Supply Chain Management

Babcock has the strong team, unrivalled knowledge and innovative systems capable of reacting quickly to every client's individual needs. Processes and systems are currently in place on an extensive number of large contracts, allowing us to implement our industry best practice supply chain management solutions from day one.

We continuously goes the extra mile for our customers; ensuring consistent quality and clearly identifiable cost savings across the board. In addition, we offer experienced Supply Chain Managers and a cutting-edge e-sourcing system, which allows us to deliver solutions with minimal staffing requirements while allowing full client visibility if specified.

Core Service Features

  • Supplier Relationship Management
  • All staff fully qualified or training towards professional qualifications
  • Performance Monitoring
  • Database Management - Insurance compliance, Credit checks, company details maintained
  • Pre-qualification Questionnaires (PQQ's) - Detailed supplier assessment
  • Identify and implement Supply Chain Strategy
  • Full Category Management - Framework Agreements
  • Contract Management
  • Total Cost of Ownership Project
  • Full Life Costings
  • E-Sourcing
  • Requests for Information (RFI)
  • Requests for Quotation (RFQ)
  • Invitation to Tender (ITT)
  • Reverse Auctions
  • Requisition/Purchase Order monitoring and Reporting
  • Consignment Stock Management

Key Customers
Defence Estates: Prime contracts South West and Eastern
Building Schools for the Future - Hackney
Royal School of Military Engineering

Case Study
"My first experience of the new professional procurement resource within Babcock was in 2006 when Gary Sheridan joined the business and had a significant input into the Debut bid for the Bristol and Bath Total Facilities Management contract extension.

The extensive use of the IASTA e-procurement tool not only ensured and demonstrated value for money, but also greatly reduced the timescales for tendering major categories of spend to allow the timely submission of an accurately priced bid, as well as providing me with a clear audit trail of the decision making process. This is critical in demonstrating value for money when committing public spend.

Since the introduction of Gary's Procurement team during 2007 we have seen a continuing improvement in the level of professional procurement practice which has brought significant benefit to the Defence Estates South West Regional Prime Contract (RPC SW).

They have reduced their supplier base by more than half and have planned further reductions to a fit-for-purpose level. This has led to a number of benefits including:

•A greater ability to benchmark and negotiate repetitive works, hence reducing the number of low value tenders at site level. This allows more time for site teams to work with suppliers on best value solutions, reducing lead times to the customer ensuring delivery of the agreed solution to the required time and often with reduced timescales.
 

•The ability to put in place performance monitoring/management with their supply chain to ensure consistent and improving performance.
The ability to work more closely with fewer suppliers, to arrange security clearances to make access to sites more simple, conduct regular reviews to review performance and update suppliers on work programmes, ensure health and safety standards are met, etc.

As stated above, low value, low risk tendering has been reduced with 20% fewer overall tenders taking place in the year 2008/09. This has an impact on ourselves through not having to provide resource to as many tender openings, reducing the time required to provide a solution to the customer and increasing the time available with the supply chain before works go ahead to ensure a best value solution.

The Debut Core and Site Procurement have put a lot of effort into increasing the amount of work passed through the on-site, 1st tier supply chain which maximises the use of the contract specific labour and the use of the Prime Contracting MPTC ethos which provides Defence Estate with Open Book Accounting, Gain/Pain Share ensuring maximum incentivisation. This, alongside providing the 1st tier supply chain with visibility of the in year 2009/10 programme of work prior to the start of the year, will ensure resource utilisation and delivery performance.
A major benefit to the South West RPC has been the introduction of the Performance Management process. Introduced in 2008, it provides data on all aspects of performance from the 1st tier supply chain drawing on system data and site feedback, including 3600 feedback from the supply chain. Copies of the bi-annual reports are provided to me for review and it is clear that issues highlighted within the reports are being reviewed, actioned and resolved to improve performance.

The major impression provided by the team since they became involved on the RPC South West has been one of introducing contemporary Procurement best practice to a very traditional setting. The use of category management, the introduction of procurement processes, particularly impressively, the use of e-procurement, and alignment where possible with RPC East to gain benefits of rebates and discounts, will continue to have, a positive impact on the RPC."
Margaret Sykes, Commercial Manager RPCSW.

 

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