COMMERCIAL IMPROVEMENT PLAN

 

THE CHALLENGE

Whilst supporting a Housing Sector Client with a Change Programme to drive benefits from the implementation of a new ERP system, MCP2 identified numerous opportunities to drive savings through more co-ordinated working and were invited to develop, and deliver, a Commercial Improvement Plan. MCP2 engaged a wide range of stakeholders, including senior leaders, to provide a robust case for a Commercial Improvement Plan beyond the capabilities of the incumbent Procurement team.

 

THE SOLUTION

MCP2 built on the relationships started by engagement through the Change Programme and were welcomed by stakeholders who had not historically engaged with Procurement, to lead the organisation co-ordinating a range of prioritised cost reduction activities into a Commercial Improvement Plan. Activities included:  

  • a risk review, highlighting areas of non-compliance Gathered and cleansed data, carrying out a comprehensive spend analysis.
  • a contract review.
  • Benchmarking.
  • Developing a prioritised workplan ratified by stakeholders.
  • Developing an inventory strategy.
  • Organisaitonal redesign.

 

IMPACT & OUTCOMES

MCP2 presented the Project Sponsor with a fully developed Commercial Improvement Plan drawing a clear roadmap for 18 months’ activity defining the required resourcing to deliver benefits and savings. A total of £1.6m savings have been identified in Year 1 of the plan, with an accumulative saving of £8.8m within 3 years.