Four Seasons Health Care is one of the largest independent providers of care services in the United Kingdom. Its purchasing activity includes everything from food and medical sundries to temporary labour, utilities, IT, office supplies and everyday goods used in the care home environment.
The company has grown rapidly in the past ten years, largely through acquisition, but this led to a fragmented and unplanned procurement strategy. Four Seasons had a core procurement team, but much of the company’s spend was controlled by managers and stakeholders from across the wider business.
To achieve cost savings, the company needed to identify a procurement strategy based on best practice. ADR Sourcing was invited by the Group Strategy Director to look at every area of spend and provide an objective analysis of procurement performance, together with a roadmap for change that clearly identified where savings could be made, the scale of those savings, and what the priorities should be.
Through a series of interviews with stakeholders and senior managers across the business, the application of sophisticated diagnostic tools, and by preparing a complete spend analysis across 40 categories of procurement, ADR was able to give Four Seasons an objective and complete understanding of how effectively they were undertaking procurement, and where they fell short of best practice.
ADR’s report identified the size of potential opportunity savings, suggested the areas to prioritise, and provided details of the resourcing needed to achieve change.
The report identified total potential savings of 2-20 per cent, with detailed benchmarking of prices. It also included recommendations for strengthening the sourcing processes and more effective cost management, with greater devolved responsibility for the procurement team.
The company gained a rapid and objective understanding of their performance versus best practice. The management and procurement teams also benefitted from a clear roadmap for the structural and organisational changes that were needed. The report clearly identified where saving could be made, and how these could be achieved, based on real data and objective analysis.
The process also engaged a significant number of people in the business across all management levels, helping to raise the profile and importance of effective procurement within the company.
Kevin Roberts, Group Strategy Director at Four Seasons Health Care, says:
“We were very specific on the outputs that we required and selected ADR based upon their proven expertise in procurement, their pragmatic approach and the strength of their diagnostic tools. I was very impressed with their energy and professionalism and their flexible approach to the project. More importantly, however, their interpersonal skills and ability to engage effectively and sensitively with colleagues at all levels was first class. I was delighted with the output. The rigour of their analysis and the insights offered located substantial opportunities for business and profit improvement, highlighting significant opportunity costs”.
Four Seasons Healthcare
Cost savings and identifying procurement strategy
2-20% savings Opportunities for business and profit improvement