PROCUREMENT & SUPPLY CHAIN
“Supply chain relations are a key enabler to efficient delivery.”
The organisation’s finance and commercial director David McLoughlin said: “I want to generate outstanding value for taxpayers, and in that way make a better railway for Britain. Behaviours are important. We’re doing a lot of collaborative working. Every idea, every thought we have, we want people to test and challenge it. We want outside people to help us with this.”
He remarked on the “scale and breadth” of IP as an organisation, noting: “It touches and impinges not just on our supply chain, but on stakeholders, the community,
At a briefing for journalists explaining the changes made in the past few years and those to come, McLoughlin and his team highlighted a few developments of particular importance, including the establishment of the Commercial Directors Forum (CDF), the tier 1 and 2 supplier engagement conferences, the new sustainable procurement strategy, the enhanced visibility of work plans for the supply chain, and the Fair Payment Charter.
The CDF government,
industry. We have a great opportunity not to be insular in what we do, but extend beyond it and influence policy.
“We can do much more on innovation. We’ve had a portal, but have we used that to its best? We’ve got fertile ground now with our chairman [Richard Parry-Jones], who’s hot on pure R&D – we can extend beyond our boundaries, away from pure rail technology.
“We’ve got a duty to train and upskill our workforce too, and we’ll be doing more work with Gil Howarth and NSARE, and also with our professional bodies.
“That’s my agenda. We can be a huge, driving, influential force – it’s not just about improving IP or just Nework Rail, but the industry as a whole.”
48 | rail technology magazine Jun/Jul 13
The biggest impact has undoubtedly been made by the CDF, which has instigated a number of important changes, including coming together to develop and sign the Fair Payment Charter in November 2011.
Explaining the genesis of the CDF and its work, Blakey made reference to the McNulty report of May 2011. He said: “One of the key things in there, in terms of driving outstanding value, is that supply chain relations are a key enabler to efficient delivery.
“We spent a lot of time looking at the dynamics in traditional forms of contract and how we could soften those dynamics through behavioural improvements, but also started to look at broader collaboration both through forms of contract but also by establishing a platform whereby we could tap into the thinking and aspirations of our supply base in a
more collaborative way.
“We weren’t getting what we were looking for back in 2011…something [had to] be done in the pursuit of value for money through improved supply chain relationships.
“Our response, from David Higgins through to Simon Kirkby and David [McLoughlin], and from the discussions we have as a management team within the contracts and commercial fraternity, was ‘we need to push for greater collaboration and do something tangible’.
“We wanted to establish a platform to drive that commercial innovation.”
BS 11000 and supplier engagement
Blakey continued: “We recognised we needed to actively pursue BS 11000, to identify an individual to take managerial responsibility for driving the engagement with the supply chain, our head of supplier engagement, and to set
up what’s become known as the CDF.
“That forum really is a working group of the intellect and experience of the commercial discipline across rail.
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