1. Lessons Learnt from Highways Supplier Relationship Development Road 2011 Conference 21st November 2011
Philip Snowling
PSG Business Consulting  

2. Agenda SRD Highlights/Lessons Learnt
Principles – what is SRD, why do it
Who has been involved
Approach
Highlights/Lessons Learnt
Results from Questionnaires
Best Practice identified from Negotiations

3. SRD - Principles
To analyse the relationships between buying and supplying organisations to identify scope for greater efficiencies
It’s a two-way process
Opportunities to improve performance – smarter contract behaviors
Opportunities to implement cost savings for mutual benefit

4. Why would you do it? Service & Performance Improvements
Protect council interests in supply chain (e.g. credit crunch impact)
Industry-shaping
Efficiency Gains
Cost Avoidance for All Parties
Knowledge and Information Sharing
Risk Management
Develop Strategic Commercial Approach
Benefits handout 4

5. What’s in it for suppliers?
Reduced cost bases
Develop commercial fitness
Strengthen existing relationships
New dialogue with clients
Improve infrastructure and process
Deliver best value services
Develop client facing strengths

6. Who has been involved

7. SRD – Approach Series of Briefings and Meetings
Create initial SRD Strategy via
- Market Information
- Common Assessment Framework
- Project Manager Visits
Appoint Negotiation Team
Negotiation Sessions – best practice identification
SRD Strategy document
Negotiation Meetings
You and Your Contractor –  
SRD White Paper -    
The “SRD toolkit” –

8. Results from CAF Questionnaire - Overall
Questions were grouped – we have averaged the scores in each group for both contractors to determine any common areas of strength/areas for improvement
Billing scores lowered by responses to “Transparency of charges” (4.4) and “Discount for prompt payment” (1.0)
ICT scores disappointing given that the number different of Highways systems is quite low
Average for Conway and Volker
ICT and Billing are the weakest areas

9. Lessons Learnt
Process could be streamlined – 1-1 meetings take time to arrange, CAF provides some quantification
Difficulty (reluctance from contractor) in getting savings amounts declared
Project emphasis shifted to identification of best practice – contractors are well placed to identify/contrast these
Varying exploitation of Highways Systems
Mobile
Accuracy of Asset Inventory
Sometimes hampered by local IT support
Hosted service

10. Overview of Findings from Negotiations
Best Practice and number of Boroughs currently following them

11. Areas of Commonality
Recycled materials – not identified by Conway – but known to be applying. Common practice
Payment Mechanisms
Sliding scale/Volume discount
Fixed Spending profile
Safety Inspections by Contractor
Early Contractor Involvement
Walk & Build – commonly in operation
Co-Located Teams
Contractor undertakes (some) Design

12. Other Points Points determined during SRD process
Contractors can do more
Approach to KPI / Contract Monitoring
Conventional wisdom – its a good sign if “contract is kept in the drawer”
However – don’t be afraid to invoke if situation requires it
Raise and discuss issues early
TRUST

13. Further Information
You and Your Contractor –  
SRD White Paper –  
The “SRD toolkit” -
Highways SRD - Common Assessment Framework Reports
Highways SRD - Best Practice Reports
Overview –
Conway Clients –
Volker Highways Clients -
Please contact
P. Snowling for details

14. Thank you