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Radian Homes Improves Procurement Performance

Radian was formed following a merger in 2006 and currently provides over 21,000 affordable homes across Berkshire, Buckinghamshire, Dorset, Hampshire, Isle of Wight, Surrey, Sussex and Wiltshire. 

The business had a small procurement team with a significant work plan aimed at driving savings, improving efficiency, mitigating supplier risks and driving compliance. With a small team the work plan was not achievable given the volume of activity required.

PfH provided an outsourced solution that ensured timely delivery of a range of procurement projects across a number of category areas, whilst driving increased value, quality and compliance beyond that possible with the existing internal resource.

The initial focus of the project was the re-procurement of the goods, services and works, capturing savings, social value and process efficiencies as well as mitigating business risk through increased compliance.

The delivery model proposed by PfH looked to offset the direct cost to Radian by applying a rebate structure to all new contracts placed under the agreement.

The solution has provided increased capacity and capability to the Radian procurement team. Through increasing the level of procurement capacity Radian were able to benefit from the savings and added value secured through each respective sourcing project in an accelerated timeframe.

Operating model

  • A dedicated on-site PfH procurement team.
  • A Client Contract Manager.
  • Procurement support from PfH’s central operations team in Warrington.
  • Access to PfH’s category expertise and associate network.
  • Access to PfH’s technology and reporting platforms.

Results to date

  • 19 sourcing projects across indirect categories of spend.
  • £6.3m spend under management.
  • Average of 10.4% cashable saving.
  • £152,000 sourcing efficiency savings.
  • Return on Investment of 9.18 times.
  • Invoice consolidation through centralised billing.
  • Robust supplier and contract management to retain savings across multiple years.
  • Capture of social value and local employment through tendering exercises.
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