We are specialists in understanding how to ensure Complex Supplier Relationships work brilliantly in Local Authorities. We optimise these relationships across many service areas so they deliver maximum value, consistently.
We know the Strategic Suppliers in the Local Authority marketplace, really 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 on what diligence measures 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 Local Authorities enter 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
A few examples of the Strategic Suppliers we know well
Action For Employment Ltd
A-One Integrated Highway Services
Babcock International Group
Bytes Technology Group
Carlson Wagonlit Travel
Costain-Skanska A14 Joint Venture
Ernst And Young
HCR Group Holdings
Heckler and Koch
Interserve Site Services
Land Securities Trillium
Morgan Vinci McAlpine Joint Venture
Purple Foodservice Solutions
Reed Specialist Recruitment
Road Management Services
Turner & Co. (Glasgow)
Vinci McAlpine Joint Ventureworking
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 by Local Authorities
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 Local Authorities
Local authorities are in the single largest financial crisis in their history. Budgets are continuing to reduce in cash as well as in real terms, demand and expectations on services are growing, and there continues to be significant financial pressure to improve outcomes and reduce inequalities across the population.
Responses to these challenges are continuing to be fairly well defined: improving productivity and impact through shared services, a ‘shift to prevention’ and more effective joint working with other public agencies, with the third sector and with communities. Also noted are that these changes are occurring against the backdrop of a fall in local government employment by 25% (800,000 employees) over the last 7 years, and an increase in net borrowing (£8.6bn in over the last two years). The key issues being faced include:
An ageing population (the pension-age population is forecast to rise by close to a third [34%] and the number of over-75s in the population is set to grow by 89% over the next 20 years).
Increasing pressure on social care and health services
Higher expectations of public service quality and convenience
Localised environmental risks around flooding and air pollution are expected to heighten
Greater fiscal devolution (will present opportunities to councils to ‘control their destiny’ as well as risks around the resilience of their local tax bases).
Advances in External Service Delivery
To support local authorities in their financial challenges of having to keep ahead and deal with the issues above, IT and technological innovations are being made to accelerate the move to digital self service for many of these services. In addition, strategic service partners in outsourcing services or providing shared services (whether public or private sector providers) are improving their approach to be more flexible and increasing the innovation quotient to improve external service delivery to help local authorities deal with these challenges.
What stage are you at in your Strategic Supplier Relationship?
You’re procuring or contracting and you need it to work really well.