SSI and CRD - the story so far


Supplier Relationship Development (SRD) focuses on collaborative working between London boroughs and contractors, using tools developed by the Strategic Supplier Intelligence initiative. The project will analyse the relationships between selected suppliers and local authorities in order to identify and realise opportunities for efficiencies and improvements. SRD is implemented in five stages:

  • Market research and analysis
  • Strategy development
  • Supplier engagement
  • Agreeing outcomes and action plans
  • Implementation

Two suppliers have been chosen to focus on the first tranche of work: one in the waste industry and one in social care

Strategic Supplier Intelligence - The Story So Far

Led by the London Fire and Emergency Planning Authority (LFEPA) and sponsored by the Chief Executive of the LB Islington, the Strategic Supplier Intelligence (SSI) Project is an important one for London local government in the context of the Gershon Review.  Making the most of supplier intelligence to support London's collective negotiating power in its existing relationships with key suppliers is vital to the shared service agenda.

London local authorities spend £8 billion annually on goods and services.  The top 100 suppliers in London account for about 25% of this total and the top 1,000 for nearly 60%.  Collectively, London authorities can account for over 70% of the turnover for some of these suppliers and are therefore in a very strong position to ensure the best possible outcomes in terms of quality, value for money and innovation.  As a rule, anything over 2% of a company's annual turnover is considered to be significant in terms of influence.

This is a programme of work designed to enable London boroughs to get better deals in key markets using supplier intelligence gathered, processed and analysed through the LCE.

Phase 1 of the project (scheduled to be completed on 31 March 2007) will prove the concept.  It will augment data gathered from London boroughs on existing contracts and expenditure analysis outcomes by means of 'information arbitrage' - high added value financial and business intelligence on companies derived from a variety of sources for use in negotiations - and prepare specific supplier relationship management (SRM) strategies for up to 10 top suppliers drawn from the waste collection, social care, ICT and leisure services markets.

The project's objectives are to:

  • support the achievement of efficiency gains beyond tactical commodity and services;
  • focus resources on areas of greatest longer term potential;
  • encourage the management of supplier relationships at the appropriate level (Borough, regionally or sub-regionally);
  • understand optimum trading mechanisms and collaboration formats; and
  • embed a more commercial approach to supplier intelligence gathering and relationship management.

A Project Initiation Document detailing the programme of work, how it is being delivered and governed and the intentions for Phase 2 is available for download, as is a short presentation outlining the project.

pdf.gif SSI Project Initiation Document Opens in a new window (pdf 221kB)

pdf.gif SSI Project Presentation Opens in a new window(pdf 124kB)

Find out more

If you'd like to find out more about the Strategic Supplier Intelligence Project, email the Project Team.



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