Building society uses procurement to deliver enhanced value for money for members

Building society uses procurement to deliver enhanced value for money for members

Building society uses procurement to deliver enhanced value for money for members

Director at Procura Consulting

 

Value for money for members

Known as ‘the friendlier face of finance’, Leek United is the UK’s 16th largest building society, based on assets of over £1 billion.

It employs around 190 staff in 12 branches and two agencies, across Cheshire, Derbyshire, Shropshire and Staffordshire, providing a full range of financial services for customers.

Leek wanted to review opportunities for savings and efficiencies across its everyday business overhead areas, with the view to creating enhanced value for money for its members. With no internal procurement function in place, Leek appointed Procura to deliver the project.

 

Scoping a programme of procurement cost reduction

Following an initial Spend Analysis and Opportunity Assessment Procura identified savings which would be delivered across a 4 month implementation programme.
15 individual sourcing projects were agreed across all spend categories - from valuation services, to head office costs, print, marketing and utilities.

 

Rapid delivery of results

Sourcing strategies included re-negotiations with suppliers, full tender processes and the utilisation of Procura indirect spend frameworks.

 

Category Results Saving
Marketing & Print 22%
Valuation Services 21%
Utilities 1.5%
Direct Mail new
Telecoms 44%
Cash Collection & Security Services 23%
Office Supplies 11%
Furniture & Fit-out 6%

 

The project has also introduced process improvements through the introduction of managed print and digital marketing services.

 

Procura have rapidly identified and delivered savings from our external spend, ensuring that we are delivering Value for Money for Members whilst fitting in with our culture; working alongside and complementing out own management team.