Independent Living Group
Independent Living Group are now part of Voyage Care.
Impressive savings for Independent Living Group
With more than 40 homes to oversee and no universal supplier list, ILG’s finance director was keen to introduce a central purchasing system. He therefore enlisted the help of Expense Reduction Analysts, the UK’s largest cost and purchase management consultancy.
“Each of our residential homes is encouraged to operate independently so, naturally, they were buying from a lot of different sources on an ad-hoc basis,” explains ILG Finance Manager Neil Donaldson. “In fact, a large amount of day-to-day supplies were purchased on shopping trips to the local supermarkets. While this helps to encourage independent living, it’s not cost-effective.”
ILG’s cost review focused on stationery, cleaning materials and non-clinical consumables and began with an assessment of how procurement had previously worked.
Expense Reduction Analysts managed the review, with Steve Parrott focused on cleaning materials and non-clinical consumables and Nigel Richards looked at stationery.
“As a result of the review, ILG now has a centrally coordinated procurement process, where each home’s requirements are purchased from an agreed list of suppliers,” explained Steve.
“The aim of this approach is that 80 per cent of supplies are purchased from the individual supplier’s tailored core product list. Every supplier on the list has a solid understanding of ILG’s diverse requirements and needs, for example, any cleaning fluid purchased has to be safe for consumption in the event of accidental ingestion.”
This way, home managers maintain a degree of flexibility and are able to use the petty cash system, for example, for some of their supplies. This also fosters the company’s emphasis on independent living as each home is able to purchase some supplies directly from their local area.
“To an extent, the cost management review has resulted in a change in the company’s culture. When it comes to procurement, our homes no longer operate in their own bubble,” explains Neil.
In terms of results, the cost review resulted in an annual saving of 32% for stationery and 24% for cleaning materials, including non-clinical consumables.
SUMMARY OF SAVINGS
- Stationery: 32%
- Cleaning Materials: 24%
“To an extent, the cost management review has resulted in a change in the company’s culture. When it comes to procurement, our homes no longer operate in their own bubble.”