1 Commercial in Confidence

An Agency and A Supplier perspective

The Challenges & Benefits of Procuring Services in the Public Sector –

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Agenda

• Sydney Trains- video• Agency Challenges & Benefits• Supplier Challenges & Benefits• Questions

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Sydney Trains Video

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Sydney Trains’ Strategy

Our Objectives

Our Objectives

Improve customer

experience with rail

transport services

Trains on time

Implement efficiencies across the business

Grow patronage on

public transport

Create and foster an

environment that improves

safety

Reform delivery of

rail services

Improve Asset Reliability

Create an effective and accountable

culture

Drive productivity and efficient

Create change and resilience

OURVisionOUR

Vision

Our vision is to keep Sydney moving by delivering s afe, customer-focused, reliable and clean rail serv ices.

We contribute to the success of transport in NSW by running effective and efficient rail services which exceed our customers’ expectations, support g rowth and contribute to the broader community

and the economy.

OUR Themes

OUR Themes

Customer & Accessibility

Travel Business Environment Safety Asset People

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Spend Profile

+ Indirect’s FY 12/13 = $500m

$1.2BN

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Category Positioning Assessment

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Strategic Procurement Structure -Snapshot

Mike BlanchardGM Strategic

Procurement (CPO)

Chris AdamManager Plant Hire

Services

Janine MeylanManager Supplier

Performance

Barbara PotterManager

Governance & Procurement

systems

Gavin HicksManager

Procurement Project Office

Mark JonesManager Strategic

Category Management

Michelle DayExecutive Assistant

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• One Steel• Engineering

Design Panel• Siemens

• UGL Unipart• Downer EDI• Pacific National

• SAP / ARIBA• TCS• Transfield

• SNP , ADT• Swetha• SPENO• Metro Busses• TSA (JH)• Transfield

• Multi Civil & Rail • Ad shell• AP Outdoor

• Caltex• Red Energy

Assets & Materials

Rail

Engineering

General Hardware

Cables

Signals

Inventory

Rolling Stock Comms & Enterprise Services

Revenue & Productivity

Construction &Building

Architecture

Surveying

Engineering Services

Planning Survey

Fencing

Landscaping

Concrete

Customer Info

Communications

Lifts & Escalators

Catering

Security

Track Services & Operations

Vegetation Control

Graffiti

Busses

Rail Operations Services

Disposal

Media /Marketing

Media

Advertisement

Chemicals

Fuel

Plant

Waste Management

Maintenance

Systems & Services

Acquisitions

Rotables

Hire Environment Services

Electricity

Safety & Environment Services

SEQR

Vending

Productivity

Cleaning

By 2019 Sydney Trains will be a safe, customer-focused, modern, efficient and competitive business. We will be recognised as a commercially astute business, and regarded as Australia’s best operator..

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NSW Government Accreditation

• Transport Act• All Agencies need NSW Gov Accreditation• Accreditation Level Important• Criteria Tested

1.Strategy2.Governance, Controls and Policy3.Procurement Process4.Procurement Tools & Systems5.Information Management6.Organisation & Capability

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NSW Government Accreditation

• KPMG

• ResultsOur Final Scores

Key Criteria Actual

weighted score %

Maximum weighted score %

Strategy 15.0% 15.0%

Governance, Control & Policy 10.0% 10.0%

Procurement Projects 25.0% 25.0%

Procurement Tools & Systems 15.0% 15.0%

Information Management & Reporting 10.0% 10.0%

Organisation & Capability 21.3% 25.0%

Total 96.3% 100.0%

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Challenges and Benefits for Suppliers from an agency perspective

Challenges for Suppliers• Procure under NSW Government Guidelines and

Accreditation• Sydney Trains Safety Focus• Sydney Trains Insurance requirements• Specialised Knowledge• Complex Stakeholder Engagement• Long Term Published Plans v Changing Plans• Time it takes to engage through a process

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Benefits for Suppliers• 87 % on contract through Panel Supply• Panel Supply through Quotations • Payment on Time• Additional Work if Delivery is above expectations• Strategic Supplier –Supplier development

Program (SRM)• Dedicated Contract Management resources• Not seen as litigious – Fair and Transparent

Challenges and Benefits for Suppliers from an agency perspective

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What our Suppliers Say about Sydney Trains

• 2nd Year of Voice of the Supplier Survey conducted by CEB

66% Doing Business with SYDT> 5 years

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What our Suppliers Say about Sydney Trains

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Supplier Stated Challenges and Benefits

Challenges• Cost Containment• Project Management Cycle Time• Intent / Vision• Execution• Requirements or specifications• Contracting

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Supplier Stated Challenges and Benefits

Benefits• Future Business• Responsiveness• Payment timeliness• Personnel• Purchase Orders• Cost Expectations

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QUESTIONS

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