Background:

ADR was selected by the Head of Purchasing at Carillion (formerly Tarmac) to design and deliver a Development Initiative. The initiative was to be rolled out throughout Carillion, Construction & Engineering, Building Materials, Crown House Engineering and Carillion Services.

Aims:

The aim of the programme was to introduce the concept of category management and build category management teams who would develop and implement effective source plans.

Project:

Elements of the project included an initial series of workshops, the development and acceptance of a review process for source plans and the successful piloting of that process through two category teams. These elements were already in place when the program was disrupted by the demerger of the two halves of Tarmac.

At that point, ADR became involved in redesigning the structure of the newly created Carillion purchasing operation and developing a series of A5 guides to embed the new ways of thinking at all levels within the organization.

In addition, whilst Carillion Services' new purchasing team was being created, ADR was requested to provide hands-on supplier management support. The requirement was for quick win savings.

Action learning and coaching continues for members of the category teams who are developing and implementing source plans.

Results:

Savings were achieved in all areas and cost reduction objectives were amply met when substantial savings were delivered in just five months.

The value to Carillion of this program is demonstrated by the fact that ADR concepts and materials form the core strategy of its 'Category Management Handbook' and that Carillion's supply management competence has now sibecome seen as a "bid winning" capability.