Case History
Leisure Centre Management Group
As a public sector leisure provider, our client runs facilities ranging from large multi-purpose sports & leisure complexes to conference centres and a single, summer-only outdoor pool, the number of visitors across all 18 sites equates to well over 2 million annually.
Our client relies heavily on catering revenue to sustain long term viability. Not surprisingly, the prospect of maximising its purchasing power with suppliers of foods and beverages, and other commodities was attractive. The question was how to overcome the disadvantages of being a single buying entity?
When faced with the need to put purchasing onto a more secure long term basis, our client called us in to advise.
Acquire’s and The Trust’s partnership approach Our client felt that the ideal solution would be for the company to become part of a purchasing consortium involving other leisure trusts. Aware of Acquire’s wide experience across this sector, would Acquire be interested in developing, and managing the proposition on a partnership basis?
Acquire’s business approach Acquire’s financial model for the consortium approach quickly established its financial viability. But our client still needed reassurance that if other members of the consortium were to cease participation, there would no exposure to risk.
Applying its expert purchasing knowledge, we then undertook comprehensive on-site procurement analyses of the requirements for each of the other potential members of the consortium. Having confirmed that each would make significant savings by being part of the buying co-operative, we then constructed a unique price file that would include a rebate structure for all members using the supply channels that we would negotiate.
Further, and although the initial brief was to deliver savings in foods and beverages, why not expand it to utilities (including lighting and heating) and other volume products needed to run first class leisure facilities?
Acquire’s managing role Over the six years that the consortium has been running, our role has been both strategic, in terms of creating a supply base that is limited to one company in each commodity area, and local in terms of working closely with consortium members to improve administration and margins, and in training key staff to improve sales forecasting.
Year on year, product quality has improved, returns have been reduced to a minimum and importantly, managers have been able to deploy personnel to more effective duties. Furthermore, the centrally managed rebate system is generating significant annual returns to the consortium members as volumes increase through the supply chain, and indeed the consortium itself continues to grow across other leisure trusts.
Most important of all, the success of the consortium has been demonstrated in financial terms with the suppliers appointed by Acquire now saving its members between 10% and 25% of their original cost.
Our client advocates; “During the six years that we have been working in partnership with Acquire, we have always found them very open and very approachable. We know that Acquire can be relied upon to do what they say, and this element of trust has been the cornerstone of a successful partnership. They are very professional in everything they do”.
Acquire helps Leisure Trust to grow...