The combination of government spending cuts and private property sector difficulties has seriously damaged the financial stability of many construction companies and not even the largest companies have escaped the downturn (e.g. the demise of Connaught and Rok). This in turn has increased supply chain risks to housing associations and means that it is all the more crucial that they review their procurement and supply chains to ensure that costs are reduced and supply chain risks understood and managed effecftively. The BSA is well placed to support this challenge.
Click on the PDF icon to download BSA's summary of benefits for Housing Associations:
Click on the PDF icon to download BSA's Briefing Paper:
Below are two procurement support case studies:
Case Study no.1
How do you go from a critical Short Notice Inspection to a £400k improvement and a 'value for money' culture?
It was a critical Short Notice Inspection report by the Audit Commission on behalf of the housing regulator in 2010 that started Severn Vale Housing Society (SVHS) on a journey that resulted in not only cost savings due to implementation of the recommendations of a review of procurement but improvements in cultural and community relationships too.
Tim Knight, Finance Director of SVHS explains: "Nobody likes negative feedback, but we took the regulator's findings on board and decided to not only meet the required standards, but try to exceed them and develop a roadmap for future improvements. The bigger challenge was that we didn't have the skills or experience within SVHS to do this alone."
Click here for full case study text...
Case Study no.2
We've recently conducted a thorough procurement audit at one of the largest housing associations in the UK. We were subsequently asked by the client to manage its procurement function - this has included cost reduction, contract management and capability development. Our work has provided the client with:
- a procurement strategy;
- a greater understanding of supply spends, who the suppliers are, and how they're being utilised;
- reassurance that the significant weaknesses previously highlighted in the management of contracts are being addressed;
- support in the re-tendering of higher value/risk contracts;
- internal efficiency gains identified and actioned;
- a reduced exposure to supply chain risks;
- major cost savings across a range of overhead costs;
- purchasing skills training;
- a more streamlined set of internal procurement processes.
If you have concerns that your own Housing Association's procurement capabilities may have weaknesses or have other related concerns (e.g. governance and compliance issues, supplier performance, cost or cash flow challenges) and would value some independent expert advice and support, then please call us on 0800 254 0344.