The Challenges Faced
by the Balfour Beatty recruitment team
- Complex corporate structure with an inconsistent hiring process
- Strong legacy relationships hindering supplier development
- Large list of suppliers with variable fees, terms, and service quality
- High administrative burden with multiple supplier invoices and limited reported capability
- Lack of visibility with the incumbent supply chain
- No realtime compliance processes
The Advantage Solutions
- We introduced a mandatory, company-wide VMS
- We also standardised the engagement and authorisation process whilst providing comprehensive MI
- We rationalised the PSL creating a structured tier system, and also renegotiated fees and implemented new SLAs, reducing margins and rebates
- Purchased order systems introduced to ensure all payments are allocated to the correct department and budget
- Pre-invoice reports provided to reduce the volume of invoice queries/errors and the amount of time taken to resolve them
- We introduced PSL best practice standards and supplier audits
The Results
- More efficient recruiting behaviours and the virtual eradication of rogue hiring
- Number of suppliers reduced by 40%
- Estimated savings of £2.5m in one year
- Regained control of spend
- Greater transparency of costs and improved cost recovery
- A 92% fully-compliant supplier based with documented remedial actions and re-audits for points of failure
