In the world of residential and commercial development, consistency in sourcing materials and managing budgets is essential for successful project execution. This case study delves into the partnership between a renowned, Top 5 UK housebuilding company with 32 business units across the country, and Headlam. The case study highlights the challenges faced when sourcing flooring products on an ad hoc basis from various local contractors, the innovative solution proposed by Headlam, and the significant improvements achieved through this collaboration.
Headlam proposed a solution to address these challenges by introducing a ‘shopping basket’ concept. This included offering a carefully curated selection of 10 carpet ranges, 3 vinyl ranges, 3 laminate ranges, and other flooring products. The key to this solution was the establishment of a consistent pricing structure, designating Headlam as the nominated flooring contractor. This approach not only created uniformity in pricing and quality across all business units but also ensured that this housebuilder could efficiently manage their budgets.
However, like any business venture, the partnership faced its share of challenges. During peak trading periods, forecasting and supply could be challenging, resulting in excessive pressure and demands on transport carrier partners. In addition, an initial oversaturation of the flooring range offering created a confusing customer experience. Recognising this issue, both parties have worked together to streamline and refine the product selection process over the years.
The housebuilder, in a strategic shift, had previously moved away from offering lower-priced products. However, due to the prevailing cost of living crisis, they found it necessary to revert to more affordable, entry-level products to accommodate customers with tighter budgets.
Before teaming up with Headlam, this businesses’ units were sourcing flooring products independently from different local contractors. This fragmented approach led to a lack of consistency in the quality and price of the flooring across various regional units. The absence of a standardised procurement process created difficulties in managing budgets effectively. In a business that relies on consistent quality and budget management, this situation posed significant challenges.
The collaboration with Headlam brought significant benefits. The scale and size of Headlam, as a PLC and national distributor, enabled them to efficiently serve a network of contractors. They provided the exact rolls, cuts, or lengths of carpet required for each project, ensuring consistency in product quality and pricing.
This housebuilder now enjoys access to a standardised ‘shopping basket’ of products, and since April 2022, they have experienced high levels of stock availability. Headlam can effectively and promptly fulfill all orders, even during peak times, without any delays. To ensure the continuity of excellent service, dedicated account managers from Headlam are in place to provide consistency and personalized support.
In addition to the improved procurement process, a cost-saving incentive has been introduced. This business benefits from a financial rebate mechanism, whereby the more they spend, the more they save. This encourages various business units within the business to make their flooring purchases through Headlam, creating a cost-efficient system and incentivizing ongoing collaboration.
The case study of this collaboration with Headlam exemplifies the power of effective supply chain management and standardized procurement practices in the construction and development industry. By introducing a ‘shopping basket’ concept and creating consistency in pricing and product quality, this housebuilder has streamlined its flooring procurement process, enhanced budget management, and improved customer satisfaction. This partnership with Headlam not only solves immediate challenges but also provides a model for excellence in supply chain management for other organizations in the industry.
