Supplier follow-up is part of the work that is performed by Trafikverket, the Swedish Transport Administration, on developing its procurement operations.
Trafikverket shall in a transparent way follow up on all design contracts that are worth at least SEK 1 million. Furthermore, contracts for new development and conversion contracts as well as operation and maintenance contracts worth at least SEK 10 million shall be followed up. Follow-ups will be performed in an electronic system and shall be carried out in a uniform manner to guarantee fair assessments.
The goal is to acquire greater value for money by means of secure supplies:
- Greater professionalism gives more value for money.
- An integrated solution guarantees the entirety of the supply performance.
- A proactive approach gives even better future supplies
Greater professionalism gives more value for money
It is the task of Trafikverket to generate as much benefit as possible for the money spent. In other words, to create as much benefit as possible for those citizens who use the transport system on a daily basis. Reliable supplies in combination with sound and professional relations with the suppliers mean that Trafikverket can administer its taxes in an efficient way.
The system for supplier follow-up gives Trafikverket as the employer the opportunity to reward good supplies. The rewarding of a good supply may, for example, entail the award of a bonus or the acquisition of added value in a future procurement.
An integrated solution guarantees the entirety of the supply performance
The system for supply follow-up is based on the fact that Trafikverket assesses the suppliers in a uniform manner on the basis of nine areas, which guarantee the totality of the supplies. The following areas are assessed: time, quality, economy, cooperation and communication, documentation, technology and development, reliability, traffic and environment.
This way of following up on completed contracts is of benefit to both Trafikverket and the suppliers. Trafikverket can in this way make clearer demands on the suppliers with the goal of acquiring even better supplies.
A proactive approach gives even better future supplies
The supplier follow-up system contributes towards Trafikverket's continuous and long-term development of its purchasing operations. All information is gathered in the same system, which means that both Trafikverket's internal work as well as its dialogues with suppliers proceed more smoothly. The system gives improved basic input and strategies for future procurements. Furthermore, the integrated documentation helps to reduce the risk of recurring faults in future supplies. An additional purpose of the system for supplier follow-up is to be able to structure and implement proposed actions in order to improve both Trafikverket and suppliers.
Supplier follow-up shall be carried out in certain situations for contracts that meet these criteria:
- Design > SEK 1 million
- Applies to design, investigation, feasibility studies and land acquisition plans
- Does not apply to project and construction management or to technical specialist services
- New construction and conversion projects SEK > 10 million
- To be implemented for both performance and turnkey/design and construct contracts
- Base contracts > SEK 10 million
- Material contracts: for A and B suppliers in accordance with the valid segmentation for material suppliers
Follow-up shall be conducted in the following situations:
- Aims at exchanging experience on completed projects
- To be booked in after there has been sufficient time for comments from reviews or final inspections to be rectified and for the economy to be finally adjusted
- For both new development and conversion as well as design, supplier follow-up shall be included on the agenda for the final meeting. In the case of a base contract, a meeting shall be booked on completion of contract.
Special need for follow-up
- The purpose of follow-up is to provide basic input to solve problems and differences of opinion
- Aims to secure regularity and improvement measuresFollow-up meetings to be booked in annually
The process of supplier follow-up
There are four steps in the process of supplier follow-up:
- Assessment of supplier
- Sending of assessment to supplier
- Meeting with supplier
- Writing of report
Assessment of supplier
Information is collected and the supplier's performance is graded on a form in the electronic system for supplier follow-up. In order to be able to follow up on the totality of the supply, a total of nine areas are assessed: Time, quality, economy, cooperation and communication, documentation, technology, economy, cooperation and environment and communication, documentation, technology and development, reliability, traffic and environment.
Each area is assessed based on the same scale of grades. The highest attainable is four points per category and the lowest zero points. It is then the total number of points in all nine areas on which the result is based. The lowest total grade is thus 0.0 and the highest 4.0. (In those cases where it is impossible to assess a supply on the basis of a certain area, it is simply specified that it is inapplicable.)
Here is an example from the supplier follow-up system of how an assessment is made of supply reliability:
4 points: All works with the agreed times or before the specified time. A very high level of assignment planning. The Employer has been continuously informed of changes.
3 points: The assignment has been carried out within agreed times, individual exceptions. A high level of assignment planning. The Employer has been continuously informed of changes.
2 points: Departures from times without serious consequences (< 10 per cent delay). Acceptable level of assignment planning. The Employer has been informed of changes.
1 point: Several departures from agreed times (10-20 per cent delay). Deficient assignment planning. The Employer has on certain occasions not been informed of changes.
0 points: The assignment has not been carried out within the agreed times (> 20 per cent delay). Notifications of delays have often been given too late. The Employer has on repeated occasions not been informed of changes.
Sending of assessment to supplier
Once all the categories have been graded, a preliminary total assessment is sent to the supplier. The communication contains the assessment questions and the points listed. The supplier is given the chance to comment on the assessment.
Meeting with supplier
The assessment of the supplier is discussed at a final meeting. It is a structured decision based on a form. It is possible for the supplier during the course of the meeting to submit his views on Trafikverket and to discuss possibilities for improvements.
Writing of report
All documentation received is stored on a database. Reports can be created for individual contracts or, for example, for a particular supplier. Trends and statistics can show where improvements are needed. All completed contracts are traceable.