Analysing housing sector procurement spend at Watford Community Housing Trust

The challenge

Because they put tenants and community empowerment at the heart of everything they do, considering Value for Money is integral to every plan made by Watford Community Housing Trust (the Trust), every project they plan and every contract they procure.

The Trust needed better information on spend to identify future procurement opportunities to help them improve their efficiency. Understanding where procurement could focus its resource helped the Trust achieve its corporate objective of 'Excellent Services'.

The results

  • A high level review of spend together with analysis of potential risk areas and suggested resolutions
  • A category based approach to spend to provide management information on teams, suppliers and exposure
  • Production of a contracts register for the future management of procurement
  • Contract management has been reviewed at a high level, as part of the risk analysis process, and incorporated in the hierarchy of procurement priorities
  • Production of a proposed five year procurement programme to enable a culture of planned rather than reactive procurement

What we did

We worked with the Trust and undertook a high level analysis on three years spend data.  We converted this into a high level Category Management format. The key was to breakdown spend into strategic groups of similar or related products or services to fully leverage procurement opportunities.  

We then created a contracts register based on category management information and undertook a risk analysis on spend areas and produced to develop a draft five year procurement programme.

In their own words...

“Service Matters used their knowledge of spend analysis to support our procurement resource create a 5 year programme of reviews based on risk and potential savings.  This supports our value for money objectives and gives us more time to plan effective procurement solutions.”

“Service Matters were knowledgeable and professional and the outcomes of their work were well presented.”