Product Rationalisation and Supply Chain Consolidation
Partner Case Study: Balfour Beatty
Lyreco has been a supplier to Balfour Beatty for 7 years. Lyreco was initially appointed by Balfour Beatty in October 2014 as their sole general office supplies partner. The scope of this contract was extended to signage in 2015 (with Lyreco being awarded preferred supplier status) and in 2016, Lyreco was also appointed (again as a sole supplier) to Balfour Beatty’s Site and Safety Equipment (SSE) contract. This included a number of categories not commonly associated with Lyreco: Traffic Management, Site Equipment, Tools, Spill Control and First Aid.
Balfour Beatty were specifically seeking suppliers who could:
- Proactively support them with product rationalisation so that Balfour Beatty could benefit from green product switches, cheaper alternatives/cost savings where possible, and better quality across a reduced product range.
- Provide a wide range of products that allowed them to consolidate the number of suppliers and benefit from better relationships and reduced supply chain management costs.
- Offer a simplified order process, across multiple channels that is accessible by all employees (including site-based employees who didn’t regularly have internet access).
- Provide a flexible delivery and logistics solution that was adaptable to the varying demands, multiple delivery sites and working operations of a large construction company.
Balfour Beatty needed a consolidated catalogue with flexible ordering channels that were accessible to all employees. We worked closely with key stakeholders at Balfour Beatty to rationalise their product lines significantly, and then developed a bespoke Balfour Beatty catalogue that was available both digitally (providing end users the ability to order via the Lyreco Webshop or through a dynamic catalogue), and in a hard copy format (with the facility for end users to place orders by phone). This ensured that any employee was able to place orders and browse a range of Balfour Beatty products.
Through our market leading distribution infrastructure (supported by our own fleet of delivery drivers) and extensive network of suppliers/manufacturers, Lyreco was able to support Balfour Beatty in significantly consolidating their supply chain. Having complete ownership of our logistics infrastructure ensures that deliveries are made accurately to the right person/location (and not just abandoned at site gates for example), are delivered on time in full to the designated contact. The time and attention from our own drivers (e.g. visiting delivery sites during implementation) means we fully understand any delivery/security/H&S protocols that can cause delays when not followed properly.
The main benefits realised by Balfour Beatty include:
- Proactive account management that has, given Balfour Beatty the ability to consolidate their suppliers and secured strong savings.
- Detailed management information and reporting on a range of areas (e.g. spend data, delivery impact data and CO2 emissions, cost-savings reports) giving Balfour Beatty industry leading data that provides complete transparency on spend, service levels and contract compliance.
- A supplier who understands the unique requirements of a construction company of Balfour Beatty’s size; the requirements for a construction operative vary greatly to that of a health and safety advisor or site engineer, and so the product scope and solution must be fit for purpose and able to adapt to the varying demands and working conditions. The systematic and hierarchical controls Lyreco has put in place help to support the accurate delivery of products in line with Balfour Beatty’s standards and health and safety protocols.
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