Supply Chain Engagement

Question 1

What is supply chain management

Answer 1

Overseeing the sequence of processes involved in the production and distribution of a product

Question 2

Main factors affecting supply chain

Answer 2

Globalisation (competition)

Market maturity (limited growth, efficiency increases)

Increased complexity/specialisation

Question 3

Factors affecting supply chains

Answer 3

Building safety bill
Net zero/decarbonisation
D&I
Digitalisation
Skills shortage
Economic difficulties

Question 4

What are market health assessments

Answer 4

Market health and capability assessments include:

Reviewing economic trends

Obtaining and analysing information regarding suppliers and industry

Enables approaching the market at optimum time to maximise benefits including early supplier involvement

Question 5

Scope of market health assessments

Answer 5

Market size and position
Competition
Supply chain health and capability
Regional variances
Opportunities incl. innovation
Risk identification

Question 6

Potential market health assessment issues

Answer 6

Data is time and quality dependent and may be biased

Question 7

What is early market engagement

Answer 7

Horizon scanning to build a general understanding of the market

Allows contractors to:
Communicate needs
Build relationships (transparency)
Develop commercial strategies
Create market awareness of opportunities

Question 8

Key factors influencing scale and level of market engagement

Answer 8

Skills availability
Resources
Knowledge
Demand
Capability
Regional / national / international supply

Question 9

Market engagement options

Answer 9

One to many (market briefings, supplier group meetings etc.)

Good for wide communication
Limited feedback due to lack of depth of engagement

Written (questionnaires, RFI’s)

Good for feedback from range of suppliers
Quality and number of responses vary

One to one (supplier meetings)

Best method for detailed, direct feedback
High investment of time and effort

Question 10

How is market engagement effectiveness assessed

Answer 10

Supply chain informed about organisation’s ambitions

Supply chain on board with organisation priorities

Risk management informed

Informs strategising

Understand market capacity and opportunities

Begins proactive approach

Question 11

Market engagement risk

Answer 11

Unfairly advantaging a supplier / disadvantaging a group of suppliers

Creating atmosphere of mistrust

Failure to protect intellectual property

Misunderstanding of information

Setting unreasonable expectations