Central Purchasing. Sören Bergström, Director of Purchasing and Business Unit Manager, JM Residential Sweden

Transcription

1 Central Purchasing Sören Bergström, Director of Purchasing and Business Unit Manager, JM Residential Sweden

2 Group Staff Central Purchasing Help to ensure that we achieve high customer value and the right quality for the lowest total cost JM has negotiated framework agreements with about 350 suppliers via Group Staff Central Purchasing Capital Market Day 25 Nov// SB 2

3 JM's purchasing volume Sweden 2010 SEK 5.2 billion 1) 30% 20% 50% Subcontractors Services Materials 1) Supplier invoiced sales in Sweden incl. Group internal sales (excluding VAT) Capital Market Day 25 Nov// SB 3

4 Percentage of JM's purchasing volume 1) under framework agreement against call-offs Distribution Jan.-June 2011 Jan.-June 2009 Jan.-June 2007 Materials 95 % 87 % 80 % Construction site costs 76 % 79 % 48 % Subcontractors 50 % 24 % 23 % Planning 49 % 10 % 9 % Indirect costs 31 % 17 % 11 % Temporary employee 20 % 6 % 0 % Contractor costs 0 % 0 % 0% 1) Supplier invoiced sales in Sweden incl. Group internal sales (excluding VAT) Capital Market Day 25 Nov// SB 4

5 Index trend (base year 2005) Factor price index apartment blocks total 1) + 21% Consumer price index total (CPI) + 9% Price trend JM's framework agreements < CPI 1) Excluding wage drift and VAT Capital Market Day 25 Nov// SB 5

6 Homes of Excellence Architect Procurement Contract Purpose: to work with selected architects to create housing with increased customer value and low operating and production costs Capital Market Day 25 Nov// SB 6

7 Homes of Excellence Architect Procurement Contract Project team with representatives from all JM regions participated in the inquiry and evaluation 53 architectural offices invited to participate, with personal presentation of request for proposal Agreements with 24 architectural offices Capital Market Day 25 Nov// SB 7

8 Framework agreement architectural assignments Training completed November 2010 January architects certified Capital Market Day 25 Nov// SB 8

9 Homes of Excellence Selected architects from selected architectural offices Training ensures that architects have the right basic assumptions to carry out the assignment Closer collaboration increases the opportunities for feedback Capital Market Day 25 Nov// SB 9

10 Framework agreement Buyer loyalty from our framework agreements continues to be extremely high The organization is closely involved with both agreements and suppliers We have a well developed feedback system Capital Market Day 25 Nov// SB 10

11 Supplier coaching JM evaluates suppliers upon completion of all projects The average rating for JM suppliers in 2010 was very high Central purchasing can use supplier evaluations to help our suppliers to improve. Evaluation Analysis Goal Action plan Capital Market Day 25 Nov// SB 11

12 Supplier coaching Compare suppliers within same category Compare different categories Overarching and regional level Focus on improvement measures Capital Market Day 25 Nov// SB 12

13 Financial risk management Per October 26, 2011, 94 % of JM's framework suppliers are assessed to be at low, or very low risk of insolvency in 1 year Ensure access Minimize time spent on purchasing JMs dependance on supplier market Ekonomic impact Ensure access and long-term cost efficiency Lowest price Risk class 2 Risk class Capital Market Day 25 Nov// SB 13

14 Many suppliers consider JM an interesting partner Market leader in our industry Unique opportunities to guide product selection Close contact with end customer Development initiatives with suppliers Long-term planning (unique in the industry) Long agreement periods with buyer loyalty Strong brand Capital Market Day 25 Nov// SB 14

15 JM Residential Sweden

16 Business unit JM Residential Sweden East Region West Region South Region Malmö Region Capital Market Day 25 Nov// SB 16

17 Price trend on existing home market SEK/m Prices for tenant-owned apartments other cities, Sweden Göteborg Uppsala Lund Malmö Linköping Halmstad Jönköping Helsingborg Örebro Västerås Norrköping 0 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: WSP Analys och Strategi aug Capital Market Day 25 Nov// SB 17

18 Home sales figures JM Residential Sweden Number Jan-sep 2011 Q1 Q2 Q Capital Market Day 25 Nov// SB 18

19 Housing starts JM Residential Sweden Number Jan-Sep 2011 Q1 Q2 Q Capital Market Day 25 Nov// SB 19

20 Housing starts Q JM Residential Sweden Project Municipality Number of homes Bryggan stage 1a, Dockanområdet Malmö Madicken stage 2B Malmö 18 Videdal stage 2B Malmö 17 Sockerbruksområdet stage 1 Lund 73 Landerigatan Göteborg 47 Mälarparksbäcken, Ö Mälarstrand Västerås 32 Södra Ekkällan 1 Linköping 36 Tornet 3 Uppsala 32 Trasthagen Uppsala 32 Total Capital Market Day 25 Nov// SB 20

21 Project Housing starts Q JM Residential Sweden Municipality Number of homes Slussplan Malmö 78 Värpinge Äng Lund 30 Platån 4, Brf Balladen Göteborg 65 Brunstorp stage 1:2 Jönköping 10 Hertigen stage 1 Örebro 42 Magnolian stage 2 Uppsala 56 Tornet stage 4 Uppsala 51 Total Capital Market Day 25 Nov// SB 21

22 Housing starts 2011 JM Residential Sweden Project Municipality Number of homes Bryggan stage 1B Malmö 44 Hamnvakten Lomma 43 Lund Väster stage 3 Lund 66 Åkerbäret, Kviberg stage 2 Göteborg 58 Inre Sannegården Göteborg 86 Total Capital Market Day 25 Nov// SB 22

23 Capital Market Day 25 Nov// SB 23