2. Adam Berwick
Head of Procurement Rail & Utilities

3. Engaging with a Main Contractor
We manage some of the largest and most complex projects in the world and our supply chain is an invaluable resource to our customers. Successful relationship management with our supply chain is fundamental to the delivery of all our projects.
01. Drivers & strategy for supplier engagement
02. How Balfour Beatty engages the supply chain
03. How our supply chain can engage with us
Chris Johnson
CIO & Group Procurement Director

4. The Balfour Beatty Rail Supply Chain
£250m spend with circa 1000 suppliers & sub contractors in last 12 months
1,500 Active Suppliers on the system at any one time
2018 Bidding pipeline is potentially £4Bn
Key areas are; Network Rail CP6 Frameworks, HS2, Cardiff Metro
Engagement with the supply chain, group suppliers, national suppliers and local suppliers
Looking for innovation and an integrated approach

5. Addressable Market - Rail UK (£Bn)
Importance of Supply Chain Engagement
Addressable Market - Rail UK (£Bn)
Key market drivers and long term outlook
Renewals volumes are increasing following volume reductions in CP5
Slow and uncertain start for enhancements schemes in CP6
TfL set to spend more on enhancements schemes
HS2 rail systems growth from

6. The Procurement Strategy Focus
Supply Chain Safety
Good to Great
Supply chain Value
Systems & Process
Work Winning
Social Value

7. 1 2 3 4 Our Supplier Engagement Model Strategic Suppliers
Top 10 suppliers accounting for approx. 30% of supply chain spend, centralised custom approach focusing on the value of the relationship across the business 1 2
Critical Suppliers
Next 50 suppliers accounting for approx. 40% of supply chain spend. Track performance, central engagement more ad-hoc & reactive. Active engagement at Project / Business Unit level 3
Active Suppliers
Remaining active supply chain accounting for approx. 30% of supply chain spend. Engagement is at a project level on ad-hoc / reactive basis 4
Potential Suppliers
Engagement driven by need generated through
Capability
Capacity
Geography
Innovation

8. 01 02 03 04 Ways in which we engage the supply chain
Supplier forums / session
Strategic Supplier Conference
Innovation Gateway is a tool that allows both new and existing suppliers to submit innovative products, materials and services for consideration by Balfour Beatty. 02
One 2 One engagement
Local Supplier Events
SRM Meetings 03
Project Meetings
Social Media
Supply Chain
Engage  
Follow, like, comment retweet,
Join the conversation. 04
Balfour Web Site

9. How should suppliers engage Balfour Beatty
3 things to consider when engaging Balfour Beatty
Understand how we buy
Timing of engagement
How to engage
3 Main Procurement Channels
Timing to coincide with demand
Engaging right part of the business
Central Procurement Team
Group Agreements
Look for bidding activity / recent wins
You have an innovation / USP
how-we-work/supply-chain
Rail Procurement Team
Rail Specific Agreements
Project Procurement Team
Requirements for project