Balfour Beatty: PunchOut procurement process

Approximately 0 staff

Virtual training provided to approximately 300 Balfour Beatty staff

Over 0% of orders

Over 50% of Balfour Beatty orders to Reconomy now being placed on PunchOut (based on total value)

Waste sector's 0st procurement catalogue

Rollout of the waste sector’s first large-scale ‘PunchOut’ procurement catalogue

New ways of working

Reconomy has been investing in technology to modernise and improve its waste management practices for many years. Across the construction industry there continues to be an ongoing discussion around digitisation, with clear and positive arguments for an evolution in systems, processes, and methodologies. The benefits of a digital approach are well established, facilitating greater transparency and automation, which ultimately drive improvements in collaboration and productivity.

Using its unrivalled dataset from within the commercial construction sector, Reconomy calculated that over a 12-month period between January 2020 and February 2021 large construction contractors were, on average, each responsible for processing approximately 18,000 waste management transactions. Accompanying each of these transactions were the frequently unseen costs of manually placing orders, raising purchase orders and processes invoices – with these costs inevitably being higher when using traditional methods such as emails and telephone calls.

In contrast, an estimate by research and analysis group, Gartner, reported that carrying out these processes using automated methodologies can be as much as 20 times more cost effective. Furthermore, it also provides more dynamic and accurate data, together with a future-proofed and sustainable way of operating, with less waste in both time and materials.

Industry first

Having championed the argument for digitisation to both its client base and the wider waste industry, in September 2020 Reconomy completed the implementation of what was believed to be the waste sector’s first large-scale ‘PunchOut’ procurement catalogue, in partnership with the construction and infrastructure giant Balfour Beatty.

The PunchOut catalogue provided Balfour Beatty employees with simple, straightforward access to an e-catalogue of Reconomy’s many waste and recycling services. The catalogue was hosted on Reconomy’s own website and directed linked into Balfour Beatty’s existing purchasing system, Jaggaer, meaning there was no requirement for Balfour Beatty to overhaul its existing backend purchasing processes.

The implementation of the PunchOut catalogue was supported by a comprehensive engagement and training programme which saw the Reconomy team carry out virtual presentations to approximately 300 Balfour Beatty staff during their well-established ‘lunch & learn’ sessions.

PunchOut works by removing the need for multiple emails or phone calls relating to individual orders, ensuring transactions instead take place in a secure and controlled procurement environment. PunchOut’s guided purchasing journey also ensures that correct waste containers are requested for the relevant waste stream before being run through Balfour Beatty’s regular approval processes and creating an order to Reconomy to fulfil. This is helping to eradicate human error along with any costly waste handling charges for procuring incorrect skips or containers.

Achieving results

The introduction of PunchOut, coupled with Reconomy’s SiteBuddy app, which provides site-level ordering and call-off services, means that Balfour Beatty employees now have access to a fully digital, end-to-end waste management solution. PunchOut is also proving to be of great value for Balfour Beatty’s central procurement team, providing them with the necessary data needed to drive management decisions.

The success of both Reconomy’s training programme and the usability of PunchOut have been evidenced by the fact that over 50% of Balfour Beatty’s orders with Reconomy (based on order value) are already being placed using the system. PunchOut has streamlined what can be a complex procurement environment – with multiple buyers in multiple locations, all requiring a wide range of different services.

PunchOut is another example of the collaborative approach that has made the partnership between Balfour Beatty and Reconomy so successful. Both companies will continue using technology to drive efficiency, accuracy and operational excellence.

TESTIMONIAL

“Jaggaer is an integral part of procurement within Balfour Beatty. The system aims to improve the transaction process between the business and the supply chain. Reconomy has been an integral part of driving our digitalisation process and our new PunchOut catalogue is another positive step. We look forward to continuing our working relationship with Reconomy whilst developing our fully digital solution.”

Evan Sutherland, UK Procurement & Supply Chain Director at Balfour Beatty