A regional convenience retailer with an existing portfolio of  around 200 sites and plans for significant growth were looking to simplify, standardise and control their refrigeration spend across their capital development programme. While also improving the maintenance services in support of the existing sites and in preparation for new store openings.


The Challenge

The retailer needed to gather a clear, detailed and complete picture of their operational and capital cost base and the drivers behind these. Any solution had to be robust enough to meet future growth and service challenges, transparent and easy to manage.

The Approach

The first phase was to capture what was currently happening on the ground, using a sample range of recent projects that would allow the creation of an accurate schedule of rates and activity – 214 different components analysed across 12 months of invoices, were locked into an agreed measurement matrix.

This allowed the client to have an empirical format that they could take to tender for the first time. A carefully selected range of highly capable suppliers were selected to tender for the work.

The Solution

The tender showed the innovation that was available in the market; and allowed the client to fully understand the rates that were being currently applied on a project by project basis.

We renegotiated advance payment terms back to 60 days in arears, based on Acceptance Testing driven by a Quality Auditor.

The check and balances put in place have driven trust and openness in the almost thirty year supplier relationship.

The Benefits

  • The tender released 18% annualised savings with tightly controlled (previously unregulated) spend.
  • The in-house team can now accurately forecast the cost for planned projects, and validate quoted costs against similarly delivered projects and a comprehensive historic database.
  • Pricing was fixed for three years, supported by a firm contract and SLAs, allowing the client to manage and analyse contract performance for the first time.

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