11 October 2012 | CIPS SM Awards 2012
Best supplier relationship management
Tarmac turned to Brammer when it needed a partner that would change the way it sourced spares and services – a relationship that led to significant savings and efficiencies
As the UK’s largest quarrying company and supplier of construction materials, Tarmac has been involved in some of the nation’s biggest building projects, most recently the London 2012 Olympic Games.
When the company embarked on a national maintenance strategy in 2009, it soon became clear that the consistent and standardised approach it was planning could not be supported by its fragmented plant-critical spares and services supply base.
Annual spend in this area was £4.6 million, which included more than 480 suppliers across more than 400 sites, each with varying quality, cost and service performance. The company needed a partner that would change the way it sourced spares and services.
A detailed RFI/RFQ process identified Brammer, a distributor of industrial maintenance, repair and overhaul products and services, as having the supply chain and technical capability to drive this change. The company had also achieved CIPS certification and was committed to continuous improvement.
The collaborative nature of the relationship enabled Tarmac to develop a strategic partnership with Brammer. Both parties focused on developing and sharing best practice to increase shareholder value. Every operating site across Tarmac and all of Brammer’s 98 UK branches were involved.
In phase one (August 2009-March 2010), Tarmac and Brammer held joint workshops to explain the benefits and deliverables and agree a tailored implementation plan. In phase two (January 2010-December 2011), opportunities resulting from compliance were identified, using data analysis and by tracking monthly progress. In the third phase, which is ongoing, it developed from the simple supply of products to full service support and improvements delivered against clearly defined guidelines.
Both parties recognised the need to establish relationships between functions. Their procurement teams worked together and Tarmac met with Brammer customers to share experiences to drive best practice. Key stakeholders from Tarmac and Brammer now played a critical role in the success of the project.
The benefits were numerous. Tarmac recorded a total saving of £1.29 million and the supply base rationalised from using 482 suppliers to having more than 75 per cent of the maintenance spend through Brammer. Paper transactions were reduced by 80 per cent and management information now includes full monthly reports by Brammer that show savings data, critical spares consignment stocks and vendor-managed inventories.