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)?

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