Title: Supplier Relationship Management of Providers of Contracted Employment Provision
1Supplier Relationship Management of Providers of
Contracted Employment Provision
2Who are we?
- Toni Percival Head of Supplier Management.
Commercial Employment Provision Commercial
Directorate DWP - Steve Marsland Commercial Director A4E
- Stuart Knowles Executive Director of Employment
Shaw Trust
3What is Supplier Relationship Management (SRM)?
A tiered approach to supplier relationships
whereby suppliers are managed at an appropriate
level, dependent upon their criticality to DWP,
to provide balance, control and informed insight
in complex relationships where there is some
degree of interdependency. The two parties work
towards the integration of their businesses,
where that integration will bring mutual benefit
for the buyer and supplier.
4SRM is a structured approach to merging two worlds
Relationship and culture
Corporate strategy and structure
Strategic supplier
Customer
Change initiative management
Governance and infrastructure
Governance and infrastructure
Capability and capacity planning
Market sector and supply chain
Stakeholder / relationship management
Stakeholder / relationship management
Financial strengths and structures
Commercial and legal arrangements
Commercial and legal arrangements
Current and future project involvement
Performance measurement and management
Integration of two businesses
5Objectives of SRM
- Improve commercial relationships with providers
by focusing on common objectives using clear
measurement metrics - Understand better the factors affecting success
throughout the whole supply chain and across
contractual and geographical boundaries against a
clear definition of expectations - Develop better ways of working and doing business
together for mutual advantage - Motivate providers to improve performance across
the range of their Contracted Employment
Provision business - Â
6Working closely with our providers, SRM can
deliver mutual benefits including
- Improved performance
- Improved communications more open relationships
and trust - Reductions in duplication and bureaucracy
re-engineered processes - Opportunities to collaborate in the setting of
joint business objectives - Ongoing development of staff and more job
satisfaction - Cost reduction and better value for money
7More benefits.
- Joint innovation and focus on continuous
improvement - Better focus on customer service
- Clear and well understood performance standards
and measures - Greater understanding of and development of the
market - Better identification and management of risk and
contingency arrangements.
8Managing the provider base
Some providers span multiple OPUs, District
Offices and are classified strategic in nature
nationally, and we will need to manage the
relationship further at a pan- DWP level.
Capability Capacity Financial analysis Pan-DWP
performance Challenge policy Governance top
cover Overarching commercial structures and
benefits management
Supplier Relationship Management
Some providers span few OPUs, Districts and are
classified non strategic nationally but still
very important. We need to manage the provider
relationship pan contract but at OPU Lead
Centre owned relationship Top cover, Strategic
issues
Cascade goals and objectives
aggregate performance, escalate
1st/2nd/3rd tier provider development Overhead
cost reduction Outsourcing Asset management Lean
supply chain Etc.
Provider Management
Provider Management
aggregate performance, escalate
Some providers span few OPUs, Districts and are
classified non strategic nationally but still
very important. We need to manage the provider
relationship pan contract but at OPU Lead
OPU Lead on Relationship Development activities
OPU Lead on Relationship Development activities
Cascade goals and objectives
District level relationship
District level relationship
contract
contract
contract
contract
contract
PIs
PIs
PIs
PIs
PIs
9How SRM fits with contract performance
management
Embedding SRM Within DWP
Commentary eg highlights lowlights
key initiatives
Supplier Relationship Management(SRM)
MI metrics and measures
Contract Management Processes
Contract Management
Performance Management and Reporting
Performance Management
Performance Measurement
10Background to our SRM Project
- Jobcentre Plus Organisational Design Review
- less staff and formation of Operational
Procurement Units - Highlighted the need to move from a highly
fragmented approach to one where we work more
closely and strategically with our key providers
to raise performance and get better value for
money. Recognised we needed a step change in
the way we engage with our larger providers to
make a real difference to performance.Set up a
Supplier Relationship Management team within DWP
Commercial Employment Provision (formerly
Jobcentre Plus Procurement Division)Decided to
pilot our approach initially on a small scale.
Ensure activity added value before committing to
doing more
11Stages of a typical SRM implementation
9. Evaluate
Identify User Needs
Manage Supplier Relations
SRM
3 Engage with Suppliers Launch joint SRM team
Agree Strategy
Data Gathering
7 Plan and Launch Strategy
4 Gather Detailed Data
Conduct Relevant Analysis
12Stages of our SRM Pilot
- Analysis of the provider base
- Decide which providers to focus on
- Develop Team Implementation Plans
- Engage with providers and run launch workshops
- Develop joint strategy, objectives options
- Gather detailed data
- Set up run cross organisation, multi functional
strand groups - Set up and run Steering Groups
- Implementation
- Evaluation
- Report recommendations
13Criteria for Provider Classification
14Pilot Providers
- Classification formed basis for selection of two
Providers for Pilot Phase - Both are large providers delivering across most
regions and whose delivery makes a significant
contribution to the achievement of DWP and JCP
business objectives. There are other major
providers who came close and we will be looking
at expanding this initiative to them.
15The journey so far.
- Working with and involving a wide range of
stakeholders in each organisation. - Held Launch workshops set up Steering Groups
- Developed agreed SRM objectives that align
with DWP objectives and long term strategy - Agreed Strands to take forward specific areas of
work joint teams in each strand who are working
on a variety of areas
16The journey so far (cont)..
- Working together to gather information and
identify areas for improvement - Agreed shared values and ways of working
- Improved understanding of each others
organisations and the issues they face
17A view from Shaw Trust
- Launch Workshop identified some key themes to
address - Policy, Strategy New programmes
- Processes Systems (re-engineering end to end
business processes) - Quality Performance and Contract Management
- Financial assessment and payment processes
- Joint work on Finance and policy with Shaw Trust
- Improved provider involvement in early stages of
provision development
18A view from A4E
- Launch Workshop initially identified the
following key themes - Planning, Forecasting, Innovation and Flexibility
- Processes and Systems
- Contract Management and Performance
- Funding
- Priorities changed
- Work on communications and culture with A4e/JCP
- More open and constructive communications
especially when dealing with issues.
19And what about our other providers?..
- The SRM team plan to raise awareness and share
findings of the pilot with other providers. - We are developing a plan of communications with
providers and representative organisations eg.
ALP, ERSA, BASE etc. - We will be looking at areas where sharing the
learning will be beneficial more widely - We are looking at areas where we can work with
wider groups of providers to address issues, eg.
managing sub-contractors
20SRM Pilot Evaluation
- The aims of the evaluation are to make an
objective assessment of the effectiveness of the
implementation of SRM in Jobcentre Plus. - Specifically to assess
- Â
- the SRM implementation processes. To provide
feedback on the approach and inform changes and
continuous improvement of the implementation
approach and process - benchmark current working relationships between
DWP and Providers and analyse any improvements in
working relationships resulting from SRM.
21SRM Pilot Evaluation
- We will also seek to learn lessons from the
pilot, in terms of planning, processes,
communications, and stakeholder engagement. - Specifically what went well and what lessons we
can learn for the future. This will be used to
inform future roll out of SRM more widely. - Results will inform future improvements and
enhancements to the SRM approach and will inform
the future roll out of SRM more widely.
22What Next?
- Currently a dynamic and changing market place
- DWP Commercial function will be developing to
meet changes to the market and the way we buy
provision - Bigger contracts mean a greater emphasis on good
quality management of providers and delivery of
provision - We need to support our prime contractors
effectively