Interserve Project Services Supply Chain Development

Table 8: Supply chain partnerships issues and actions, page 2 of 2
SUPPLY CHAIN PARTNERSHIPS
Issues Description Action Case No.
4. Incentivise supplier
commitment
5. Forming supply
chain clusters or
teams
6. Joint research and
development
7. Maintaining the
supply chain’s
health
The development of a range of incentives to
encourage supply chain integration and business
improvement.
Incentive systems should be simple and efficient
to operate. It is relatively easy to develop a
system for larger design supply and fix suppliers,
but becomes less appropriate the further down
the supply chain e.g. labour-only subcontractors.
The identification and development of supply
chain clusters of specialist contractors and
suppliers to minimise interface waste and
maximise team working.
Identify and develop new products and services
with suppliers on high value or high volume
construction elements.
It is important to monitor the health of the supply
chain and take action where necessary.
• Consider introducing a system of shared savings to encourage business
improvement ideas from suppliers
• Consider introducing non-financial incentives including:
1. Reduced abortive tendering
2. Continuity of workload
3. Continuity of teams/long term relationships
4. The development of shared processes that are effective and efficient,
minimising waste and duplication
5. Knowledge of client and less risk
6. Future work opportunities
• Identify those contractors that must work closely together in order to maximise
production e.g. external envelope, building services, finishing trades
• Form these contractors into cluster groups as early as possible in the project or
framework to advise on value, buildability, tolerances and design and construction
processes
• Consider appointing one contractor as cluster leader
• Maintain and support the cluster until the end of the work phase
• Arrange a lessons learnt workshop at the end of the work phase and feed this
knowledge into the next project cycle
• Identify suppliers and supply areas where joint research and development
collaboration will be mutually beneficial e.g. pre-cast concrete components
developed by a main contractor and pre-cast concrete supplier
• Undertake a feasibility study and, if appropriate, produce a development plan for
approval and implementation
• Undertake team health checks to monitor the supply chain’s perceptions of
leadership communications, strategy. processes over time. Use a simple
questionnaire such as that shown in Appendix 3.
• Supply chain leaders review the data and take improvement action where
necessary.
2 & 4
5
2
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