Case Study: our AMP7 supply chain engagement strategy Andy Clark - - PowerPoint PPT Presentation

Case Study: our AMP7 supply chain engagement strategy

Andy Clark

Head of Procurement & Contract Management

What I’ll cover

• Research Undertaken
• Risks we face
• Needs of our customers
• Views of supply chain
• Changes that are necessary
• High level supply chain partnering model

Managing risks not managing a procurement exercise

Confidence in risk & location Range of resolution options

H L L H

High confidence we understand the risk location but unknown resolution Low confidence we understand the risk, lots of options to resolve High confidence we understand the risk, known and limited options to resolve Low confidence we understand the risk, known and limited options to resolve

30% 45% 21% 4%

Solution Based Delivery – Non Infra Complex Non Infra One off Partnership working Solution Based Delivery – Infra

Customer needs To fulfil the needs of PR19 our approach to partnering with the supply chain will need to fundamental change

Affordability Safety in design and delivery Strategic Change

Harnessing the ideas and intellect of the supply chain Working sessions Attendees Supply Chain Launches Attendees Attendees Benchmarking Visits Contractors

Harnessing the ideas and intellect of the supply chain

• Right-sized arrangements
• Clear and Simple Incentivisation
• Client Leadership
• Easy to operate contracts

Supply Chain Partnering Strategy – Change Focus

Intelligent client Low Carbon, Build Offsite, Future Skills Upfront Strategic Thinking Focus Innovative, low carbon solutions Access to Supply chain innovation Operational over asset interventions Smaller, dynamic regional businesses Agile arrangements - range of delivery options Delivery Efficiency Focus Maturing Client Innovation plateau Independent Contract Frameworks Commercially interdependent Partners Heavy tier 1 contractor model High hazard industry based assurance Focus on probability risk over impact risk

Affordability - lower the cost of resolving risk Build Less Build Smart

Strategic Planning Delivery

Operate Invigorate Eliminate

Remove the root cause of the risk through upstream activities / demand led solutions Proactively operate and maintain assets to bring them to design capabilities and eliminate service failures Leverage asset capabilities or unrecognised headroom to improve capability of existing or redundant assets Safe and efficient construction of new assets using techniques such as modular

• ffsite construction and standard products

Strategic Change

Innovative Solutions

How we deliver not

• nly what we

deliver Client Leadership

• Low Carbon
• Built Offsite
• Standard Products
• Sustainable future skills

Safety in design and delivery

Design in Safety

Health and wellbeing Safe and sustainable assets

Model Overview – Dynamic Shift

Direct Procurement and One-Off Very High Value

Strategic Planning Partner

Assurance Partner(s)

Infrastructure Frameworks Non - Infrastructure Alliance Enhanced Direct Delivery

Strategic Planning Delivery Assurance