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    Strategic Procurement Review for a Private Landlord Managing c2,500 Homes

    The client a private landlord, a build to rent developer and regeneration specialist with a portfolio of 2,500 residential properties sought to streamline procurement processes for new builds, refurbishments, and maintenance. The client engaged with HCG to enhance cost efficiency, standardise product specifications, and integrate an enhanced rebate system. Additionally, a tenant portal was required for enhanced marketing & tenant retention including managing insurance, WiFi, cable TV, Utilities and other essential services.

    CHALLENGES

    Challenges

    • 01. Cost Efficiency & Bulk Purchasing:

      Ensuring economies of scale for procurement across new builds, refurbishments, and maintenance.

    • 02. Product Standardisation:

      Implementing standardised materials and components to reduce costs improve ease of maintenance and enhance quality.

    • 03. Supplier & Contractor Management:

      Establishing reliable supplier agreements and managing contractor performance.

    • 04. Rebate Optimisation:

      Negotiating supplier rebates to maximise financial returns.

    • 05. Tenant Experience Enhancement:

      Creating a digital portal to streamline tenant access to essential services such as insurance, WiFi, utilities and cable TV.

    Approach

    HCG’s Approach and Methodology:

    01. Procurement Strategy & Supply Chain Optimisation:

    • Conducted a market analysis to identify cost-effective suppliers for construction materials and maintenance products.

    • Established long-term supplier partnerships with volume-based discounts.

    • Implemented an e-procurement system to automate purchasing and track spending trends.

    02. Product Specification Standardisation:

    • Developed a catalogue of pre-approved materials and fixtures to ensure quality consistency.

    • Standardised specifications for kitchens, bathrooms, heating systems, and flooring to optimise bulk ordering.

    • Implemented compliance checks to ensure all specifications met regulatory standards.

    03. Enhanced Rebate Model Implementation:

    • Negotiated supplier contracts with structured rebate tiers based on annual spending thresholds.

    • Developed an automated rebate tracking system to maximise returns on procurement spend.

    • Worked with key manufacturers to secure direct rebates for high-volume purchases.

    04. Integrated Tenant Portal Development:

    • Designed a digital platform allowing tenants to manage utility and service subscriptions.

    • Integrated APIs with major service providers for insurance, WiFi, and cable TV.

    • Enabled automated billing and customer support through the portal.

    05. Enviromental Products:

    • Carbon reducing products into showrooms

    • PV/Battery Options

    • EV options individual/communal incl guest PIN

    RESULTS

    Quantifiable Results and Long-Term Impact:

    Saving % across the key areas of spend

    • 15%
      UK materials
      40%
      Direct Sourced Materials
      5-8%
      Rebate enhancement
      20%
      Administrative overhead
      85%
      Tenant engagement
    Benefits

    HCG's engagement delivered significant further benefits for our client, including:

    • 01. Improved Efficiency:

      Reduced construction cycle times by 10% due to streamlined logistics and standardised specifications.

    • 02. Enhanced Quality:

      Consistent material quality and standardised specifications led to improved build quality and reduced rework.

    • 03. Increased Transparency:

      The digital tenant platform provided real-time visibility into service requests.

    • 04. Stronger Supplier Relationships:

      Long term contracts, and a transparent ordering system, strengthened supplier relations.

    • 05. Procurement Function:

      Building a sector leading procurement function.

    • 06. Sustainability and Compliance:

      Ensured compliance with environmental regulations through sustainable sourcing. Reduced waste through efficient material utilisation and standardisation.

    Conclusion

    By implementing a strategic procurement consultancy approach, the client significantly reduced costs, improved supplier relationships, enhanced tenant satisfaction, and optimised financial returns through an enhanced rebate model. The integration of a tenant portal further streamlined service management, adding value to both the landlord and tenants. This case study highlights the transformative impact of a well-structured procurement strategy in the property management sector.

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