Key Facts
Network Rail spends £4 billion each year on works, services or products.
50% of our total expenditure is with our top 20 suppliers.
Network Rail has 11,000 listed suppliers, of which 4,000 were engaged in the last financial year.
A 30% efficiency target is required by the Office of Rail Regulation.
See our Code of Practice for prospective business dealings with customers and suppliers.
Supply of Works, Services or Products
Easy to do business with and demanding of value
Network Rail spends over £4 billion annually on works, services and bought-in goods. We are committed to maximising the value delivered from every supplier with whom we deal.
In 2006 a supplier survey was undertaken to better understand perceptions of Network Rail and this included procurement practices. Many of the comments received have been acted on through a significant programme of transformation. Five primary actions have been taken:
- Completed a review of Purchase to Pay processes and implementation of iProcurement
- Developed a strategic sourcing process to manage commercial activity consistently
- Launched a Supplier Account Management Process for key suppliers
- Reviewed the Qualification and Assurance Processes
- Refreshed our standard suite of contracts
Each of these is a significant project in its own right and demonstrates clearly the commitment to improving supplier relationships. The projects will deliver lasting change and will be embedded throughout 2007.