressed in the presentations were useful and we already have a good relationship with Styles & Wood, but it was nothing that radical," he says. "Partnerships have become increasingly common in the retail sector of construction over the last 10 years. We use supply-chain management in our own organisation, and it is important to realise that as suppliers, we have our own supply chains too. Supply-chain management is a good idea, but it has to be fully embraced throughout the entire supply chain."
Suppliers' views
Ian Taylor is the managing director of Andrews, a Leeds-based tiling company that has been working with Styles & Wood since the contractor was formed in 1966. He has attended many supplier days put on by contractors such as Pearce Retail and clients such as ASDA. He agrees with Colin Hawes that the concepts on show were nothing new.
Source
Construction Manager
