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Citycare had completed a comprehensive best practice procurement exercise with our suppliers to establish best rates for materials nationally. We view supply chain management as very important for both ourselves and our clients. Where practicable we have implemented partnership agreements with significant suppliers.
We applied this approach to the sourcing of materials and labour to carry out the redecorations for the Wellington and Christchurch contracts. Cost reductions were achieved on 'fixed price' maintenance items through process improvements/enhanced procurement strategies, involving nationwide partnerships and bulk buying agreements to lower costs. An example of this was the approximate saving of 10% on stoves and the reduction of labour costs by 6%.
Additionally, Citycare was able to condense redecoration times considerably through our detailed scheduling process and our ability to deliver many aspects of the redecorations in-house. To ensure maximum efficiency, the scheduling of works to be completed was overlapped where possible so that more than one aspect of redecoration could be completed at once. Also, as Citycare has a large internal trade resource base, using our own staff meant that labour schedules could be changed from five eight-hour days to four ten-hour days, condensing project works. Using our own staff also saved significantly on job response times.
Citycare was able to attain substantial cost reductions and decreases in delivery times within the redecoration aspect of the contracts. Our ability to bulk buy nationally through our pre-established supply chain allowed considerable procurement savings.
Additionally, through our detailed planning and scheduling project management system, Citycare achieved a significant reduction in turnaround times, reducing the tenant removal time period from 14 nights to seven. This resulted in a 50% saving in alternative accommodation costs for the Wellington and Christchurch Councils, also increasing the level of occupation potential for the Councils' property pool.