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Care UK. Specialist category expertise.
Building a powerful
in-house procurement capability.
The Opportunity
In consultation with the client the ambition for the project was to design a 'To Be' procurement organisation and supporting supply chain which would:

• Maximise leverage and performance in common areas of expenditure across the organisation
• Develop a respected and capable procurement function able to support colleagues to deliver business objectives
• Ensure best practice as common practice within business units

TrueValue Strategy
We were tasked with developing and implementing a sustainable procurement function within the healthcare business. Working closely with all stakeholders we had to developed a change pathway, building understanding and adoption, all the time demonstrating the benefits of a healthy procurement function to all.
The healthcare business involves some highly specialist category knowledge. Our experts were able to look at areas like orthopaedics and opthalmics in depth and secure substantial savings in areas where the quality of supply is obviously crucial. Other categories we worked on included stationery, cleaning, procedure packs and low value distribution, including exam gloves and slippers, waste and orthopaedic cement.

Alongside the management team we built models to review current volumes, costs and activities. We then worked through a series of hypotheses to find best fit and costs, supported by commercial inputs from tenders. Business cases were detailed and final supplier selection made.


Savings of £2.7 million or 13% of spend addressed
On a spend of £16.5m we secured an annual cost base reduction of £2.7m – a saving of 13% across all categories.

TrueValue |

As well as achieving a 13% saving we were also able to develop an ongoing, sourcing strategy within the business, one that has demonstrated key benefits for all and was readily adopted and favourably viewed by stakeholders.
11
Core Categories
£2.7m
Actual Savings
13%
% Saving
"PEPCO developed a procurement program for us, working with our stakeholders to develop a sustainable procurement plan that would change procurement within the Health Care division of Care UK. PEPCO helped us to renegotiate some key contracts and to achieve some significant savings.

Their experience and knowledge about how to develop and then implement a new sourcing strategy was invaluable to us and we would highly recommend them."

Andrew Prosser, Finance Director, Care UK
Meet the team
Our core team of 18 people is supported by a number of procurement specialists and advisors in specific categories.
Whatever your sector you will have access to valuable experience and expert insight.
Find out more about TrueValue and how it could strengthen your procurement processes.
Call us on +44 (0) 20 3008 7588 or email us at
truevalue@pepcoservices.com
Find out more about TrueValue and how it could strengthen your procurement processes.
Call us on +44 (0)20 3008 7588 or email us at
truevalue@pepcoservices.com