GO-AHEAD
The
Journey to Sustainable Transport
Though a group-wide effort , the procurement function is a key enabler in these initiatives . Take , for instance , Go-Ahead ’ s most prominent asset : vehicles . In one regional transport service , the function procured a new type of bus with a specialised filter that cleans the air as it drives around the city . The company is in discussions for what has the potential to be the largest hydrogen bus order in the UK . These are the nascent stages of an overhaul of the auxiliary fleet as it moves towards sustainable fuels or electrification , and a vital step for the transport operator . However , procurement ’ s role goes beyond the directly passenger-facing facets of the business .
“ Every new tender is an opportunity to reconsider how we do that business ,” says Watts . " So even the routine and the mundane , we ’ ll ask if there is a new way of doing it , or whether we even need that requirement anymore . Our ethos is to invite market entrants in for a discussion before we run a tender . It ’ s so important to do early market engagement , discover who else is out there , who ' s doing things differently , who ’ s innovative and , ultimately , who could bring some value to our operation .”
The results have been surprising but enormously impactful . The first tender Go-Ahead ran under the new sustainability charter was for new ticket vending machines for one of its rail operations . Whilst the tender was ultimately cancelled due to a change in circumstances , it was worth noting that the supplier that came out on top commercially required the largest initial outlay and some of the more expensive service costs , which seems counterintuitive . But this assessment belied the long-term value .
“ If we ' d run that tender several years ago , the supplier with the lowest up front and long-term service cost would have won the commercial section ,” Watts says . " However ,
118 November 2021