Civil Engineering Reference
In-Depth Information
usually extremely helpful when seeking to engage with an industry,
sector or specialist trade.
The programme supply chain team uses the body of knowledge and
intelligence gained from the market sounding exercise to compile a
report that informs the procurement plan. A wide-ranging variety of
feedback may be forthcoming and it is this intelligence directly from
the supply chain that allows the procurement plan to take into consid-
eration all manner of suggestions to avoid risk and increase appetite. It
is particularly at these early procurement stages in the delivery of a
programme that risks can be avoided. Almost all other supply chain
risks materialise once a contract is in place, by which time they are
diffi cult to avoid and can therefore only have their impact mitigated.
Although the feedback and suggestions provided from a market sound-
ings exercise are almost always driven from a partisan perspective, that
bias should be ignored, because the suggestions invariably highlight the
route to best value. For example, the risks associated with interfaces
with other packages can be highlighted from the delivery perspective. It
is possible to identify potential risks and opportunities and in doing so
take appropriate action in a timely manner by adjusting the procure-
ment plan to refl ect these considerations. For example, adjustments to
the emerging procurement plan may include one or more of the follow-
ing areas:
• Packaging - the feedback on packaging is key for consideration. The
question is whether or not the scope and scale of the works is too
large or too small to generate a strong appetite and attract the 'A'
teams of suppliers when it comes to delivery.
• Contracting strategy - do the procurement route and the contract
chosen transfer risk in a way such that the risk is placed with those
best placed to manage it?
• Bulk purchasing - feedback information can help to decide that a
programme has greater leverage of supply than a supplier, or that
quality and consistency may be better controlled through client inter-
vention rather than a supplier's own sourcing.
• Specifi cation alignment - feedback can identify areas where specifi c
items might be directly aligned to enable strategic procurement of
some common components or commodities.
• Securing manufacturing capacity or output - if demand is high for the
goods and services in question, feedback at this stage may indicate
specifi c areas within the procurement where some form of forward
buying or hedging may be required beyond the current package.
