Best Practice Contract Management Workshop SRM at Essex County Council Procurement Services Working to achieve Excellent Procurement Best Practice Contract Management Workshop SRM at Essex County Council

Introduction Consider 5 Suppliers Would you consider they are capable of providing the service you require? Are they delivering as expected? Have you got Value For Money?

To be complemented by appropriate supplier relationship management. Value Losses Inputs Process Outputs Outcomes Chart shows live example of contracted supplier performance showing value lost after appointment of capable suppliers Contract management alone will not secure value from contracts. It needs To be complemented by appropriate supplier relationship management. SRM is about sustaining and improving mutual value

Look in the Mirror Our Key suppliers told us that Current contracts are tighter that the previous set but can stifle innovation Budget management cycle makes planning difficult They want to use target costing …We do not seem inclined to follow. We want control. Suppliers feel to be subservient and arms-length contractor rather than partner. Win/Lose. We do not understand risk & reward They want turnover certainty and we want budget spend certainty…but we do not appear to have goal alignment SRM looks to restructure those relationships in order to drive win/win situations and to enhance bottom line results and service improvements for the benefit of both parties

Supplier Relationship Management A Strategic Approach To Achieve Maximum Value For Money To Ensure Efficiency and Effectiveness in Budget Spend   The Supplier Relationship Management team are tasked with delivering a strategic approach in the way that Essex County Council interacts with its key suppliers.   This approach aims to achieve maximum value from the work awarded to those suppliers in order to ensure that budgets are spent efficiently and effectively. More specifically we aim to Ensure the capability of the key suppliers is such that they can consistently deliver against Essex County Council’s needs Improve that capability to make service delivery better, faster and at lower cost Develop new capability to meet emerging Essex County Council needs Measure and manage overall key supplier performance. We meet these aims by promoting a joint approach to continuous improvement and to encourage innovation. Our vision is that strategic suppliers move to a position where they can actively contribute to and deliver against the strategic objectives of Essex County Council. The Supplier Relationship Management team supports the corporate plan to ensure service improvement and guaranteeing value for money and aligns with one of the EssexWorks programme top ten priorities in delivering value for money

Supplier Relationship Management   Ensure capability to consistently deliver against Essex County Council’s needs Improve that capability to make service delivery better, faster and at lower cost Develop new capability to meet emerging Essex County Council needs Measure and manage overall key supplier performance.

Supplier Relationship Management A joint approach to continuous improvement Encourage innovation.   Our vision is that strategic suppliers move to a position where they can actively contribute to and deliver against the strategic objectives of Essex County Council.

Supplier Relationship Management SRM Skills Commercially minded Knowledge & experience of process improvement activities Lean and Agile improvements Innovative and analytical thinker Ability to drive process change Delivery focussed Tenacious Driven Ability to influence

Relationship with Contract Management Demand management Supply market monitoring Industry cost analysis Procurement portfolio management Aligned business processes CATEGORY MANAGEMENT MORE STRATEGIC Capability management Communication management Supplier competency assessment Account planning Continuous improvement MORE DAY TO DAY Specifications Contract design T&Cs / SLAs Compliance Contract performance Close out SUPPLIER RELATIONSHIP MANAGEMENT CONTRACT LIFECYCLE MANAGEMENT How we interact with Procurement More STRATEGIC than DAY TO DAY

High Level SRM Process BASELINING ACTIVITY CONTRACT MANAGEMENT ACTIVITIES CONTINUOUS IMPROVEMENT CYCLE Methodology based on best practice from private sector tailored to meet public sector requirements SPONSORSHIP REVIEW

Progress Achievements Programme now underway with 7 Strategic Suppliers 3 Additional Suppliers entered programme this month Relationships all Benchmarked 8 Projects already identified to deliver mutual benefit and potential cashable savings

Take Away “SRM aims to deliver value for money over and above traditional contract management”