Travis Perkins Llanelli & Carmarthenshire County Council Introduction Carmarthenshire County Council wished to close their stores supplying their DLO for the responsive repairs of their housing stocks thus saving costs on storage space, overheads, stock etc and releasing capital for other parts of their business. They recognized they had inefficiencies in their purchasing systems and service given to their DLO hence service to the tenants. They would require a single depot to offer a service to the main stores and stock core materials sufficient to service the council workforce, purchase existing stock and work together on IT and ordering solutions. Travis Perkins core competencies in stockholding, logistics, administration and purchasing could be utilized.        Key Facts Approximate turnover of stores - £70 million/annum 70 vans with one/two persons in each Main stores had four people operating the premises Key Points to Consider Would TUPE regulations apply? Locations of Travis Perkins depot to stores Would correct stocks and service levels be held and improved? Was there the possibility of Travis Perkins purchasing any stock? Servicing of vans through collections and monitoring of their performance IT and security issues Specials falling outside the core range Council wanted to retain more control over purchases Staff downtime for collections kept to a minimum Operation TP Llanelli employed one person from council, three others moved sideways within council. A separate stocked area is located at the side of the branch, own secured access, counter, terminal, space for 15 vans, 2 dedicated staff with assistance from 2 others, dedicated phone line. Originally prices negotiated on all products but clothing, electrics, fire-parts however national or local partnerships to supply these items are possible Locally costed products sourced and secured against a previous stock sheet A stocktake earmarked products which could be integrated into the branch stocks and resold, an offer agreed using council costs, the rest written off by council or sold on. Agreement for 5 years providing on-going improvement. Prices reviewed regularly and a mechanism put in place for this review Items mainly collected, core items include – locks, nails, latches, ironmongery (loose items), kitchen parts, Osma, Plumbing fittings. 2Hr call collect used the afternoon before and accounts for approximately 30% of transactions (Target 70%) ensuring stock is reading. The council’s IT systems and order process need updating with particular attention to fraud. The number of transactions is being monitored between hours of 7.30 – 8.30, 9.00 – 10.00, 10.00 –5.00. The busiest time being 9.00-10.00, on average approx 50 transactions /day and an average of £33/transaction. Results Approx 700 items supplied via branch stock with approximately 110 locally costed with re-order levels set. No formal measurement of performance by council, branch measuring number of transactions, value, exit poll (epos tickets) to monitor time spent by council staff in branch. Regional TP merchandiser worked in conjunction with council setting up product storage facility. Normal branch opening hours with an emergency call out number. Pre-packed products replaced by bulk buying. Council checking pricing at regular intervals. For specials and goods outside tender – costs and separate format agreed. Consumables and tool hire only supplied with official order. Handy product selection guide produced outlining all products in tender, TP codes and council codes. CCTV monitors service counter aiding security. Call collections available in ‘boxes’ which fit into vans and returned once emptied. Future Developments Number of transactions likely to increase as council stocks are run down. Manual systems will be superceded by an IT solution. Reports will detail all transactions per month at operative level. Orders will be confirmed electronically within 15 minutes. Invoices and Credits will be sent out electronically for matching. Operatives produces ID card to prevent fraud and name and order number details will be captured and recorded electronically. Purchase cards an option to identify individual, track orders and speed up order process. Bulk procurement benefits passed on as volume and identity of stock usage become clearer. Consilium software house involvement. Terms & Conditions  |  Privacy Policy  |  © Travis Perkins 2009