Yorkshire WaterWIF Water Industry Procurement Seminar

Andy Clark

Head of Procurement & Contract Management

20th June 2017

Our Context

RegulationRegulation

CustomersCustomers

Environme

nt

Environme

nt

Internal

Ambition

Internal

Ambition

Regulation

Customers

Environment

Internal Ambition

TOTEX Outcomes Alternative Procurement

Affordability Continual High Quality

Tightening standards

Safety Excellence Local Economy Sustainability

Future Needs

Affordability Safety in design and delivery

Strategic Change

Previous approach

Future requirements

Intelligent

Client

Intelligent

Client

Risk Transfer

Client Summary

Challenges Opportunities

Risk transfer stifles innovation Actively take client risk

Greatest value in upfront thinking Challenge traditional consultancy model

Lower the cost of risk resolution Matrix of contract approaches

Increasing set of strategic goals Active client leadership

Supplier Summary

Challenges Opportunities

Wider supply chain access Work with client to develop smaller suppliers

D&B not right for all risks Develop a wider range of offerings

Management contractor model threated Maximise effectiveness in a niche

Increasing set of strategic goals Work with client to share outperformance risk

What three things would help improve water industry procurement in AMP7?

1. Break the traditional consultancy model to drive innovation2. Reduce the dependence on a few large suppliers to open up

supply chain3. Active client leadership