Case Study: Kexgill – Student Accommodation

Introduction

Kexgill has been changing the perception of student accommodation in the UK for the past 36 years and, as a rapidly growing business, identified the importance of streamlining their procurement process to achieve better value across their whole operation.

In 2016, Kexgill chose Family Fund as its nominated charity. As their understanding of the Family Fund Group deepened, they also recognised that a partnership with Family Fund Business Services (FFBS) could broaden their Corporate Social Responsibility activities and since partnering in 2016, FFBS has helped Kexgill create a holistic procurement solution, enhancing their reputable, upgraded interiors whilst allowing them to more effectively manage their costs.


The Challenges

Kexgill has experienced rapid business growth over the past few years and now has nine branch offices across the North of England and the Midlands.

Each branch operated independently, with finance specialists responsible for sourcing furniture and white goods, often placing one-off orders for that area via the best online deals they could find. This fragmented approach meant there was an inconsistency in goods purchased and installed across their properties, coupled with differing warranty agreements depending on the supply arrangement. This unwieldy procurement model was adversely impacting administration processes and creating an increasing number of invoices, alongside concerns around the tracking and management of product warranties.

Still growing, with an additional 87 properties recently acquired in Hull, Kexgill recognised the need to address their procurement process and transform their ordering facility.


Our Solution

FFBS worked proactively with Kexgill to review their existing procurement process, proposing a streamlined fulfilment solution which would address their increasing demand for white goods across their growing property portfolio.

Working closely with Kexgill, FFBS established a core list of products which reflected their specification requirements, high quality décor and professional reputation for which Kexgill is renowned.  The FFBS solution also ensured consistency and quality of products, across the range providing peace of mind for procuring managers. Furthermore FFBS buying power facilitated greater discounts and extended warranties, allowing Kexgill to demonstrate value for money and enhanced consumer confidence.

The FFBS online procurement portal was implemented across the branch teams, acting as a one-stop-shop for orders, increasing Kexgill’s operational efficiencies and providing ongoing value for money.

The secure ordering system now allows multiple users to place orders without the use of credit cards, and purchase authorisation is achieved through permission settings. The portal’s functionality also produces budget reports so that ‘spend vs budget’ can be monitored across teams, and single monthly invoices consolidate orders across all nine branches.

FFBS was also able to implement a three-working-day delivery and installation service for Kexgill to ensure fast and efficient fulfilment provision for both new accommodation and replacement goods. Uplift and recycling of any redundant goods along with removal of packaging, provides a complete end-to-end service, further reducing administration.


The Results

By partnering with FBBS Kexgill has benefitted from reduced administrative and associated costs by more than 30%. The introduction of a procurement portal to provide guaranteed quality products together with the fast and efficient delivery, installation and uplift, has provided peace of mind, dependability and uniformity across accommodation units. The FFBS online fulfilment portal has provided Kexgill with much needed visibility and control across branches, and the FFBS dedicated helpdesk provides further support, whenever needed.

For FFBS, the partnership has augmented its buying power, and increased supplier discounts, enabling the business to gift even more funding to its parent charity, Family Fund.

 

Richard Stott, Managing Director of Kexgill, said:

“Through FFBS we have successfully centralised our procurement and invoicing processes, streamlined purchasing activities and gained standardisation and consistency throughout our properties. By ordering white goods via FFBS, we have been able to ‘live’ our CSR policy, using the purchasing power of Family Fund while increasing the gifted income to this worthy cause that supports the most vulnerable and deserving families.”


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