CASESTUDY
SRMTECHNOLOGYEASES ACCEPTANCEOFNEWPROCESSES But to continue to save the business money requires procurement to maintain the focus and continuously reiterate messages, says Cockburn. “We are working alongside management just to be that voice on the shoulder to remind them about executive reviews and relationship management plans. We are making sure that the discipline is in place. It is a bit of a nag, but they get it and are happy that they are involved rather than procurement running it without them,” she adds. The technology is helping to get stakeholders on board with SRM, says Cockburn. “The software was easy to get up and running. It is helping procurement show how to manage the key suppliers and in the future we will make more use of it and give it much more life.” Cockburn says there is much more to come. Procurement will continue to reiterate its message and the business will continue to manage supplier relationships to create future savings and broader value. For an organisation that met its savings target a year early, it shows Ladbrokes understands the value of a long-term commitment to SRM.
“We learned a lot about how suppliers see us and we were sometimes surprised by the response. For example, we thought our decision-making process was pretty good, but they did not,” says Cockburn. COMMITMENTTOCOMMUNICATIONS The new approach to SRM has been well received by suppliers, she says. “It demonstrates that we are committed to the relationship and to communication. We’ve run two supplier events where the executive presented the business case and plan for SRM. We’re showing we’re investing time and money in talking to them and that we’re willing to do it on a regular basis.” Some examples of early tangible benefits for Ladbrokes started to flow. It was immediately able to save money. It saved on energy costs by converting to LED lighting across its estate, working with its facilities management supplier Mitie through a new deal. It also employed brokers to buy electricity at a low point in the market. Other deals include commodity purchases such as mobile telecoms. While Ladbrokes took 30% out of these costs by a competitive tender, a more collaborative approach with incumbent suppliers enables them to renegotiate deals without going to tender, achieving a £142,000 spend rebate with its main print provider by awarding it more business. A similar £300,000 rebate came from its main IT services supplier by contracting helpdesk services to the vendor. Someexamplesof early tangiblebenefits for Ladbrokesstarted to flow. Itwas immediately able tosavemoney. It savedonenergycostsby converting toLEDlighting across itsestate...
We are working alongside management just to be that voice on the shoulder to remind them about executive reviews and relationship management plans. We are making sure that the discipline is in place. It is a bit of a nag, but they get it and are happy that they are involved rather than procurement running it without them.” Liz Cockburn Head of procurement
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