Market Management & Control in Transport services

What’s the challenge?

Many councils commissioning transport services rely on a small number of providers, believing that using a limited number is more efficient and manageable. Especially during a time when council resources continue to shrink, demand continues to grow and pressures to evidence value increase.

The reality is, this approach actually halts effectiveness and sustainability.

Experience tells us that the main issue is the risk to supplying services when unforeseen circumstances mean a provider can no longer deliver a requirement. Sadly, this is becoming more frequent as councils continue to work with limited providers whilst relying on ad-hoc routes when things go wrong.

A London authority found themselves in this very position when one of the largest London passenger transport providers ceased trading. The authority used this particular provider to deliver all their passenger transport needs and as a result, it caused disruption to the people that needed the services the most.

It is in these moments that Councils find themselves at the mercy of providers (and their capacity), leading to further risks such as safeguarding and increasing costs.

So what’s the root cause? And how can you solve it?

The cause as we see it, is a significant lack of visibility, engagement and control over all the available providers in the network. Of course, operating as you do currently is entirely logical, because you’re working within your means. But time and again this points to reduced competition, high prices and many niche suppliers excluded as a result.

Not to mention the knock on effect this has on the person needing the service, who is almost overlooked throughout while you’re fighting what seems like endless fires.

This means collaboration between Council and Provider is vital.

It’s also entirely normal to believe you’ve exhausted all options. You’ve tried everything and it simply leads you back to how you’ve always worked. And you’re not alone. Others up and down the country are facing the same problem.

However, results show that there is an alternative, which is sustainable and which is proven to be effective.

Technology and Supplier Engagement is providing the desired management and control councils such as Haringey, Waltham Forest and Cornwall need to ensure a safe, quality and consistent service for their people.

The results:

This approach encourages engaged suppliers who operate on a level playing field. Increasing involvement and competitiveness to drive up quality, meaning the best providers receive routes.

Find out more about how Process Inefficiencies are impacting service delivery and how this impacts Savings.