The Builders Merchants Federation (BMF) is working with Miller Homes to identify a regional network of BMF merchant members with the capacity to supply the national housebuilder, which spends around £30m a year with merchants and distributors on building materials.
The opportunity stems directly from discussions between John Newcomb, managing director of the BMF, and Garry McDonald, Miller Homes’ procurement & sustainability director, at the All Industry Conference.
Mr McDonald said: “At this stage we want to establish whether or not there is sufficient appetite from the BMF membership to consider a more cohesive and value-driven approach in relation to Miller Homes’ £30m annual distributor spend. I heard some interesting and refreshing views from Conference delegates this summer and we are very happy to be working with the BMF to see if some of the ideas that came out of the Conference can be taken further.”
This is the first time that the BMF has worked closely with a major housebuilder to open up a multi-million pound commercial opportunity for its members. It follows closely on the heels of two other commercially-driven initiatives: the BMF’s Trade Credit Finance Scheme and the BMF/Peugeot Affinity Scheme.
Mr Newcomb said: “This is a fantastic commercial opportunity for BMF merchant members. Many national builders, including Miller, deal extensively on a direct basis with manufacturers through large national merchant groups – but Miller would like to explore the feasibility of what a new supply chain might have to offer. This is an excellent opportunity for our members to demonstrate the benefits of a regional distribution network and we are delighted to be working with Miller Homes to oversee the process.”
The BMF will be facilitating a four-phase tendering process, the results of which will be available in Q1 2014. In the first instance, BMF members are invited to submit a formal expression of interest to become Miller Homes merchant panel members. A list of suitable candidates will then be invited to present to Miller Homes on the value they believe they can add to the supply chain. These presentations will take place at the BMF’s offices. Shortlisted candidates will then be invited to submit prices in a competitive tender situation, to be completed in December. If this proves to be advantageous to Miller Homes, there will be a period of engagement with the successful merchants to assess how any new supply chain arrangements can be implemented.
BMF members who want to participate in the tendering process should contact Mr Newcomb for more information.
