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Crown Commercial Service Commercial Contract and Supplier Management

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Presentation on theme: "Crown Commercial Service Commercial Contract and Supplier Management"— Presentation transcript:

1 Crown Commercial Service Commercial Contract and Supplier Management
Version v1.0 19 Nov 2014 Delivering value for the nation through outstanding commercial capability and quality customer service

2 Mission Statement Our aim is to ensure that our customers are getting the maximum levels of service and value from their suppliers whilst also minimising risk.

3 Contract Management – Part of our DNA
Procurement Process Contract and Supplier Management High Before going to market Time spent on value added activity Developing requirements that shape markets and the supply base to Government Improving contract and supplier management capability through application of new standards and capability Simplifying process and reducing turnaround times & supplier bid costs Low Before Business need identification Sourcing strategy Supplier identification Finalisation of contract Contract management Goal Market analysis Execution of sourcing strategy Supplier relationship management and negotiation Achieving better results from public funded bids

4 Why are we doing it? Delighted customer Improved supplier performance
Risk management and business continuity best practice Contract savings Transparency of performance data Stringent performance reporting Stringent Performance reporting MI and best practice sharing across contracts and suppliers Management information (MI) and best practice sharing across contracts and suppliers Strong supplier relationship management (SRM) and contract management (CM) links across supplier organisations and categories Strong SRM and CM links across SO and categories Standardised and online CM resources reducing CM time Standardised and on line CM resources reducing CM time Value for money (VFM) contract variations linked with organisational priorities VFM contract variations linked with organisational priorities Transition to better value contracts/ frameworks Transition to better value contracts/ frameworks Benchmarking of costs across contracts and departments Benchmarking of costs across contracts and departments CM portal, with shared customer interface CM portal, with shared customer interface

5 Contract Managers – Pillar (Tier 1)
Steve Duckworth Head of Contract and Supplier Management Victoria Ladishinskaya Technology Lead Barry Bone Corporate Lead Mark French Buildings Lead Angela Donohue People Lead Paul Allison Operations Lead IACCM Expert* IACCM Expert* IACCM Expert* IACCM Expert tbc* IACCM Expert* IACCM Expert* Contract Managers – Pillar (Tier 1) Commercial Awareness and Negotiation Training** Contract Managers – Service Operations (Tiers 2 and 3) Commercial Awareness and Negotiation Training** * International Association for Contract and Commercial Management (IACCM) training to Expert Level for Commercial Contract Management and Supplier Relationship Management ** IACCM and bespoke courses through Civil Service Learning

6 Contract Management (CM) Standards Overview
Pre-Procurement Procurement/ Mobilisation of CM Function Implementation: CM Set Up Delivery: CM Exit, Transition & Review Review deliverability of the contractual provisions Scope Payment Regime Key performance indicators (KPIs) Operational CM Customer feedback Supplier reporting Governance Escalation / dispute resolution Benchmarking and VFM Exit provisions Before contract award: Review deliverability of proposals with the supplier Agree split of roles and responsibilities between customer and supplier Resource and mobilise CM function Budget Recruitment Training Objective-setting Set up internal CM documents and systems CM operations manual CM planner Contract budget monitoring Contract change controls Risk register Issues log Lessons learned log Continuous improvement plans Repository for contract and procurement documentation (filing system) Contingency and business continuity plans Benefits capture Client meetings and governance structure N.B. ensure these are in place for existing contracts Agree with supplier Process maps for contracted provision Customer and supplier roles and responsibilities Performance monitoring regime and criteria: common understanding of scope, KPIs and reporting requirements Processes for complaints, escalations and dispute resolution Triggers for payment and incentive regime Meetings: governance, agenda, terms of reference Change control process and forms Customer satisfaction surveys process Contingency and continuity plans Exit plan Operational management and administration (3.0) Supplier performance monitoring (3.1) CM budget monitoring (3.2) Change control and benefits realisation (3.3) Escalations and disputes (3.4) Benchmarking and VFM (3.5) Supplier relationship and continuous improvement management (3.6) Client relationship management (3.7) Risk and business continuity management (3.8) Finalise and implement the exit plan Ensure handover information is captured from supplier Conduct soft market testing Ensure gathered lessons learned and soft market testing feed into future procurement / re-procurement ACTIVITIES Robust draft contract documentation Signed contract CM function budget and scope agreed CM function in place Suite of contract specific CM documentation and systems (as listed above) CM documentation and systems agreed with supplier Robust regime for CM governance, performance monitoring and budget control Exit plan Agreed re-procurement Updated specification OUTPUTS A contract that is fit for purpose, aligned to client organisation priorities and easy to manage A fit for purpose contract A fit for purpose CM function Continuity between procurement to delivery stages Customised CM systems, based on common standard – optimising contractor performance while minimising contract and CM costs Common understanding of contracted provision between customer and supplier Ability to hold the supplier to account for delivery of contracted provision Supplier providing maximum provision for minimum cost Reduced time input required from the client Proactive CM > no need for fire-fighting Transition to re-provision Market intelligence and previous lessons captured, informing future provision OUTCOMES

7 Contract Management Implementation
Performance improvement Contract object Contract handbook Escalation and dispute resolution SRM Benchmarking Cross government data Innovation and improvement Intelligence and review Exit management Performance management Cost control Risk control Supplier reviews Contract tiering Contract Manager assigned Contracts loaded to database Change control MI identified Phase 1 Transition Phase 2 Start up Phase 3 Operations Phase 4 Strategic contract & supplier management

8 If you have any questions about the CCS contract management team or the use of Contract Management Standards and related documentation please contact: Vicky Ladizhinskaya Senior Commercial Manager Mobile:

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