Heijmans : Fewer suppliers deliver more quality

Like many other large construction firms, Heijmans outsources many of its activities to suppliers, subcontractors and specialized partners. Over 70% of the total turnover is outsourced to third parties. It therefore is worth the effort to continuously look for ways in which to improve the procurement process. Under the slogan 'more with less', Heijmans is working on reducing the number of suppliers. The objective: greater collaboration and more quality, lower costs/failure costs and simplification of the administrative handling process.

Leonie Pijnenburg's business card reads Procurement Cluster Coordinator. She is actively involved in the 'foundation', 'construction' and 'shell' clusters. It is a varied job. 'I am just returning from a meeting with colleagues at Heijmans Residential Building in Amersfoort,' she says enthusiastically. 'We are right in the middle of a preferred supplier selection process. Fun, but at the same time arduous. Together with subject matter experts, we discuss which parties do/do not qualify as preferred suppliers. In this respect, we consider numerous variables, such as references, knowledge, experience, performance in the area of sustainability and safety, and financial characteristics, such as turnover and solvency.'

Whenever choices are to be made, there are also suppliers that are dropped off the list. Are current suppliers anxiously waiting for a telephone call? 'Well, no. We engage them in discussion. Because we make our selections on the basis of well-founded arguments, we are able to effectively rationalize our decisions. As a result, the decision ultimately is usually accepted by the relevant company and our own colleagues. But if it turns out that a company is not, or is no longer, the best partner for us, we part ways.'

OK, time for some figures. Eight years ago, Heijmans had over 30,000 creditors. In recent years, this number has been more than halved down to 11,639 creditors. We want to reduce this number even further. Some 3,500 suppliers/subcontractors should suffice. The annual administrative costs involved for Heijmans amount to € 200 per creditor.

However, the benefits are not just related to administrative savings. Leonie: 'Working with fewer parties enables us to negotiate better conditions because suppliers and subcontractors can increase their turnover from Heijmans. Because a more intensive level of cooperation with fewer parties can be achieved, processes can be synchronized (at the project, as well as at the administrative level). That yields a lot of benefits.'