1. Best Practice Contract Management Workshop SRM at Essex County Council
Procurement Services
Working to achieve Excellent Procurement
Best Practice Contract Management Workshop SRM at Essex County Council

2. Introduction
Consider 5 Suppliers
Would you consider they are capable of providing the service you require?
Are they delivering as expected?
Have you got Value For Money?

3. To be complemented by appropriate supplier relationship management.
Value Losses
Inputs
Process
Outputs
Outcomes
Chart shows live example of contracted supplier performance showing value lost after appointment of capable suppliers
Contract management alone will not secure value from contracts. It needs
To be complemented by appropriate supplier relationship management.
SRM is about sustaining and improving mutual value

4. Look in the Mirror Our Key suppliers told us that
Current contracts are tighter that the previous set but can stifle innovation
Budget management cycle makes planning difficult
They want to use target costing …We do not seem inclined to follow.
We want control. Suppliers feel to be subservient and arms-length contractor rather than partner. Win/Lose.
We do not understand risk & reward
They want turnover certainty and we want budget spend certainty…but we do not appear to have goal alignment
SRM looks to restructure those relationships in order to drive win/win situations and to enhance bottom line results and service improvements for the benefit of both parties

5. Supplier Relationship Management
A Strategic Approach
To Achieve Maximum Value For Money
To Ensure Efficiency and Effectiveness in Budget Spend
The Supplier Relationship Management team are tasked with delivering a strategic approach in the way that Essex County Council interacts with its key suppliers.
This approach aims to achieve maximum value from the work awarded to those suppliers in order to ensure that budgets are spent efficiently and effectively.
More specifically we aim to
Ensure the capability of the key suppliers is such that they can consistently deliver against Essex County Council’s needs
Improve that capability to make service delivery better, faster and at lower cost
Develop new capability to meet emerging Essex County Council needs
Measure and manage overall key supplier performance.
We meet these aims by promoting a joint approach to continuous improvement and to encourage innovation.
Our vision is that strategic suppliers move to a position where they can actively contribute to and deliver against the strategic objectives of Essex County Council.
The Supplier Relationship Management team supports the corporate plan to ensure service improvement and guaranteeing value for money and aligns with one of the EssexWorks programme top ten priorities in delivering value for money

6. Supplier Relationship Management
Ensure capability to consistently deliver against Essex County Council’s needs
Improve that capability to make service delivery better, faster and at lower cost
Develop new capability to meet emerging Essex County Council needs
Measure and manage overall key supplier performance.

7. Supplier Relationship Management
A joint approach to continuous improvement
Encourage innovation.
Our vision is that strategic suppliers move to a position where they can actively contribute to and deliver against the strategic objectives of Essex County Council.

8. Supplier Relationship Management
SRM Skills
Commercially minded
Knowledge & experience of process improvement activities
Lean and Agile improvements
Innovative and analytical thinker
Ability to drive process change
Delivery focussed
Tenacious
Driven
Ability to influence

9. Relationship with Contract Management
Demand management
Supply market monitoring
Industry cost analysis
Procurement portfolio management
Aligned business processes
CATEGORY MANAGEMENT
MORE STRATEGIC
Capability management
Communication management
Supplier competency assessment
Account planning
Continuous improvement
MORE DAY TO DAY
Specifications
Contract design
T&Cs / SLAs
Compliance
Contract performance
Close out
SUPPLIER RELATIONSHIP MANAGEMENT
CONTRACT LIFECYCLE MANAGEMENT
How we interact with Procurement
More STRATEGIC than DAY TO DAY

10. High Level SRM Process BASELINING ACTIVITY CONTRACT MANAGEMENT
ACTIVITIES
CONTINUOUS
IMPROVEMENT
CYCLE
Methodology based on best practice from private sector tailored to meet public sector requirements
SPONSORSHIP REVIEW

11. Progress Achievements
Programme now underway with 7 Strategic Suppliers
3 Additional Suppliers entered programme this month
Relationships all Benchmarked
8 Projects already identified to deliver mutual benefit and potential cashable savings

12. Take Away
“SRM aims to deliver value for money over and above traditional contract management”