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Adam Berwick Head of Procurement Rail & Utilities. Engaging with a Main Contractor.
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Adam Berwick Head of Procurement Rail & Utilities
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. Chris Johnson CIO & Group Procurement Director 01. Drivers & strategy for supplier engagement 02. How Balfour Beatty engages the supply chain 03. How our supply chain can engage with us
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
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 2021
The Procurement Strategy Focus • Good to Great • Supply chain Value Supply Chain Safety Work Winning • Systems & Process Social Value
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
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. One 2 One engagement • Local Supplier Events • SRM Meetings • Project Meetings BBRailSupplyChain@balfourbeatty.com Social Media • Supply Chain Email Engage Follow, like, comment retweet, mention @balfourbeatty. Join the conversation. 02 03 04 Balfour Web Site 01 https://www.balfourbeatty.com/how-we-work/supply-chain/ https://www.facebook.com/balfourbeatty https://twitter.com/balfourbeatty https://www.youtube.com/user/BalfourBeattyPlc https://www.linkedin.com
How should suppliers engage Balfour Beatty 3 things to consider when engaging Balfour Beatty Timing of engagement Understand how we buy How to engage 3 Main Procurement Channels Timing to coincide with demand Engaging right part of the business Look for bidding activity / recent wins Central Procurement Team Group Agreements https://www.balfourbeatty.com/ how-we-work/supply-chain You have an innovation / USP Rail Procurement Team Rail Specific Agreements Project Procurement Team Requirements for project BBRailSupplyChain@balfourbeatty.com