PPN 03/21 - Case Study for Supply Chain Resilience and PPN 05/21 Human Rights

The impacts of macro environmental events are felt at the local level, thus showing the interconnectedness of modern, global supply chains, as raw materials, components and end products are transported all over the world. The negative impacts of these macro events, puts additional pressure on local supply chains to manage and to deliver a consistent, stable supply to customers. The knock-on impacts of higher-than-normal levels of inflation and market price volatility as has been noted in recent years have also served to emphasise the need for contracting authorities to take steps toward a more holistic understanding, their supply chains and the associated risks within them, including ethical risks. 

EA’s Furniture and Equipment procurement category is a wide-ranging portfolio and includes for the provision of classroom and corporate/ office furniture, as well as technical, innovative equipment that supports classroom learning such as interactive display panels. The category also sources specialist equipment for children with special educational needs, including those with sight and hearing impairments, and support their integration in both Special Educational Need (SEN) and mainstream schools. These supplies contracts and framework agreements provide support to schools and teaching staff and are an essential support for the delivery of classroom curriculums that benefit children and young people whilst also providing business opportunities to local suppliers.

Northern Ireland Public Policy Note (PPN) 03/21 Supply Chain Resilience and PPN 05/21 Human Rights in Public Procurement each highlight the important place of supply chain mapping to safe guard against supply chain and ethical risks. The following case study showcases steps taken within the EA’s Furniture and Equipment Category Team to understand supply chains relating to critical supplies for EA schools and steps taken to understand supply chain related risks.

• Develop procurement strategies that align to PPN 03/21 and PPN 05/21 that promote resilient/ ethical supply. 
• Identify critical supplies used by schools within the Furniture and Equipment Portfolio.
• Engage with supply chains to identify supply chain risks.

1. Develop procurement strategies that align to PPN 03/21 and PPN 05/21 that promote resilient/ ethical supply. 

Supply Risk - EA has worked to actively promote multi supplier framework agreements that give regard to SMEs.  The multi-supplier approach helps to ensure flexibility and choice for EA schools but also improves resilience by mitigating the impact of supplier failure. This is combined with appropriate lotting strategies as well as contract clauses that provide for offering substitutes and bringing forward new innovative products.  

Framework clauses are also included to ensure suppliers have business continuity plans so that school clients are insulated in the event of supply chain disruption. Suppliers are required to engage early with EA in relation to problems within the supply chain, helping to mitigate against the risk present not just with the primary contractors, but within the supply chain also. 

The financial health and stability of the primary contractor is continuously monitored and the category team regularly meets and engage with key suppliers. 

Other clauses include relevant price review clauses, opportunities for special offers, appropriate lead times developed following consultation with the market which are continuously developed following lessons learned. 

Ethical Risk – The category team have also included contractual clauses within the contract terms as standard to include requirements around Fair Work Practices, National Living Wage, Human Rights Protections and Modern Slavery Preventions as well as sustainability and environmental considerations. 

A few examples of what suppliers are required to do is outlined below:

• Have/established a Human Rights/Modern Slavery Prevention Policy and processes in place for due diligence which is updated and provided annually. 
  • Identify sourcing countries or regions where there is a high risk of human rights abuse.
    • Provide training on modern slavery and human rights abuses for your staff involved in supply chain management.
    • A zero-tolerance policy on violence, exploitation and abuse of children and workers throughout the supply chain.
       

2. Identify critical supplies used by schools within the Furniture and Equipment Portfolio

The Furniture and Equipment Category team undertook a pareto analysis of the portfolio to identify high spend items within the portfolio and have used this information to engage with 20 suppliers across 8 different framework agreements.

3. Engage with supply chains to identify supply chain risks

Engaged with 20 suppliers across eight framework agreements to understand the supply chain of high spend/ items across the category. The focus of this initial engagement was to help understand countries of origin for raw materials and or components and supplies and to understand supply and environmental and ethical risks within the supply chain. This included working with these suppliers to understand the length of the supply chain, the relationship with the next tier within the supply chain, where raw materials are coming from, countries there are transiting through, as well as human rights, environmental and supply chain risk. 

• The award of value for money procurement that comply with public procurement requirements set down in the Norther Ireland Public Policy Notes and that ensure best practice. 
• Integration of contract clauses that are applied to ensure full contract delivery and maximum value for the public purse.   
• Engage with suppliers to better understand the supply chain that supports the education of our children and young people.
• Take further steps to mitigate supply chain risks, including risk of supply and environmental and ethical risks within the supply chain. 
• Improve engagement and relationship building with the supply chain and working with them to do more, especially in relation to environmental and ethical risks present within global supply chains.

The work completed does not represent a destination but outlines the importance of continued contract management in helping the category team to deliver the requirements of public policy through its procurements whilst also ensuring stable provision of supplies that help support the learning needs of our children and young people.