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Capital Ambition

The Supplier Relationship Development Approach. Capital Ambition. £9+ billion spend pa Top 100 suppliers account for £2+ billion 10% of suppliers account for 80% spend The Strategic View The “Pan London Client” Concept Untapped Opportunities. Background Overview.

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Capital Ambition

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  1. The Supplier Relationship Development Approach Capital Ambition

  2. £9+ billion spend pa Top 100 suppliers account for £2+ billion 10% of suppliers account for 80% spend The Strategic View The “Pan London Client” Concept Untapped Opportunities Background Overview

  3. Supplier Input into SRM Strategy Negotiation Meetings Work Streams Capturing the Benefits Reporting Ongoing Roll Out The SRD Approach

  4. Four Sources - Market Intelligence Information - Common Assessment Framework - Local Authorities - Contracts Register Service Draft Supplier Relationship Mgt Strategy The SRD Approach

  5. Innovative Not for the can’t do mindset Not for the negative Requires honest, open dialogue Open to continuous improvement Exploratory Commitment from stakeholders The SRD Approach

  6. Service & Performance Improvements Efficiency Gains Cost Avoidance for All Parties Knowledge and Information Sharing Risk Management Develop Strategic Commercial Approach Opportunities

  7. Series of Meetings and Workshops Refresh and Update SRM Strategy via - Market Information - CAF - Project Manager Visits Appoint Negotiation Team Develop SRM Strategy Document Agree Work Streams with Suppliers Key Milestones

  8. Four Main Parts Part 1: Purpose & Objectives Part 2: Contractor in the Marketplace Part 3: Contractor Engagement Plan Part 4: Sectoral Risk Register SRM Strategy

  9. (6 Areas in Draft SRM Strategy) - Day to day problem solving - Partnership working - Quality of service - Value for money - Operational management - Long term flexibility - Overall Score Common Assessment Framework

  10. Reduced cost bases Develop commercial fitness Strengthen existing relationships New dialogue with clients CSR 2007 Improve infrastructure and process Deliver best value services Develop client facing strengths Benefits for Suppliers

  11. Risks - lack of engagement, commitment & ownership - perceptions & ignorance (threats) - lack of innovation Issues - confidentiality and commercial sensitivity - terms of reference - pathfinder status Issues & Risks?

  12. Drafted SRD Briefing Paper Every Chief Executive (London Boroughs) Supported by Capital Ambition, SLT, GLA, others Briefing Days Next Steps with Suppliers Completed CAF processes Appointed Negotiation Teams Joint Negotiation Engagement to Date

  13. Next Steps for Current Phase • Action Plan • Implementation • Document results and lessons learned

  14. Workstreams • Veolia • Bulk Bins • Overheads • Super Depots • Cash Flow • Shared MI • Shared Mgmt Expertise • Spec Changes • Central Govt Guidance • Performance Monitoring • Care UK • Quality Consensus • Client Contract Assistance • Joint Monitoring • Pan London approach to Staff Development and Retention • Business Continuity Planning • KPIs and Data Capture

  15. Next Phase

  16. Questions? Christine Morton Procurement Project Manager christine@mortonatlantic.com 07734 915176

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