Combating unpredictable repairs spend: A proactive approach

Responsive repairs have always posed challenges for social housing providers, and this year presents even greater difficulties. New legislation addressing issues like damp and mould, tenant satisfaction measures, economic uncertainties, and competing priorities – such as achieving net-zero targets, fire safety remediation, and development – are stretching resources thin.

One persistent issue under these pressures is unpredictable and inefficient spending within repairs teams, often stemming from “maverick” spending behaviours. Providers report operatives favouring certain brands, making unnecessary trips to preferred merchants, or stockpiling discounted products, which amplifies inefficiencies.

Although off-contract spending isn’t exclusive to repairs teams, its impact is especially evident in today’s tough economic conditions. So, what can housing organisations do to tackle this head-on?

 

1. Engage and understand operatives

Understanding what influences purchasing habits is a vital first step. Do operatives face recurring shortages of materials? Are specific brands known for underperformance? This process aligns with the Rethinking Repairs and Maintenance (RERAM) initiative, encouraging staff involvement in improving repair services while promoting collaboration and shared insights.

2. Shift frontline culture

Transforming deeply rooted behaviours requires a cultural change integrated into procurement strategies. By using feedback from staff, organisations can introduce measures like mentoring, training sessions, live demonstrations, and internal communication campaigns to motivate operatives to adopt improved processes. These initiatives can deliver sustained benefits over time.

3. Leverage data

Improved spend visibility helps identify trends and opportunities for change. Technologies such as van stock management systems and account cards can link operatives to purchases, providing actionable insights. To achieve more seamless decision-making, housing associations should aim to integrate siloed systems across departments for better reporting and tracking.

4. Review procurement baskets regularly

Procurement contracts often include a core “basket” of high-volume goods purchased by operatives at discounted rates. Periodically reviewing and updating this basket ensures it reflects current needs and avoids off-contract spending, maintaining around 70% efficiency in operative purchases.

5. A shared responsibility

With a record £8.8 billion spent on repairs and maintenance in 2023/24 – a 13% rise over the previous year—the urgency of efficient spend management cannot be overstated. By engaging operatives, encouraging cultural shifts, optimising data use, and refining procurement practices, housing providers can reduce inefficiencies and achieve better results for tenants and budgets.

 

A version of this article has featured in Inside Housing, to view please click here. 

Achieving more with less- the role of procurement solution providers in social housing

In the challenging landscape of social housing, efficiency, cost-effectiveness, and compliance are paramount. Social housing providers are constantly seeking ways to enhance their operations and deliver better services to their tenants and communities.

Read on to explore why partnering up with a procurement solution provider is one of the most effective strategies to accomplish these goals. 

1. Cost savings

One of the primary advantages of using a procurement solution provider is the opportunity for substantial cost savings. These providers utilise their extensive networks and purchasing power to negotiate better deals with suppliers. This means that social housing providers gain access to high-quality goods and services at lower prices, ultimately reducing their overall expenditure, enabling to maximise their budget for the benefit of their tenants. 

2. Enhanced efficiency

Procurement solution providers streamline the procurement process, making it more efficient and less time-consuming. They handle everything from supplier selection to contract management, allowing social housing providers to focus on their core responsibilities. This increased efficiency not only saves time but also reduces administrative burdens. 

3. Compliance with regulatory standards

Navigating the intricate landscape of procurement regulations can be daunting for operational teams for whom procurement isn’t their primary focus. Procurement solution providers are well-versed in these regulations and ensure that all procurement activities are compliant from the get-go. This minimises the risk of legal issues and ensures that social housing providers adhere to industry standards. 

4. Social value creation

Many procurement solution providers prioritise creating social value through their procurement practices by embedding this as a requirement and award criteria within the tender. This includes sustainable procurement, community support, and employee engagement.  Partnering with such providers facilitates a proactive contribution to social and environmental goals, such as reducing carbon emissions, job creation, and community support. 

5. Access to expertise

Procurement solution providers bring a wealth of expertise to the table. They possess an in-depth understanding of the market, supplier capabilities, and industry trends. This expertise empowers them to make informed decisions and provide valuable insights to social housing providers, aiding in optimal decision-making for procurement needs. 

6. Risk mitigation

Procurement solution providers help mitigate risks associated with procurement activities. They conduct thorough due diligence on suppliers, ensuring that they meet quality and performance standards. This reduces the likelihood of supply chain disruptions and ensures that social housing providers receive reliable and high-quality goods and services. 

7. Support for small businesses

Many procurement solution providers support small and medium-sized enterprises (SMEs) and voluntary, community, and social enterprises (VCSEs). They help these organisations overcome barriers to entry into public sector supply chains, providing them with opportunities to grow and thrive. 

In conclusion, procuring via a procurement solution provider offers numerous benefits for social housing providers. From cost savings and enhanced efficiency to compliance with regulatory standards and social value creation, these providers play a crucial role in helping organisations achieve their goals. By leveraging the expertise and resources,  organisations can enrich services to communities and effectuate a positive societal impact.

Ready to enhance your procurement process?  

At PfH Scotland, we are a tech-enabled procurement partner for the social housing sector. We help leading organisations manage spend, drive sustainable value, and improve efficiency. Why not join the many social housing providers already benefiting from our procurement solution? Get in touch to find out how.