Bradfords, JT Atkinson & Lords form new buying alliance

Three independent builders merchant groups have come together to collaborate on buying and procurement for a number of product sectors.

Bradfords Building Supplies, Lords and JT Atkinson had all in the past been part of traditional buying groups – the first two of h&b and the latter of Fortis. They are very clear though that this is not a new buying group, it is a collaborative alliance. Indeed, Bradfords remains part of the plumbing and heating buying group PHG, through which it will continue to procure plumbing and heating products.

David Young, chief executive of Bradfords, says that the Alliance is a response to an industry facing sustained economic pressures. “The Construction Products Association is forecasting virtually no market growth, while merchants continue to face rising employment costs, higher utility bills, increased business rates and wider inflationary pressures,” he explains. “Against that backdrop, we have to keep looking for new and better ways of working.”

The leaders of the three businesses found themselves discussing the common challenges facing independent merchants. “We never set out with the intention of creating anything like this,” says Young. “As we talked about our businesses, it became obvious that we were all facing remarkably similar challenges and that there may be opportunities to collaborate in a selective and responsible way.”

Jamie Atkinson, managing director of JT Atkinson, adds: “We’re like-minded businesses with very similar ambitions and values. We all want to grow and continue to develop – we quickly recognised there were opportunities to work together without compromising our independence. We wanted to create something that encapsulated the unique benefits of being independent merchants who can make decisions quickly and collaboratively. The Alliance is built very much on commitment, collaboration and trust.”

Keith Wright, commercial director at JT Atkinson, who will also act as Alliance Procurement Director, says the approach has deliberately been kept simple.
“We’ve tried to create something that allows the three businesses to work together where there is a clear benefit, without adding unnecessary complexity. Each business remains independent and the focus is simply on identifying the right opportunities to collaborate.”

There has also been a deliberate decision to avoid creating unnecessary central costs. Wright explains: “Apart from my role as Alliance Procurement Director, the businesses are the Alliance. The commercial expertise already exists within Bradfords, JT Atkinson and Lords, and those teams will deliver the strategy. I think that’s a really important distinction. We’re creating collaboration without building bureaucracy.”

Procurement teams across the three businesses are working together to assess where collaboration may create value. “There are some areas where collaboration simply doesn’t make sense,” Wright says. “Our focus is on identifying opportunities where collaboration can genuinely create value for everyone involved.”

Young believes openness will strengthen supplier confidence. “We want suppliers to feel comfortable engaging with the Alliance,” he says. “The aim is to create constructive conversations based on openness, fairness and mutual value. It has to work for suppliers as well as for the Alliance members.”

Lords CEO Shanker Patel says: “We have been working collectively to create something that is different. There is no intention to purchase everything through the Alliance, only where there is value for all sides. We have worked hard to create a pro-competitive alliance, that has openness, honesty, fairness, and efficiency at the heart of it. Delivering on what it promises and driving tangible benefits to all. With operating costs increasing for all parts of the industry, we must look at innovative ways of buying and selling better. This is an exciting time, and we are looking forward to sharing our vision with like-minded partners.”