You have procured a new contract (often using external consultants to support the process)… now for the hard work…
We have been asked to support numerous Registered Housing Providers in reviewing their procurement and contract management arrangements as they either feel or know that they are not getting the best out of them.
There can be a number of reasons why organisations are not getting the best out of what would appear to be relatively standard disciplines. Those reasons can be wide ranging from people issues through to contractual issues.
Our experience in issue resolution as well as starting up procurement and contract management operations means that we can usually quickly identify the root causes of such problems and give a clear and concise way to make improvements.
We have helped organisations take millions of pounds out of their supply chains through better procurement and contract management. The change requirements can range from small tweaks through to fundamental re-shaping of procurement strategy and execution.
Procurement issues which we often find include:
- Organisations using frameworks but unsure if that truly represents the best route for them
- Failure to maximise economies of scale and use effective collaborative purchasing
- Lack of understanding within organisations on how best procurement can add value and what their role should be
- Fragmented accountability between procurement and operations for sourcing and on-going contract management
- Incorrect balance between compliancy and best value
- Lack of effective rationale for the procurement route and contract form adopted
Contract management issues which we often find include:
- Poor understanding of the procurement process and contracts by the people managing those contracts
- Similar patterns of results and behaviours whoever the contractor is on the other side of the contract
- Inconsistent contract management approaches – often without the required level of data and evidence to support root cause analysis and performance improvement
- Lack of confidence in supplier performance measures and results