Pylons in the UK. © Press Association Images
Pylons in the UK. © Press Association Images

New contract management process saves National Grid £100m

16 February 2016

National Grid has saved more than £100m thanks to a new contract management process.

Donna Hicks, procurement and contracts manager at National Grid, revealed the new figure at a conference. Last autumn, savings for the project were at £83m.

National Grid was the overall winner at the 2015 CIPS Supply Management Awards and also picked up the prize for Best People Development Initiative.

Hicks said: “Today National Grid is seen as a commercially astute client. Winning the award validated what we know, that we really have something here. And now there is a new phase for this contract management process.”

Speaking at the CIPS Best in Procurement conference, held at Manchester City Football Club, Hicks explained that National Grid had thought carefully about their application to the awards, and really believed they had undertaken a project worthy of winning.

Following the implementation of a new regulatory framework that sets price controls for network companies, National Grid knew this would have huge implications for the way it manages its supply chain. The organisation identified contract management as an area with the potential to transform performance, service and people development.

It set up an internally managed change programme, Contract Management Excellence (CME), linking the new way of working and the company’s wider aims.

The CME framework focused on six areas: strategy, process, organisation, people, technology, data and information. Using this framework, National Grid was able to assess the contract management maturity of each function. In total, 500 people have since received training.

In awarding overall winner to National Grid, judges praised the process, calling it “an initiative driven by people, for people, empowering them to deliver change”.

The 2016 awards are due to be announced soon.

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