Problem

Block5 was engaged to secure a provider for the transport of specialised vehicles between various locations throughout South East Queensland. The client was receiving poor service levels from their incumbent supplier and required a swift and significant improvement. The specific nature of the client’s requirements for vehicle transport meant that securing the right provider for the services was paramount.

Block 5 Actions

Block 5 performed an extensive demand and spend analysis to accurately assess business requirements. Used in combination with our market intelligence and research skills, we developed a tailored strategy to find a more suitable provider to complete the required services.  due to the value of the procurement, the client opted to bypass a procurement process and seek to engage an existing supplier for the works without testing the market.  Block 5 implemented a strategy to approach and test a select market and were responsible for the end-to-end procurement process including these action steps:

• Creation of a baseline demands analysis based on the client’s historical spend and forecast requirement for the services;
• Liaising with the key internal stakeholders to understand the risks involved with the required services;
• Developing a scope of services in conjunction with key internal stakeholders to prescribe the niche requirements of the client;
• Research the current providers in the market who are capable of completing the required works;
• Completing a release to market strategy to best utilise the current market and receive responses that demonstrate value for money;
• Completed the drafting of contract documentation, tendering documents and scoping documents for the release of the sourcing activity,
• Managed the tender from end to end while keeping key internal stakeholders updated on the status of the project;
• Evaluating commercial responses from each tenderer and working with the key internal stakeholders to award the contract to the successful supplier; and
• Complete the contract award, execution and project handover to the contract manager.

An important aspect of this engagement’s success was the development of supplier management plans and a detailed handover to the contract manager, to ensure that historical service problems will not occur in future.

Outcomes

By developing a specialised market approach strategy, Block 5 ensured that the successful provider possessed all the appropriate skills to complete the required services to a high standard. By using a win-win negotiation strategy, Block 5 secured a total of 69% in commercial savings to the client over the life of the contract without reducing the scope of requirement or necessary service levels, as well as establishing a long-term service agreement to ensure consistent service delivery to the client.