Case Study: Cost Transformation Success: £9M Savings for a Leading UK Water Utility

Posted by: Nathan Davies
Category: Case Studies
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Discover how strategic procurement and commercial expertise helped a leading UK water utility unlock millions in savings and drive long-term operational improvements.

Barkers was engaged by a leading UK water utility to provide procurement expertise, deliver immediate tactical savings, and uncover longer-term strategic benefits. Following a detailed discovery phase, the most effective approach was identified: retendering key contracts, changing operational behaviours, and ceasing non-value-added activities. These actions secured substantial savings for 2023–2025 while laying the foundation for sustainable operational improvements.

The client faced significant financial pressures during the current AMP cycle, compounded by high inflation. Their internal Transformation Programme shifted to become a ‘benefits-led’ initiative, aiming to identify and quantify all-in AMP savings opportunities (excluding construction). The programme sought to consolidate previously identified cost savings, verify committed savings against budgets, uncover new areas of potential benefits, and recommend process and control improvements to enhance procurement agility under the new operating model.

To address these challenges, the client commissioned Barkers to deliver measurable cost savings and benefits, targeting a minimum reduction of £9 million within AMP7.

Barkers provided senior procurement and commercial transformation advisory services, carefully tailored to the client’s operational needs with a focus on achieving AMP cost efficiencies. Central to the strategy was the governance and delivery of a 12-month programme, during which Barkers assumed full responsibility for project oversight and worked closely with Commercial, Finance, and Business stakeholders to define and agree savings and benefits.

By leveraging market insights, Barkers helped the client secure improved supplier terms and pricing, while facilitating new agreements and contracts aligned directly with savings targets. In parallel, Barkers provided comprehensive Project Management Office (PMO) support, preparing steering group packs, weekly reports, consultant updates, savings tracking, and detailed project plans including re-forecasting.

Recognising the importance of internal capability, Barkers addressed training and development needs within the client’s organisation, fostering knowledge sharing and a culture of continuous learning. They also introduced frameworks for business partnering and supplier collaboration, enhancing both internal and external operational efficiency. This integrated approach ensured tangible short-term savings while positioning the client for sustainable long-term success.

The combined efforts of Barkers and the client produced significant, measurable outcomes in cost savings, governance, and operational improvement. Key results included:

  • Achieving £9 million in Barkers-led savings through tendering and commercial activity.
  • Supporting the wider commercial transformation initiative.
  • Delivering a governance structure and framework that contributed to a total of £30 million in AMP savings.
  • Leveraging key contracts to offset unfavourable variances while mitigating exit and dual running costs.
  • Implementing a new target operating model, setting the client up for sustained future success.

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Cost Transformation Success: £9M Savings for a Leading UK Water Utility – Case Study

Author: Nathan Davies