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Dr Denis McBrinn, Development Director, NI
Supply Chain Management Best practice and Codes of Conduct
Overview
Supply Chain Management?
Evolution of Employment Programmes• 1998 New Deal: 26 Local Consortia
• 2008 Steps to Work: 10 Lead Contract Areas
• 2014 Steps2Success: 3 Lead Contract Areas
Drive for improved efficiencies Diverse local supply chain is critical Partnerships Essential
Benefits of a Code of Conduct
Well defined roles and responsibilities Fair treatment of subcontractors Facilitates industry-wide standards Encourages best practice Pre – Contract and Post – Contract
Underpinning Values
Comply with the NI
Concordat
Openness & Trust
Address Issues and Challenges
Fairness
Integrity
Culture of Continuous
Improvement
Mutual Respect
Outcome Focused
Sharing Good Practice
Best Practice: Pre-contract award
Conduct Examples of Best Practice
Open, transparent & fair application process
Opportunities widely advertised ERSA template EOI Lead Contractors not insisting on exclusive
agreements
Fair Terms & Conditions Ensuring T&Cs are reflective of level of risk Offering variations from the standard financial
model
Clarity of Expectations Undertaking due diligence Providing written agreements & Letters of Intent
Value for Money Management Fees Detailing the service provided for the fee
Managing Financial Risk Helping access finance and manage risk
Best Practice: Post-contract award
Conduct Examples of Best Practice
Honouring Commitments Written agreements Changes to agreements only done with
DEL consent
Management Information & Monitoring Agreeing simple and effective formats Effective use of IT to facilitate reporting
Capacity Building Support Dedicated Partnership Managers Regular Partner Forums On going training & support
Payment of Subcontractors Payment terms agreed and honoured Payment in advance where necessary
Effective Dispute Resolution Regular open and honest communication Partner newsletters/e-bulletins Dealing with issues promptly
Challenges
Effective due diligence Cultural Compatibility Management Styles Need to balance risk & reward Implications of a “Payment by Results” contract Provision of accurate referral volumes
The Role of the Department
Uphold & enforce the Code of Conduct Ensure reasonable timeframes Provide accurate forecasts of referral
numbers Support for Lead Contractors Provide a grievance route for sub-contractors Ensure all delivery providers have a ‘voice’
Key Questions
How will the Code of Conduct be enforced?
What penalties will be in place if the Code of Conduct is deemed to be breached?
Will adherence to the Code of Conduct form
part of contractual agreements with lead
contractors?
Will lead contractors be subject to regular reviews (similar to the Merlin standard approach in GB)?
Q U E S T I O N S
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