Midland Heart – Transforming contracts to make significant savings

Vantage transformed the way Midland Heart delivered gas maintenance services to their 21,000 customers. With an aim of driving value for money in gas repairs, servicing and installations, Midland Heart commissioned Vantage  to undertake a commercial review of the gas contract.  As part of the project, Vantage analysed the contracts, identified the issues and implemented a joint delivery project to drive savings and embed improvements. This involved embedding innovative new approaches to both procurement and contract management.

We were able to support Midland Heart on the options appraisal, re-design of the supply chain and implementing a new approach that would allow them to make the necessary savings needed, whilst also delivering a significant investment programme of boilers to customers, being fully compliant and maintaining high levels of customer satisfaction.

By investing in mentoring and coaching their current staff teams, Midland Heart have up-skilled their workforce enabling them to achieve sustainable change for the future.

Key stages in Midland Heart:

  • Options appraisal to review possible routes and approaches
  • Re-design of the supply chain
  • Mentoring and coaching staff teams
  • Reviewed specifications
  • Challenged and negotiated commercial price models

Since the implementation of the new contract and the delivery of the improved service, Midland Hearts tenant satisfaction survey results went through the roof.  In terms of tangible benefits, tenants have seen new, more energy efficient boilers installed, resulting in lower energy bills, and a reduced carbon foot print.

Compliancy performance is 100%

Given the stability of the contract and the KPI performance (16 out of 16 KPIs are consistently being met), the client and contractor are now focusing on the wider customer experience.

“Terminating the old and outdated contracts and re-tendering for the service has allowed us to procure a model that is a far better fit for our current business needs. These are very significant savings that will represent a total of £30 million across the lifetime of the ten year contract – savings that we can invest back into our homes and communities.” Carl Larter, Executive Director of Assets, Midland Heart.