Business Challenge – Overcoming Supply Chain Issues
Sourcing is always a big challenge for companies in the construction industry. Managing unforeseen problems such as the weather and on-site conditions, financial investment, and project complexity can create plenty of issues for each job site. Factoring in all of these elements while making purchasing decisions is an essential but challenging task for commercial and site managers.
Barratt Developments isn’t an exception, as the company works with many subcontractors and suppliers, which makes management, supplier prequalification, and sourcing extraordinarily time-consuming and expensive.
Keeping track and enforcing various health and safety rules is often problematic because of the diverse locations of each construction site. Finding a central procurement process was essential to the safety of workers, as complying with safety regulations is often a requirement in most building contracts. The focus at Barratt Developments was to keep employees safe by only working with suppliers and contractors that had valid accreditations and all of the necessary documentation in place.
Barratt Developments uses a variety of legacy systems for performing daily operations for the business. Finding a new solution that worked seamlessly with the existing infrastructure was critical in automating data flows to avoid disruptions. Barratt Development decided to use Medius for implementing Medius Sourcing to streamline the entire sourcing process while also staying in compliance with safety policies and easily integrating with back-office systems.
Software Solution – Medius Sourcing
Medius offers a flexible and straightforward software solution to enable Barratt Developments to manage and track the entire onboarding and sourcing process to help enhance visibility and improve business operations.
The systematic onboarding process made it possible for Barratt Developments to gain access to real-time information. The Supplier Registration Form (SRF) enabled each supplier to register all of their information in a standard format while also giving them the flexibility to upload additional information. This process doesn’t only save a lot of time and effort for Barratt Developments, but it also made it easier to keep projects on schedule without any delays.
Using the integration feature of Medius Connect made it possible to automatically validate a supplier’s information from other data sources or third-party websites. All of this plays a significant role in minimizing the burden of administrations, reducing proposal errors from suppliers, and preventing defective bids from going through the system.
Medius offers a central online hub for Barratt Developments, making it easy for contractors and suppliers to submit mandatory certificates during the onboarding process. Only using suppliers with the proper documentation safeguards health and improves safety for the entire workforce while also protecting its reputation and reducing liabilities. The software system will automatically remind each contractor and supplier to submit any close to expiring documents to avoid any potential delays and problems in the near future. Ultimately, this allows all of the information to stay up to date for thousands of suppliers without the need for any additional administrative overhead.
Once a contractor or supplier finishes the onboarding process, Barratt Developments can easily view all of their information and data in one location. Medius also makes it possible to segment this information for further evaluation.
Subcontractors and suppliers have the flexibility to view their accounts to keep up with any details or submit a response for a specific event. Barratt Developments can easily create questionnaires related to events and risk management within the system. These dynamic questions take into account previous answers to ensure only relevant data is submitted during this process.
Barratt Developments can easily use third-party data for additional services, such as geolocation features, to allow users to search for suppliers within a specific region. Simply entering a postcode makes it much easier and quicker to find suppliers that work in certain areas.
Using a standard electronic format to handle multiple responses dramatically improves efficiency, as it can cut process times up to 85% by keeping all of this information in one location. Medius makes it possible for employees at Barratt Developments to create evaluation reports for additional analysis. Centralized data enables site managers to handle sourcing activities for numerous jobs efficiently. All of this information provides Barratt Developments with greater visibility and insight into all of its sourcing activities, making it possible to make improvements for the future. Auditors also can perform more detailed assessments of the business.
After completing several workshop sessions related to usability, branding, and functional requirements, Medius completed the project plan to make sure everything went smoothly. Initially, the system was implemented within 27 UK divisions through a multi-phase approach. Integration was critical to the success of this project, as data was exchanged across a variety of third-party systems.
Medius Connect offers an integration platform for providing all of these features by using cloud computing. This software offers real-time collaboration, as Medius Connect uses a dedicated team throughout the digital transformation process. Additionally, Medius Connect makes it possible for employees to access the most up-to-date architectural CAD drawings for supplier sourcing.
Several training sessions and tailor-made user guides were sent to all divisions over seven weeks to ensure Barratt Developments could fully take advantage of the entire system. Medius also uses a quarterly release cycle to give each client a new update within three months, as this is included in their subscription agreement. These updates do not cost any extra money, as it provides Barratt Developments with a steady stream of innovations in using this software suite.
The Results
Partnering with Medius enabled Barratt Developments to save a significant amount of time and money during the sourcing process, as it allowed the business to streamline and automate workflow. Barratt clients are also benefitting in various ways, such as a reduction in cycle times, an increase in responsiveness, and lesser costs in doing business. Many of these electronic sourcing activities have resulted in substantial cost savings, as this new process is much more efficient than previous methods.
Almost 1,500 suppliers have updated their account information without nearly any management overhead. Barratt Developments is planning to make additional investments in Medius to improve various processes, such as allowing more integrations and approval automation services. Medius is constantly evolving with each business partner to improve efficiencies and keep overhead costs to a minimum.
