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Dr Denis McBrinn, Development Director, NI Supply Chain Management Best practice and Codes of Conduct.

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Presentation on theme: "Dr Denis McBrinn, Development Director, NI Supply Chain Management Best practice and Codes of Conduct."— Presentation transcript:

1 Dr Denis McBrinn, Development Director, NI Supply Chain Management Best practice and Codes of Conduct

2 Overview Supply Chain Management Rationale? Roles and Responsibilities Code of Conduct Benefits; Underpinning Values; Challenges Best Practice Lead Contractors, Subcontractors and DEL

3 Supply Chain Management?  Evolution of Employment Programmes 1998 New Deal: 26 Local Consortia 2008 Steps to Work: 10 Lead Contract Areas 2014 Steps2Success: 3 Lead Contract Areas  Drive for improved efficiencies  Diverse local supply chain is critical  Partnerships Essential  Evolution of Employment Programmes 1998 New Deal: 26 Local Consortia 2008 Steps to Work: 10 Lead Contract Areas 2014 Steps2Success: 3 Lead Contract Areas  Drive for improved efficiencies  Diverse local supply chain is critical  Partnerships Essential

4 Benefits of a Code of Conduct  Well defined roles and responsibilities  Fair treatment of subcontractors  Facilitates industry-wide standards  Encourages best practice  Pre – Contract and Post – Contract  Well defined roles and responsibilities  Fair treatment of subcontractors  Facilitates industry-wide standards  Encourages best practice  Pre – Contract and Post – Contract

5 Underpinning Values Comply with the NI Concordat Openness & Trust Address Issues and Challenges Fairness Integrity Culture of Continuous Improvement Mutual Respect Outcome Focused Sharing Good Practice

6 Best Practice: Pre-contract award ConductExamples of Best Practice Open, transparent & fair application process  Opportunities widely advertised  ERSA template EOI  Lead Contractors not insisting on exclusive agreements Fair Terms & Conditions  Ensuring T&Cs are reflective of level of risk  Offering variations from the standard financial model Clarity of Expectations  Undertaking due diligence  Providing written agreements & Letters of Intent Value for Money Management Fees  Detailing the service provided for the fee Managing Financial Risk  Helping access finance and manage risk

7 Best Practice: Post-contract award ConductExamples of Best Practice Honouring Commitments  Written agreements  Changes to agreements only done with DEL consent Management Information & Monitoring  Agreeing simple and effective formats  Effective use of IT to facilitate reporting Capacity Building Support  Dedicated Partnership Managers  Regular Partner Forums  On going training & support Payment of Subcontractors  Payment terms agreed and honoured  Payment in advance where necessary Effective Dispute Resolution  Regular open and honest communication  Partner newsletters/e-bulletins  Dealing with issues promptly

8 Challenges  Effective due diligence  Cultural Compatibility  Management Styles  Need to balance risk & reward  Implications of a “Payment by Results” contract  Provision of accurate referral volumes  Effective due diligence  Cultural Compatibility  Management Styles  Need to balance risk & reward  Implications of a “Payment by Results” contract  Provision of accurate referral volumes

9 The Role of the Department  Uphold & enforce the Code of Conduct  Ensure reasonable timeframes  Provide accurate forecasts of referral numbers  Support for Lead Contractors  Provide a grievance route for sub-contractors  Ensure all delivery providers have a ‘voice’  Uphold & enforce the Code of Conduct  Ensure reasonable timeframes  Provide accurate forecasts of referral numbers  Support for Lead Contractors  Provide a grievance route for sub-contractors  Ensure all delivery providers have a ‘voice’

10 Key Questions How will the Code of Conduct be enforced? What penalties will be in place if the Code of Conduct is deemed to be breached? Will adherence to the Code of Conduct form part of contractual agreements with lead contractors? Will lead contractors be subject to regular reviews (similar to the Merlin standard approach in GB)?

11 Q U E S T I O N S


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