Network Rail Capital Strategy & Procurement

Situation & Approach: Network Rail engaged Deecon to review their capital procurement and commercial operations during the CP4 delivery period. This targeted greater efficiencies in delivering capital investment during Network Rail Infrastructure Projects (NRIP). Firstly, Deecon conducted a study to make recommendations covering strategy, organisation, supply chain and process, to target 20%+ efficiency improvements. We collected business plan data from across NRIP and 30 Tier 1 contractors to create a ‘total spend map’ accounting for 80% of capital expenditure. We also interviewed key NRIP stakeholders and ran client workshops involving over 125 staff to gather views on current failure points. We then piloted the proposed new strategic direction using the National Harm Reduction Programme, which tested a new approach to the procurement and delivery of lower-value, high-volume capital projects. We sourced over £3.5bn of CP5 spend through running strategic sourcing programmes for over 32 projects, including the National Level Crossing Risk Reduction Program and Final Accounting for CP4 Track Programs. Following the sourcing phase Deecon assessed NRIP’s post-contract commercial management. We worked across all five regional business teams and relevant central support functions to assess NRIP’s core business processes, use of technology and systems, data generation, supplier cost and project control, and organisational structure. Driven by our knowledge of specific business and functional requirements, we then worked with internal staff to design, build and implement a new set of core commercial management processes. Results: Deecon’s engagement succeeded in reducing cost and securing faster programme delivery for NRIP. The supply chain transformation program significantly improved the efficiency of delivery in terms of cost, quality and reliability within asset delivery, as well as the safety performance of suppliers onsite.