Contract Management Transformation Roadmap

Contract Management Transformation Roadmap. May 2024.

[Audio] Welcome to c2c's Contract Management Transformation Roadmap. This outlines our current position, a high-level analysis, and a roadmap for introducing a new Contract Management team within our business. This roadmap will not only represent a transformation in our approach to Contract Management, but also contribute to the wider transformation of our business and our drive towards net zero. These new resources will enable c2c to manage the lifecycle of cyclical contracts better and act as an 'intelligent customer,' testing market conditions and incorporating market intelligence into our requirements..

[Audio] Before 2016, c2c lacked a formalised Contract Management structure. The Contract Management Manual introduced in late 2016 has not been fully implemented due to resourcing constraints. Good contract management practices exist in pockets throughout the business but we lack a unified approach, preventing us from achieving potential commercial and operational benefits..

[Audio] Our analysis has revealed that 28% of our non-staff spend, equating to £48.4 million across 245 suppliers, lacks dedicated contract management resources. Addressing this gap is critical for our future efficiency and effectiveness..

[Audio] Our mission is to ensure strategic alignment of contracts with our commitments to safety, net zero, corporate values, passenger and client satisfaction, and operational excellence. The team will liaise with Business Owners, Procurement, PMO, Finance, and other key stakeholders to manage contract creation, execution, and analysis, driving sustainable value and fostering a culture of compliance and continuous improvement..

[Audio] This new function will increase the c2c Supply Chain team headcount by three full-time equivalents. The new roles are highlighted in yellow in the organizational chart, showing their integration into our existing structure. Green indicates existing roles, red potential future roles, and blue roles with a 'dotted line' relationship into Contract Management policies, meeting structures, and systems only..

[Audio] The introduction of the Contract Management team will redefine roles, with Business Owners, , focusing on vision and operational delivery, while Contract Managers oversee the contract lifecycle, from drafting and negotiation to execution and analysis. Both roles are essential for the operational and strategic success of c2c, working in a symbiotic relationship. This function will deliver benefits and a return on investment. These include freeing up time for colleagues to deliver their core roles, financial benefits through service credits, and operational and planning improvements. These benefits are targeted for phased delivery from Quarter 3 in FY 24 25 to Quarter 4 FY in 25 26. Resources will also be deployed on a phased basis with contract managers taking a category approach so similar contracts are managed by the same individual.

[Audio] There are risks associated with the delivery of this roadmap. Full support from the c2c Executive will be cascaded to the relevant colleagues and teams to ensure buy-in from business departments to mitigate this. Additionally, prepared job descriptions will help mitigate delays in implementation due to recruitment capacity and notice periods..

[Audio] The roadmap is phased over six stages, from recruiting the Senior Contract Manager in April 2024 to full implementation and ROI delivery by March 2026. This phased approach ensures a systematic rollout and effective integration of the new Contract Management team into our existing structure..

[Audio] Thank you, we look forward to bringing the benefits of our contract management function to you and the wider business soon.