Public and private sectors must communicate better

Customers and suppliers in construction must improve communication, recognise mutual dependency, and work collaboratively to create win-win solutions.
And suppliers must have a better understanding of public sector objectives and need to do more to implement proper supply chain integration.
These were just some of the key findings of a new report Equal Partners 2, which offers insights on the relationships between private sector suppliers and public sector customers.
Launched by Collaborating for the Built Environment, Business Vantage and the Construction Clients' Group, the report also suggested that customers and suppliers need to prevent experienced staff from moving
around and develop measurement systems, such as key performance indicators, that
add value by improving processes. And these measures should result in the improved performance of frameworks and other long-term arrangements if adopted by the industry.
The document also offered the following conclusions:
n The public sector remains hierarchical, making it difficult to get appropriate levels of delegation and hence prompt decisions.
n Local government is further ahead in implementation, as it has been centrally controlled through the introduction of more regulations and more competitive monies.
n Central government departments are committed at the top. Heads of procurement have secured senior management buy-ins and put in place good frameworks - but delivery so far is patchy.
n Customers are failing to
communicate that they are changing.
n Suppliers don't really believe that changes are happening yet. Although most have improvement programmes, success is patchy here as well.
Stan Hornagold, senior partner of management consultant Hornagold & Hills, welcomed
the report. "It provides information from a wide range of
public areas and should equip the public sector with a vehicle to encourage discussion with its suppliers," he said.