ERSA launches guide on welfare-to-work supply chains

Finance | Vibeka Mair | 11 Jul 2012

ERSA, Acevo and NCVO have launched a new guide to developing good relationships between prime and sub-contractors on government welfare to work contracts, such as the Work Programme.

The report, Perfect Partners: strengthening within employment services supply chains, uses cases studies from a range of different supply chain models to showcase good examples of best practice from employment programmes.

The guide recommends that prime contractors share performance data with supply chain partners and provide support to those who are not performing at the level that is expected. It recommends that all parties should undertake due diligence before entering supply chains. It also includes recommendations for commissioning bodies whose decisions have a direct impact in shaping the relationship between prime and subcontractors.

A summary of the recommendations is as follows:

When establishing supply chains:

All parties should undertake proper due diligence to assess the implications of entering into a contractual relationship.
Primes must provide clarity of expectations of performance levels and take steps to help manage the financial risk for potential subcontractors.
Organisations should consider the merits of collaborating when bidding for contracts.

When managing supply chains:

Primes should ensure that all subcontractors receive timely and consistent communication and guidance.
Primes should share performance data within the supply chain including their own performance if delivering directly alongside subcontractors.
Primes should provide support to subcontractors who may not be performing at the level that is expected.

The role of government:

The Merlin Standard, which is intended as an evolving standard of excellence in supply chain management, must be widely known and understood.
Commissioning bodies should ensure there are adequate timescales and transparency around how contract award decisions are reached.
During the programme, accurate and timely information about factors such as referral numbers should be communicated as this can have a disproportionate impact on some supply chain partners.

Directory: Association of Chief Executives of Voluntary Organisations (ACEVO) | National Council for Voluntary Organisations (NCVO)

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