2. Context
Page
01eWorld 2016
£270m
spend
p.a.
approx
1000
contracts
300
branches
and
5000
staff
£20bn
loans
Williams
and
Glyn
£1.8bn
spend.
2000
contracts
In@luence
over
£1bn
cash
20m
policies
Large
Start
Ups
Direct
Line
Group
3. What Are We Doing – Keeping The Headlines Simple
Page
02
Complying
to
internal
and
external
regulation
/
legislation
Optimising
Value
Selecting
the
right
Suppliers
Managing
In
Contract
Performance
Managing
Fraud
Risk
eWorld 2016
4. End to End Sourcing and Contract Management Approach
Page
03
Data
Gather
&
Analyse
Iden1fy
Opportuni1es
Define
Selec1on
Approach
Conduct
Supplier
Selec1on
Finalise
Supplier
Selec1on
Governance
Implementa1on
Supplier
&
Contract
Management
Iden1fy
&
Tier
Requirements
Supplier
Deployment
Third
Party
Management
Policy
and
Category
Strategies
Mandatory
Document
Core
RFP
using
Esourcing
pla;orm
Mandatory
Documents
Sourcing
Plan
Mandatory
Documents
Supplier
Selec<on
/
Due
Diligence
Output
Mandatory
Documents
1.
Contract
Checklist
2.
Business
Case
3.
Contract
Mandatory
Ac1vity
**
Tier
Services
** = only when applicable
Mandatory
Ac1vity
Carry
out
1st
LOD
Assurance
Ac<vity
Mandatory
Documents
Contract
Control;
Sheet
Governance
Select
Supply
Base
Define
Sourcing
Plan
Define
Business
Need
eWorld 2016
5. Sourcing / Purchasing Approach
Page
04
Financial
Governance
Ensure
Compliance
Contract
Checklist
and
Legal
Agreement
• A
signed
contract
appropriate
to
the
services.
• Documentation
of
any
signi@icant
variations
from
the
standard
terms
and
conditions
Selection
Outcomes
The
selection
outcomes
must
be
agreed
and
documented
Due
Diligence
/
Risk
Assessment
Technical,
commercial
and
@inancial
Sourcing
Plan
Document
the
selection
approach
in
advance
eWorld 2016
6. Supplier Tiering
Page
05
Customers:
relationships
of
trust
A
@irm
must
take
reasonable
care
to
ensure
the
suitability
of
its
advice
and
discretionary
decisions
for
any
customer
who
is
entitled
to
rely
upon
its
judgment.
MATERIAL
OUTSOURCE
Failure
of
the
services
casts
doubt
upon
compliance
to
FCA
principles
and
threshold
conditions
CUSTOMER
CRITICAL
Failure
has
signi@icant
direct
and
immediate
impact
on
the
customer
experience
&
/
or
supplier
represents
us
directly
INFORMATION
SECURITY
Supplier
handles
our
secret
information,
con@idential
customer
information
or
accesses
our
sites
/
systems
unaccompanied
OFFSHORE
eWorld 2016
OFFSHORE
Suppliers
operations
based
outside
UK
or
Europe
7. Contract Management Approach
Page
06
Clearly
de@ine
a
Contract
Management
Approach
and
an
associated
RACI
Contract Start Contract Performance Contract End
• Understand
the
contract
and
its
obligations
• Con@irm
activities
(mandatory
and
judgement
based)
to
be
carried
out
and
frequency
• Manage
Risks
and
Issues
• Performance
Reviews
• Ongoing
Due
Diligence
• Purchase
to
Pay
processes
and
monitoring
• Contingency
Plans
• Exit
Plans
• Supplier
Business
Continuity
eWorld 2016
8. Key Tips and Lessons
Page
07
Iterative
Testing
Approach
Specialist
Contract
Managers
/
Operating
Model
Debate
Optimal
approach
requires
judgement
requires
strong
performers
Collaborate,
Train
and
Integrate
What
About
The
E
?
eWorld 2016
