Barratt Developments – Brochure 2020

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PROJECT PARTNERS


LIST EN TO JOHN ADAMS ’ PODCAST ON THE DIGITAL INSIGHT ’S OUTPUT CHANNELS BELOW

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JO HN A DA M S, G R O UP PROC U RE M E N T D I R E C TO R AT BA RRATT D E V E LO P M E N TS E XPLO RE S H OW T H E CO M PANY’S CO MPE TI T I V E E D G E CO M ES FRO M S U PPLY C H A I N C A PA B I LI TY

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n recent years, an increasing number of organisations have begun to recog-

nise supply chain and procurement as a key facet to their operations. As a result, the very perception of supply chain has changed and is now being positioned as a key competitive advantage and in places where it can’t it represents an opportunity for businesses to unlock opportunity and other greater benefits. To put it simply, gone are the days where supply chain simply represented a means of saving money. “Clearly that’s part of what we do, but there’s much more to it than that,” explains John Adams, Group Procurement Director at Barratt Developments Plc. “The business or businesses generally should 4

B A RR AT T D E V E LO PM E N TS


see it as a strategic operation now. It’s about a much broader span of topics, and the organisations see procurement as an integral part of the efficiency of the business, not as a side act.” Barratt Developments Plc. is the largest house builder in the United Kingdom and is the only major house builder that has successfully achieved and retained the highest customer rating for ten consecutive years. Key to this success is a vision for leading the future of house building that is driven by putting customers at the very heart of what the company does.

YEAR FOUNDED

1958

REGION HQ

London, UK

w w w. b a rrat td evel o p m e n ts . co. u k

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In order to realise this vision, Barratt has

cheaper components,” explains Adams.

spent the best part of the last decade

“The availability of product is of course

investing in and reorganising its supply

very important but there are many other

chain in order to redefine how the business

areas such as the sustainability angle

works with its customers so that it can

which are becoming increasingly prevalent

better serve them. For any business, the

and heavily influencing the supply chain

supply chain is a complex ecosystem that

and how it operates.”

needs to run like a well-oiled machine and

“I spend a lot of time with some of the

for Barratt Developments, this is no differ-

key stakeholders in the business trying to

ent. “In the role I’m in it costs us more not

help them understand why supply chain

to have components than it does to have

is important, why things they do influence w w w. b a rrat td evel o p m e n ts . co. u k

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“ T H E B U S I N E S S OR BUSINESSES G E N E R A L LY S H O U L D S E E I T A S A S T R AT E G I C O P E R AT I O N NOW. IT’S ABOUT A MUCH B R OA D E R S PA N O F TO P I C S , A N D T H E O R G A N I S AT I O N S S E E PROCUREMENT AS AN I N T E G R A L PA R T O F T H E EFFICIENCY OF THE B U S I N E S S , N OT A S A S I D E AC T ” —

J O H N A D A M S , G RO UP P RO C UR EM E N T DI R E C T OR , BA R R AT T D E V EL O P M EN T S

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B A RR AT T D E V E LO PM E N TS


what the supply chain can, and cannot do

“So we need those subject matters to be

for us, and how they can change some of

engaged with the suppliers so we can get

their behaviour to enable the supply chain

the best answers to them.”

to be more effective and more efficient, which then benefits them.”

Barratt Developments central procurement team controls around £500mn

The goal here for Barratt is to engage all

of annual spend, both direct and indi-

facets of the organisation into the impor-

rect. Direct spend accounts for close

tance of the supply chain, removing the

to £450mn of that overall spend and

reliance on the notion of a single procure-

Barratt’s success is defined by its aim to

ment responsibility but a much more

provide its customers with the products

shared one. Adams believes that every-

they want at the right time and of the right

one should be talking to suppliers, not just

quality in order to receive the positive

procurement professionals. “At the end of

experience of a new build. In recent years,

the day, we are not necessarily the subject

the scrutiny on the quality of the products

matter experts on everything,” he says.

has tightened while the volume output w w w. b a rrat td evel o p m e n ts . co. u k

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has rapidly increased in recent years and

or remove the requirement for skill onsite

so Barratt works tirelessly to ensure that

wherever possible. This is where the

it has the supply chain in place in order to

company embraces ‘modern methods of

feed the machine. “Our main focus has

construction’ in which Barratt’s design

been making sure that we have a supply

and technical teams work closely with

chain in place that’s capable of feeding

the supply chain in order to both trial and

the machine that we’ve got now and the

mature technologies and practices the

one that we will have in the future,” says

business wouldn’t traditionally use. Barratt

Adams. “We also have to look at new ways

will then integrate this into its day-to-day

of producing housing because there’s a

business as usual production facility and

skill shortage that’s coming and we have to

capability. “From a strategic point of view,

be ready for that.”

it is matching supply chain capability with

In order to ready itself for this skills shortage, Barratt works to either de-skill

our demand,” says Adams. “And then in the long term it’s looking at new methods w w w . c p o s t r a t e g y. c o m

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of construction, and developing a

the capacity to meet the demands

supply chain capable of supporting

of Barratt and its customers. This

us over a long period of time.”

required more focused and some-

One of the largest challenges

times challenging conversations.

in trying to constantly feed a

“It’s been an interesting journey

machine that is responsible for

because in this industry, some

more than £500mn in spend is

of the supply chain partners are

that of coping with demand fluc-

not necessarily as mature in their

tuations. Over the last decade,

thinking in capacity planning, in

market upswings and downturns

root cause analysis, and all the

have been unavoidable and this

things that we need to be good

of course will impact the supply

at, in order to make sure that they

chain ecosystem. Trying to trans-

make the best of the capacity

form a supply chain while operat-

they have available,” says Adams.

ing in a volatile market is no easy

“We’ve spent quite a lot of time

task and Adams acknowledges

trying to develop the supply chain

that Barratt has had to ride both

because I’d much rather work with

the highs and the lows in order to

somebody that I know is willing to

remain successful.

work with us than bring somebody

“Market upturns and downturns both present challenges, just

in that I don’t know, and start a brand new relationship.”

different ones!” he says. “Through

Refocusing supplier relation-

the downturn we very much had to

ships is never an easy endeavour.

focus a demand on fewer suppli-

On paper it makes sense and is

ers so that we keep those suppli-

easy to break down, but the real-

ers in a good state of order and

ity of the situation is never that

that they were able to support us

simple. For Adams, the key to

in the upturn.” This approach saw

successfully navigating this was

Barratt work with suppliers during

to break down what he describes

this downturn and then continu-

as ‘very adversarial’ old working

ing to work with them during the

practices that are common within

upturn so that the suppliers had

the industry. “It’s about trust. If w w w. b a rrat td evel o p m e n ts . co. u k

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you haven’t got that between yourself and your supplier, you’re not going to get very far,” says Adams. “The first thing to do is to change people’s view of what our supply chain is, what it does for the business and how important it is. Once you achieve that, then you have a much easier engagement model.” Barratt has a tiered approach with regards to its supplier engagement model that sees the executive engagement level shift accordingly based on the strategic nature of the supplier relationship. “As you go down the tier of the supply chain, the relationship engagement will fall to either myself to have the leading relationship or my team leading the relationship explains Adams. “We ensure that we have a relationship with a senior management team of all of our suppliers, so that we can get the right level of engagement with them.” Through this approach, Barratt is able to work to identify any issues between it and the supplier that will prevent either party from being efficient and get to the root cause of those issues by making changes where necessary. Part of this dynamic is built upon that trust and understanding and so in order to achieve this Barratt hosts a number of supply chain conferences that brings all of its suppliers together to explain what is going on, 14

B A RR AT T D E V E LO PM E N TS


John Adams

Group Procurement Director Barratt Development Plc.

Experienced Director Of Procurement with a demonstrated history of working in the construction, manufacturing, Automotive, Nuclear and Telecommunication industries. Responsible for sourcing strategy, supplier management and supplier development of all goods and services for Barratt Developments, the largest housing developer in the UK.

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what the vision for the future is and what

broader commitment that Barratt has to

expectations Barratt has for its supplier

its supply chain and make sure that the

base. “They understand our objectives

company has a set of suppliers that can

and how they fit into that,” says Adams.

deliver what it needs to the right quality

“We then have somebody in our team who

and at the right price. Barratt has been

is specifically engaged to look at supply

investing in and reshaping its supply chain

chain development. They have tools for

now for over a decade and in that time,

cause analysis that can help the suppliers.”

thanks to shifting market dynamics, it has

“But, what’s important is that we don’t

been clear that the road is never truly a

just go to the supplier with the tools and

straight line. In order to successfully navi-

say: fix this. We provide a methodol-

gate this and any journey, organisations

ogy and a suggestion as to how they can

need collaboration. This is where Barratt’s

understand the problem and solve it.”

supplier relationship model really stands

For Adams, this all forms part of the

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tall above others as a true competitive


“ O U R M A I N F O C U S H AS B E E N M A K I N G S U R E T H AT W E H AV E A S U P P LY C H A I N I N P L AC E T H AT ’ S C A PA B L E O F F E E D I N G T H E M AC H I N E T H AT W E ’ V E G OT N OW A N D T H E O N E T H AT W E W I L L H AV E I N T H E F U T U R E ” —

J O H N A D A M S , G RO UP P RO C UR E M E N T D IR E C T O R , BAR R AT T D E V E L O P M E N T S

edge. “Not every egg is going to be a bird, so you have to be prepared for investing in something that may not provide a business benefit in the end,” says Adams. “You will have failures and you can take learning from them. What’s important here is sitting with suppliers and working it all out. What went wrong? Why did it go wrong? What was the process? And so on.” “I think it’s incredibly important to be able to go through that with your suppliers in a structured way, regardless to the success of the project or not, and be honest so that every single person understands the highs and the lows so that you actually learn from the whole experience. That’s what our approach allows us to do.” After 10 years of change, Barratt is already having discussions about the next 10 years. The future is very much here and now for Adams and Barratt and so this supplier engagement model becomes a w w w. b a rrat td evel o p m e n ts . co. u k

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state of constant conversation and investment. As Adams noted, it’s about having to constantly feed the machine of today and of tomorrow. The market is already showing signs of significant change with sustainability impacting the legislation and governance of building homes. Barratt’s approach remains the same. “There’s quite a challenge for us to make sure that the supply chain is aligned to those changes,” says Adams. “Key to any of that, is people. People. People. People. The ability to deliver absolutely rests on the people who are doing that delivery. They are pivotal to what we do, and to everything we do. The basic building block is people in the team and their capability, and their ability to be able to relate to, develop and embrace the supply chain that they’re working with.”

LIST EN TO JOHN ADAMS ’ PODCAST ON THE DIGITAL INSIGHT ’S OUTPUT CHANNELS BELOW

w w w. b a rrat td evel o p m e n ts . co. u k

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WWW.BARRATTDEVELOPMENTS.CO.UK


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