By the Government continuing to deliver economic and social value objectives, we have detailed knowledge of the most effective performing Strategic Suppliers that can deliver maximum value across those service areas.
We know the Strategic Suppliers in the Central Government marketplace, extremely well:
Their strengths. The key attributes of each Strategic Supplier and what internal client disciplines you will need to have in place so they can achieve your outcomes and objectives, quickly.
Their challenges. Complex service delivery does not always go to plan. We can advise you what diligence your team can put into place to assure these strategic suppliers deliver to your expectations.
Their contractual constraints. We know what most Strategic Suppliers will accept contractually, what they will not, and why. Our ‘Optimise’ process assures you can overcome these constraints and be fully contractually protected for fit for purpose services.
Your key expectation you should have from Strategic and Complex Supplier Relationships:
Optimum value in service and solutions delivery. These specialist suppliers represent themselves as ‘experts’ in their disciplines. Recent case law determines you can often rely on the supplier’s represented expertise to drive maximum value for money in your service delivery, even if your contract terms are ambiguous in terms of their responsibilities.
Benefits of using BPG to facilitate your Strategic Supplier Relationships
We know what practices work really well. Having optimised over 500 complex supplier relationships, we have deep expertise of trust building in relationships. We also have proven template documentation including procurement structures, service requirements, agile fit-for-purpose contracts, implementation and operating governance, along with expertise in what actions you need to avoid to make sure your strategic supplier relationships achieve your outcomes, quickly.
Key Considerations when Central Government enters into Complex Supplier Relationships
How the BPG 'Optimise' Process delivers great Strategic Supplier Relationships
The BPG ‘Optimise’ Method is evidenced from over 500 complex supplier relationships. It shows there are 8 characteristics present in every successful complex relationship. We can help you successfully implement these quickly to improve service innovation, supplier relationships and drive down BAU costs.
Click here to see how the ‘Optimise’ process can help you drive maximum value in your strategic supplier relationships.
Examples of the types of Complex Supplier Relationships we help you optimise
Some of the Strategic Suppliers we have detailed knowledge of
Action for Employment Ltd
A-One Integrated Highway Services
Aspire Defence Holdings
Babock International Group
Bytes Technology Group
Cammell Laird Ship-repairers and Shipbuilders Ltd
Carillion-WSP Joint Venture
Carlson Wagonlit Travel
Central Office of Information
Chapman Freeborn Air Chartering
Connect Plus (M25)
Costai-Skanska A14 Joint Venture
Ernst and Young
HCR Group Holdings
Heckler and Koch
Hirtenberger GER Defence Systems
Interserve Site Services
Land Securities Trillium
Le Grand Annington
Lowdham Grange Prison Services
Marshall of Cambridge
Matrix FPMS Holdings
McKesson Information Solutions
Morgan Vinci McAlpine Joint Venture
NATO Maintenance and Supply Agency
Navistar International Corporation
Purple Foodservice Solutions
Receiver General for Canada
Reed Specialist Recruitment
Road Management Services
Royal Dutch Shell
Royal Mail Holdings
Scottish and Southern Energy
The Boeing Company
Turner & Co. (Glasgow)
Ultra Electronics Holdings
Vinci McAlpine Joint Venture Working
Working Links (In Administration)
The Behaviours you should expect from a 'Good' Strategic Supplier Relationship
Objectives being met
Critical friend supplier
Inherent commercial trust
Sustained collaboration and innovation
Reduced service cost
High reputation with your peers
Internal team aligned
Services always aligned to outcomes
Flexible/agile contract structure
Evidenced based results
Typical Complex Supplier Relationship hurdles faced in Central Government
We’ve dealt with optimising over 500 complex supplier relationships. More than 50% of complex supplier relationships experience misunderstandings between client and supplier over your requirements and expectations.
If the right foundations are not in place to drive maximum value, you may experience:
Additional charges and costs for ‘misunderstood expectations’
A lack of understanding of contractual roles and responsibilities
Governance and performance escalation not clearly delineated
Senior client executives not being clear on their expectations and dynamics of the relationship
Not enough investment by senior executives in the resourcing or skills of the client supplier management team
Loss of key in-house expertise to the supplier (inadvertent staff poaching)
Employee resistance to new working methods from the supplier
Clashes of culture between client and supplier staff and so forth.
Operational challenges faced by Central Government
This is a challenging time for the UK Government generally. In particular, with improving outcomes for those that use public services during the last 10 years of austerity. Each government department is trying hard to respond to the issues being faced, and preparing for the likely on-going challenges of the future.
With ongoing financial restraint, the government looks to deliver services in new ways and with fewer resources, through greater delegation to local bodies, partnerships with the private and third sector, and with digital technology. Such significant level of change brings with it opportunities for efficiency but also risks to value for money and service delivery. At the same time, the uncertainties created by Brexit place further strain on government resources. Successfully meeting these challenges will depend greatly on government capability and effective prioritisation. These challenges include:
Brexit. Uncertainty over the economic arrangements, wide ranging strains for government resources and significant changes to the availability and prioritisation of funding streams
Capability in the Public Sector. Negotiating the UK’s departure from the EU, whilst delivering an ambitious infrastructure investment and transformation programme, needs new skills and capabilities
Emerging risks. The likes of Carillion failing and other major supplier service partners in financial difficulty have all led to risks to public services
Restoration and Renewal of Parliament. The Palace of Westminster is being restored and Parliament has to be temporarily re-located. The restoration will be a large, costly and complex project involving a nationally significant building in the heart of a UNESCO World Heritage Site.
Reducing Service Costs, Better Innovation and Collaboration
The move to digital channels across central government is forcing the more strategic suppliers to come up with new innovations. In turn, this is forcing government to collaborate more effectively, not only with key suppliers, but also with cross-departmental working and shared services. The stakeholder management across these groups is extensive. But when the innovation and collaboration works, it works remarkably well to operate new ways of working and driving out extensive BAU costs.
What stage are you at in your Strategic Supplier Relationship?
You’re procuring or contracting and you need it to work really well.