Supplier Relationship Management

Suppliers are categorised by strategic impact and financial value to AWE. Each category is managed differently with strategies appropriate to each of the four categories. Long term contractors with framework agreements are generally regarded as of high strategic and high financial value and particular management attention is paid to these suppliers.

The supplier relationship with AWE, which can cross a number of separate contracts, is managed by a combination of three key roles:

• an Account Manager;
• a Procurement Manager; and
• a Category Manager.

Account Managers will generally be appointed only for strategic suppliers. They will usually not be procurement staff but selected from the operational directorates. Account Managers provide the key corporate operational interface between the supplier and AWE. They review overall performance and relationship, de-conflict where necessary and provide the supplier with a single main point of contact.

Procurement Managers manage the commercial and contractual aspects of the relationship. For smaller suppliers the roles of account managers and procurement managers may be combined.

Category Managers establish the corporate demand for a given basket of commodities and establish the strategy and underpinning framework contracts for particular categories.

In addition, specific Contract or Project Managers are responsible for the day-to-day management and administration of a specific contract. They will normally be the first point of contract for all issues. Contract managers will be supported by a procurement manager who will ensure that all contractual issues and change are processed. Only delegated procurement staff have the authority to commit AWE plc to contract.