Fifteen years ago the first frameworks redefined the nature of procurement, protecting and promoting the interests of housing associations and helping them realise savings and efficiencies through collaboration. But that was just the beginning: procurement has now entered another stage in its development.
In the transactional era there were suppliers and buyers. That relationship was about cutting prices and delivering goods and services to a given specification. So far so good, but not good enough.
I defy any procurement lead in the world to think they can extract long-term value from a relationship which is purely transactional. There is only so far you can go with cost cutting before you end up with the wrong supplier, delivering goods and services that aren’t up to scratch and increasing the potential for a ‘them and us’ situation that sours and breaks. It is far better to build trust, share goals and work together to deliver those goals.
If I were to give housing associations one piece of advice it would be to drop the term ‘supplier’ and think about organisations such as Banner, which delivers managed services to central and local government as well as housing associations, as procurement partners. Why? Because partners are invested in your organisation; they understand your aims and objectives and work with you to achieve them; they are accountable for their actions and seek to deliver efficiencies by helping you to lower your direct and indirect costs.
Clearly, it’s easier to do this when you aggregate supply and develop a strategic relationship with a partner who understands your procurement objectives and who delivers your initiatives and innovations as well as dropping a box of goods at your door. It is much more difficult when you are managing multiple suppliers who aren’t invested and have a focus on unit price that doesn’t seek to expand the procurement relationship.
Through lot 2 of PfH’s Office Solutions framework, you can access Banner’s Managed Service Solution. This allows you to purchase your office stationary items alongside promotional material, cleaning & hygiene products, technology and more from one credible market expert.
With the support of PfH and Banner, this lot of the framework allows you to plan ahead and develop core arrangements relevant to your purchasing patterns. This will immediately ensure tight cost management and forecasting of this area of spend over a number of years.
Instead of replacing your old framework with a new version of the same thing, challenge it to do better. Think about how procurement can help you achieve your aims. Work with your procurement partner to develop a delivery plan with specific, measurable efficiency goals to which they can be held to account. Build change options into your contracts so that they flex and adapt with you and remain resilient, whatever the economic and political weather. Knit your social impact objectives into your contracts. Maintain an ongoing dialogue within the context of an open, trusting two-way relationship. Suppliers can only help so much, partners are with you all the way.
Adrian Sewell is business development manager for Banner which specialises in providing products and services to the public sector and is a sole supplier on Lot 2 of PfH’s Office Solutions Framework. For more information visit http://www.bbanner.co.uk/Home/
The current Office Solutions Framework runs until 31 June 2021. Details of the framework are available from our website or contact Nadeen Roe on 01925 282 375.
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