1. CP6 and Growing the supply chain
Jo Dunn, Head of Procurement (IP), Network Rail

2. Contents CP6 Procurement Strategy Objectives Sustainable Procurement
Building a Performance Culture
Strengthening our Capabilities
CP6 Delivering Efficiencies
CP6 Procurement Key Risks and Opportunities
12-Jan-19

3. CP6 Procurement Strategy Objectives
Ensure that the needs of the Route Businesses and passengers are met by improving safety performance, demonstrating value for money and allowing innovation to thrive.
Improve/reward safety and contract performance with a fair return whilst addressing poor performance.
Incorporate lessons learnt from CP5 to promote a stronger performance culture.
Foster industry leading collaboration and support an effective & sustainable supply chain.
Aligned with Route Services C&P Transformation plan.
Ensure that Network Rail remains a client of choice for key suppliers in a growing market.
12-Jan-19

4. CP6 Procurement Programme - Status
Nationally co-ordinated with local leadership
Integrated CP6 procurement schedule in place,weekly progress review and reporting by relevant Commercial Directors
ITTs staggered to manage resources and enable continuous improvement
Contract coverage in place to enable transition
Linked to NR website to provide workbank / pipeline visibility to supply market
Award recommendation quality criteria being developed
12-Jan-19

5. CP6 Sustainable Procurement
Waste A suite of targets
Biodiversity
Pollution prevention
Responsible sourcing
Capital carbon
Energy efficiency
Climate change adaptation
Community engagement
Diversity, Inclusion & Accessibility % female by 2020
Employment, Skills & Training Apprentice/£3m
Local procurement and SMEs % spend by 2021
Rail heritage
Employee engagement
Social Performance
Environmental Management
Weather Resilience and Climate Change
Energy and Carbon Management
12-Jan-19

6. CP6 Building a Performance Culture
Holding suppliers to account for contractual performance and the provision of commercial data for improved cost planning & benchmarking
Suite of improvements to our standard T&Cs
National Performance Metrics within our CP6 contracts
Commercial Performance & Assurance Metrics for Cost Planning, Procurement, Collaboration Commercial & Claims Management
More engagement via cross industry working groups
Focused work-streams via the Commercial Directors’ Forum on collaboration & commercial working practices
Create a ‘BAU’ approach to value capture & efficiency targets
Fully embed IPs One Vision One Way program
Actively promote a performance culture that bring a focus to efficiency targets & improved commercial practices
12-Jan-19

7. CP6 Strengthening Our Capability
7 key efficiency categories
Scope, Access, Design, Workbank Planning, Delivery, Technology, Commercial
Route Targets in £ms & represent CP6 ‘like for like’ savings
IP emphasis/contributions will centre on;
Effective Procurement, ECI, LEAN, Workbank Planning, Contracting Strategies, Commercial Performance, Benchmarking & Target Setting
12-Jan-19

8. CP6 Delivering Efficiencies
Procurement strategies linked to Route SBPs for aligned objectives – evidenced at Contract Award
Integrated planning & target setting
Key frameworks competitively tendered, (Central - efficiencies negotiated)
Unit rates reviewed communicated & business plans aligned
T&Cs refreshed to learn lessons from CP5
Improved commercial capabilities via 1v1w, (RMM , NPM , 4Qs: ‘should, will, did & why’)
Quarterly Benchmark rate review & challenge
Measure progress against efficiency targets
Develop BAU capability through People, Process, Systems, Culture & Capability
12-Jan-19

9. CP6 Delivering Efficiencies
Building a BAU capability to deliver efficiencies via People, Process, Systems, Culture & Capability
Sponsorship and Governance
The IP Exec will lead Efficiency realisation to support each of the Route Businesses in meeting their targets (e.g. Signalling, Track) to demonstrate efficiencies and share best practice.
People and Capability
Technology Solution
A capable core/discipline team that supports the regions and routes to identify, track & report on efficiency opportunities, proving that targets have been achieved. This team to act as a conduit/catalyst for ideas and resources to get them done.
A technology solution that enables the effective collection, storage, management and analysis of performance & benchmarking data. Analysis and insight can be shared across IP & Route Businesses via dedicated tool/platform/web portal, etc
Industry Forums
Develop commercial measures & techniques, share information, insights & learning across our supply chain and industry
e.g. NCDF & TIES
Organisational Processes
Data and Information
A defined process for demonstrating efficiencies will be led by a core team but implemented via specific contracts & programmes with training & monitoring of efficiencies. There will be common standards for evidence required for realising efficiencies, aligned to Route Business targets.
Performance & benchmarking data will be structured consistently at a level of detail that enables comparison of repeatable work items. Quarterly updates of SBP benchmark rates will be used to the data points to provide transparency & context as to delivery against targets.

10. CP6 Procurement Key Risks
Threats
Mitigations
NR / supply chain readiness for CP5 - CP6 transition
Staggered procurement timetable
CP5 contracts extended to provide overlap
Programme management of procurement timetable
Supply chain capacity and capability
Visibility of CP6 work bank provided
Procurement notices issued at earliest possible stage
Network Rail commercial capability
Implementation of improved competence assessment, management and upskilling through professional development work-streams
Resource planning for CP6 underway
Consolidation of Signalling / DR market
Signalling frameworks structured to encourage supplier diversity
Separation of frameworks to encourage competition from smaller suppliers
Improved flexibility in CP6 design/procurement through increased technology base
Frameworks designed in consideration of Digital Railway work-streams and future transition requirements
Opportunity
Action being taken
Leveraging of category management
1. Integrated category management work-streams being developed
Improved packaging of national workloads
1. National review of volumes as part of the CP6 Supply Chain Strategy
Lessons learnt from CP5
1. Developing a performance culture where VFM, Efficiency, Performance and Collaborative Working are BAU
2. Lessons learnt from CP5 being developed with each Region
Updated Terms and Conditions of contracts
1. Review of terms and conditions underway, particularly payment, performance & target pain/gain share mechanisms.

11. Summary
We have an integrated procurement programme for CP6 to ensure contract coverage throughout the transition period with appropriate mobilisation
Lessons are being incorporated from CP6 in how we procure, contract and engage with our suppliers
Sustainability requirements are being deployed
We have work to do to progress and embed a performance culture and incentivisation in line with National Performance Metrics
Efficiencies to be demonstrated at award stage
We are working closely with Route Services to ensure alignment with the Transformation Programme
Supply chain concerned over lack of visibility of enhancements for CP6