Latest Rail News

27.11.13

Simon Kirby outlines CP5 procurement strategy

Network Rail infrastructure projects boss Simon Kirby says the organisation’s strategic procurement strategy for the next control period will “up the game of the industry”.            

Speaking at a briefing this week, Kirby spoke of the concentration on the value-added offered by contractors and suppliers, as well as safety, legacy, equality and diversity – not just cost. “Very rarely is cost now the major determining factor in procurement”.

The strategy, which focuses on closer relationships with fewer key tier one suppliers, means more committed work and future visibility of what’s coming, ensuring fewer peaks and troughs. This will ultimately lower costs and improve efficiency across the whole industry, Kirby explained.

For those formerly tier one suppliers unable to achieve what’s now being demanded by Network Rail, the situation in CP5 – which begins next April – will be considering life as a tier two or a supplier of a different kind.

David McLoughlin, infrastructure projects’ finance and commercial director, said: “We’ve listened to the supply base, who’ve said the best way that [Network Rail] can get efficient and safe delivery out of us is to give us long-term frameworks with commitment. We subscribe to that, and think that’s the right thing, and that’s now what the basis of our contracting strategy is. We then expect to put pressure on and get the tier ones to do something similar with their own suppliers as well.”

For the full story on Network Rail’s procurement strategy for CP5 – and its effect on jobs and skills in the industry – see the Dec 2013 / Jan 2014 edition of Rail Technology Magazine. Subscribe at www.railtechnologymagazine.com

Comments

There are no comments. Why not be the first?

Add your comment

related

Rail industry Focus

View all News

Comment

The challenge of completing Crossrail

05/07/2019The challenge of completing Crossrail

With a new plan now in place to deliver Crossrail, Hedley Ayres, National Audit Office manager, major projects and programmes, takes a look at ho... more >
Preparing the industry to deliver trains for the future

04/07/2019Preparing the industry to deliver trains for the future

The move to decarbonise the rail network involves shifting to cleaner modes of traction by 2050. David Clarke, technical director at the Railway ... more >

Most Read

'the sleepers' blog

On the right track, Sulzer is awarded RISAS accreditation for Nottingham Service Centre

29/06/2020On the right track, Sulzer is awarded RISAS accreditation for Nottingham Service Centre

Following an independent audit, Sulzer’s Nottingham Service Centre has been accepted as part of the rail industry supplier approval scheme (RISAS). The accreditation reinforces the high-quality standards that are maintained by Sulzer’s... more >
read more blog posts from 'the sleeper' >

Interviews

Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

24/06/2019Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

Andrew Haines, the Chief Executive of Network Rail, has told the Today programme on Radio 4's BBC’s flagship news programme that he would not rule out his organisation issuing future r... more >
Advancing the rail industry with management degree apprenticeships

08/05/2019Advancing the rail industry with management degree apprenticeships

In answering the pressing questions of how current and future generations of managers can provide solutions to high-profile infrastructure projects across the UK, Pearson Business School, part of... more >