Step 3 – Procurement and Supply Chain
In the third instalment of our vital ingredients is Procurement and Supply Chain.
A successful internal repairs and maintenance service is truly cross functional and should benefit all areas of the business. When considering options for service delivery, we believe it represents an ideal opportunity to review all elements of service delivery, and a brilliant chance to engage your tenants and to agree what the service standards should be. You can redefine how you work, benefiting from seeing what others are doing and what best practice looks like. Take time to review how change will impact on each of these key ingredients and you can embed sustainable change and a successful internal R&M service.
- Whilst the skills core required for managing a DLO – people management – will become a more significant requirement if you move from an external contractor model, there will still be a need to effectively design, procure and contract manage your supply chain.
- Before you commence a traditional procurement process, consider more innovative approaches to procurement. For example do you understand the supply chain offerings in full and can you design something that works specific to your footprint and service requirements?
- You will probably be aware of the many procurement routes available including frameworks. However how will you determine which is the right option? Many organisations tend to select one through convenience or habit rather than undertaking a procurement feasibility exercise.
- You will no doubt require subcontractors as part of your supply chain, so ensure that you understand what they will be needed for and when. For example are they needed for specialist area or to top up capacity? What percentage of your work content would you expect to be through subcontractors? This is an area which is often neglected during an in-sourcing exercise but is a vital component from a service and risk perspective.
- Make sure that you consider all options for fleet including specification of the right vehicles. Many DLOs purchase or lease the wrong type of vehicles for some trades and end up regretting their decision. Consider too the buy versus lease evaluation, and undertake a robust appraisal of racking solutions.
Brought to you by Vantage Business Solutions. Vantage have supported a range of housing providers in reviewing their options and helping them to implement the best model for them via ready-made blue prints and tried and tested tools for success.