Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022

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Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022
West Berkshire Council

Procurement Strategy
2020 – 2022
Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022

    1.    Executive summary                        3

          Purpose of the strategy									3

    2.    Introduction                             4

          What is procurement										4

    3.    Background                               5

          Category Management										5

          Getting this done                        6

          Partnerships                             6

          Contract types                           6

          Value for money										7

          Governance											7

          Conflicts of interest                    8

          E-procurement                            8

          Sustainability                           8

    4.    Contact details                          9

    5.    Procurement Maturity Assessment          10

    6.    Procurement Key Performance Indicators   52

    Appendices                                     55

Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022
1 Executive Summary
Purpose of the strategy
The West Berkshire Council Procurement Strategy
explains how we will continue to embed and
develop effective procurement practices within
the council, whilst delivering effective services on a
value for money basis.

The strategy is for those interested in how
the council spends public money, offering a
comprehensive view of the mechanisms used by
officers and elected members to ensure public
funds are spent wisely.

The Councils aspiration is to help support a wide
range of businesses that can thrive and support its
delivery requirements, ensuring that all suppliers       “The Commissioning
get the opportunity to bid for council business.
The Commissioning Service and other dedicated            Team within West
officers within West Berkshire Council manage the
interaction with business and ensure a fair and
                                                         Berkshire Council manage
equitable level of opportunity for all businesses        the interaction with
wishing to work with the council.
                                                         business and ensure a
Webpage                                                  fair and equitable level
The West Berkshire Council Procurement webpage           of opportunity for all
sets out some basic information, and is available at
the following URL:
                                                         businesses wishing to                work with the council. ”

Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022
2 Introduction                                          Public sector procurement can be viewed as
                                                            following three phases:

    Why now
    The Council is operating in an increasingly
    challenging financial climate and over the last
                                                             Plan        1
    nine years we have had to make savings of £60
    million as a result of reduced funding from central
    government. This has only been possible by
    increasing the efficiency of our services (delivering
                                                             Award                  2
    38% of total savings), reducing some of our
    administrative functions and transforming how we
    deliver services (20%), and increasing income (12%)
    whilst protecting, as far as possible, the services      Excecution                         3
    (particularly the statutory services) provided to
    local residents.

    Procurement within the council has operated in a        1) Planning generally refers to the decision around
    devolved model, and to date has been a workable         what needs to be bought. Sometimes this is
    model that has delivered results. To drive future       referred to as commissioning, which is a process
    developments and ensure the council continues           typically associated with securing the supply of
    to deliver its strategy, the requirement for more       ‘people’ based frontline services – see below. The
    effective and efficient procurement have become         planning phase entails a significant amount of time
    foremost.                                               and resource to understand what the organisation
                                                            needs to spend its budget on. This phase requires
    Good procurement is therefore increasingly              significant commercial planning to ensure that
    important to ensure all opportunities are identified    public funds are spent effectively, delivering the
    to add value in this spend and make it stretch as far   requirements to end users.
    as possible.
                                                            2) The award phase involves the placing of a
    This strategy sets out the ambition for procurement     contract to acquire the goods/services/works.
    to meet the needs of an evolving council.               This is a regulated environment with the Council
                                                            aligning its work in this segment to the legal
    What is procurement                                     requirements laid out in The Public Contracts
                                                            Regulations 2015 (PCR).
    With a significant percentage of Council funding
    is spent through outsourced contractors, the            3) The execution phase refers to the administration
    role of procurement is important to ensure the          of contracts, where the council ensures that work
    efficient delivery of public sector requirements        is delivered in accordance with the previous two
    across multiple layers of spend. Procurement is the     stages. There is a legal obligation for providers to
    interface between providers and Council Services,       deliver what they have been contracted to, in line
    with the basic aim of achieving the outcomes of:        with the requirements and terms of contract.

    l       Right price                                     Commissioning as a concept has grown up around
    l       Right quality                                   the provision of care and support services in
    l       Right place                                     sectors such as health, education, social care and
    l       Right time                                      housing. As a broad definition, commissioning is
    l       Right quantity                                  the strategic activity of identifying requirements,
                                                            designing and planning services to meet those
                                                            requirements, securing what is required and
                                                            monitoring and evaluating them. Commissioning
                                                            is not to be confused with procurement –
4                                                           simplistically put, commissioning is the context in
                                                            which procurement takes place.
Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022
3 Background                                            a more streamlined procurement process the
                                                        following actions will be taken over the next 2
The council has three directorates - Resources,         years. A more detailed action plan can be found in
Place and People and spends approximately 66% of        appendices.
its total budget each year externally commissioning
                                                        Year 1 – 2020/2021
and procuring goods and services from third
parties. The People Directorate is the largest          l      All public procurements will be tendered
spending part of the Council accounting for two                in line with the council constitution through
thirds of the total third party spend.                         the adopted e-procurement system,
                                                               with oversight from the councils
A Commissioning Service was established centrally
                                                               constituted Procurement Board – see
in 2017 to drive forward the Council’s ambitions
                                                               Governance Section.
for a council wide category management approach.
This Service operates across all three directorates,    l      All tendered contracts to be moved to the
with the most significant amount of resource                   Council’s e-procurement system (excluding
spent on social care service requirements (People              spot purchases).
Directorate) and corporate spend for generic areas
such as agency/temporary workers and energy.            l      Category Management Plans will be
                                                               in place that review an area of spend,
For other spend there is a devolved model of                   looking at trends, supplier positions,
procurement, with some service areas managing                  historical spend, amongst other constraints
significant portions of spend for service specific             and opportunities. The category plan will
requirement which are most typically for capital               then drive the overall trajectory of spend
programmes of work in areas such as highways.                  within each category, which will be intrinsic
                                                               to the delivery of the Council Strategy.
Category Management
                                                        l      A Procurement Strategy will be developed
In 2017 the Council agreed an ambition to                      for each specific tender within an
move forward and implement a full Category                     overarching category, and is the mechanism
Management approach. Good progress has been                    for seeking approval to tender (gateway 1).
made in some of the high spending corporate areas
but there is more to do. The structure for this         l      The Category Plan and Procurement
is still evolving and is most likely the council will          Strategy documents will outline the
mirror the governments common areas of spend                   commercial nature of each tender and
(available at; also see appendices).                the position taken by officers to ensure the
                                                               most efficient and effective use of
To move the implementation of a full category                  public money.
management approach forward and to achieve
                                                        Year 2 – 2021/2022

                                                        l      Category Strategy plans in place for all
                                                               areas of spend (covering forthcoming
                                                               5 years).

                                                        l      Category Managers allocated to all
                                                               categories of spend.

                                                        l      Category initiatives implemented across all
                                                               areas of spend, driving savings

                                                        l      Procurement to drive all procurement
                                                               strategies over £100k, securing gateway
                                                               achievement, commercial initiatives
                                                               and probity.
Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022
Getting this done                                      Partnerships
 Procurement professionals are crucial to deliver an    Connectivity with partners is a key strand of
 effective procurement service, and these staff need    effective public sector procurement, and the
 to have the appropriate skills and experience. The     council is working closely with colleagues in the
 council supports the training and development of       NHS to ensure social care is effectively procured
 procurement staff which includes informal coaching     and that any delays to service provision are limited.
 and training, and more formal training and
 professional qualification through the Chartered       The Council is jointly commissioning a range of
 Institute of Procurement and Supply (CIPS).            services, across social care and public health using
 This professional development has focused for the      a variety of methods all geared to getting the
 last three years on the Commissioning Service.         maximum benefit from the spend.
 The benefit of this is that it has created a body of
 expertise that is now ready to move the Council’s      Contract types
 procurement forward and the expectation is that it
 is this service area that will drive forward and own   The Council makes use of a variety of approaches
 the two year implementation plan.                      to market including:
 By adopting this approach across the Council there
 will be clear accountabilities and therefore roles     l       Low value goods and services (these may
 and responsibilities which will underpin successful            not be awarded through
 working between the Commissioning Service and                  e-procurement route).
 individual directorates.
                                                        l       Competitive tender is used for a wide range
                                                                of goods/services/works.

                                                        l       Frameworks are often used to encourage a
                                                                wide range of suppliers, used frequently for
                                                                adult social care and transport services.

                                                        Value for money
                                                        Council procurement delivers value for money
                                                        and efficiency by ensuring the goods, works or
                                                        services acquired are suitable; concluding with
                                                        an arrangement to secure what is needed on the
                                                        best possible terms and ensuring the contracting
                                                        partner is able to provide the goods, works or
“Procurement                                            services on the agreed terms. In accordance with
professionals are crucial                               the PCR, the Council uses a principle called ‘most
                                                        economically advantageous tender’ to determine
to deliver an effective                                 which bid wins, with a split between quality and
                                                        price within most tenders. Each invitation to tender
procurement service, and                                will detail how this is applied.
these staff need to have
the appropriate skills
and experience.”

Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022
Governance                                                     All council spend is to be managed through the
                                                               adopted e-procurement system. This system is
The two core procurement controls are governance               the mechanism through which all contracts are
and e-procurement. All contractual spend is                    ‘let’, with all tendering activity reported monthly
reported through governance boards, in line with               to Procurement Board for an overview. The
the Council’s Constitution. The first gateway is               e-procurement software provides a mechanism for
Procurement Board, where procurement strategies                reporting and highlighting which tenders will be
are considered by a multi-disciplinary group of                expiring. E-procurement is managed and monitored
officers and Elected Members of the Executive.                 by the Commissioning Service.

This group considers all aspects of contractual                Procurement Board comprises of four key
spend within the Council, including capital and                contributing elements of the council operation:
revenue above £100k and exception levels above
£50k. All projects are considered for legal risks,
commercial application and probity in line with the
Council’s Constitution.

The second gateway (proceeding procurement
process and prior to award) ensures the Board is
appraised of how the procurement strategy has

l   Capital Strategy board
    Corporate board
    Executive (public meeting)
l   Constitution                                 Governance
l   Capital and Revenue


l In-Tend (significant proportion not
         being managed through this currently)
l Contracts reporting
l Corporate programme of tenders
l Accurate coding of spend data
                                                 procurement   l      Procurement: who advise on commercial,
                                                                      practical and regulatory aspects of
                                                                      procurement activity.

                                                               l      Legal: who ensure value for money
                                                                      compliance, and advise on the regulatory
                                                                      procurement framework and constitution.

                                                               l      Finance: who approve budgets and link any
                                                                      financial risk into budget management

                                                               l      Elected Members: ensure the Council
                                                                      Strategy is achieved, and key decisions are
                                                                      in line with political requirements.

Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022
Conflicts of interest                                 Sustainability
    Employees ensure that their interests outside the     West Berkshire Council has declared a ‘climate
    Council do not conflict with their responsibilities   emergency’, and will ensure that sustainability is
    at work. They also ensure that these interests        integral to the delivery of services for residents.
    could not be reasonably considered as conflicting
    with their responsibilities at work. Where such       Before starting any procurement procedure, when
    an actual or apparent conflict of interest occurs,    procuring certain services, the Council is legally
    or is about to occur, the employee will take all      required by the Public Services (Social Value) Act
    reasonable steps to prevent that conflict from        2012 to consider how the services they propose to
    arising or continuing. The Commissioning Service      procure “might improve the economic, social and
    will adhere to West Berkshire Council policies and    environmental well-being” of the area in which the
    CIPS professional standards.                          services are to be provided.

    E-procurement                                         Sustainability is based on the principle that
                                                          successful, thriving communities are created by
    Regulatory requirement for E-procurement is           balancing the three key pillars of social, economic
    currently managed through In-Tend for the Council.    and environmental needs. Successful organisations
    The system allows for all procurement activity to     also understand that these pillars are interlinked
    be managed through a single source, which records     and equal in importance, and by applying this
    key information used to monitor and manage each       principle they achieve both profitable growth and
    exercise and its expiry date.                         positive social impact. West Berkshire Council will
    In-Tend can be access via the following URL           integrate sustainability, environmental and social         issues into our procurement process. The action
                                                          plan outlines the approach that will be taken in
    Registering your organisation is free and takes       order to ensure that natural resources are used
    a few minutes. Once registered you will be able       prudently, that there is effective protection of the
    to express interest in any open opportunities         environment whilst ensuring the efficient use of
    when they are made available. We’ll also be           resources and delivery of value for money.
    able to access your details whenever we have a
    requirement and you may be invited to tender or       Specifically, this will mean that procurements have
    quote for work.                                       a scoring matrix which includes the delivery of
                                                          sustainability objectives including but not limited
    If you encounter any difficulties whilst using the    to: reduction of carbon footprint; improving local
    portal, please contact the In-tend Support Team by    delivery and use of apprenticeships.
    phoning 0844 272 8810 or by emailing                                What follows in the appendices is a procurement
                                                          maturity assessment – which details the current
                                                          position of procurement within the council, and
                                                          indicates the aspiration to be achieved over the
                                                          coming two years. In summary, there are some
                                                          pockets of good practice in procurement, but the
                                                          council will benefit from a strengthened and unified
                                                          category management approach.

                                                          At the end of this document is an action plan
                                                          which sets out the requirements to deliver the
                                                          procurement strategy. The actions detailed will
                                                          act as milestones for the implementation of an
                                                          effective category management solution for the

Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022
4 Contact details

01635 551111

Procurement Strategy West Berkshire Council - Procurement Strategy 2020 2022
     5 Procurement Maturity Assessment
     5.         Procurement Maturity Assessment

      Legend          Current        Within 2 years

          Ref      Question Title       Question                   1                       2                           3                         4                          5

           Q1      Procurement
                   Strategy &
                                      How is              > Perceived as           > Procurement's remit       > Recognised by            > Recognised as a         > Recognised
                                    Procurement         purely transactional    is perceived as limited     functions where            strategic partner by      across the organisation
                                    viewed across the   and focused on the      to price negotiation,       Procurement has            senior management         as a strategic partner
                                    organisation?       purchase to pay         contracts and handling      successfully engaged.      across the organisation   to the business in
                                                        process (e.g. raising   disputes but                In other areas of the      but there is still        managing costs and as
                                                        purchase orders,        Procurement are taking      business Procurement       resistance to             a provider of innovative
                   Procurement                          expediting, query       steps to address this.      still regarded as          consulting                sourcing solutions and
                   Positioning                          management).            Some successes in           bureaucratic and           Procurement from          commercial expertise
                                                                                specific functions and/or   adding little value.       middle managers and
                                                                                categories of spend.                                   staff in some areas

                                       What role does     > Procurement have      > Some limited               > Supports                > Involved in helping      Integral member of
                                    Procurement play    no involvement in       involvement in providing    Leadership Teams in        other functions develop   the executive
                                    in corporate        business planning.      cost data to some           business functions/units   plans & budgets as a      management team,
                   Procurement      strategic and                               business functions. No      by providing costs         provider of cost data.    actively involved in
                   Positioning      operational                                 involvement in              analysis. Not involved     Consulted on supplier     strategic and
                                    planning?                                   decision'-making.           in formal decision         and service issues.       operational planning.
                                                                                                            making forums
How well is             > No company'-wide       > Localised                > Enterprise'-wide             > Enterprise'-wide          > Enterprise'-wide
                                 Procurement             Procurement strategy      Procurement strategies    Procurement strategy           Procurement strategy        Procurement strategy
                                 strategy integrated     exists. Local             developed by              developed by                   developed by                developed with
                                 with corporate          Procurement teams do      Procurement teams but     Procurement. Strategy          Procurement with            participation of key
                                 strategy?               not produce               no enterprise'-wide       goes beyond pure cost          reference to wider          business stakeholders.
                                                         procurement               procurement strategy.     reduction but is not fully     corporate strategy and      Strategy formally
                                                         strategies.               No clear links to         integrated with                key competitive             integrated with
                   Procurement                                                     corporate strategy.       corporate strategy.            strengths but with          corporate strategy and
                   Strategy                                                                                  Developed by                   limited cross'-functional   agreed at C Suite
                                                                                                             Procurement without            input and no C'-level       level.
                                                                                                             collaboration of other         sign'-off.
                                                                                                             functions and signed off
                                                                                                             within the Procurement

                                    How effectively is     > No documented            Procurement strategy       Procurement staff are         Strategy is frequently      There is clear
                                 strategy being          procurement strategy.     is poorly understood      aware of Procurement           referenced by               evidence that strategy
                                 actioned?               No monitoring of          even within               strategy but there is          Procurement but has         is being used to guide
                                                         performance against       Procurement and is not    little evidence that it is a   limited weight in           decision'-making in
                                                         improvement goals.        a factor in decision'-    factor in day'-to'-day         decision'-making            Procurement and in
                                                                                   making. There is no       decision'-making. KPI's        outside the                 procurement activity
                                                                                   regular tracking of       regularly reported to the      Procurement function.       across the business. A
                                                                                   progress against          CPO are primarily              A balanced set of KPI's     balanced set of KPI's
                   Procurement                                                     strategy.                 focused on cost                is used to track            is used to regularly
                   Strategy                                                                                  reduction and do not           progress against            monitor performance
                                                                                                             cover broader strategic        strategic goals.            against strategic goals.
                                                                                                             goals.                         Progress reported to        Performance against
                                                                                                                                            CPO and Procurement         strategy is regularly
                                                                                                                                            management only.            reported to C'-Suite.

                                                                                 Page 12 of 54
     Version 1.0                          Procurement Strategy                                Dated: 2019/20

                                   To what extent        > Procurement does          > Procurement does            > Procurement               > Procurement              > Procurement is
                                 does Procurement     not articulate its          not regularly measure         regularly reports on        reports a trend of         able to demonstrate a
                                 foster and promote   contribution                or report its financial       savings delivered but       continuing                 trend of continuing
                                 a culture of         convincingly either in      contribution to the           struggles to                improvements in            improvements in
                                 continuous           quantitative or             business. The value           demonstrate the             efficiency and             enterprise efficiency
                                 improvement?         qualitative terms.          delivered by                  financial contribution it   operating / capital cost   and operating / capital
                                                      '- No evidence of a         Procurement is often          has made. Savings           reduction but evidence     cost reduction
                                                      focus on excellence or      questioned by                 claims are widely           is not always backed       supported by Finance
                                                      continuous                  stakeholders.                 disputed.                   up by good data and        and widely accepted
                                                      improvement.                '- Procurement                '- There is a history of    there is some dispute      across the business.
                                                      '- No plans in place to     struggles to gain             projects and                within the business        '- Procurement can
                                                      deliver new                 investment funds and          investments to improve      over the true impact       also demonstrate
                                                      procurement                 there is limited history of   Procurement efficiency      delivered.                 improvements in
                   Continuous                         capabilities.               projects to improve           for which benefits          '- Procurement is able     internal productivity as
       Q1.05                                                                      Procurement capability.       realised have been          to point to investments    a result of process
                                                                                  '- No promotion of the        questionable.               & improvements in its      improvements or
                                                                                  Procurement function to       '- Procurement does not     internal capability but    technology or skills
                                                                                  the wider business.           actively promote its        benefits have not been     investments.
                                                                                                                contribution to the         rigorously measured.       '- Procurement
                                                                                                                business.                   Resources are often        Leadership actively
                                                                                                                                            diverted away from         promotes its
                                                                                                                                            these projects.            contribution to the
                                                                                                                                            '- Procurement             business and conducts
                                                                                                                                            promotion is ad hoc        internal marketing
                                                                                                                                            rather than planned.       campaigns to raise its

                                                                                Page 13 of 54
     Version 1.0                         Procurement Strategy                                  Dated: 2019/20
To what extent         > No vision or plans        > No reference to         > Sustainable               > Developing a            > A clear vision and
                                    has a strategy been   in place for CSR or         CSR or sustainable        procurement & CSR           vision and level of       level of ambition for
                                    defined for CSR &     sustainable                 procurement in local      referenced in               ambition for CSR &        CSR & sustainable
                                    sustainability in     procurement.                procurement strategies.   Procurement Strategy        sustainable               procurement has been
                                    Procurement?                                      '- No attempt has been    but with few tangible       procurement and           articulated and priority
                                                                                      made to engage            goals and lack of clarity   starting to identify      areas identified based
                                                                                      business stakeholders     as to how ambitions will    priority areas and        on a clear
                                                                                      on sustainable            be achieved through         strategic options.        understanding of what
                                                                                      procurement.              procurement                 '- Variable stakeholder   will drive value for the
                                                                                                                processes.                  buy'-in to the concepts   business and support
                   CSR &                                                                                        '- Limited stakeholder      and value of              the overall
       Q1.06       Sustainability                                                                               understanding of the        sustainable               procurement strategy.
                   Strategy                                                                                     concepts and value of       procurement.              '- Strong stakeholder
                                                                                                                CSR & sustainable                                     buy'-in to the strategy
                                                                                                                procurement.                                          from across the
                                                                                                                Inconsistent approach                                 business.
                                                                                                                across the business
                                                                                                                and within

                                                                                    Page 14 of 54
     Version 1.0                            Procurement Strategy                                 Dated: 2019/20

                                      To what extent         > No clear               > Plans to put in          > No formal               > Basic governance        > Governance
                                    has governance        governance               place a Governance         governance established    framework established     clearly established for
                                    been defined in the   established for the      framework for the P2P      for the P2P process.      for the P2P process.      the P2P process with a
                                    P2P process?          P2P process. Finance     process exist.             Some confusion over       Some 'grey areas' in      Business Process
                                                          operate the process      Responsibilities           responsibilities.         terms of ownership and    Owner and clear
                                                          and do not engage        between Procurement        Procurement and           responsibilities but      responsibilities
                                                          with Procurement.        and Finance are not        Finance do not            Procurement and           between Procurement
                                                          '- Procurement           defined currently. There   collaborate closely and   Finance work closely      and Finance.
                                                          processes are not        is little evidence of      there is a certain        together to manage        '- Procurement
                                                          audited by an internal   effective collaboration    amount of tension over    issues within the P2P     processes are
                                                          or external audit        between the two            who is responsible for    process.                  regularly audited by an
                                                          function. There are no   parties.                   issues in the process.    '- Changes to             internal or external
                                                          documented               '- Procurement             '- Procurement            Procurement               audit function.
                                                          purchasing               processes were audited     processes were audited    processes are             Comprehensive,
                                                          procedures.              by an internal or          by an internal or         approved by an            documented, well
                                                          '- Procurement do not    external audit function    external audit function   internal or external      understood procedures
                                                          actively monitor or      as part of                 as part of                audit function.           are implemented
       Q1.07       P2P Governance                         manage the Procure to    implementation but no      implementation but no     Documented and            consistently throughout
                                                          Pay process or seek to   regular audit scrutiny     regular audit scrutiny    understood procedures     the organisation.
                                                          drive efficiencies.      applied since. There are   applied since.            exist and are             '- Procurement
                                                                                   limited documented         Procedures have been      implemented across        regularly work with
                                                                                   purchasing procedures      documented but there      the organisation.         Accounts Payable to
                                                                                   and inconsistent           is little evidence of     Compliance is variable    seek to reduce order
                                                                                   practices within the       these being followed      with some persistent      and invoice volumes
                                                                                   organisation.              consistently throughout   non compliance in
                                                                                   '- Procurement do not      the organisation.         some business areas.
                                                                                   actively monitor or        '- No evidence of         '- Procurement
                                                                                   manage the Procure to      Procurement               periodically engage
                                                                                   Pay process or seek to     collaborating with        with Accounts Payable
                                                                                   drive efficiencies.        Accounts Payable to       to seek to reduce order
                                                                                                              reduce order and          and invoice volumes
                                                                                                              invoice volumes.

                                                                               Page 15 of 54
     Version 1.0                             Procurement Strategy                              Dated: 2019/20
How effective is      > No Central              > Central                  - Procurement have          > Procurement             > Procurement
                                stakeholder          Procurement. Local         Procurement do not         identified key             maintains a dialogue      maintains a dialogue
                                engagement by        teams respond to           have a clear view of       stakeholders by            with some key             with all key category
                                Procurement?         requests for support       who the stakeholders       category. Little           category and BU           and business unit
                                                     from within their          are by category.           evidence of systematic     stakeholders to           stakeholders to
                                                     Business Unit/Division.    Engagement is ad hoc       approach to                establish and             establish and
                                                     No recognition of need     based on where work is     engagement as yet.         challenge their needs     challenge their needs
                   Cross-                            to proactively engage      taking place.                                         and support               and take the lead on
       Q1.08       Functional                        stakeholders.                                                                    performance               strategy development
                   Working                                                                                                            management. In other      and performance
                                                                                                                                      areas engagement is       management.
                                                                                                                                      limited.                  '- Category teams
                                                                                                                                                                actively manage all key
                                                                                                                                                                stakeholders to build

                                  To what extent        > General                 > Procurement               > Policies &               > Policies &              > Policies &
                                do policies &        procurement policies       policies, guidelines and   guidelines documented      guidelines documented     guidelines in place and
                                procedures exist     or guidelines have not     procedures only            for indirect and direct    for indirect, operating   widely communicated
                                covering             been defined. Informal     partially in place.        procurement, covering      and capital               across indirect,
                                Procurement          rules are driven by                                   Procurement purpose,       procurement, covering     operating and capital
                                activity?            Business Unit                                         roles and                  Procurement purpose,      procurement, covering
                                                     management locally.                                   responsibilities,          roles and                 Procurement purpose,
                                                                                                           governance, processes,     responsibilities,         roles and
                                                                                                           authorisation levels and   governance,               responsibilities,
                                                                                                           compliance.                processes,                governance,
                                                                                                           '- Policies and            authorisation levels      processes,
                   Policies &                                                                              procedures are             and compliance            authorisation levels
                   Procedures                                                                              infrequently revisited.    '- Policies and           and compliance.
                                                                                                                                      procedures are            '- Policies and
                                                                                                                                      infrequently revisited.   procedures are
                                                                                                                                                                continually reviewed
                                                                                                                                                                and examined to
                                                                                                                                                                ensure best practices
                                                                                                                                                                are employed and

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                                       How is                Procurement is not       Procurement viewed          Procurement                  Procurement viewed        Procurement viewed
                                    procurement           considered by senior      by senior management       considered by senior         by certain senior         by senior management
                                    positioned in terms   management to be a        as being relevant to       management to be             stakeholders as being     and the board as a
                                    of the corporate      key function in           managing supply chain      important in terms of        critical to driving the   strategic function,
                                    sustainability        delivering the            sustainability risks and   driving operational          company's                 critical to delivering the
                                    strategy?             corporate level           protecting the             efficiency through           sustainability            sustainability
                   Procurement &                          CSR/sustainability        company's reputation.      sustainability initatives    programme,'- in           programme and
       Q1.10       Sustainability                         programme or                                         and managing                 addition to risk and      helping to create value
                   Positioning                            managing                                             sustainability risk in the   operational efficiency,   for the business.
                                                          CSR/sustainability                                   supply chain.                key to helping to
                                                          risks.                                                                            innovate and identify
                                                                                                                                            market opportunities.

         Q2        Planning

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Is there a              No formal activity       No formal process for      >Formal process              >Standard process            >Standard process
                               process in place to     plan portfolio or        developing and            definition for the           for the development of       for the development of
                               develop and             pipeline management      managing the              development of the           the annual                   the annual
                               maintain a forward-     across the               Procurement activity      annual procurement           procurement activity         procurement activity
                               looking                 Procurement function     plan occurs throughout    activity plan , but does     plan has been defined,       plan is implemented
                               portfolio/pipeline of                            the year. Some limited    not cover all activities     but is not consistently      and consistently used
                               value delivery                                   and informal              (e.g. may not include all    implemented (e.g. all        to align functional
                               projects (e.g.                                   development of a          categories or all            sites in the enterprise)     value delivery against
                               sourcing, supplier                               sourcing plan may         enabling projects)           or is not well'-             functional strategy
                               management, and                                  occur on an ad'-hoc       '-Annual plan is not         integrated cross'-           objectives. The
                               demand                                           basis to support the      used by the                  functionally.                process includes
                               management) and                                  upcoming year's value     organization as a tool to    '-Annual plan is not         cross'-functional (and
                               enabling projects                                delivery target.          manage resource              consistently used by         enterprise)
                               (e.g. process or                                 However, this is          activities and               the Procurement teams        engagement and
                               technology                                       inconsistently applied    performance                  to manage resource           approval.
                               improvement)?                                    across the organization   '-Limited effort is made     activities throughout        '-Annual plan is
                                                                                and incomplete in         to proactively identify      the year, or is not well'-   actively used to
                   Portfolio                                                    nature (e.g. plan is      potential projects for the   integrated into              manage resource
                   Planning                                                     comprised only of the     upcoming year's plan         performance objectives       activities throughout
                                                                                expiring contracts that                                and the performance          the year, with well'-
                                                                                need to be sourced).      Procurement is still         management process           defined KPI(s) and
                                                                                                          largely seen as being        '-An ongoing planning        accountabilities
                                                                                Procurement's activity    more reactive than           process is defined, but      integrated with
                                                                                set is seen as reactive   proactive in regard to       not consistently used        performance
                                                                                and unplanned.            planning and managing        to capture potential         management process
                                                                                                          its activity set.            projects for upcoming        '-Ongoing planning
                                                                                                                                       years or is not cross'-      process to capture
                                                                                                                                       functionally integrated.     potential projects for
                                                                                                                                       Procurement has              upcoming years,
                                                                                                                                       proactive approach to        including cross'-
                                                                                                                                       managing its activity        functional (and
                                                                                                                                       set, with inconsistent       enterprise)
                                                                                                                                       implementation.              engagement and
                                                                                                                                                                    approval, is
                                                                                                                                                                    implemented and
                                                                                                                                                                    consistently used

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                                   To what extent is      > Procurement has           > A traditional project      > A traditional project      > Master                    > A programme view
                                 capital procurement   no or limited               based approach to            based approach to            procurement plans are       is taken, master
                                 co-ordinated and      involvement in capital      procurement with             procurement is taken         in place across some        procurement plans
                                 managed across        projects, being             inconsistent                 with limited                 parts of the business to    being used to
                                 the organisation?     generally consulted on      involvement of               opportunities for long       aggregate demand            aggregate demand
                                                       price related issues or     Procurement, providing       term planning and            across projects and         across projects and
                                                       when contractual            no opportunities for long    aggregation of demand.       identify opportunities to   identify opportunities to
                                                       issues arise.               term planning and            Procurement is               bundle contracts.           bundle contracts.
                                                                                   aggregation of demand.       consistently involved in     Planning in                 Planning is routinely
                                                                                                                project definition.          collaboration with          done in collaboration
                   Capital                                                                                      Limited collaboration        internal stakeholder        with all internal
       Q2.02                                                                                                    across the supply            groups and supply           stakeholder groups
                                                                                                                chain.                       chain members is            and supply chain
                                                                                                                                             evident, giving a           members and is
                                                                                                                                             degree of visibility of     aligned with the up'-
                                                                                                                                             long term demand.           front planning for
                                                                                                                                                                         capital investment,
                                                                                                                                                                         giving visibility of long
                                                                                                                                                                         term demand.

         Q3        Sourcing

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To what extent        > The organisation           > There is no              > Category sourcing         > Category sourcing       > Advanced and
                              are comprehensive     does not have a              evidence of strategies     strategies are in place     strategies are in place   differentiated category
                              category strategies   consistent view of its       being developed at a       only for a small minority   for most areas of major   sourcing strategies are
                              in place for major    spend categories.            spend categrory level.     of direct and indirect      direct spend. This is     in place for all major
                              spend categories?     '- No sourcing               '- Local procurement       categories.                 less well developed in    categories of indirect,
                                                    strategies are in place.     activity is reactive to    '- Procurement category     areas of major indirect   direct and capital
                                                    Procurement have no          individual Business        teams tend to develop       and capex spend.          spend, based on
                                                    involvement in               Unit/functional need       sourcing strategies as      Some portfolio analysis   comprehensive
                                                    sourcing decision'-          rather than planned or     part of the strategic       considered.               portfolio analysis.
                                                    making beyond                co'-ordinated across       sourcing process being      '- Strategies show        '- Portfolio is regularly
                                                    administration of the        enterprise. Central        applied at sub'-category    evidence of               reviewed with supplier
                                                    formal RFP.                  Procurement have had       level but there is little   consideration of a wide   and industry input and
                                                                                 some success in co'-       evidence of alignment       range of sourcing         all sourcing levers are
                                                                                 ordinating activity for    with an over'-arching       levers. Limited           considered. Category
                                                                                 some enterprise'-wide      category strategy.          consideration of the      strategies address
                                                                                 indirect requirements.     '- Limited or               wider supply chain        opportunities across
                                                                                 '- Sourcing decision'-     inconsistent                opportunities.            the broader supply
                   Category                                                      making still handled by    consideration of a wide     '- Category strategies    chain.
                   Strategy                                                      the business '- in most    range of sourcing           tend to be owned by       '- Alternative supply
                                                                                 cases with no              levers. Limited             and understood in         sources are developed
                                                                                 Procurement                consideration of the        Procurement but           in conjunction with
                                                                                 involvement. Sourcing      wider supply chain          understanding of          current suppliers for
                                                                                 strategies are not         opportunities.              stakeholders outside      key purchases.
                                                                                 formally documented.       '- Category strategies      Procurement is            '- Category strategies
                                                                                 Procurement                owned by Procurement        inconsistent.             are communicated
                                                                                 involvement is typically   are infrequently                                      within Procurement
                                                                                 limited to tender and      revisited and there is                                and to all key
                                                                                 negotiation strategy.      limited evidence that                                 stakeholders for
                                                                                                            they are shaping the                                  important categories.
                                                                                                            way Procurement
                                                                                                            manages its day'-to'-
                                                                                                            day activity

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                                    How effective are      > No use of                 > Consolidated           > Consolidated             > Consolidated              > Consolidated
                                 efforts to leverage    consolidated                purchasing at a          purchasing across the      purchasing across the       purchasing conducted
                                 spend for major        purchasing at any           BU/Division level only   key procurement            key procurement             across all procurement
                                 spend categories?      level. Fragmented           '- No evidence of        entities for some major    entities for most           entities for all
                                                        purchasing across           attempts to bundle       categories of spend.       significant areas of        significant and
                                                        departments with a          services with existing   '- Limited evidence that   spend.                      appropriate areas of
                                                        silo culture.               suppliers.               existing suppliers are     '- Existing suppliers are   spend. Opportunities
                                                        '- Sourcing occurs only     '- No evidence of        considered for             sometimes considered        for further
                                                        at business                 attempts to develop      extended or bundled        for extended or             consolidation reviewed
                                                        unit/divisional level.      suppliers to take on     services.                  bundled services.           regularly
                   Procurement                                                      additional supply        '- No evidence of          '- No evidence of           '- Existing suppliers are
       Q3.02                                                                        responsibilities.        attempts to develop        attempts to develop         routinely considered
                                                                                                             suppliers to take on       suppliers to take on        for extended or
                                                                                                             additional supply          additional supply           bundled services.
                                                                                                             responsibilities.          responsibilities.           '- Key suppliers are
                                                                                                                                                                    developed to take on
                                                                                                                                                                    additional supply

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What level of         > Procurement is             > Rarely involved in       > Some involvement         > Procurement is            > Procurement is
                               involvement does     never involved service       new service/product        in new service             often but not always        consistently involved at
                               Procurement          development or design        development and            developments and           involved at the earliest    the earliest stage of
                               typically achieve    discussions.                 design and then only to    design although the        stage of                    product/service
                               across the           '- Procurement's remit       assist with calculating    level of involvement       product/service             development and
                               organisation?        is seen to be limited to     costs. There is no         varies considerably        development and             design, having the
                                                    processing orders and        opportunity for            across categories,         design, having the          opportunity to
                                                    administering                Procurement to actively    projects and business      opportunity to influence    influence specification
                                                    contracts.                   influence design based     areas. The opportunity     specification design        design and drive
                                                                                 on acquisition or          for Procurement to         and drive                   standardisation and
                                                                                 ownership costs.           actively influence is      standardisation and         advise on sourcing
                                                                                 '- Across the              limited.                   advise on sourcing          strategy and
                                                                                 organisation               '- Procurement can         strategy and                contracting approach .
                                                                                 Procurement's role is      point to examples          contracting approach.       '- Across the
                   Sourcing                                                      seen to be limited to      where they have            '- Some areas of the        organisation
                   Processes                                                     running tenders,           successfully               business recognise          Procurement's role is
                                                                                 negotiations and           demonstrated an ability    Procurement's role and      seen to encompass all
                                                                                 contracting. No            to apply wider value       remit with the full range   value levers: demand
                                                                                 recognition of a broader   levers beyond              of value levers but in      management, design &
                                                                                 remit with other value     competitive tender but     other areas                 specification, make vs.
                                                                                 levers (demand             these have been rare       opportunities are           buy, transportation &
                                                                                 management,                and most business          constrained.                supplier performance
                                                                                 challenging                takeholders see                                        management
                                                                                 specification, make vs     Procurement's role as
                                                                                 buy).                      limited.

                                  How much of the     > No areas at all.            > Some areas               > Many sourcing            > Over 75% of               > The entire spend
                               spend is covered                                  covered by sourcing        groups have sourcing       spend covered by            is covered by sourcing
                   Sourcing    by signed-off                                     strategies but normally    strategies, but they are   strategy, which is          strategies which are
                   Processes   sourcing                                          by exception.              not fully signed off.      signed'-off by              signed'-off by senior
                               strategies?                                                                                             appropriate business        management.

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                                       How advanced        Specifications are        Specifications are         Comparison of                The process is well     Key specifications
                                     are the processes   not maintained.          reviewed reactively, due   supplier performance to      documented.              are reviewed on a
                                     for maintaining                              to cost pressures or       defined standards.           Responsibility agreed    regular basis. Cross
                                     specifications?                              quality issues. Review     Feedback to suppliers        for specification        functional input is
                                                                                  conducted by company       on a regular basis.          maintenance.             gained. Technological
                                                                                  A resource only.           Feedback from around         Communication            solutions are utilized.
                   Specification                                                                             user community and           process in place. Some   The process is
       Q3.05                                                                                                 across company A.            challenge and input      common through'-out
                                                                                                             Formalized process for       from cross functional    the company (i.e.
                                                                                                             key suppliers, with clear    teams. Active supplier   cross'-Group). Supplier
                                                                                                             internal accountabilities.   involvement in           involvement fully
                                                                                                             Analytically based           process.                 leveraged.

                                       How rigorously       There are no            Some application of         Consumption and             Consumption and           A total cost
                                     are consumption     consumption policies     demand management          compliance procedures        compliance procedures    management approach
                                     and compliance      in place.                procedures. Primarily      are regularly reviewed.      are regularly reviewed   is applied. Design for
                                     procedures                                   measurement of usage /     Target cost                  and updated. Key         manufacture and
                                     applied?                                     volumes.                   management is applied        measures are             assembly principles
                   Demand                                                                                    in key areas.                incorporated in          are used. Demand
       Q3.06                                                                                                                              business.                management fully
                                                                                                                                          Improvements /           integrated in NPD and
                                                                                                                                          benefits can be          procurement
                                                                                                                                          demonstrated.            processes.

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To what extent         > Little or no supply        > Procurement has            > Infrequent supply        > Periodic supply          > Sourcing
                                     does Procurement      market knowledge. No         limited understanding of     market research            market research            strategies for most
                                     research the supply   supply market                the competitive supply       conducted for key          conducted for key          sourcing groups based
                                     market?               research conducted.          market or critical factors   categories and             categories and             on coherent and deep
                                                           '- Basic informaiton         impacting commercial         commodities. Supply        commodities.               understanding of
                                                           availablein current          or operational               knowledge tends to be      '- Detailed cost and       supply market. Cost
                                                           suppliers                    performance. Research        stronger amongst           performance                drivers fully understood
                                                                                        not integrated into          customers than in          information, supply        and used to drive
                                                                                        overall sourcing process     Procurement. Some          market dynamics,           strategy decisions.
                                                                                        and tends to be              analysis of the supply     market trend and           '- A market intelligence
                                                                                        conducted on ad hoc          market is built into the   competitor activity        programme is in place,
                                                                                        basis.                       sourcing process.          information available      web'-enabled
                                                                                        '- Analysis conducted on     '- Procurement will only   across some sourcing       technology being
                                                                                        basic supply market          rarely attempt to          groups.                    applied to provide
                                                                                        information. High level      analyse suppliers' cost    '- Strong regional         regular updates for
                                                                                        benchmarking                 base as part of sourcing   supply knowledge           important supply
                                                                                        completed, based on          engagements or             among cross functional     market factors such as
       Q3.07       Market Research                                                      existing supply base         compare performance        team but limited global    commodity prices, fuel
                                                                                        and limited number of        against other similar      industry knowledge.        / energy costs,
                                                                                        other sources                companies.                 '- Procurement will        currency exchange
                                                                                        '- Procurement do not                                   sometimes attempt to       rates and supply
                                                                                        attempt to analyse                                      analyse suppliers' cost    benchmarks.
                                                                                        suppliers' costs as part                                base as part of major      '- Procurement
                                                                                        of sourcing                                             sourcing engagements       routinely looks into
                                                                                        engagements.                                            but this is not routine.   suppliers’ processes
                                                                                                                                                                           and raw material costs
                                                                                                                                                                           to understand quality
                                                                                                                                                                           and cost drivers, and
                                                                                                                                                                           compares their
                                                                                                                                                                           performance against
                                                                                                                                                                           other similar

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                                      Is a quality            > A sourcing                > Basic                     > Implementation           > Additionally, the         > Sourcing
                                    implementation         strategy exists but no       implementation plans       plan incorporates all       plan includes a risk       strategies are in place
                                    plan developed for     implementation plan          exist covering some        Procurement                 assessment, business       for all key
                                    each sourcing          has been developed.          major aspects of           requirements, detailing     case, timing plan. The     commodities.
                                    group and is it                                     implementation, but are    supply base and pricing     plans are developed        Implementation plans
                                    agreed across the                                   inconsistent in content    changes, together with      and agreed by cross        include key activities,
       Q3.08       Implementation   business?                                           and depth.                 timing implications.        functional teams.          phased timing plan
                                                                                                                                                                          and addresses all the
                                                                                                                                                                          key processes.
                                                                                                                                                                          Responsibility and
                                                                                                                                                                          program management
                                                                                                                                                                          mechanisms are
                                      To what extent          > No sourcing               > Supply chain              > Sustainability risks     > Sustainability risks      > Sustainability risks
                                    do strategies for      strategies are in place      sustainability risks and   and opportunities           and opportunities          and opportunities
                                    major spend            for specific categories.     opportunities have been    identified for some but     identified for all major   identified for all major
                                    categories consider    '- Supply chain              considered, but not at     not all spend               spend categories but       spend categories and
                                    specific               sustainability risks and     the category level.        categories, but are not     not integrated into        are integrated into
                   Sustainable      sustainability risks   opportunities have not                                  integrated into             procurement decision       procurement decision
       Q3.09       Category         and opportunities?     been considered.                                        procurement decision        making.                    making '- from
                   Strategy                                                                                        making.                                                specification, through
                                                                                                                                                                          to evaluation and
                                                                                                                                                                          contract management).

         Q4        Management

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To what extent is      > No formal contract        > Contract                > Basic contract            > Formal contract          > Formal contract
                                contract              management                  management happens        management processes        management                 management
                                management            framework or process        on an adhoc basis and     documented and in           framework integrated       framework integrated
                                formalised within     in place.                   to inconsistent           place supported by a        with the sourcing          with the SRM and
                                the organisation?                                 standards. Limited        formal contract             strategy. Clearly          sourcing strategy.
                                                                                  development of            management structure        defined contract           Clearly defined
                                                                                  contracting strategies.   and contracting models.     management roles and       contract management
                                                                                  '- Procurement has no     Not fully integrated with   responsibilities. One      roles and
                                                                                  involvement in ongoing    the SRM and/or              size fits all approach     responsibilities,
                                                                                  contract management.      sourcing strategy.          with limited guidance      contracting models,
                                                                                                            '- Contract management      on different contract      processes and
                                                                                                            is performed by             models and                 differentiated contract
                                                                                                            business managers           differentiated levels of   outputs (obligations)
                                                                                                            with very limited           contract management.       based on contract /
                   Contract                                                                                 Procurement                 '- Contract service        relationship type.
                   Management                                                                               involvement.                delivery and               '- Contract service
                                                                                                                                        administration for some    delivery, relationship,
                                                                                                                                        major contracts            administration and risk
                                                                                                                                        managed by                 for key suppliers
                                                                                                                                        professional contract      managed on a routine
                                                                                                                                        managers. Contract         basis by professional
                                                                                                                                        management tends to        contract managers in
                                                                                                                                        operate independent of     Procurement or with
                                                                                                                                        Procurement or with        Procurement support.
                                                                                                                                        limited Procurement

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                                     How                   > No involvement in        > Procurement have           > Procurement have          > In most cases, the        > The most
                                   sophisticated is     or knowledge of the         some knowledge of the       some knowledge of the       appropriate contract        appropriate contract
                                   Procurement          range of contracting        range of contracting        range of contracting        delivery model is           delivery model is
                                   understanding of     models available for        models available for        models available for        selected based on the       always selected based
                                   capital contract     capital projects or how     capital projects but        capital projects and        strategic objectives        on the strategic
                                   delivery needs and   these models relate to      Procurement are rarely      how these models            and scoping of the          objectives and scoping
                                   options?             the objectives and          consulted in the            relate to the objectives    capital project.            of the capital project.
                                                        scope of a project.         selection of the contract   and scope of a project      '- The range of             '- The range of
                                                        Procurement have            delivery model.             and the asset               contracting models is       contracting models is
                                                        limited or no                                           management strategy         reasonably well             well understood by
                                                        involvement in the                                      deployed.                   understood by               procurement (eg.
                                                        contract delivery                                       '- Procurement are          procurement (eg.            Alliance Agreements,
                                                        model selection                                         consulted in the            Alliance Agreements,        Design & Construct
                                                        process                                                 selection of the contract   Design & Construct          and Engineering
                                                                                                                delivery model.             and Engineering             Procurement &
                                                                                                                                            Procurement &               construction) and they
                   Capital                                                                                                                  construction) and they      play a key role in the
       Q4.02       Procurement &                                                                                                            are consulted in the        selection process.
                   Contracts                                                                                                                selection process.          '- Procurement
                                                                                                                                            '- Procurement              knowledge is fully
                                                                                                                                            knowledge is only           leveraged to provide
                                                                                                                                            partially leveraged to      insights into potential
                                                                                                                                            provide insights into       risks to help select the
                                                                                                                                            potential risks to help     right contract delivery
                                                                                                                                            select the right contract   model that supports
                                                                                                                                            delivery model that         the project’s needs
                                                                                                                                            supports the project’s      and the organisation’s
                                                                                                                                            needs and the               asset management
                                                                                                                                            organisation’s asset        strategy.
                                                                                                                                            management strategy.

         Q5        Management

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To what extent       > No evidence that          > Procurement               > Procurement aware          > Supplier                  > Supplier
                                 do Procurement      Procurement is aware        recognise that supplier     of need to rationalise       rationalisation             rationalisation
                                 actively manage     of need for supplier        numbers are too high        suppliers. Some              initiatives have made       initiatives have
                                 supplier numbers?   rationalisation despite     but there is no evidence    evidence of efforts to       some progress in            succeeded in reducing
                                                     very high numbers of        of Procurement              reduce supplier              reducing numbers of         numbers of active
                                                     suppliers.                  attempting supplier         numbers in last 3 years      active suppliers but        suppliers to a point
                                                     '- Supply base is           rationalisation in last 3   but no current activity in   Procurement believe         where Procurement
                                                     growing aggressively        years.                      progress. Supplier           there is more work to       believe they have the
                                                     year on year with new       '- Supply base is           numbers widely               do.                         optimal number of
                                                     suppliers added             growing strongly year       recognised as too high.      '- Procurement have         suppliers.
                                                     constantly.                 on year.                    '- Supply base is still      performed reviews of        '- Procurement perform
                   Supply Base                                                                               growing strongly year        transaction volumes to      an annual review of
       Q5.01                                                                                                 on year.                     identify opportunities to   transaction volumes to
                                                                                                                                          reduce the supplier tail    identify opportunities to
                                                                                                                                          but this is not regularly   reduce the supplier tail.
                                                                                                                                          repeated.                   '- Few new suppliers
                                                                                                                                          '- Supply base is still     required. Existing
                                                                                                                                          growing year on year        relationships cover
                                                                                                                                          but net increase is         almost all
                                                                                                                                          small.                      requirements.

                                   How is supplier     > Procurement is            > Procurement do not         > Procurement do not         > Collection of            > Supplier councils
                                 feedback captured   not seeking supplier        seek or collect supplier    seek supplier feedback       supplier feedback is ad     used to gather
                                 ?                   feedback.                   feedback.                   in a consistent or           hoc through contract        feedback from
                                                                                                             structured fashion. No       review meetings. Some       suppliers, identify
                                                                                                             evidence of                  limited evidence of         improvement
                   Supplier                                                                                  Procurement acting on        Procurement                 opportunities and
       Q5.02       Performance                                                                               feedback.                    management reviewing        provide improved
                   Management                                                                                                             feedback to identify        communication.
                                                                                                                                          recurrent themes.

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                                    To what extent is     > Very little             > Performance             > Focus is on          > Continuous              > Continuous
                                 continuous             evidence of               management effort is     supplier performance   improvement is            improvement is
                                 improvement built      Procurement               reactive and focused     and contractual        typically discussed as    routinely built in at the
                                 into supplier          involvement in supplier   exclusively on problem   performance rather     part of supplier          tendering and design
                                 contracts?             performance               suppliers. No focus on   than continuous        negotiations and          stage and considers
                                                        management of any         continuous               improvement. Some      features in contracts     cost, service and
                                                        kind except for           improvement.             limited evidence of    but there is little       process improvements.
                                                        disputes.                                          continuous             tracking of progress      Continuous
                                                                                                           performance being      against goals.            improvement plans are
                                                                                                           introduced into        '- Metrics that can be    put in place and
                                                                                                           contrcats but little   used to measure           regularly reviewed
                                                                                                           ongoing management     progress towards          based on the project
                                                                                                           of this.               improvement goals         and relationship type,
                                                                                                                                  agreed with the           supplier strategy and
                   Supplier                                                                                                       supplier are typically    agreed KPIs / targets.
       Q5.03       Performance                                                                                                    not well defined and      Incentivisation
                   Management                                                                                                     obtaining reliable data   frameworks are
                                                                                                                                  is an issue.              negotiated such as
                                                                                                                                                            rebate /gain share
                                                                                                                                                            '- Comprehensive
                                                                                                                                                            metrics used to
                                                                                                                                                            measure progress
                                                                                                                                                            towards improvement
                                                                                                                                                            goals agreed with the

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To what extent         > All suppliers are         > There is no formal          > SRM strategy             > SRM strategy             > SRM strategy
                                  does the              treated the same '- the     SRM strategy which            includes a view of         includes clearly defined   includes clearly
                                  organisation have a   supply base is              differentiates supplier       different relationship     relationship types         defined relationship
                                  defined strategy      managed on a purely         management based on           types but processes,       linked to differentiated   types linked to
                                  and approach for      transactional basis         supplier strategic            objectives, governance     objectives, governance     differentiated
                                  managing strategic    with no partnerships or     importance.                   arrangements, KPIs         arrangements, KPIs         objectives, governance
                                  suppliers?            alliances in place.         Management of supplier        and continuous             and continuous             arrangements, KPIs
                                                                                    relationship is down to       development                development plans.         and continuous
                                                                                    business stakeholders         requirements are only      Governance operates        development plans.
                                                                                    and is not consistent.        partially defined.         across the organisation    Governance operates
                                                                                    The organisation does         Governance currently       for strategic suppliers.   across the organisation
                                                                                    not have a single view        only operates within       '- Executive               for strategic suppliers.
                                                                                    of its strategic suppliers.   Procurement.               sponsorship of             '- Senior executive
                                                                                    '- Procurement's focus        '- Procurement have        individual strategic       sponsorship of
                                                                                    is on supplier                identified Procurement     relationships through a    individual strategic
                                                                                    performance                   relationship leads but     designated owner           relationships through a
                   Strategic                                                        management. Standard          business stakeholder       within each                designated owner
       Q5.04       Relationship                                                     approaches are applied        involvement has not        organisation.              within each
                   Management                                                       across teh supply base        been formalised.           '- SRM processes have      organisation.
                                                                                    with effort invested          '- Some initial efforts    been defined but           '- Defined SRM
                                                                                    driven by the business        have been made to          application is             processes operational
                                                                                    stakeholder                   define SRM processes       inconsistent and           and consistently
                                                                                    requirements and              but these are not          commitment of              applied with all
                                                                                    spend.                        operating in practice.     resources is an issue.     strategic suppliers.
                                                                                    '- There is no                '- Procurement is taking   '- Procurement seen to     '- Procurement seen to
                                                                                    documented SRM                the lead on developing     be owner of process        be owner of process
                                                                                    process.                      a process but there is     and is involved in the     and facilitator. Fully
                                                                                                                  very limited business      majority of key            involved in all key
                                                                                                                  recognition of the         relationships.             relationships.
                                                                                                                  strategy, process or
                                                                                                                  responsibilities in this

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