Supply chain management

Report: 14
Date: 19 June 2006
By: Commissioner

Summary

This report reports on the process undertaken to put in place a supply chain management system of the critical goods and services delivered by suppliers and contractors, thereby enhancing resilience to the MPS critical infrastructure, systems and support to Police operations.

A. Recommendation

That

1. Members note the actions taken by CO3 in plotting the full breadth of the critical supply chain map; and
2. endorse the developing co-working of CO3 and Procurement Services in robustly pursuing the Business Continuity plans of the suppliers and contractors delivering critical services, especially the Outsource providers and utility companies, to ensure the necessary resilience of supply in all eventualities.

B. Supporting information

1. At the Corporate Governance Committee of 6 March, Lord Harris asked for a report on the work being undertaken to manage the critical supply chain.

2. Events throughout 2005 demonstrated just how critical is the supply and support chain of providers and contractors of essential goods and services. Such criticality not only relates to the ongoing resilience of the MPS infrastructure, IT and Communications systems but also logistical support to the effective management of a major incident in London. The Resilience and Business Continuity Board in November 2005, recognised the need for a comprehensive map of the respective supply chains, both external and internal, to be produced and that it must be tested for robustness particularly in respect of times of great challenge, which would include the impact of a pandemic.

Progress to date

3. A project was therefore set in place within CO3 to develop an inter-departmental dependencies and support chain map of all logistical and specialist/technical services provided by Support Departments of the MPS, their contractors and suppliers. Emphasis was given to those who maintain the critical MPS infrastructure, essential IT and communications systems, together with those that give support to Police operations, particularly a major event. The supply chain map wherever possible has tracked back to principle sources of supply of the goods and services.

4. Each of the Support Departments was consulted. Meetings were held with senior officers from:

• Department of Information
• Property Services
• Catering services
• Forensic Services
• Transport Services
• Commercial Services
• Vehicle Recovery and Examination Service
• Legal Services
• Directorate of Public Affairs
• Human Resource Directorate
• Procurement Services
• Marine Support Unit
• Air Support Unit
• Dog Support Unit
• Mounted Branch

5. From these consultations, a comprehensive schedule of all providers and contractors of critical goods and services has been produced. This information has been plotted to show the complexities of the supply chain and the inter dependencies within the MPS of one Department upon another. It has also identified who supplies what service, single points of service, pinch points and duplication; as well as who holds strategic stocks of rapid deployment goods and equipment and the respective call out arrangements.

6. Having plotted the supply chain, a validation workshop has been held with representatives from all key Support Departments, to test the veracity of data collected. The workshop also gave the opportunity for cross dialogue between Support Departments, raising areas of concern on mutual reliance, and challenging the appropriateness of provision and identifying potential gaps and weaknesses. As a consequence of these discussions small working groups are being set up to determine the best way forward in each case.

On going activity

7. CO3 and Procurement Services having compiled a full schedule of the critical suppliers have commenced dialogue with them to seek unambiguous clarity on the robustness of their business continuity plans. Emphasis being, not only in respect of continuance of supply in the event of a major disruption to supply, which would include a flu pandemic, but also seeking an understanding on the priority of service provided to the MPS. All suppliers will also be subject to regular monitoring of their financial and commercial stability.

8. Within major procurement processes, particularly the outsource contracts, procedures are already in place to challenge potential suppliers’ Business Continuity and Disaster Recover plans. However it is recognised that this now needs to be a constituent part of all future tenders for goods and services, requiring not only submission of Business Continuity plans but also risk/threat mitigation proposals.

9. Discussions with other London ‘blue light’ and Guardian forces are being undertaken to similarly determine areas of inter-dependency with the MPS and to identify common suppliers and contractors, which may increase the potential vulnerability of supply.

10. CO3 are in discussion with the Corporate Risk Management Group and the MPS insurance manager to identify any supply chain risk exposure, particularly in respect of Business Interruption, for which the MPS may benefit from having insurance cover.

11. The detailed mapping process, logistical support and supply chain mapping together with the directory of all suppliers of critical goods and services that is being produced will be a positive aid to future contingency and disaster recovery modelling for the MPS. This will not only be of great value to the integrated working of CO3, embracing a joint approach to Emergency planning, London Resilience, Continuity planning and Disaster Recovery, but also to CO11 public order branch and CO12 the Olympics operational command unit.

Issues to be resolved

12. From the mapping, there is now considerable clarity on who are the suppliers and providers of critical goods and services to the MPS. It is also clear where there is an over reliance on a single source of supply and the impact to the MPS that would ensue were one or more of these suppliers to fail. An urgent review of the weaknesses in the supply chain is being undertaken with CO3 engaging in dialogue with the respective provisioning Department to determine the appropriate contingency plans that should be put in place to mitigate such risk.

13. It must also be recognised that potentially as a result of such a review, the MPS may need to increase stock holdings of key items with all attendant additional (and potentially nugatory) cost, storage and shelf life issues. This is most likely to be the case for those goods, which are single, sourced, have a protracted supply chain or are dependent upon a high labour element in their manufacture.

C. Legal implications

As a category one responder under the requirements of the Civil Contingencies Act, the MPS has a legislative requirement to use its best endeavours to ensure continuance of service, which by its very nature includes this work to manage the critical supply chain network.

D. Race and equality impact

There are considered to be no specific Race and Equality issues pertaining to these recommendations.

E. Financial implications

Whilst there are no immediate cost implications in the work that is being undertaken, there is an expectation that not only will robust management of the supply chain ensure continuity of service but should deliver a more effective and efficient service to the MPS. However should it be deemed necessary to increase stock holdings, considerable costs may be incurred at a future date.

F. Background papers

None

G. Contact details

Report author: David Hill, Business Continuity and Logistical Support Co-ordinator: CO3, MPS.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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