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True, profitable, supply chain integration at Bekaert Fencing has both transformed the fortunes of the company and revolutionised the UK perimeter security industry...BackgroundWith its relatively low cost of entry and low technical barriers, the UK fencing sector is saturated with contract installers with widely varying ranges of expertise and financial/operational stability. These inconsistencies present fencing manufacturers, fencing specifiers, main contractors and fencing clients with huge problems when it comes to finding and working with subcontractors who have the necessary skills, attitude and reliability to ensure a quality job.
A sole reliance on procurement through competitive tendering means that fencing systems are, in a huge proportion of cases, installed by fencing contractors who are not committed to quality and customer satisfaction and who use low grade, untrained, site labour. In these cases the manufacturer and the client usually have no involvement in the contractor selection/training process. Nonetheless, when a problem occurs, especially post-contract, both the client and the manufacturer tend to get dragged on to the long and costly 'blame and denial' treadmill from which there are few winners. At the end of the day, in almost every case it is the manufacturer who bears a heavy price in terms of lost reputation, profit, and future sales. MotivationThe fencing industry, like many construction sectors, has its fair share of 'cowboy' contractors who not only bring the trade into disrepute, but also make it difficult for bona-fide operators to compete fairly. Responsible manufacturers are naturally concerned that their products are installed correctly and that the client has a positive experience. To address this long-standing problem, Bekaert Fencing decided in 1999 to establish a nationwide network of approved installers by identifying, training, controlling, motivating and accrediting the best contractors available. The result was Bekaert PRO-net™, a licensed network comprising many of the nation's finest fencing contractors.
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Published on September 12th 2002, the Government-sponsored 'Accelerating Change' report stresses the need for BEKassureTM type supply-and-fix insurance schemes in the UK construction industry. |
The contractor selection process for the Network is fully transparent. Where a contractor applies for membership and fails to make the grade, Bekaert Fencing can provide support to achieve the standards defined.
The PRO-net licence, amongst other things, covers:
Evidence of sound financial status and probity.
Established track record.
Acceptable insurance cover.
Health and Aafety policy.
Commitment to training.
Commitment to quality.
Subcontract labour.
Environment policy.
Objective assessment of company-wide engagement.
Common terms AND conditions of sale.
Working alongside the PRO-net™ contractor is a national network of stock and service centres. Operating under similar contractual terms, these parties provide clearly defined support to the PRO-net Network in terms of product supply, repair and maintenance, etc.
The Network has been branded strongly to differentiate it from anything else on the market. The PRO-net™, BEKassure™, and the umbrella 'PRO-fessional Network' trademarks are strongly emphasised in all communications and literature to create market recognition and a strong sense of identity and ownership amongst the network.
The PRO-net Network is all about raising standards within the industry and fairness and transparency are critical. It has nothing to do with anti-competitive or unethical behaviour. A licensed network is preferable therefore to a club.... contractors should be part of the network on merit not on the basis of payment of membership or turnover. This is not a club: there are no members, no fees; Contractors achieve licensed status on the basis of professionalism and compliance with a strict set of criteria.
Contractors who do not fulfil the criteria are advised why and offered a route to achieve licensed status if they wish.
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Bekaert fencing and gates at the Police Firearms Training Centre at Eaglescliffe, County Durham. The fence is covered by a BEKassure® supply and fix guarantee. |
To keep the Network engaged, one-to-one business meetings at regular intervals are essential, this helps the contractor to understand the culture and provides an excellent opportunity for two-way feedback. Should the PRO-net™ contractor fail to retain his licence then these meetings ensure that there are no surprises and every opportunity has been given to avoid the situation.
As the Network develops engagement is very important in order that contractors feel part of your business, it is recommended that there is an annual get together of the Network to understand the companies' future plans and share in best practice. Involvement in workshops and product development are both good in making the most of front line experience with your products.
The principle of continuous improvement lies at the heart of the PRO-net™ concept. Some of the drivers for ongoing improvement include:
Monthly 1-2-1 review meetings with ENTIRE merchant/ contractor network.
Annual incentive scheme to boost performance.
Annual awards scheme to promote best practice.
PRO-net™ Products Development Group.
As custodians of the scheme, Bekaert sets, maintains and continuously improves network standards.
COMPASS KPI scheme tied in to Bekaert Quality System.
COMPASS, the Construction Manufacturers Partnering Association, is a leading 'not-for-profit' body dedicated to promoting strategic supply chain partnering with manufacturers. As a founding member of COMPASS, Bekaert has used the COMPASS partnering ethos to drive its integration programme forward. Bekaert Fencing was the first manufacturer in the country to gain the coveted COMPASS Charter, which is an independent measure of its commitment to supply chain collaboration and best practice. Visit the COMPASS website for more details.
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More than 3 kilometres of perimeter security fencing from Bekaert were used to provide security and crowd control at the XVII Commonwealth Games in Manchester. The fence is covered by a BEKassure® supply and fix guarantee. |
Bekaert Fencing has enjoyed a 20% year-on-year sales growth since it launched the scheme. There are now more than 50 licensed contractors in the network and more than 600 BEKassure™ projects have been successfully carried out with a total value of more than £12 million. There have been no insurance claims since the scheme started in 1999.
Some of the direct benefits of this mode of working include:
Using an integrated network to produce more integrated solutions with single-point responsibility guarantees more satisfied customers.
The strong collaborative relationship between Bekaert Fencing and the PRO-net™ Network is mutually beneficial. For example, rather than change or reduce Bekaert's hard-won spec, the subcontractor will defend and convert-to the Bekaert system.
Reputation of the company and the industry is improved
Price sensitivity is reduced by 'Getting it Right' more often and as a result of buying back the business of dissatisfied customers.
The scheme allows Bekaert to get much closer to the market under this scheme, with obvious benefits in terms of innovation, customer relations, etc.
Increased influence in the fencing contracting business to raise standards of performance by flagging 'Best of Breed' contractors.
The creation of a true partnering culture of joint problem resolution and moving away from a blame-based environment.
Fewer specifications broken or substituted. The system protects the fencing specification meaning that the Bekaert is able to concentrate on providing proactive support rather than being bogged down with money-wasting defensive measures.
The scheme gives Bekaert Fencing a very strong competitive advantage which in turn generates more (and better) business, which in turn generates greater volumes (a.k.a. economies of scale) and improved profits which in turn finance innovation, improved technical support, etc.
Bekaert Fencing gets to provide the full material package for the system/element concerned instead of having the spec (and invariably the quality) diluted to cost.
It has made Bekaert Fencing a prime candidate for long-term partnering relationships with clients, developers, local authorities, main contractors, etc, with, again, all the benefits shown above.
About
Bekaert FencingBased in Sheffield and part of the Bekaert Group, Bekaert Fencing is the UK's leading manufacturer of a wide range of steel wire and wire products. The company employs more than 700 employees in four factories and in 2000 had a turnover of £75 million.
The Bekaert Group is a world leader in advanced metal transformation and coating technologies. Total turnover of the Bekaert Group in 2001 was EUR 2.8 billion. Founded in 1880, the company operates in 29 countries, has 70 factories in 23 countries and employs around 16,500 employees worldwide. For further details about Bekaert Fencing Systems, its PRO-net™ contractors and its BEKassure Guarantee contact Mike Pollard on 07771 834258.
Bekaert Fencing
PO Box 110
Shepcote Lane
Sheffield S9 1TY
Tel 0870 1270027
Fax 0870 1270028
Email: sales.Sheffield@bekaert.com
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The
unique BEKassure™ guarantee
The
Bekaert PRO-net™ Network