STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
CASE STUDY 189
Trust is the foundation which enables continuous improvement, co-operation, collective action and shared efficiency gains.
First of all, we created a strong business case for collaboration in which key executive stakeholders could clearly see the potential value close alignment between FirstGroup’s business objectives and priorities, and collaborative initiatives that suppliers could deliver. Once this strong link had been created, we noticed the level of interest, enthusiasm, support and commitment of senior executives to get involved in supply chain initiatives, increased exponentially. I believe four things were pivotal as key enablers of a collaborative working capability within FirstGroup: 1. SRM became a recognised business discipline. The publication of a supplier collaboration policy set a new tone and direction for the group and operating businesses, signalling a new way of working with suppliers. 2. The establishment of a supplier council consisting of senior business leaders to align FirstGroup business requirements with strategic supplier capabilities; prioritise and approve key supplier value improvement initiatives; review progress on agreed deliverables; and meet periodically with executives from strategic suppliers to discuss potential value creation opportunities. 3. Ensuring FirstGroup employees engaged in managing supplier relationships were equipped with the right skills and competencies to support collaborative working. 4. The credibility of FirstGroup’s collaborative approach was independently reviewed and in 2012 FirstGroup became just the 25 th company and the first public transport operator to be awarded the prestigious British standard, BS11000 – the world’s first national standard for ‘collaborative business relationships’ – for its SRM programme. 5. Achieving the BS11000 standard reflects FirstGroup’s commitment to best practice supplier management and further demonstrates to our suppliers and other key stakeholders that we are serious about collaboration.
Beyond that, we recognise the importance of the need to develop partnering skills that will allow innovation and creativity to flourish and deliver further results. This won't happen by chance or good luck. It will come about through a dedicated programme of work, using skilled individuals and proven methods. We believe the successful execution of our strategy will deliver our key medium term financial targets. Q: HOW DID YOU GO ABOUT GETTING THE BUSINESS READY TO SUPPORT AND ADOPT THIS NEW WAY OF WORKING? PK: One of the key reasons collaboration initiatives often fail to get off the ground and to meet the expectations of those involved, is that more often than not organisation’s just aren’t ready to collaborate. It is assumed that once a partner has been selected – typically at the formal tender stage –behaviours on both sides of the relationship will suddenly change and collaboration will magically fall into place. Well, experience tells us in most cases it doesn’t, leaving participants deflated and often reverting to type.
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