Supplier and Contract Management
Buying Solutions and Suppliers - What goes on behind the scenes
It is easy to assume that Buying Solutions only interact with suppliers when a framework has been let or to resolve any contractual problems raised by customers, however, this is not the case; a lot of activity goes on behind the scenes to ensure that the suppliers are fulfilling their obligations. So when we are not establishing new framework agreements what does Buying Solutions do?
Financial Audit Programme to assist Suppliers
Each year, Buying Solutions conducts a number of supplier reviews.
The broad aim of our Supplier Audit Programme is to assist suppliers to effectively discharge their financial obligations in relation to their framework agreements, whilst providing assurance to Buying Solutions that any financial returns made are accurate and complete.
In order to test the completeness of returns, the auditors test a sample of public sector sales made by the supplier during the financial year. The process is also underpinned by the provision of an annual audit certificate by those suppliers whose agreements stipulate this, a requirement that is being increasingly common place within revised framework agreements.
The completion of the 2008/09 programme proved exceptionally valuable to both Buying Solutions and suppliers alike by providing collective assurance, identifying process improvements and by identifying any gaps in the provision of audit certificates.
During 2009/10, the reviews will be conducted by an internal team of Buying Solutions auditors, supported where required by KPMG and Tribal Helm. By bringing the service in-house for 2009/10 and using the same internal personnel, we hope to forge closer links to our suppliers and internal contract managers, whilst maintaining the experience of our external partners when required.
Supplier Operational Review Process
On at least an annual basis Buying Solutions meets with suppliers to conduct a supplier review meeting. This gives both parties an opportunity to review the business undertaken and keep each other informed of movements within the marketplace.
Particular items on the agenda include discussing supplier's commercial performance within the framework agreement and where the suppliers rank in terms of business activity. By building effective working relationships with suppliers we also have a greater understanding of how customers use the framework agreements and the technological developments being made within the ICT marketplace. Meeting with suppliers also gives Buying Solutions an insight into suppliers' internal organisation structures and supply chains.
We also discuss the financial summary and the targets set for suppliers. Responses to ITQs and Further Competitions are analysed as is the supplier's web content.
Supplier Relationship Management - Taking the Process Further
Buying Solutions has engaged in a Supplier Relationship Management (SRM) project which was commissioned to form a strategic engagement process with suppliers. SRM is about working with suppliers to improve service and quality performance, reduce costs of sale, drive process improvements, capture innovation and identify new markets/ products and services for mutual benefit (i.e. a more efficient business and lower costs).
We have also developed a performance assessment tool in consultation with Category Directors, suppliers and customers. At the pilot phase, a questionnaire was sent to selected suppliers and their customers covering both hardware and software.
Following responses to the customer questionnaire, we have used the feedback to identify trends in supplier's performance. Responses from suppliers will help to identify where there is opportunity for sustainable and innovative solutions, the number of complaints received, the number of credit notes, gain share initiatives, QMS and issue resolution processes (amongst many other business issues).
SRM benefits Buying Solutions, suppliers and customers by increasing business opportunities for suppliers, reducing the cost of sales and providing customers with increased savings, quality, innovation and new products and services that meet business needs.
We are now embarking on a second pilot to prove the learning's from the initial pilot. This phase is expected to last around four weeks and successful completion is expected to result in organisation wide mobilisation.
For further information on the Supplier Audit process, Audit Certification or the SRM project please contact the Buying Solutions' Customer Service Desk on 0345 410 2222 or email info@buyingsolutions.gsi.gov.uk