Presentation on theme: "Best Practice Contract Management Workshop SRM at Essex County Council"— Presentation transcript:
1 Best Practice Contract Management Workshop SRM at Essex County Council Procurement ServicesWorking to achieve Excellent ProcurementBest Practice Contract Management Workshop SRM at Essex County Council
2 IntroductionConsider 5 SuppliersWould 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 LossesInputsProcessOutputsOutcomesChart shows live example of contracted supplier performance showing value lost after appointment of capable suppliersContract management alone will not secure value from contracts. It needsTo 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 innovationBudget management cycle makes planning difficultThey 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 & rewardThey want turnover certainty and we want budget spend certainty…but we do not appear to have goal alignmentSRM 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 ApproachTo Achieve Maximum Value For MoneyTo Ensure Efficiency and Effectiveness in Budget SpendThe 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 toEnsure the capability of the key suppliers is such that they can consistently deliver against Essex County Council’s needsImprove that capability to make service delivery better, faster and at lower costDevelop new capability to meet emerging Essex County Council needsMeasure 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 needsImprove that capability to make service delivery better, faster and at lower costDevelop new capability to meet emerging Essex County Council needsMeasure and manage overall key supplier performance.
7 Supplier Relationship Management A joint approach to continuous improvementEncourage 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 SkillsCommercially mindedKnowledge & experience of process improvement activitiesLean and Agile improvementsInnovative and analytical thinkerAbility to drive process changeDelivery focussedTenaciousDrivenAbility to influence
9 Relationship with Contract Management Demand managementSupply market monitoringIndustry cost analysisProcurement portfolio managementAligned business processesCATEGORY MANAGEMENTMORE STRATEGICCapability managementCommunication managementSupplier competency assessmentAccount planningContinuous improvementMORE DAY TO DAYSpecificationsContract designT&Cs / SLAsComplianceContract performanceClose outSUPPLIER RELATIONSHIP MANAGEMENTCONTRACT LIFECYCLE MANAGEMENTHow we interact with ProcurementMore STRATEGIC than DAY TO DAY
10 High Level SRM Process BASELINING ACTIVITY CONTRACT MANAGEMENT ACTIVITIESCONTINUOUSIMPROVEMENTCYCLEMethodology based on best practice from private sector tailored to meet public sector requirementsSPONSORSHIP REVIEW
11 Progress Achievements Programme now underway with 7 Strategic Suppliers3 Additional Suppliers entered programme this monthRelationships all Benchmarked8 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”