Feature ANNETTE GEVAERT
up, ensuring the safe migration to the new platform, supporting communication and then moving on to define the objectives for future scheme enhancements and areas for greater collaboration – such as the new Link-up audit programme development and roll-out. Operational KPIs will be set to continuously monitor the progress of the programme but also to identify obstacles in the process and, where possible, eliminate them.
Overall, a clear objective will be to drive further collaboration and scheme usage, harmonising pre-qualification requirements and cross-recognition throughout the industry, so reducing effort and duplication on PQQs and audits.
By working together, the systems in place will be further developed to meet the needs of the entire industry and to facilitate the easy exchange of all supplier and audit information, so making pre-qualification for tenders a simple matter of referring to a single source of verified information.
Although Link-up has been established for many years, having its origins in the state- run British Rail, the scheme is in the midst of a transformation that will create the more collaborative format common to other successful schemes run by Achilles in the Utilities, Oil & Gas, and Construction sectors. With the strong support of Network Rail for this initiative, Link-up will become an open scheme more closely aligned to the needs of all members of the rail industry.
In many respects, buyers will have to change too. Attitudes and practices in the sector have tended to diverge through a lack of communication and collaboration. Far too many buyers, despite being members of Link-up, send out lengthy pre-qualification questionnaires for tenders, rather than taking advantage of the up-to-date and verified information that is already easily available through the scheme.
Inefficiencies of this nature will need to be removed if the government’s target of a 30 per cent reduction in costs is to be achieved. The way forward for improvement in rail industry procurement is to open up the governance of Link-up to all and to make collaboration work, only then will attitudes and practices change. Besides other areas of improvement, there is room to closer align and recognise the different audit programmes – focusing the audit programmes on specific elements of risk and removing duplication between programmes.
Companies within the rail sector, together with a broad spectrum of UK businesses, are now looking to embed ‘best practice’ methodology
If organisations are to make important decisions on their supply base they need to address these issues by centralising supplier information and introducing processes that create consistency of data across the entire enterprise.
for business collaboration into their working processes. This is reflected in the growing number of rail businesses and suppliers to the sector that are working towards accreditation to BS 11000, a British Standard for Collaborative Business Relationship Management introduced in October 2010. The standard looks to take collaborative working beyond the traditional sphere of the individual, and aims to create a framework within the organisation for delivering effective interactions with other organisations to the maximum benefit of all.
Network Rail achieved BS 11000 accreditation in April this year. Others within the rail sector, such as Costain, Balfour Beatty, Skanska, Atkins and Rail Tech Group – all users of Link- up - have followed the same path and attained accreditation.
Clearly, there is a desire within Corporate UK to strive for greater productivity gains through working collaboratively with partner organisations. Within the rail sector this collaborative energy has been seen to work well through the Working Groups of Link-up.
Finally, consistency in the approach taken to record keeping is critical to managing and maintaining a supplier database. Companies that have grown through acquisition may struggle with having a single, well thought out process for gathering and storing supplier data. Legacy systems and disparate pools of information create a fragmented view of the supply chain and result in mismatches of supplier data which cause confusion, create errors and work against the benefits that come from a common view of the supply base. For instance, benchmarking suppliers only becomes possible through having consistent and accurate data.
If organisations are to make important decisions on their supply base they need to address these issues by centralising supplier information and introducing processes that create consistency of data across the entire enterprise. Time and effort must be spent on ensuring that the right questions are asked of the supplier, the correct depth of data gathered, appropriate to the risk presented by the supplier, and that the information is, where necessary, backed up by methods that verify that data.
Only by having complete visibility of the supply base can risks be properly assessed and mitigated. Driving these efficiencies in the supply chain and making the savings that boost investor confidence starts with healthy supplier information. Companies can manage this critical task in house, but time, cost and complexity are common obstacles to overcome. However, much of the cost and effort can be shared through a community approach to this problem.
Buyers and suppliers to the rail industry have an opportunity to get involved in the Working Groups of Link-up, to shape procurement for the benefit of the whole sector, and to make Rail procurement fast, efficient, and cost-effective. The opportunity is there for the taking.
About Achilles:
Achilles helps companies to improve their supplier information management. Our services onboard suppliers and validate their information throughout the life of the business relationship so that buyers are better informed and can make better procurement decisions. Achilles has offices in 23 locations around the world and actively support over 750 of the world’s largest buying organisations to manage their supplier data. With a global view of the supplier base, buyers have access to accurate and up-to-date information on their suppliers, they can streamline their supplier engagement, standardise their policies and reduce the risk of non-compliance (in areas such as health and safety, quality and environment); and confidently assess the total impact of their procurement decisions.
For more information contact:
Achilles Tel: 01235 861 118 Email: link-up&
achilles.com Web:
www.achilles.com
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