Case Study: our AMP7 supply chain engagement strategy Andy Clark Head of Procurement & Contract Management
What I’ll cover • Research Undertaken • Risks we face • Needs of our customers • Views of supply chain • Changes that are necessary • High level supply chain partnering model
Managing risks not managing a procurement exercise H High confidence we understand the risk High confidence we understand the risk, location but unknown resolution known and limited options to resolve 45% 30% Solution Based Delivery – Non Infra Complex Non Infra Confidence in risk & Low confidence we understand the risk, Low confidence we understand the risk, location known and limited options to resolve lots of options to resolve 21% 4% Solution Based Delivery – One off Infra Partnership working L L H Range of resolution options
Customer needs To fulfil the needs of PR19 our approach to partnering with the supply chain will need to fundamental change Affordability Strategic Change Safety in design and delivery
Harnessing the ideas and intellect of the supply chain Supply Chain Launches Attendees Contractors Working sessions Attendees Benchmarking Attendees Visits
Harnessing the ideas and intellect of the supply chain • Right-sized arrangements • Clear and Simple Incentivisation • Client Leadership • Easy to operate contracts
Supply Chain Partnering Strategy – Change Focus Intelligent client Maturing Client Low Carbon, Build Offsite, Future Skills Upfront Strategic Thinking Focus Delivery Efficiency Focus Operational over asset interventions Innovative, low carbon solutions Innovation plateau Access to Supply chain innovation Independent Contract Frameworks Commercially interdependent Partners Smaller, dynamic regional businesses Heavy tier 1 contractor model Agile arrangements - range of delivery options Focus on probability risk over High hazard industry based assurance impact risk
Affordability - lower the cost of resolving risk Strategic Remove the root cause of the risk through Eliminate Planning upstream activities / demand led solutions Proactively operate and maintain assets to bring them to design capabilities and Operate eliminate service failures Leverage asset capabilities or unrecognised headroom to improve Invigorate capability of existing or redundant assets Build Less Delivery Safe and efficient construction of new assets using techniques such as modular Build Smart offsite construction and standard products
Strategic Change Innovative Client Leadership How we deliver not Solutions • Low Carbon only what we • Built Offsite • Standard Products deliver • Sustainable future skills
Safety in design and delivery Design in Safety Safe and sustainable Health and assets wellbeing
Model Overview – Dynamic Shift Strategic Planning Strategic Planning Partner Direct Delivery Non - Procurement Enhanced Infrastructure Assurance and One-Off Infrastructure Direct Frameworks Partner(s) Very High Alliance Delivery Value Assurance
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