Strategic procurement built-in for Bovis Homes Group plc

Bovis Homes Group plc (Bovis) are a FTSE 250 listed housebuilder with a turnover of £1.1bn per annum. Operating nationwide, the company segregates its UK activity by geographical region, each with its own regional office. Having acted for Persimmon Homes since 2012, Auditel have a strong reputation in the construction industry.

When a leading building materials supplier recommended their services, Bovis’ Head of Group Procurement, Nigel Tompsett, quickly recognised the benefits that an expert third party could bring to the table. Three years on, Auditel have become trusted partners and continue to provide strategic procurement whilst delivering key market insight for the benefit of Bovis and its stakeholders.

In order to remain agile, competitive and efficient, Bovis has a lean procurement team across the group. The appointment of Auditel – in the guise of David Kendall and his team – was designed to bolster resource and leverage their significant combined knowledge. David himself has considerable expertise in the construction sector having formally been Group Finance Controller for Saint-Gobain, the world’s largest manufacturer and distributor of building materials. Auditel now integrate seamlessly into Bovis’ team, running strategic procurement processes which are rarely, if ever, applied internally on areas of indirect costs in similar organisations.

“I always appreciate the fact that Auditel are on top of their work, I never have to chase. Their reporting is concise, accurate and provides me with valuable data to monitor group spends and activity,” says Nigel. “I value that I can bounce pricing, contracts or tariff structures off Auditel and gain feedback against the construction industry. Because Auditel manage similar costs for many of our competitors in the market, they can test our profile far easier than we could. How else would I be able to access this intelligence? I am safe in the knowledge that our indirect costs and supplier relationships are being managed and controlled very effectively and ethically at all times.”

Since 2016, David and his fellow Auditel specialists, Polly Lawrence and Elaine Kennard, have reviewed a broad range of cost centres and delivered hundreds of thousands of pounds combined annual savings. Crucial to note, their results in both costs savings and efficiency gains have not been the result of pressuring suppliers into reducing costs. Auditel firmly believe that preserving goodwill and fostering mutually beneficial supplier relationships is key to an ethical and effective procurement project.

Successful outcomes have been achieved by implementing a granular level of control and insightful management of the systems and processes throughout each cost centre. In addition, Auditel has been instrumental in developing company-wide policies and standards to improve consistency and efficiency across the Group. David and his team now act as a secure link between suppliers and Bovis Head Office; costs are closely monitored, and contracts optimised, where possible, to meet the ongoing needs of the business.

As a testament to the success of projects to date and the value placed in the relationship, Bovis continue to retain the services of David and his team at Auditel. In addition, Head of Group Procurement, Nigel Tompsett, continues to recommend and introduce Auditel to his counterparts at other top-tier construction companies.