Western Power Distribution (WPD) is the UK’s leading electricity distribution business. In April 2011, WPD acquired Central Networks, adding two additional electricity distribution businesses to the company.  It now covers the whole of South West England, South Wales, West Midlands and East Midlands. The transition is on-going and means that WPD is now the largest solely owned Distribution Network Operator (DNO) in the UK. 

WPD delivers electricity to over 7.6 million customers over a 55,300 sq kms service area. The network consists of 216,000 kms of overhead lines and underground cables and 184,000 substations. WPD has 6,000 staff.

The role of purchasing within WPD

The Purchasing team supports the aims and objectives of Network Services and the wider business.  At the time of Accreditation it had 10 team members (in two teams) and a Purchasing & Inventory Manager who reports into the Logistics Manager.  Each Buyer is assigned a portfolio of contracts to manage and tender (at the appropriate time).  Contracts are generally for all of WPD, and are not split regionally.  Therefore Buyers are responsible for work spread across the entire operating region.  Also in the Logistics function are Inventory & Stores, Transport, Legal Services, WPD’s Helicopter Unit, Wayleaves and Property.

The WPD purchasing challenge

While the organisation had a good reputation for being a professional and fair company to deal with amongst its suppliers it was felt that it would be good to achieve an internationally recognised certification that supported this reputation.

Why CIPS Certification?

CIPS Certification enabled the purchasing team to consider how they work, the impact it has on the rest of the company, relationships with other departments and its professional image and reputation within the electricity industry.

How CIPS helped

WPD selected Certification as a means of assessing its purchasing policies and procedures because of the unique position that CIPS holds in recognising and benchmarking purchasing best practice and advising on where improvements can be made.

For Western Power Distribution the biggest outcomes of CIPS Certification have been:

• Enhanced and reinforced business reputation
• Better organised as a department
• Streamlined purchasing processes and documented working practices enables the department to cope with expansion as the organisation grows

Benefits of CIPS Certification for Western Power Distribution

• CIPS accreditation is internationally recognised and gives a reputation for professionalism and fairness when dealing with suppliers.
• The purchasing department updated the company purchasing policy and the entire team had a hand in creating a new “Purchasing Handbook”. 
• Keeping the handbook simple, useful and in line with CIPS expectations was a challenging balancing act.
• Having the handbook means the department is better organised, working in synergy and are clear that they are pulling in the same direction.
• There have been a number of efficiency savings in the training of new members of the team, plus considered documentation of procedures will ultimately streamline those processes further.
• New processes were created that had not previously been considered, such as a complaints process. These processes ensure the department documents what they do and thinks about the importance of clear, concise procedures even if they are rarely used.
• Overall the department is generally more aware of its position and influence within WPD.