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Procurement partnerships 'must properly define risks'

27 March 2012

Companies that are entering into a new procurement arrangement with a supplier must ensure that each partner's responsibilities are clearly defined.

Speaking to Supply Management, BBC Switchover Help Scheme contracts manager Chris Taylor stated that the success of contract management is entirely dependent on bidders being made appropriately aware of any relevant risks.

In the case of the BBC Switchover Help Scheme, the organisation collaborated with Carillion Energy Services to help older people transition to digital TV services, with the companies working together to mitigate the risk of engineers needing to be called out to repair poor work.

This involved the use of a competitive tender process to select the right supplier, while staff were retrained and performance analysis carried out to ensure all potential risks were properly assessed.

"From the outset, procurement must clearly define what the risks are and who is responsible for what risk," he explained.

Earlier this month, a survey of Fortune 1000 executives by procurement solutions provider Procurian showed an increasing number of firms are starting to understand how supply chain improvements can offer savings benefits.

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Categories: Functional Practices, Procurement & Supply Chain

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