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Procurement David Swinburne – Head of Procurement.

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Presentation on theme: "Procurement David Swinburne – Head of Procurement."— Presentation transcript:

1 Procurement David Swinburne – Head of Procurement

2 AGENDA Introduction Supplier Engagement David Swinburne John Green Performance FeedbackJohn Green Validation ProcessJohn Green Labour Supply StrategySimon Carr Link Up Engage John Green Annette Gevaert - Achilles

3 Introduction David Swinburne – Head of Procurement

4 Supplier Engagement John Green – Supply Chain Assurance Manager

5 Supplier Engagement  Identification of Key Suppliers  High Spend Analysis  Category of spend  Prioritisation

6 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

7 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

8 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.

9 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

10 Supplier Engagement

11 Performance Reporting

12 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

13 Performance Reporting Performance Ratings 75% - 100% Acceptable 50% % Caution 0% % Unacceptable

14 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!

15 Validation Process

16 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

17 Possible Validation Process

18 Balfour Beatty Rail Category Council for Onsite Temporary Labour Simon Carr – Subcontract Manager

19 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

20  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 Council for Rail ‘Blue Collar’ Labour

21 Introduction to the Category Council for Rail ‘Blue Collar’ Labour (cont…)  Access to spend/business requirements/other sources  Represent Business Function to ensure alignment

22 Introduction to the 6 Stage Gate Sourcing Process

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25 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.

26 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

27 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.

28 Determine business requirements for all areas 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

29 Determine business requirements for all areas 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

30 Development of a Blue Collar Labour Strategy for 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’

31 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.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.

32 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

33 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

34 Link Up “Engage” Annette Gevaert – Director Rail & Transport Achilles Information Ltd

35 services for professional procurement be better informed, make better decisions services for professional procurement be better informed, make better decisions Link-up Engage – a new version is on its way October 9 th 2012

36 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

37 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

38 Q3 JulAugSep Q4 OctNovDec Q1’13 JanFebMarJun Q2Q2 ‘13 AprMay Link-up Engage Communication Plan /2013 Buyer Suppliers Supplier Training 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 members Media 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 Launch Link-up Engage Platform Buyer Launch

39 Buyer Supplier 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) Standard Registration Patron Basic buyer Premium package Super Buyer + £485 Notice + £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

40 Thank you 40 Annette Gevaert Director Rail and Transport Achilles Information Limited Achilles.com/LinkedInTwitter.com/AchillesltdAchilles.com/Facebook


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