BUYING FOCUS
Fiona Russell Horne goes behind the scenes of NBG’s General Build Category Management Team.
B
efore there is any action on a new deal with Suppliers, the NBG General Build Category Management Team sends out a questionnaire to Partners, says Browns Builders Merchants’ Jim Parlato, who sits on the CMT. “So that’s one way that we identify any potential new Suppliers. We ask Partners how the current deals are working for them, whether they use the current deals. And if they don’t, why they don’t. We ask how they feel the Suppliers are performing and whether there are any alternative Suppliers that they would like us to consider.”
He says that there is also a compliance check every year where Partners fill in a form that details their non-NBG deals. “From that, we get an idea if it’s worth speaking to a particular Supplier to find out if they might be able, or interested, to come on board, bearing in mind the NBG volumes and the value of the NBG spend.
“We want Partners to be honest and truthful about the deals they are operating. It’s an information-gathering exercise, not a naughty list of who deals outside of NBG,” he explains, adding that they don’t include direct to site or specials. So, that is a really good way of identifying if we are missing a trick in one way or another. If something does come out of it, it’s usually because we realise there’s a product or a range or a Supplier that we should be speaking to. Compliance to deals is really important and we encourage all Partners to work within the deals we’ve negotiated. However, we’re also aware that our Partners have contacts and experience that those on the CMT don’t and may be working with Suppliers or have deals that can be brought into NBG.”
Interline Building Supplies Finance Director Neil Robinson, who leads the CMT, adds: “What’s quite good is that, every now and then, you get a little golden nugget from a new Partner who comes in. They might have relationships with a Supplier that we have struggled to develop. Every so often someone will throw a new name into the mix that we weren’t aware of.” The process starts some nine months ahead of a deal ending, when the CMT will speak to
14
Above: Jim Parlato Left: Neil Robinson
BUILDING THEDEAL
strike a solus deal. Covid, in particular, showed us that it’s not always the best route, especially if you don’t know what issues are going to upset things. That said, if the deal is the right one, then it’s the right one.”
He adds: “It was a very good deal. The difference with this one is that very long- standing relationship with Keystone, so there is that trust element. We can be sure that they will do what they say they are going to do. Obviously, we ask first of all if they can handle the volumes that we are likely to put through them, and then we discuss what might happen if we were to get back to product shortages – which there very well might be. Anything that housebuilders use is likely to have some supply issues in 2025.”
other Suppliers as well. Parlato says: “We have review meetings with incumbents but we are also open to talking to those who we currently aren’t working with on a regular basis, just to see how the land lies. It may be that at one time a potential Supplier just doesn’t have the capacity to take NBG on, but later on they might be able to. Just because a company hadn’t been successful in their tender one time, doesn’t mean that we completely dismiss them. It’s a sensible way to do it, to keep the dialogue going. That might be structured meetings when they come in to see us, or we often have a catch-up at, say, the NMBS exhibition; it’s just a sensible approach to keep the lines of communication open.” This year, there is a solus supply deal with Keystone Lintels. Parlato says that when the CMT investigated what was happening with Partners and lintels, it discovered that there was a real cross section with Partners buying from different lintel producers - generally either with three Suppliers in Keystone, Catnic, Birtley, or two out of the three of them. He says that Keystone have had an NBG deal for around 20 years. “Most of the time, we don’t actively go out to
Robinson explains that there is a more robust Supplier Service Charter in place now, signed by both parties when the deal was set up. “It’s not a guarantee, it’s an agreement that both sides will stick to the requirements. It gives us both something to work from and refer back to, rather than just a handshake,” he says, adding that Charter also includes break clauses if the deal ends up not working quite how it should.
Once a deal is struck, it’s not a case of just sitting back and being happy with the listing, Parlato explains. “All this is very much Partner- led. Before we go out to tender, we send the questionnaire and ask for honest feedback from the Partners. One of the questions we ask is if there wasn’t a deal, could you switch your spend. So, the Partners do have their chance to voice their opinions and we take those into account. The emphasis is on the Supplier to get out and see the Partners and make it work. That said, as Partners, we also have our role to play in sticking to the deals. We are there to work with our Suppliers. If we have come to the decision that the best option is a solus deal, as is the case with Keystone, then the NBG team will work where needed to ensure that deal works. It’s being done for the benefit of all Partners; it’s not just lip service. It’s been done for a reason that we feel it is the best deal with the best outcome for the Partners.”
January 2025
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
