procurement david swinburne – head of procurement
TRANSCRIPT
AGENDA
Introduction
Supplier Engagement
David Swinburne
John Green
Performance Feedback John Green
Validation Process John Green
Labour Supply Strategy Simon Carr
Link Up EngageJohn GreenAnnette Gevaert - Achilles
Supplier Engagement
Identification of Key Suppliers
High Spend Analysis Category of spend Prioritisation
Supplier Engagement
Update on Zero Harm and improved efficiency targets
Report on supplier performance/KPIs etc
Report on how things are working from supplier's perspective
Review of improvement initiatives and measurement of results (safety, efficiency and Sustainability)
Any concerns or blockages encountered on both sides
Supplier Engagement
RELATIONSHIP MANAGER
To co-ordinate and arrange the specific 1 to 1 meetings To liaise with SHEQ Representative To Manage any “Strategic Agreements” Not to get involved in “day to day” site issues To manage interaction with suppliers to maximise value Measuring and valuing relationship To provide a close, more collaborative relationship Realise new value, reduce risk and identify innovation To provide a 2-way mutually beneficial relationship To consider how any competitive advantage can be realised
from working collaboratively with our strategic suppliers To work with strategic suppliers to identify and realise Cost
Savings
Supplier Engagement
RELATIONSHIP CHAMPION
Appointed by Relationship Manager Does not have to be a “Procurement” person To communicate with supplier at one to one meetings BBRail Business specific topics to be identified by SCAM to
ensure that a consistent message is given. May get involved with site specific issues Performance statistics to be provided by SCAM BBRail SHEQ representative may be present at 1-1 meetings Business units can add business specific issues Generally will be appointed from “lead” business unit (by
spend) Record meeting minutes.
Supplier Engagement
SHEQ REPRESENTATIVE
To establish a close working relationship with the supplier
To keep the supplier informed on any key BB Rail SHE initiatives that may have a potential to impact upon their business (Zero Harm/ Sustainability/Fatal Risk Working Group outputs etc)
To review the monthly sub contractor SHE performance reports and provide feedback to the sub contractor
To act as a contact point for any ‘overall’ SHE issues that the relevant subcontractor may wish to raise, ensuring that the issues are adequately addressed
Performance Reporting
What are Balfour Beatty Rail are doing?
Currently Birse Rail undertake performance reports each period.
This process is being rolled out to the whole of the Balfour Beatty Rail OpCo
Process provides information regarding:
- Assurance- Programme- Quality & Competence- Commercial
Performance Reporting
Performance Ratings
75% - 100% Acceptable
50% - 74.99% Caution
0% - 49.99%
Unacceptable
Performance Reporting
Current Process:
The current process is only one way It is a snap shot in time May be distorted by individual’s bad experience
The Future:
Looking to develop a 360 process Meeting with NWR to understand their “PRISM” process BBRail are moving to ORACLE – what are the options? Supplier help!
Validation Process
What are Balfour Beatty Rail doing?
Single database
Collate all the various Balfour Beatty Rail Business’s information
Update supplier information- Company Details- Contact Details- Services Offered- Geographical areas covered.
Revalidate every 2 years
Possible Validation Process
SUPPLIER
SUB-CONTRACTOR
SUPPLY ONLY
NON SAFETY CRITICAL
SAFETY CRITICAL
NON SAFETY CRITICAL
SAFETY CRITICAL
OVERALL VALUE OF CONTRACTS WITH BB
RAIL <£100K
OVERALL VALUE OF CONTRACTS WITH BB
RAIL >£100K
LINK UP ACCREDITATION
REQUIRED
LINK UP ACCREDITATION
REQUIRED
LINK UP ACCREDITATION
REQUIRED
BASIC REGISTER
OHLE WORK, SIGNALLING, P-WAY,
RRV SUPPLY, SAFETY CRITICAL LABOUR
SUPPLY
OHLE WORK, SIGNALLING, P-WAY,
RRV SUPPLY, SAFETY CRITICAL LABOUR
SUPPLY
Small & Above SMEValue of contracts > £2m
Micro SMEValue of contracts < £2m
REGISTER PLUS
REGISTER PLUS
Agenda
Introduction
Introduction to the Category Council for Rail ‘Blue Collar’ Labour
Introduction to the 6 Stage gate Sourcing Process
Data & Market Analysis
Determine Business Requirements for all areas of the Rail Business
Develop Blue Collar Labour Strategy for Rail UK
Cross Business Functional Representative
Provide Functional Category knowledge
Knowledge of current processes, practices and systems
Supplier relationships and supply market knowledge
Introduction to the Category Councilfor Rail ‘Blue Collar’ Labour
Introduction to the Category Councilfor Rail ‘Blue Collar’ Labour (cont…)
Access to spend/business requirements/other sources
Represent Business Function to ensure alignment
Introduction to the 6 Stage Gate Sourcing Process
Spend analysis / validation
Supplier data analysis
Sourcing Work Plan
Develop strategies & tactics
Supply Market Analysis
Sourcing Strategy and approach
4 Review Gate 4 –COMMITMENT
Negotiation
Develop transition plan
Supplier Short List Generation
Pre-qualification / RFI
RFQ
Category Baseline
Finalise engagement / disengagement
3 Review Gate 3 –TACTICS
2 Review Gate 2 –STRATEGY
1Review Gate 1 –REQUIREMENTS & BASELINE
5 Review Gate 5 –IMPLEMENTATION
Review Gate 6 –REVIEW
Demand analysis
Confirm to-be process
Confirm key principles
Draft specification / SLA
Review analysis
Assess options and select
Data & Market Analysis
Determine business
requirements
Develop category strategy
Supplier Selection & Negotiation
Implementation
1 2 3 4 5 Supplier & Contract
management
6Data & Market
Analysis
Determine business
requirements
Develop category strategy
Supplier Selection & Negotiation
Implementation
1 2 3 4 5 Supplier & Contract
management
6
Supplier relationship management
Manage contract obligations
Demand management
6Contract award
Develop category governance RACI
Develop category compliance framework
Confirm benefits
Design new processes & systems
Assess people impact
MI reporting
Introduction to the 6 Stage Gate Sourcing Process
1
4 Review Gate 4 –COMMITMENT
3 Review Gate 3 –TACTICS
2 Review Gate 2 –STRATEGY
1 Review Gate 1 –REQUIREMENTS & BASELINE
5 Review Gate 5 –IMPLEMENTATION
Data & Market Analysis
Determine business
requirements
Develop category strategy
Supplier Selection & Negotiation
Implementation
1 2 3 4 5 Supplier & Contract
management
6Data & Market
Analysis
Determine business
requirements
Develop category strategy
Supplier Selection & Negotiation
Implementation
1 2 3 4 5 Supplier & Contract
management
6
6
Review Gate 1 - Requirements / Baseline
Scope agreed (category, geography, OpCo)
Determine detailed baseline (volumes, unit prices/spend, etc) against which benefits will be assessed
Agree specification, service, process and system requirements
Review Gate 3 - Tactics
Agree short list and/or supplier selection Finalise negotiations approach and
tactics Agree required degrees of freedom (e.g.
specs adjustment …) Confirm opportunity
Review Gate 2 - Strategy
Validate assessed opportunity Approve category sourcing strategy
(e.g. make or buy, tactical/strategic, sourcing levers, etc)
Approve sourcing option and plan (eg. approach to market,
Review Gate 4 - Commitment
Formalise negotiation results and any outstanding issues
Present team recommendations and projected benefits
Confirm supplier and move to contract award
Agree resource requirements for implementation phase
Review Gate 6 - Review
Review of implementation and any issues
Supplier performance review (cost and service)
Benefits confirmation & budgetary impact
Governance and compliance review
Review Gate 5 - Implementation
Agree new processes & systems Agree transition plan, timing and
implementation resources Approve ongoing category governance
arrangements and compliance framework
Agree budget / forecast changes
Introduction to the 6 Stage Gate Sourcing Process
Data & Market Analysis
Determine business
requirements
Develop category strategy
Supplier Selection & Negotiation
Implementation
1 2 3 4 5 Supplier & Contract
management
6
KEY OUTPUTS
Spend analysis / validation
Supplier analysis
PQQ
RFI and results
RFQ and results
Evaluation criteria
Suppliers debrief
Key communications
Contract and narrative (risks & issues, concessions)
SLAs / KPIs
Implementation plan
Key internal & external communications
SLA & reporting
Post implementation review & lessons learned
Benefits mgt process
Governance process
Supplier mgt process
Compliance mgt process
Transactional processes/ systems documented
RACI
Mobilisation
Team & key stakeholders
Category objectives
Scope
Key success factors
Risks
Data & Market Analysis – Spend for 2011
Total Spend for Blue Collar Labour across the Group was £125 million.
Total Spend for Blue Collar Labour across the Rail Business was £29 million
A Total of 29 Labour Suppliers used across the Rail Business
Out of the 29 Labour Suppliers, the Rail Business spent £21.5 million with 10 of those Labour Suppliers.
Data & Market Analysis – Spend for 2012
The recorded spend from Mid September 2012 was £19.8 million
UK Projects Spend - £8.7 million
Birse Rail Spend - £2.2 million
Track Partnership & Mainline Renewals - £8.9 million
Data & Market Analysis – Spend for 2012
Total of 31 Labour Suppliers used across the Rail Business
Out of the 31 Labour Suppliers, the Rail Business spent £15.4 million with 10 of those Labour Suppliers.
Determine business requirements for allareas of the Rail Business
Current/Future requirements for on-site labour across the BB Group.
Supply Chain Selection & Engagement
Labour Types to include/exclude
Labour skills matrix
Determine business requirements for allareas of the Rail Business
What type of Group agreement do we put in place?
Benefits & Savings
Risks to this Project?
How do we communicate this to all Operating Companies across the BB Rail?
Time Scales
Development of a Blue Collar Labour Strategyfor Rail UK
Stage Gate 1 - Data & Market Analysis
Stage Gate 2 - Determine Business Requirements
‘Without identifying the above we will be unable to develop an effective strategy for the Rail Business’
What is Link-Up?
Link-up is the UK rail industry supplier qualification scheme, providing a single common registration, qualification and audit process for suppliers that is shared by the UK rail industry.
The Link-up scheme has three clear objectives: - To provide a single shared qualification process for the rail
community - To reduce duplication, administrative effort and to be
recognised as efficient and cost-effective - To offer a fair, open and transparent process and supports
compliance with EC Procurement Legislation.
How can Link-Up help?
The benefits for a buyer using the Link-Up process include:
- Reduction of duplication- Provides a single shared qualification scheme- Search Facility to source suppliers by category and / or
location- Transparent process supporting EU Procurement Rules- Can be used as part of business Assurance Processes &
Procurement Processes- Provision of up to date information for suppliers including
Audit information Company Information Insurances
What is Link-Up?
In 1997 Achilles were requested to manage Link-Up by Railtrack
Link-Up (formerly Proof) was launched in 2000
The level of industry change meant that necessary technical input from them into Link-Up and Proof was low priority
This led to Version 1 (V1) falling behind both Network rail and industry needs and proof not moving forward as originally intended
Network Rail and Achilles jointly developed Link-Up Version 2 (V2) to deliver an industry solution and this was launched in 2007
Further changes in the Rail Industry & the recognition that V2 was not user friendly or was reflecting current issues has resulted in the need for Link-Up Engage
services for professional procurementbe better informed, make better decisionsservices for professional procurementbe better informed, make better decisions
Link-up Engage – a new version is on its way
October 9th 2012
Link-up today
An active community uses Link-up extensively
113 Buying Organisations
3,500 Suppliers
6,000 Portal Users
11,000 Monthly Searches
36
“Link-up has provided us a valuable tool to manage risk, reputation and as a supplier, supported us with our business development requirements. Since our takeover in December 2011, the company has performed exceptionally well which has led us to winning even more business thanks to Link-up.”
Rob Illsley, Sales & Commercial Manager, Alan Dick Communications
“Link-up has provided us a valuable tool to manage risk, reputation and as a supplier, supported us with our business development requirements. Since our takeover in December 2011, the company has performed exceptionally well which has led us to winning even more business thanks to Link-up.”
Rob Illsley, Sales & Commercial Manager, Alan Dick Communications
Link-up Engage at a glance
The new version of Link-up will deliver great benefits to suppliers... Shortened & streamlined questionnaire Revised product coding structure Modern look and feel and intuitive navigation Easy questionnaire updates Price reduction for 75% of suppliers Introduction of a small supplier tier Global, cross-scheme platform – shared common data
And to buyers...
Flexible supplier search suite Additional questions – survey tool to identify the right supplier Reports from other audit programmes
Furthermore... The revision of the Link-up audit programme is well under way A Sustainability module is soon to be introduced
37
Q3
Jul Aug Sep
Q4
Oct Nov Dec
Q1’13
Jan Feb MarJun
Q2 Q2 ‘13
Apr May
Link-up EngageCommunication Plan
38
2012/2013
Buyer
SuppliersSupplier Training
Transition e-shots
Transition e-shots
Letter from SG Chair to all members
Organisation specific communications: intranet, internal newsletters, meetings etc.
Buyer Training
Generic Communications
Link-up Newsletters to all Scheme membersMedia coverage: magazine articles, advertorials, press releases, interviews etc.
Conferences and exhibitions: Infrarail, Railtex, CECA/RIA/RICA/Rail Alliance Forums
Supplier engagement
Scope agreed
Refinements / Specifications
Scheme configuration
Developments and testing
UAT, Data migration Supplier
LaunchLink-up Engage
PlatformBuyer
Launch
BuyerBuyerSupplierSupplier
Overview of the new Pricing Model
£365
£565
£1,050
£1,700
Small Supplier(max 2 PCs)
Standard Supplier(3 – 39 PCs)
Large Supplier(40 – 749 PCs)
Super Large Supplier(750+ PCs)
StandardRegistration Patron
Basic buyer
Premium package
Super Buyer
+ £485
+ £485
Notice
+ £425
+ £425
+ £425
• Supplier questionnaire
• Company Profile (logo, marketing statement etc. – replaces MARKiT)
• Supplier search via product or company name
• Company Profile• Basic Q data• Contact persons• No audit reports
As before:• OJEU notifications
service
+ £425
• Full search suite• Full Q information• Full Audit Reports• Account Mgmt• Option for Steering
Group membership• Alerts (Supplier
tracking)
• Additional Questions
+ £1,500
£7,450(Buyer with super large
supplier record)
£25,000 (TfL)
and £50,000 (NR/NRIP)
Very large Organisations:NR, NR IP, TfL
• Functionality same as Basic Buyer plus Premium package
£6,800(Buyer only)
£6,800 minus
supplier fee (Buyer with Small, Standard or
Large supplier record)
39
Thank you
40www.achilles.com
Annette [email protected]
Director Rail and TransportAchilles Information Limited
Achilles.com/LinkedIn Twitter.com/Achillesltd Achilles.com/Facebook