Technical Metals Group (TMG) uses the following Supply Chain Management process
Technical Metals Group (TMG) Procurement Strategy
- Outline and specify requirements & scope of the service required
- Market test & advertise the service requirement
- Technical Metals Group (TMG) analyses the incoming tenders and quotes & evaluates against scope/terms of reference set for the procurement representing quality/price balance which is determined by nature of contract.
- Contract form is back-to-back with main contract or Technical Metals Group (TMG) standard contract if appropriate.
- Technical Metals Group (TMG) ensures appropriate client/transferrable warranties are included.
- Incentive criteria will be included based upon potential effect on client objectives
Technical Metals Group (TMG) Supply Chain Management Process
- Technical Metals Group (TMG) engages in soft market testing/prior notification to maximise interest from market especially for specialist services where the suppliers will already be known to us or have an existing commercial relationship in other areas of our business.
- Larger contracts may be advertised in relevant trade press
- All such tenders are supported via Technical Metals Group (TMG) social media & through use of industry supplier days & events to identify potential suppliers
- Appointments are based on value for money criteria and selected against ‘Most Economically Advantageous Tender’ criteria. Potential client suppliers must pass our standard vetting procedure centred on:
- H&S credentials
- environmental credentials
- Money Laundering Procedures
- Fair Employment
- ISO accreditations
- Financial stability checks
- Shortlisted subcontractors who have passed the above assessment are placed on our database of approved contractors & monitored accordingly.
- The MEAT criteria will be based on a split between quality/price which will be determined by complexity/importance of work to overall outcomes & budget
- These are evaluated by two appropriately qualified Technical Metals Group (TMG) staff against set criteria with sign off
- All the above is balanced against value of contract. There is a direct relationship between the extent and rigour of the analysis against value, length and impact of the contract being tendered.
Technical Metals Group (TMG) has access to a consortium of agents which runs a Public Sector Coordination Group (PSCG) This group meets monthly (minimum) and is used to share best practice within the group and monitor:
- contract performance
- PR, innovation
- knowledge share
- technical excellence & best practice.
- Standing agenda items include:
- operating efficiency, including lessons learned from activities in the last month
- Review of effectiveness of changes previously made
- Active discussion outside meetings is promoted through teams which are used to promote online interaction. Quality & continuity is ensured by
- Agreed key principles of operating which cover transparency, fairness, behaviours, prompt payment, etc.
All Technical Metals Group (TMG) approved subcontractor’s credentials are checked on a regular basis following their initial vetting. Vetting is on a 6-12-month basis, dependent on contract size and importance to delivery of the contracting client, with diary reminders for other key dates based around expiry of insurances, ISO accreditations, compliance with H&S, environmental credentials, money laundering policies, equal opportunity etc. Financial stability checks using credit referencing agencies are made on a regular basis. If there are negative changes this will prompt further investigation to ascertain if there are any substantive issues.
Technical Metals Group (TMG) utilises KPIs around timing & quality of service delivery as well as benchmarking of key costs indicators to assess effectiveness of service. These support active management to identify performance or capacity issues. When key staff members leave suppliers, we require named replacements of suitable experience. This is a structured & proportionate approach which is used for all suppliers & guards against complacency with long terms suppliers. Larger contracts attract much more regular & substantive reviews all geared at ensuring viability & continuity of our supply chain.
Problems/adverse trends are captured using the shared data used at PSCG (Management Information returns, invoice payments, actions identified at audit, social value, cost savings/vfm, client feedback) & flagged to the Account Manager (AM) or come from specific issues which are reported as they occur. This information flows from the standard project management process.
Problems are resolved using the following method:
- Identify – notification of a specific problem or an adverse data trend •Resolve – consider remedy options & select best option to create an improvement plan which will be shared with Leeds Building Society
- Check –to confirm that the problem is resolved and feed into lessons learned
Technical Metals Group (TMG)’ approach to risk is governed by our Health Safety, ISO Quality & Environmental Management System manuals (OHSQEMS) which includes risk assessments & acceptable risk assessment models utilising RAG rating based upon risk & probability, ownership of risks & mitigating actions. This is supported by our client Service Level Agreements, Internal Audit Manual & Practice Area Instructions. These are all mandatory procedures certified to ISO9001 standards. Supply chain vetting includes ensuring similar accredited processes or proof of processes for smaller contractors. Risk management plans begin at tender stage, lists all activities required to launch a project and is supported by an integrated Technical Metals Group (TMG) team which can range from HR to Marketing, Accounts & Heads of Professional Services. The plan changes during the duration of any project or contract awarded.
The Risk Management Plan:
- Identifies activities to deliver service from commencement & eliminate or mitigate risks
- Establishes ownership of issues
- Outlines levels of responsibility & escalation procedures
- Is linked to project management stages namely:
- Clarification of scope & objectives
- Marketing & Communication plan
- Tracking & reporting progress
- Monitoring and Managing Change
- Monitoring and managing risk
- Defining deliverables
- Programme planning
Technical Metals Group (TMG) adopts the procedure contained in schedule 18 of the framework contract, and our subcontracts will reference main framework contract. Our risk management processes minimise likelihood of this procedure which includes:
Good faith Discussions
May include specific agenda meeting, attended by client and supplier and relevant Technical Metals Group (TMG) team
- Best endeavours
- If unresolved use of further specific agenda meetings
- Commercial negotiations if unsuccessful
- Reasonable Endeavours
- Formal Dispute Notice triggers
- In first instance Mediation
- Expert Determination (for technical & accounting issues)
- Last resort – Litigation